Internet of Packaging Market Size, Share & COVID-19 Impact Analysis, By Technology (Barcode & QR Code, Sensors & Tags, Radio Frequency Identification, Near Field Communications, Indicators), By Packaging Type (Boxes & Cartons, Bottles & Jars, Films & Wraps, Mailers, Bags, Tubes, Pouches, Blisters, Others), By End-user (Food & Beverages, Healthcare, Personal Care & Cosmetics, Homecare, Consumer Electronics, Logistics & Transport, Apparel & Accessories, Sports & Retail, Others), and Regional Forecasts, 2023-2030

The global internet of packaging market size was valued at USD 18.50 billion in 2022 and is projected to grow from USD 19.34 billion in 2023 to USD 27.76 billion by 2030, exhibiting a CAGR of 5.3% during the forecast period.

Internet of packaging, also called intelligent packaging, is a packaging technique used to trace, monitor, interact, and manage the quality & safety of the product. It is highly used to reduce human errors, prevent illness caused by rotten food, and eliminate costs.

The market has witnessed the quickest growth owing to high potential properties and valid output. The Internet of packaging disrupts traditional packaging and allows consumers to communicate with companies effectively. QR codes, smart labels, sensors, tags, indicators, RFID, and near-field communication NFC chips are used in the packaging industry, which boosts the market growth.

They are mainly used for consumer engagement, brand protection, product tracking process, and ensuring food safety, and they offer effective solutions for consumer marketing and brand engagement. The cutting-edge technology offers value by providing security, authentication, connectivity, and later transforming product packaging into a data carrier and digital tool. Growing technological advancements and rising demand for safe and healthy food products will enhance the global internet of packaging market growth.

COVID-19 IMPACT

COVID-19 Outbreak Led to a Slowdown in Production Activity in the Internet of Packaging Industry

The sudden occurrence of the COVID-19 pandemic harmed various end-use industries globally. The packaging market witnessed a negative slope owing to several factors such as supply chain disruptions, the slowdown in production activities, strict trade restrictions, and an imbalance in raw material supply. Internet of packaging also experienced a slowdown in regular production activities in the early stages of the pandemic, which impacted the market growth. The market also faced severe sales decrease as governments worldwide imposed lockdowns and shutdowns. However, with the growing concern about food safety and obtaining accurate and high-quality products, the market will witness rapid growth in the post-pandemic era. Increasing consumer awareness regarding product safety and quality will also lead to massive growth in the market during the post COVID-19 era. The market is anticipated to recover quickly as many end-use industries have resumed operations.

LATEST TRENDS

Increasing Demand for Sustainable Packaging Products

Sustainability is an essential trend in the market as consumers have been more concerned about the environment in recent years. Various initiatives for plastic reduction, recycling, and sustainable packaging solutions contribute to the rising demand for sustainable packaging products. For instance, Coca-Cola arranged a Recycling Challenge at the Active & Intelligent Packaging Association (AIPA) World Congress in 2019. The challenge majorly focused on working on smart packaging and encouraging recycling activities. In addition, Touch code provided smart caps for beverage bottles of the Coca-Cola Company and a connected fridge-pack that can be easily printed with conductive ink. It enabled end-users to scan with their smartphones & receive appropriate information on the bottle recycling & the recycling facility which is nearest to their residence. Further, the emerging trend of contactless purchases and delivery will likely boost the market sales. Moreover, the augmenting need for smart, interactive, eco-friendly, and user-friendly packaging solutions for several end-use industries will propel the demand for internet of packaging.

DRIVING FACTORS

Potential Benefits Offered by Internet of Packaging Boosts Market Growth

Internet of packaging protects the product, sustains, monitors its quality, and ensures product safety. It eliminates human error and cost and prevents ailments such as food poisoning by warning the consumers. Moreover, it has the potential to gauge attributes such as the inner atmosphere of the package. The packaging solution also allows communication of the relevant information to the end-users. They also ensure product protection tracking process optimization. Such factors contribute to the vast growth of the market globally.

Further, its unique functions, such as tracking real-time data, recording, detecting, communicating, and applying scientific logic, offer significant consumer marketing solutions. The growing demand for multi-specialty wrapping to maintain nutritional and health value and retain the freshness and quality of the products also propels the market growth. Furthermore, the increasing investments in research and development for innovative packaging will also enhance the global sales. The changing consumer preference for comfort food is also expected to drive the market in the forthcoming years.

Increasing Demand for Safe and Healthy Food Fosters the Global Demand for Internet of Packaging

The increasing food and beverages industry is one of the key factors bolstering the internet of packaging market growth. The food and beverage industry has the fastest growth due to strict food safety policies worldwide. The surge in demand for potential packaging solutions that can maintain the quality of food products drives market growth. Consumers have increased their focus on consuming high-quality food products regarding taste, safety, color, and expiry date. Moreover, the increasing need for fresh and quality packaged food, along with the rising concerns regarding the shelf life of food and consumers' convenience, propels the growth of the market. The demand for ready-to-eat, frozen, and packaged food is high due to the changing urban lifestyle & population trends, which also contributes to the market growth. Internet of packaging offers potential food security solutions while maintaining nutritional value, thus enhancing global market growth over the forecast period.

RESTRAINING FACTORS

High Hardware and Software Costs Hinder the Market Growth

The critical factor impeding the market growth is the high cost associated with hardware, software, and training expenditures. Internet of packaging solution is relatively more expensive than traditional packaging solutions. Moreover, the development of the market is restricted by the rising concerns about various legislation & standards for the use of plastic in the packaging industry. Further, consumers find it difficult to accept food products with non-digestible ingredients. It is also expected to hamper the global market growth.

