"Binding Intellectual insights for your Business"
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 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.
Request a Free sample to learn more about this report.
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.
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.
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.
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.
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.
To know how our report can help streamline your business, Speak to Analyst
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.
Asia Pacific Internet of Packaging Market Size, 2022 (USD Billion)
To get more information on the regional analysis of this market, Request a Free sample
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 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.
An Infographic Representation of Internet of Packaging Market
To get information on various segments, share your queries with us
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.
CAGR of 5.3% from 2023 to 2030
Value (USD Billion)
By Technology, By Packaging Type, By End-user, and By Region
By Packaging Type
The Fortune Business Insights study shows that the global market was USD 18.50 billion in 2022.
The global market is projected to grow at a CAGR of 5.3% in the forecast period.
The market size of Asia Pacific stood at USD 6.20 billion in 2022.
Based on technology, the barcode & QR code segment holds the dominating share in the global market.
The global market size is expected to reach USD 27.76 billion by 2030.
The key market drivers are the potential benefits offered by the packaging that generate demand in various industries and increasing demand for safe and healthy food.
The top players in the market are Wiliot, Tetra Pak, Scanbuy Inc., Kezzler, Identiv Inc., Sepio Products, CuePath Innovation Designs, Tapwow, Insignia Technologies, RePack, ImpaX.io, Qtrust, Iungo, and others.
“This report is really well done and we really appreciate it! Again, I may have questions as we dig in deeper. Thanks again for some really good work.”- U.S.-based biotechnology company focussing on treatment of chronic pain.
“Kudos to your team. Thank you very much for your support and agility to answer our questions.”- Europe-based provider of solutions to automate data centre operations.
“We appreciate you and your team taking out time to share the report and data file with us, and we are grateful for the flexibility provided to modify the document as per request. This does help us in our business decision making. We would be pleased to work with you again, and hope to continue our business relationship long into the future.”- India-based manufacturer of industrial and specialty intermediates with a strong global presence.
“I want to first congratulate you on the great work done on the Medical Platforms project. Thank you so much for all your efforts.”- One of the largest cosmetics company in the world.
“Thank you very much. I really appreciate the work your team has done. I feel very comfortable recommending your services to some of the other startups that I’m working with, and will likely establish a good long partnership with you.”- U.S. based startup operating in the cultivated meat market.
“We received the below report on the U.S. market from you. We were very satisfied with the report.”- UGlobal hearing aids manufacturer.
“I just finished my first pass-through of the report. Great work! Thank you!”- U.S. based solar racking solutions provider.
“Thanks again for the great work on our last partnership. We are ramping up a new project to understand the imaging and imaging service and distribution market in the U.S.”- World’s leading advisory firm.
“We feel positive about the results. Based on the presented results, we will do strategic review of this new information and might commission a detailed study on some of the modules included in the report after end of the year. Overall we are very satisfied and please pass on the praise to the team. Thank you for the co-operation!”- Germany based machine construction company.
“Thank you very much for the very good report. I have another requirement on cutting tools, paper crafts and decorative items.”- Japanese manufacturing company of stationery products.
“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”- One of the Leading Food Companies in Germany
“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”- Intuitive Surgical
“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”- Major Food Company in Japan
“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”- Ziering Medical
“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”- Major Manufacturer of Precision Machine Parts in India
“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”- Hewlett-Packard
“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”- Global Management Consulting Firm
“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”- UK-based Start-up in the Medical Devices Sector
“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”- One of the Largest Companies in the Defence Industry