Active and Intelligent Packaging Market - Global Outlook and Forecast 2019-2024

INDUSTRY INSIGHTS

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 packing 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 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 packing 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 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 growing demand for frozen packaged food products in North America and Europe is a major key factor fueling the growth of active packing market. It has a large share in the 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 packing to ensure that the product is displayed for a longer duration at the retail shelves. Further, active packing has a better growth rate than intelligent ones in developing countries, as it is more inexpensive than smart packaging.

The global active and intelligent packaging market is expected to grow at a CAGR of more than 4% during 2018–2024.

ACTIVE AND INTELLIGENT PACKAGING MARKET SEGMENTATION

This research report includes detailed segmentation by application, active packaging system type, intelligent packaging system type, and geography.

 INSIGHTS BY APPLICATION

The rise in safety concerns in the pharma industry will drive the market for interactive packaging solutions

The food sector is the major end-user in the market. The need to extend the shelf life of processed and packaged fresh foods is driving the demand for active and intelligent packing materials in the food segment. However, the demand for active packaging market is slightly higher than intelligent solutions due to the accessibility of food products at rational rates using active packing.

The prevention of counterfeiting in the beverage industry is another major driver for the rise of interactive packing. Further, this helps manufacturers to focus on differentiation, authentication, and extending shelf life.

The adoption of active and intelligent packing is becoming popular in the pharma industry. The compliance with the FDA regulation in terms of packing materials is driving the demand for the pharma industry. Changing consumer behavior, which focuses on connectivity and product information, is likely to lead the adoption of advanced packaging.

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.

INSIGHTS BY 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 market. Sachets and labels dominate the segment. The ease of procurement and abundance of active ingredients makes active packing an attractive option among brands.

The following are different categories of gas-based scavengers used:

• Oxygen scavengers
• Carbon dioxide scavengers/emitters
• Ethylene scavengers/emitters

The market for external gas components (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 packing 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 products. This is used to absorb moisture, thereby offering an extended shelf life. High usage of moisture absorbers has been witnessed for packing fresh meat, poultry, and seafood.

The other systems used include:

• Flavor or odor absorbers and controllers
• Self-venting films
• Anti-microbial elements
• Self-heating and cooling packaging
• Antioxidants

INSIGHTS BY 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 packing market. The following are different categories of intelligent packing:

• Interactive Packaging
• Indicators
• Sensors

Near Field Communication (NFC), Radio-Frequency Identification (RFID), and QR Codes are the major Interactive packing products. The market for interactive packing is growing as consumer’s loyalty programs require value-added features to retain customers. 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 packing systems due to the high cost and low absorption rates.

INSIGHTS BY GEOGRAPHY

The demand from F&B and pharma end-users is expected to lead the 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 packing, is further boosting the growth 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 market due to high spend on food and beverage and pharma sectors. The high penetration of the internet and e-commerce are expected to boost the growth in APAC region 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 Europe is likely to gain some clarity over the Brexit. The demand for interactive packing is high in Western Europe. The commercial application of innovative active and intelligent packing 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 pharma industry in Germany increased by 5% in 2018, especially in the cold chain pharma sector. Further, the UK, Spain, and Italy are the highest revenue contributors, witnessing substantial growth in the market.

The market in North America is growing at a healthy rate due to high volume consumption and value generation potential. The F&B sector is one of the major revenue generators as the region is characterized by consumers high disposable income. Further, the demand from F&B and pharma end-users is expected to be leading 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 packing volumes by over 7.3% in 2018. However, the consumption and demand trends between Middle-east and African regions vary significantly.

Latin America is one of the major producers and exporters of meat, poultry, and seafood. This huge production would need highly effective packing and active ingredients to help export to the US and Canada.

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 are invested mostly in smart packaging solutions for intelligent packing as they provide better cost on investment and are more efficient with their functionalities. Many new vendors have come into existence with a focus on single product specialization. The key competitive factors in the industry include price, quality, adherence to newly evolving regulations, and R&D investments.

Key Vendors

• Avery Dennison
• DuPont
• Stora Enso
• Timestrip
• Thinfilm Electronics

The active and intelligent packaging market research report includes industry analysis with revenue and forecast insights for the following segments:

Segmentation by Applications

• Food
• Beverages
• Healthcare
• Others

By Active Packaging System Type

• Gas Scavengers
• Moisture Control System
• Microwave Susceptors
• Others

By Intelligent Packaging System Type

• Interactive Packaging
• Indicators
• Sensors

By Geography

• APAC
  • China
  • Japan
  • Australia
  • India
  • South Korea
  • Singapore
• Europe
  • Germany
  • France
  • UK
  • Italy
  • Spain
• North America
  • US
  • Canada
• Latin America
  • Argentina
  • Brazil
  • Chile
  • Colombia
  • Mexico
• MEA
  • Turkey
  • Saudi Arabia
  • South Africa
  • Egypt
  • UAE