Connected Packaging Market Size to Attain USD 74.30 Bn by 2032

Connected Packaging Market Size, Growth and Industry Analysis (2023 - 2032)

The global connected packaging market size is estimated to grow from USD 42.89 billion in 2022 to reach an estimated USD 74.30 billion by 2032, growing at a 5.7% CAGR between 2023 and 2032.

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Report Highlights: Important Revelations

• Global connected packaging sector is poised for growth, starting at a value of USD 42.89 billion in 2022.
• The market is expected to grow, reaching an estimated value of USD 74.30 billion by 2032.
• This expansion is at a consistent CAGR of 5.7% over the period from 2023 to 2032.
• Influence of connected packaging on North American sectors.
• Connected packaging emergence reshaping packaging trends in Asia Pacific.
• QR codes redefining consumer engagement through connected packaging.
• Fusion of digital advancements and food packaging emergence of connected experiences.
• Connected packaging fuelling innovations in e-commerce.

Connected packaging market is growing with the aim of filling the blanks in digitally and physically spaced areas. Probably one of the most difficult examples is integration of QR codes on product packaging. RFID, NFC are other connecting technologies which are widely integrated into packaging. These codes may be scanned by the customer's smartphone camera and it will redirect them to online subjects. The consumer the manufacturer’s website, to know more on the product and company, or if it is the user manual, direct him / her to a specific product page. Intelligent packaging is a fast-developing area that targets big brands mostly, creating new shopping experiences by combining animated gaming, music and sensory imaging with traditional packaging features. This technique adheres to the concept of customer choice theory, that argues that clients look for products and services that are tailor-made to fit their individual needs. Personalization is a proclamation that the company is thinking about customer’s uniqueness, a factor that improves their image and encourages customer loyalty.

The connected packaging is done by making results based upon the user who has scanned the QR code and it is a mode of personalization. If a citizen in a Spanish speaking country scans a QR code on a US manufactured product, they will be guided to the Spanish version of the website. During this process, the technology provider employs customer's geo-location data and his/her device's setting information, which in turn helps the customers receive pertinent products and customer support platforms.

The growth of e-commerce, mainly with the pandemic as a background, has added an additional impulse to the consumer-packaged goods that are made to be connected. The figure e-commerce growth has stabilized a bit more, the jump in online sales was 7.8% in the first quarter of 2023, which was completed by the US Census Bureau. Industries including such as F&B, Pharma and Medical Support Systems/Equipment, and Consumer Packaged Goods have come to realize the big role that packaging in the increasingly tech-reliant, omni-channel economy, has recently acquired.

Companies are using connected packaging to intensify their approach to sustainability issues; as technology advancement, results in the ability to detect private labelled packaging with accuracy as high as 99%. This is one method through which this technology can be made available to consumers with interactive features attractive to the end-user and directly addressing consumer recycling concerns by cloud-based data from the watermarks.

For Instance,

• In March 2024, Fedrigoni’s acquisition of an equity stake in IoT solutions and consulting company, Sharp end added strength to the Italian paper maker connected solutions offer for the smart labels and papers industry.

Connected Packaging Market Trends

• Brands will be able to engage directly with consumers via connected packaging; they will offer interactive experiences through smartphones or digital devices.
• Connected packaging is a feature which tracks products in real-time right from the supply chain. Through implementing RFID tags or even tracking technologies, manufacturers can get access to the information about product movement, storage conditions, and handling practices from manufacturing to retail shelves.
• The packaging helps to deliver the individual marketing messages, promotions and product parameters that are based on the consumer preferences and purchase history.
• Connected packaging solutions support sustainability initiatives by facilitating the provision of knowledge about the product origin, ingredients, and environmental consequences. Brands can take advantage of connected packaging to emphasize their initiatives on sustainability, like using eco-friendly products, emitting less carbon, or supporting ethical sourcing.

