This market research report on the active and intelligent packaging market offers analysis on market size & forecast, market share, industry trends, growth drivers, and vendor analysis. The market study also includes insights on segmentation by application (food, beverages, healthcare, and others), active packaging system type (gas scavengers, moisture control system, microwave susceptors, and others), intelligent packaging system type (interactive packaging, indicators, and sensors), by geography (APAC, Europe, North America, Latin America, and MEA).
The active packaging market is expected to hold a larger share in the global active and intelligent packaging market
Anti-microbial packaging is one of the latest additions in the global packaging market. The increased use of anti-microbial packaging agents as a mechanism to maintain safety and preserve the quality of food items for a longer duration is one of the major factor driving the global active and intelligent packaging market. The flexibility of using both synthetic polymers and edible films is the major driver for anti-microbial packaging.
The increasing usage of RFID and barcodes in industrial setups to streamline the supply chain process is one of the major factors for the rise of intelligent packaging solutions. Therefore, the inclusion of additional features/functionalities such as providing information for the integrity of the package and quality of the contents stored in the package throughout the logistics will accelerate the demand for RFID packaging solutions.
The edible coating on food products is a new technology driving the active packaging industry. It is highly used to pack frozen and chilled food products. The high demand for frozen food products in North America and Europe is a major key factor fueling the growth of active packaging market. Further, factors such as recyclability, edibility, visual appeal, and strong barrier properties are contributing to the high adoption of edible coating material.
Active packaging has a large share in the global packaging market, as it requires low investments. Antioxidants and preservatives used in this type of packing are inexpensive to procure, hence can be easily adopted by vendors. Brand manufacturers are increasingly using active packaging to ensure that the product is displayed for a longer duration at the retail shelves. Further, active packaging has a better growth rate than intelligent packaging in developing countries, as it is more inexpensive than smart packaging.
In addition, product counterfeiting is rampant in APAC and Africa with an immense impact on food, beverages, and pharmaceutical industries. However, the introduction of intelligent packaging solutions to prevent product counterfeiting is expected to rise in the supply chain market on a large scale. Further, with the increase in smartphone penetration worldwide, the demand for interactive intelligent packaging is expected to rise. Africa and APAC are expected to be major markets for authentication-based intelligent packaging solutions as established pharmaceutical and food vendors are aiming to expand the scope and scale of their businesses in these regions. The global active and intelligent packaging market is expected to grow at a CAGR of more than 4% during 2018–2024.
This research report includes detailed market segmentation by application, active packaging system type, intelligent packaging system type, and geography.
Active and Intelligent Packaging Market: Application
The rise in safety concerns in the pharmaceutical industry will drive the market for interactive packaging solutions
The food sector is the major end-user in the active and intelligent packaging market. The need to extend the shelf life of processed and packaged fresh foods is driving the demand for active and intelligent packaging materials in the food segment. However, the demand for active packaging market is comparatively higher than intelligent packaging solutions due to the accessibility of food products at rational rates using active packaging. Further, the continued growth of organic food is expected to boost the demand for oxygen scavenger - the technique to remove or decrease the level of oxygen in the package - sachets, labels, or film forms.
The active and intelligent packaging market by the beverage sector is growing in the form of labels. Further, interactive packaging is more prevalent in the beverage industry. The prevention of counterfeiting in the beverage industry is another major driver for the rise of interactive packaging. Further, this type of packaging helps manufacturers to focus on differentiation, authentication, and extending shelf life.
The adoption of active and intelligent packaging is becoming popular in the pharmaceutical industry. The compliance with the FDA regulation in terms of packaging materials is driving the demand for the pharmaceutical packaging market. Changing consumer behavior, which focuses on connectivity and product information, is likely to lead the adoption of advanced active and intelligent packaging. Also, the rise in safety concerns will drive the market for robust labeling features, NFC, RFID authentications, QR scanning, and other interactive packaging solutions.
The other application areas of active and intelligent packaging market include personal care, pet food, household products, and other non-food categories. The cosmetic industry is expected to have a positive impact on the market. Further, the US, Germany, France, and China are likely to drive the growth rate of the other segment during the forecast period due to the increased per capita income and the expansion of retail stores. Also, the advent of multi-national retail chains and brands is expected to increase the usage of intelligent packaging solutions, thereby driving the global active and intelligent packaging market.
Active and Intelligent Packaging Market: Active Packaging System
Film pads, sachets, and sheets are the commonly available moisture absorbers packaging products.
The need to extend shelf life and maintain high-quality of food items is boosting the active packaging market. Sachets and labels dominate the active packaging segment. The ease of procurement and abundance of active ingredients makes active packaging an attractive option among brands.
The following are different categories of gas-based scavengers used in active packaging:
The market for external gas component (gas scavengers) is gaining ground due to the low cost and does not require any change in the production line. Commercially, oxygen scavengers are most widely used in the active packaging market. With the growing concerns over metallic elements coming in contact with food items, non-metallic oxygen scavengers are gaining prominence.
Film pads, sachets, and sheets are the commonly available moisture absorbers packaging products. This is used to absorb moisture, thereby offering an extended shelf life. High usage of moisture absorbers has been witnessed for packaging fresh meat, poultry, and seafood.
Microwaveable popcorn, microwaveable pizza, pies, French bread, eggrolls, and others are the major application areas of microwave susceptors. The market for microwave susceptors is expected to grow at a healthy rate during the forecast period as susceptors can be temperature-controlled to speed up and improve the product texture.
The other systems used for active packaging include:
Anti-microbial packaging has gained high prominence in the active packaging market. The food packaging market is introducing less toxic content such as the biologically sourced polysaccharide-based films, which is likely to fuel the active and intelligent packaging market during the forecast period.
