Smart Food Packaging Market

Smart Food Packaging Market Size, Growth (2023-2028)

The Global Smart Food Packaging Market size was worth USD 39.14 billion in 2022, and it is anticipated to reach a valuation of USD 48.97 billion by 2028, developing with an annual expansion rate (CAGR) of 4.49% between 2023 and 2028.

Market Overview:

Packaging remains an important issue for food manufacturers, as it maintains the quality of food between processing and use by consumers. Smart food packaging is an advanced form of packaging that provides the three traditional basic packaging functions of protection, communication, and containment, plus additional features such as freshness control, long shelf life, and increased security. Additionally, smart food packaging is widely used by a variety of end-user segments to add value to products, enhance brand image, and increase consumer appeal. In smart food packaging, various quality indicators are adding additive technologies including antimicrobial agents and oxygen scavengers, mainly based on gas detection and temperature control of products to reduce spoilage and contamination of food. Therefore, Smart Food Packaging includes a combination of science, specialty materials, and technologies to provide advanced protection. The growing trend towards sustainability and improving product safety has led to innovation in packaging technology. Smart food packaging includes two ways to improve packaging functionality (active packaging and smart packaging). The first involves prolonging the shelf life of a food, while the second involves monitoring certain aspects of a food based on its ability to detect, record and communicate information within and outside the product environment.

Smart Food Packaging Market Growth:

The global Smart Food Packaging market is supposed to experience exponential growth as demand for advanced packaging solutions increases in various pharmaceutical and food processing sectors.

REPORT COVERAGE:

Drivers:

The global Smart Food Packaging market is expected to grow over the next eight years as demand for green and sustainable products increases due to increasing demand from the pharmaceutical and food and beverage industries. Additionally, increasing investment in R&D to reduce our carbon footprint has the potential to drive growth over the forecast period. Smart Food Packaging has been widely adopted by the food and beverage industry around the world due to some additional features, such as preventing food spoilage, improving product properties and improve shelf life of the products. Smart Food Packaging devices such as time and temperature indicators, gas detection devices, microbial growth indicators, freshness indicators and biosensors have been used throughout the food and beverage packaging and supply chain to boost the Smart Food Packaging market. Market growth is evolving due to the exploration of nanotechnology for a variety of food and beverage applications, the demand for storage stability and sustainable packaging solutions among food and beverage retailers and manufacturers, and the increasing consumption of products. The development of printing processes in various industries has also become a driving force in the global Smart Food Packaging market. Printing technology has proven its role in process processing and information display on paper and other substrates. Therefore, a great deal of scientific research has recently been carried out on printed electronics and RFID technology, creating a framework for the potential development of Smart Food Packaging applications.

Increased investment in the development of Smart Food Packaging using sensing devices such as NFC (Near Field Communication), RFID (Radio Frequency Identification) and smart labels is supposed to create new opportunities for future industrial development. The toxic substances used in traditional packaging, especially those for food, are harmful to the health of the consumer. As a result, consumers prefer smart packaging for a safe and hygienic product. Additionally, the demand for smart packaging is estimated to increase in the coming years as the lifestyle of millennials changes along with rising disposable income. Due to the cumulative effects of increased disposable income and a busy lifestyle, consumers prefer Smart Food Packaging that are easy to cook and are willing to pay more for packaging solutions that increase the shelf life of their products and they maintain adequate nutritional value.

One of the biggest factors expected to drive demand for Smart Food Packaging during the outlook period is a growing health awareness among consumers. The Smart Food Packaging market is growing as customer lifestyles change due to rapid urbanization and the use of personal items expands through advanced integrated innovation. Also, unfamiliar geographic markets that provide huge open doors to market participants depend on the global market to drive the industry forward. Regional government regulations on food waste are also a driving force behind the worldwide Smart Food Packaging market. The development of printing processes in various industries was also a driving force in this market. Increasing industrialization in various regions, certain product safety, and brand protection are also other factors driving the Smart Food Packaging business.

Restraints:

High prices for raw materials for flexible plastics manufacturing are likely to hamper market growth during the foreseen period. Excessive fees, safety concerns and capital costs for new technologies to manufacture these sensors and indicators that are compatible with current packaging standards and consumer perceptions are major constraints and challenges to the Smart Food Packaging market growth. The use of Smart Food Packaging is estimated to increase the price of the final product, negatively impacting demand. Smart Food Packaging does not generate waste, is unsustainable for recycling, and is one of the main challenges in the Smart Food Packaging industry.

Smart Food Packaging Market Segmentation Analysis:

Based on the technology, the Smart Food Packaging market has been divided mainly as active packaging, intelligent packaging, and refurbished atmospheric packaging. The active packaging segment has been subdivided into gas collector, humidity control, antibacterial and corrosion control. The intelligent packaging segment has been subdivided into Radio Frequency Identification Detection (RFID), Time-Temperature Indicator, Quick Response Code (QR Code), and Near Field Communication (NFC). The active packaging segment held the largest market share in the global smart packaging market in 2020, while the intelligent packaging segment is the fastest growing segment is projected to grow during the outlook period. The reasons attributed to the market growth of the active packaging segment are the benefits of extending the shelf life of food products and maintaining the quality of food during packaging.

On the basis of the application, the Smart Food Packaging market has been segmented into health, food and beverage, personal care, automotive and others. Reasons such as increasing consumer demand for fresh and high-quality products and manufacturers' concerns about the long shelf life of packaged foods and food products are driving the global market for smart packaging technology in food and drinks.

Geographical Segmentation Analysis:

• North America - the United States and Canada
• Europe - United Kingdom, Spain, Germany, Italy, and France
• The Asia Pacific - India, Japan, China, Australia, Singapore, Malaysia, South Korea, New Zealand, and Southeast Asia
• Latin America - Brazil, Argentina, Mexico, and Rest of LATAM
• The Middle East and Africa - Africa and Middle East (Saudi Arabia, UAE, Lebanon, Jordan, Cyprus)

Regional Analysis:

Europe had the highest sales in the global Smart Food Packaging market in 2020, followed by North America. Europe is expected to see significant demand as governments increase their emphasis on reducing the toxic content of packaging. Increased R&D activity in the pharmaceutical industry to enhance strict legal compliance is expected to drive growth in the industry. North America has become the largest market in 2020 and accounts for almost half of the world market. Rapid growth in industries such as pharmaceuticals, food and beverage, logistics, automobiles and manufacturing, as well as a steady recovery from the recession, are supposed to drive demand in the coming years. The Asia Pacific region is anticipated to experience the most promising growth during the envisioned period. With the increasing use of RFID (Radio Frequency Identification) tags, the most important factor is expanding Smart Food Packaging in various logistics industries. It is likely to drive the demand for Smart Food Packaging in the Asia Pacific. The pharmaceutical market in the region is also expected to revitalize during the envisioned period as consumers in the Asia Pacific, especially consumers in developing countries, including China and India, increase their health awareness and increase the disposable income of consumers.

Key Players in the Market:

Major key Players in the Global Smart Food Packaging Market are

• TempTime Corporation
• 3M
• American Thermal Instruments
• PakSense
• RR Donnelly Sons & Company
• Avery Dennison Corp
• International Paper
• BASF SE
• Thin Film Electronics ASA
• Stora Enso
• Crown Holdings Inc
• Timestrip, PLC
• Ball Corporation
• Constar International Inc
• Ampacet Corporation
• Bemis Company, Inc
• Multisorb Technologies
• Graham Packaging Company Inc
• Rexam PLC