Impact of Connected Packaging on North American Industries

The North American market for connected packaging is undergoing major growth, which may be attributed to several key factors. An increasing percentage of the shopping population is always looking for the newest and the most enticing. Digital packaging is perfect for satisfying this need as they do a great job by fusing the online and walk the talk worlds, letting customers dig into online content with a push of a button on the packaging. The growth of the e-commerce sales in North America makes connected packaging adoption to take-off. Increasingly more shoppers shop online, brands thus are looking for advanced novel means to reach the customers of theirs beyond the only bordered of retail stores.

The utilisation of QR codes and interactive features on packaging such as product information, promotions or personalized experiences will bring online shoppers an additional benefit. it is the US in the lead with the number of QR Code scans accounting 25 million globally. According to statistics from a trusted source, this figure rose to a 74.78% share of the total scans by 2022, making up 38 million scans from the top 50 countries. This information shows the great share of American citizens who actively use the technology of QR-Codes and speak the good trend as well.

North American industries covering Sub-Sectors like Food & Beverage, Pharma, Medical Supplies or Devices, and Consumer Packaged Goods are adapting packaging to the consumer experience enhancement. North American manufacturers making headway on sustainable projects. The connected packaging provides an avenue to scale down on waste as well as to optimize recycling initiatives. With the use of technologies like tagging watermarks and the Internet of Things, brands can inform buyers the life of packaging materials by cloud data collection and also provide consumers with recycling information directly through connected packaging. North American connected packaging has a favourable condition, as consumers need interactive experiences, growth of e-commerce, industries wanting to innovate on packaging, and sustainability in focus. These factors are providing sufficient motivation for on-going investment and the creation of new connected packaging products within this region.

For Instance,

• In October 2022, Huhtamaki, a major global provider of sustainable packaging solutions, introduced the new ICON® paper technology initially aimed to be used for ice cream holders and lids that subsidize recycling in the community paper product recycling programs across the United States.

Rise of QR Codes Transforming Packaging in Asia Pacific

Asia Pacific is the centre where the emergence of the new and innovations are often first tested. Nations such as Korea, Japan, and China have come to the forefront of this technology’s implementation, placing QR codes on the packaging to promote their convenience. QR codes play a game changer role in digital marketing toolbox, converting consumers to engage with a physical display by scanning a QR to explore the extent of information collection.

A very important reason for this situation is the trend of putting transparency and reliability in forefront of consumers' relationship with the producer. The smart packaging and product labels are spurring with QR codes, which allow the consumers to discover useful information about the product’s journey such as the field where it was grown, how it was made, its logistics, transportation routes, as well as the ingredients included. This transparency in particular helps build the consumers trust, assuring them that the goods they buy actually correspond to specified quality and authenticity standards.

Asia Pacific market has been through an incredible QR code for packaging growing, and it is believed that the growth is to jump 83% in the coming year. The region applies such exponential growth in the adoption of new technologies that are not only designed with an eye to provide better service and meet the needs of varied consumers. In China, C2C (QR codes) have became inseparable for consumers with 65% of them deeming them optimal wise to achieve credibility. This wide spread acceptance of these codes calls the attention to the crucial influence of QR codes on building credibility and earning customers' trust playing a much more important role in a highly competitive commerce.

Asia Pacific region is the world’s leading region in packaging innovation to relate well with increasing trend. This region will undoubtedly shape the future of the global consumer engaged and brand experience. In light of its various colourful marketplaces, technology-based consumers and leading fields, Asia-Pacific sets the pace for change to prevail in the packaging business.

For Instance,

• In February 2024, Good Day, a brand of fermented milk which is owned by Asahi Beverages Philippines and distributed by Universal Robina Corporation in the Philippines, together with Appetite Creative, a creative technology firm, craft an exciting and emotional link packaging.

Connected Packaging Market, DRO

Demand:

• Interconnected packaging improves consumer engagement by providing their brand with the opportunity for interactive experiences, storytelling, and helpful information. Through packaging solutions that integrate barcodes, augmented reality (AR) or radio frequency identification (NFC) technology, direct interaction with consumers is made possible which results in greater brand awareness and loyalty.

Restraint:

• Technology integration in packaging design may deal with some issues regarding the cost, compatibility, and complexity of implementation. Connected packaging solutions come with technical difficulties, necessity of smooth user interface, and privacy issues. Therefore, all the players in the market should solve them in order to gain consumer acceptance.