SEGMENTATION

By Technology Analysis

Barcode & QR Code Segment Dominates the Market Growth Due to Several Potential Benefits

Based on technology, the market is segmented into barcode & QR codes, sensors & tags, radio frequency identification, near-field communications, and indicators. The barcode & QR code segment is gaining immense growth. QR codes for smart packaging offer consumer interactions with their preferred brand. It reinforces trust and enhances brand perception significantly. They are also effective in providing product transparency, improving customer engagement, collecting data and insights, combating food waste, and adhering to regulatory standards and compliance. Additionally, the segment also plays a significant role in boosting the sales of new brands, further leading to the rapid growth of the market.

By Packaging Type Analysis

Boxes & Cartons is the Dominating Segment Due to High Utilization in Product Packaging

Based on packaging type, the market is segmented into boxes & cartons, bottles & jars, films & wraps, mailers, bags, tubes, pouches, blisters, and others. Boxes & cartons segment is the dominating segment of the market. Boxes and cartons are commonly used for packaging a wide range of products. The packaging type offers easy sensing, tracing, recording, detecting, and providing important information on the current state of the product through the use of internet of packaging. It acts as a key factor for the segment's rapid growth. Anti-counterfeiting and brand protection tracking systems can be easily carried with boxes and cartons. Moreover, as the packaging type reduces waste and costs, it is expected to witness huge growth in the coming years.

By End-user Analysis

Food & Beverages Segment Accounted for the Largest Segment Owing to Consumer Demand for Food Safety

Based on end-user, the market is segmented into food & beverages, healthcare, personal care & cosmetics, homecare, consumer electronics, logistics & transport, apparel & accessories, sports & retail, and others. Food & beverages is the dominating segment. Application of internet of packaging technologies in the food and beverages sector enables the correct food safety breaches and offers the end-users accurate product-related information. It is also cost-effective and minimizes the time required to detect an event, track food safety, and save money. The rising consumer demand for high-quality and safe food products increases the need for internet of packaging. It causes less confusion and fewer recalls. Henceforth, the food & beverages segment is expected to witness rapid growth in the forecast period.

REGIONAL INSIGHTS

The market is analyzed across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

North America dominates the global internet of packaging market share. It can be attributed to the region's augmenting demand for packaged and frozen food products. Europe is expected to attain steady growth over the forecast period. The demand for self-heating and cooling packaged products in the food & beverage industry will offer profitable growth opportunities in Europe.

The Asia Pacific market share is projected to increase in the forthcoming years. The region's main market expansion drivers are changing lifestyles, augmenting the need for advanced packaging solutions, and improved product traceability. The Latin American region will experience moderate growth due to consumers' changing purchasing behavior and lifestyle and growing demand for connected packaging solutions. The Middle East & Africa region will experience steady growth due to large healthcare industries.

KEY INDUSTRY PLAYERS

Key Participants in the Market Witnessing Significant Growth Opportunities

The global internet of packaging market is extremely competitive and fragmented. A few big firms control the market in terms of market share by providing creative packaging for the packaging sector. These market leaders are continually concentrating on growing their consumer base throughout the world.

Major players operating in the market include Wiliot, Tetra Pak, Scanbuy Inc., Identiv Inc., and Kezzler. Several other players operating in the industry are aimed toward delivering advanced packaging solutions.

Key Companies Profiled:

• Wiliot (Israel)


• Tetra Pak (Switzerland)


• Scanbuy Inc. (U.S.)


• Kezzler (Norway)


• Identiv Inc. (U.S.)


• Tapwow (U.S.)


• Sepio Products (India)


• CuePath Innovation Designs (Canada)


• Insignia Technologies (U.K.)


• RePack (Finland)


• ImpaX.io (Israel)


• Qtrust (U.K.)


• Iungo (Brazil)

KEY INDUSTRY DEVELOPMENTS:

• May 2022 - Avery Dennison declared its strategic partnership with Wiliot, a developer and provider of digital ID technologies. The strategic partnership will scale the IoT by integrating atma.io and the design, development, and manufacturing of Wiliot tags, creating an intelligent and fully connected IoT.


• April 2022 - Sealed Air Corporation, a packaging company based in the U.S., launched a digital packaging brand PRISTIQ. It is a digital packaging brand with a portfolio of solutions for design services, digital printing, and intelligent packaging, and which reduces waste and excess packaging & enhances products and customer engagement.


• January 2022 - The pioneer of the IoT, Wiliot, announced the launch of the Wiliot Starter Kit. The company further stated that visitors could win free Starter Kits at the NRF 2022. Wiliot is known for its stamp-sized and self-powered computers and cloud-based privacy and sensing.


• March 2021 - Amcor Plc. and JD Farm announced the launch of a new packaging enabled with Near Field Communication (NFC) in China. The product can revolutionize how end-users can interact with the packaging. The new NFC-enabled packaging eases the process of accessing information regarding the safety, product quality, and product origin of JD Farm.


• September 2020 - The leading SmartLabel QR code package activation company, Scanbuy Inc., declared the strategic expansion of its own SmartLabel Platform. With the expansion, the company also adds menu and product portfolio pages to its existing solution set.

REPORT COVERAGE

The research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product/service types, and leading applications of the product. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the growth of the market in recent years.

Report Scope &Segmentation