Active and Intelligent Packaging Market: Intelligent Packaging System
Microbial growth indicators are in high demand in Europe and the US due to stringent hygiene regulations
The growing consciousness among European and North American brands to adopt the technology that reduces food wastage, improves food taste, and increases shelf life of processed food products is a major contributing factor to the intelligent packaging market. The following are different categories of intelligent packaging:
Near Field Communication (NFC), Radio-Frequency Identification (RFID), and QR Codes are the major Interactive packaging products. The market for interactive packaging is growing as consumers loyalty programs require value-added features to retain customers. Further, with counterfeit medicines estimated to be 10% to 15% of the overall drug output, the benefit of using NFC in conjunction with smartphones have made the pharmaceutical industry as one of the high potential markets for vendors. Cost-effectiveness and easy application of indicators are major reasons for their application in the smart packaging market. Further, microbial growth indicators are in high demand in developed countries such as Europe and the US due to hygiene regulations. The adoption of sensors is less than other intelligent packaging systems due to the high cost and low absorption rates.
Active and Intelligent Packaging Market: Geography
The demand from F&B and pharmaceutical end-users is expected to lead the active and intelligent packaging market in North America.
The high demand for active gas scavengers and emitters across industries is driving the market in APAC. The growing retail landscape, along with organized packaging, is further boosting the market in the region. The retail and packaging market is pushing vendors to adopt advanced techniques, which help to provide high-quality products with increased shelf life. Countries such as Australia, Japan, and China are the major countries that drive the packaging market due to high spend on food and beverage and pharmaceutical sectors. Also, the high penetration of the internet and the rise of e-commerce are expected to boost the active and intelligent packaging market in APAC during the forecast period.
The growth trend for active and intelligent packaging market in Europe is expected to be faster in the second half of the forecast period, as the market is likely to gain some clarity over the Brexit. Countries such as Germany, have pushed for intelligent packaging to reduce food wastage, improve food safety, extend shelf-life, and increase the freshness of eatables. The demand for interactive packaging is high in Western Europe. The commercial application of innovative active and intelligent packaging is an emerging technology, which is not limited only to food, but also to other non-food industries. The demand for time-temperature indicators in the pharmaceutical industry in Germany increased by 5% in 2018, especially in the cold chain pharmaceutical sector. Further, the UK, Spain, and Italy are the highest revenue contributors, witnessing substantial growth in the active and intelligent packaging market.
The active and intelligent packaging market in North America is growing at a healthy rate due to high volume consumption and value generation potential. Factors such as the availability of raw materials for active and intelligent packaging, the presence of technologically advanced ecosystems, and less complex nature of regulations are driving the market in the region. Also, a vast majority of the population is health-conscious, hence the market has observed increased demand for organic food products, which require efficient packaging to ensure high quality. The F&B sector is one of the major revenue generators for active and intelligent packaging market as the region is characterized by consumers high disposable income. Further, the demand from F&B and pharmaceutical end-users is expected to lead the active and intelligent packaging market in the region.
The rise in economic prosperity, coupled with a growing population in the Middle East and Africa, has been a significant driver for the packaging industry. The rise in food consumption has increased packaging volumes by over 7.3% in 2018. However, the consumption and demand trends between Middle-east and African regions vary significantly. Modern retail stores in the Middle East offer high potential for brands to incorporate intelligent packaging as the region has one of the highest GDPs per capita. Packaging products are competitively priced as the MEA region is a major production hub for polymers resins. Investments in food processing, especially meat and poultry in the UAE have positively impacted the active and intelligent packaging market. The packaging market of South Africa contributes 2.5% to its GDP. Nearly 50% of the materials used are recycled and is increasing YOY. However, the recycling of hardware component embedded intelligent packaging is complex and lacks standardization. The market penetration is expected to be limited. The demand for renewable material is high as environmental regulations are strong. Hence, bio-based active and intelligent packaging components are positively affected by the packaging market.
Latin America is one of the major producers and exporters of meat, poultry, and seafood. This huge production would need highly effective packaging and active ingredients to help export to the US and Canada. The retail and consumer industry in Brazil contributed nearly 20% to the GDP of the country. The retail supermarket segment alone contributed around $60 billion to GDP. The growth of modern retail stores on account of FDI investment and foreign players collaborating with domestic retailers, the infrastructure required for intelligent packaging is expected to increase. With Brazil having more than 90,000 stores, the demand for packaging and shelf life increasing active agents is expected to witness growth, albeit limited to premium and niches food products and some products of pharmaceuticals.
Key Profiled Countries
Key Vendor Analysis
The active and intelligent packaging market is highly fragmented with no clear global leader providing a full portfolio of products and services. It is characterized by the presence of diversified companies at local, regional, and international levels. Vendors in the market are invested mostly in smart packaging solutions for intelligent packaging as they provide better cost on investment and are more efficient with their functionalities. Many new vendors both in active and intelligent packaging have come into existence with a focus on single product specialization. The active packaging market will see the high level of competition at the local or regional level as it does not require huge capital investment and patents, unlike the intelligent packaging, where packaging and technological company have to collaborate. The key competitive factors in the industry include price, quality, adherence to newly evolving regulations, and R&D investments.
Other prominent vendors are Amcor, Bemis, Sonoco Thermosafe, Sealed Air, Westrock, Mitsubishi Gas Chemical, Tropack Packmittal GmBH, Cryolog, Crown, Graphic Packaging, TC Transcontinental, and Desiccare.
Key Market Insights
The analysis of the global active and intelligent packaging market provides market sizing and growth opportunities for the forecast period 2019–2024.
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