Opportunity:

• The innovation in technology like the IoT sensors, smart packaging systems and blockchain integration opens up newer and better packaging alternatives.

QR Codes Revolutionize Consumer Interaction with Connected Packaging

Packaging has gone through a remarkable change shape from time to time. Initially, it served as just a product protection strategy, but later on, it transformed into the primary look of a brand. When connected packaging technologies have been introduced, it becomes more than a package’s visual element and into an important part of the brand narratives. In the contemporary competitive market-place visual appeal is very important in grabbing the consumers’ interest with the main challenge being beyond repetitive customers. Unique and eye-catching design for packaging and labels beautifully contribute to the general style of your product on a shelf by attracting customers to search more. Next on the line is connected packaging which through QR codes reappear or rather explore more alternatives of the physical and the digital world.

The ubiquity of QR codes is beyond anything we have ever witnessed. By the end of 2022, it is estimated that at least 5.3 billion QR codes will be employed for coupon redemption, one of the main applications. These codes allow consumers to rapidly connect with brands hence proving crucial in providing access to product information, while on the other hand, brands can also easily gain feedback from their consumers.

Packaging is the final means of communication between a consumer and a brand whereby consumers expect to get detailed product information from many aspects such as allergens, ingestion, usage, and recycling instructions. It also serves as a critical completion point to develop an enduring bond with consumers for the brands.

The current customers make business sales of the company more than half now i.e. they account for about 60%. Noteworthy is the fact that only an 5% improvement in customer retention can lead to major increases in profits ranging from 25% to 95%. This gives an insight into the need of the packaging for the education and engagement of the customers in addition to the creation of eternity as regards the brand loyalty and prosperity.

For Instance,

• In April 2022, Noissue, a leading New Zealand-based packaging solution provider that offers custom, eco-friendly packaging to businesses of different sizes, has just acquired a team and tools that will help in building microsites and QR codes that are dynamic.

Digital Innovation Meets Food Packaging Rise of Connected Experiences

A food and beverage marketing firm has paid much attention to the increasing movement of connected packaging, which deftly links digital marketing and branded food packaging together. Such a conjunction of technology and package design creates connected packaging that enables the packaging to convert from a traditional food one into marketing tool. With nowadays widespread use of smartphones, food brands can capitalize on that fact and employ connected packaging as a way to interact with their consumers.

Packaging, which is probably the most important marketing tool, plays double duties in placing a brand in the right spot at a point of purchase, as it also contains the necessary information about the product and nutrients Incorporating technologies like QR codes, near-field communication (NFC) tags, and augmented reality (AR) markers into packaging, the latter can become even more multifunctional.

These digital components when a consumer scans or interacts with them by using their smartphones become a whole range of digital experiences. This could involve offering full product details and active stories in addition to fully integrated brand experience. Fundamentally, connected packaging volunteers an additional medium through which food brands can powerfully communicate and engage consumers in the digital age of today.

For Instance,

• In October 2023, The Food Safety and Standards Authority of India (FSSAI) has just published an advisory on incorporating QR codes on food products. These aim to guarantee that blind people obtain all necessary information pertaining to the food they take.

Connected Packaging Drives E-commerce Innovation

E-commerce marketing arguably is one of the most significant drivers in the development of intelligent and interactive packaging. Along with the growing popularity of online shopping, brands are more and more begun to use connected packaging to improve digital shopping as well.

Through the introduction of technologies such as QR codes, near-field communication (NFC) tags, and AR markers onto product packaging, brands can easily link the offline and online environments via Omni-channel marketing. Millions of QR codes are created every day, and as a result, businesses all over the world are able to use these flexible tools to facilitate smooth digital interactions between customers and brands.

Internet-connected packaging gives access to the consumer for a plethora of data and interactive information directly from their smartphones. This touches upon features like product descriptions, user manuals, customer reviews, and even a brand that you might want to experience immersivity. The connectivity of the packaging offers e-commerce a competitive advantage via delightful consumer to product interaction and extra service provision.

Through connected packaging, brands can capture consumer interaction achievements and gather marketing relevant data insights, thus giving them ability to create customized marketing strategies and improve people’s experience. In the fast-paced online shopping world, where consumers’ attention is highly distracted and competition is extremely intensive, connected packages seem to be a promising approach for companies to stand out and strengthen the bonds with online shoppers.

For Instance,

• In February 2022, PepsiCo is an international brand, whereas it holds an Indian brand known as Quaker ® in the oats category, which has come up with a new and modernized packaging design. Oat Milk brand has evolved its packaging with enhanced visual appeal, strengthened health benefits and a QR code at the back to try making new oats recipes every day.

Industry Giants and Innovators Leading the Way in Connected Packaging

The competitive landscape of the connected packaging market is dominated by established industry giants such as Amcor plc, 3M, Stora Enso, Thin Film Electronics ASA, Huhtamaki Oyj, Constantia Flexibles, R.R. Donnelley & Sons Company, BALL CORPORATION, Klöckner Pentaplast, Graham Packaging Company, Avery Dennison Corporation, Emerson Electric Co, American Thermal Instruments, BASF SE, and International Paper. These giants compete with upstart direct-to-consumer firms that use digital platforms to gain market share. Key competitive characteristics include product innovation, sustainable practices, and the ability to respond to changing consumer tastes.

Amcor is committed to using smart packaging technology through offering its innovative products to customers. They are riding on the technologies such as NFC and RFID to make the features like product authentication, supply chain tracking, and interactive consumer experiences the possibility.

For Instance,

• In September 2023, VerifyMe and its subsidiaries Trust Codes Global Limited and Peri Ship Global LLC are a one-stop shop for brand owners who require time and temperature sensitive logistics, supply chain traceability, authentication, anti-counterfeiting, and product enrichment services. They will be demonstrating their solutions alongside Amcor during Pack Expo in Las Vegas.

The focus of 3M lies on the formation of pioneering substances and technologies for the smart packaging. They are focused on manufacturing reliably functioning printed electronics, adhesives, and barrier films that carry NFC-capable labels or QR codes to interact with the consumers and authenticate the brand.

For Instance,

• Packaging sustainability is a hot topic and 3M has been onto it with an innovative paper-based product that can be recycled curbside.

Stora Enso's packaging solutions are green-oriented and innovative, which contributes to its sustainable image. Instead of the traditional materials, they are going to utilize renewables and green technology for the development of smart packaging. The main point of their strategies is the optimization of consumer attitudes with a reduced impact on the environment.

For Instance,

• In January 2023, Stora Enso has finalised the acquisition of the Dutch firm De Jong Packaging Group, a leading corrugated packaging producer in the Benelux countries. Acquiring a business with a market value of about EUR 1,020m was executed today after completion of employee consultation and regulatory clearances.

Thin Film Electronics ASA is involved in printed for smart packaging. The employ creative strategies to make NFC tags and sensors that are cheap and can be used to scale up for brands to embed them in packages to serve the purpose of brand authentication, consumer interaction and supply chain visibility.

For Instance,

• Johnnie Walker Blue Label, which serves as a great example of how big companies in the beverage alcohol branch and smart systems research leaders can completely alter consumers’ experience, as the world-known beverage alcohol corporation Diageo plc will develop and present a smart bottle prototype with Thin Film Electronics ASA.

Connected Packaging Market Player

Connected packaging leading market players are Amcor plc, 3M, Stora Enso, Thin Film Electronics ASA, Huhtamaki Oyj, Constantia Flexibles, R.R. Donnelley & Sons Company, BALL CORPORATION, Klöckner Pentaplast, Graham Packaging Company, Avery Dennison Corporation, Emerson Electric Co, American Thermal Instruments, BASF SE, and International Paper.

Market Segments

By Type

• QR Code
• RFID
• NFC

By End User

• Food and Beverage
• Personal Care & Cosmetics
• Pharmaceutical
• Household
• Chemical
• Electronics
• Others

By Distribution

• E-Commerce
• Retail Stores
• Supermarkets
• Hypermarkets
• Shopping Malls

By Region

• North America
• Asia Pacific
• Europe
• LAMEA