Intelligent Packaging for Circular Economy - Opportunity Analysis
Intelligent Packaging is a term denoted for all packaging material types that enable product safety monitoring, tracing and tracking of ingredients, temperature control of packaged goods, as well as interaction with the consumers.
The primary objective of intelligent packaging is to combat waste generation, improve overall product shelf life, reduce the risk of counterfeiting, and improve tracking and tracing of products. All pivotal to achieving a circular economy, with the primary focus being on incorporating sustainable and recyclable packaging material. Key Intelligent packaging technologies that are being used today range from temperature sensors, pH sensors, freshness indicators, time temperature indicators, RFID tags etc. Future Market Insights whitepaper ‘Intelligent Packaging for Circular Economy’ in collaboration with Graham Packaging and Avery Dennison, explores the future scope of the intelligent packaging market that can enable the Circular Economy. It provides a market opportunity analysis of the intelligent packaging market across industries, future adoption and demand forecast for intelligent packaging solutions, and it’s the role in establishing sustainability and circular economy. The whitepaper also elaborates on various active, smart and intelligent packaging solutions that are in use today and how they are benefitting the industries.
The intelligent packaging market is expected to see explosive growth in the future, given its multi-faceted ability to create a lasting impression and maintain product quality. This has made it an essential asset for different end user industries. Pharmaceutical, food & beverage and consumer goods industries are driving the growth of their businesses through intelligent packaging. The intelligent packaging market is majorly driven by smart, interactive and connected packaging solutions that not only help in tracing the product but also notify about the well-being of the product through RFID tags and sensors. This, in turn, is gaining the trust of consumers and increasing investment in the same.
The packaging industry is under constant scrutiny for its non-degradable packaging solutions that create tons of waste and pollute the planet. This has led packaging companies to redesign existing packaging models and make them more environmentally friendly. Thus, from using less water to reducing carbon emissions, packaging companies are taking every step to offer intelligent packaging.
How will Prospects for Intelligent Packaging Market Grow?
Manufacturers are realizing the possibilities existing within the intelligent packaging market in terms of recyclability, monetary advantages, and environmental friendliness. Companies are using intelligent packaging solutions to attract a growing segment of eco-conscious customers who demand recyclable and sustainable packaging. With emerging innovations and material development, packaging is no longer a secondary factor; these packaging developments have the potential to disrupt existing business models.
Most end user industries are relying on intelligent packaging to drive customer engagement and gain brand loyalty. Intelligent packaging is not only helping in tracing, tracking and informing the content and whereabouts of the product but also bridging the gap between consumers and manufacturers. With the integration of intelligent packaging, manufacturers are able to gain deeper insights into product shelf-life, changing behavior and characteristics of products due to external weather and are able to identify reasons for product damage during transportation.
Global market for intelligent packaging is experiencing steady growth, with intelligent packaging sales expected to account for 5% of total packaging sales by 2030
The intelligent packaging market growth is projected at 9% until 2031 and is expected to garner a market value of 46.7 Billion by 2031
Within food, the dairy segment, fruit and vegetable segment, and ready-to-eat segment are the major revenue generators for intelligent packaging, creating a US$ 5.5 Billion incremental opportunity during the forecasted period.
Several growth factors are anticipated to bolster the intelligent packaging market size in the future. Intelligent packaging market leaders currently rely primarily on key technological advancements, such as nanotechnology, to provide packaging solutions that safeguard food, beverage, personal care, and pharmaceutical products. Simultaneously, active and smart labels (RFID tags, barcodes, Bluetooth packaging) are increasing in demand in the intelligent packaging sector. As the worldwide import and export of rare active pharmaceutical ingredients (APIs), edibles and drinks have expanded in recent years, active packaging is seeing rapid growth.
The main purpose of intelligent packaging in the food and beverages industry is real-time food monitoring. This allows for the tracking and gathering of information about processes such as rancidity, oxidation, or reactivity with other biotic components. Modified atmosphere packages (MAPs) for carbon dioxide detectors, oxygen detection, and humidity sensors, to name a few examples. Coca-Cola, PepsiCo, Sainsbury, and Jack Daniels are among the food and beverage firms that have used intelligent packaging solutions.
For instance, Coca-Cola held a recycling challenge at the Active Intelligent Packaging Industry Association (AIPIA) Congress in Amsterdam, inviting delegates to present a solution to the problem of packaging waste. These solutions prioritize ease to recycle with maximum efficiency and minimal effort. Such initiatives are projected to fuel the intelligent packaging industry and expand the market.
Intelligent Packaging Market is witnessing new developments: What Could they be?
The term “Intelligent” has turned out to be a triggering word for key end-users in the industry. The increasing rate of technological enrichments are projected to massively support demand for intelligent packaging. From RFID to sensor based packaging, prominent industry stakeholders are leaving no stone unturned to ensure that such intelligent packaging formats take a turn for the better.
Through the years, various sectors, including the food industry, are generating demand for the intelligent packaging market. The food sector has enormous potential to improve the convenience for consumers. Food delivery companies are investing big time in intelligent packaging to be able to measure the quality and condition of the food inside the package.
Real time food tracking is one of the core functions of intelligent food packaging. It helps in tracking concerning food related issues such as oxidation of the food components. Biosensors in the intelligent packaging, for instance, help in the identification of pathogens and toxic substances in the food. Moreover, inclusion of antimicrobials, antioxidants, moisture absorbers, MAP, VAP, and others in the packaging is rapidly increasing delay in ripening of the food products and prolonging shelf life by reducing microbial growth. Hence, demand for intelligent food packaging is spurring.
Prominent Players in Intelligent Packaging Market: Analysis of Key Players’ Contribution to the Industry
Sustainable packaging has opened doors of opportunities for intelligent packaging manufacturers. Companies are planning to collect plastic through the use of blockchain technology and are focusing on combating food waste by using sensors. The increasing integration of the Internet of Things (IoT) that supports artificial intelligence and augmented reality is changing the dynamics of the intelligent packaging market, thereby paving way for connected packaging market.
The intelligent packaging market is offering a promising change of sustainability and delivering on the same. Avery Dennison’s innovations to advance circular packaging and Graham Packaging’s innovations for circulatory are two prime examples of how sustainability can be achieved through intelligent packaging. Thus, the amalgamation of sustainability and technology is changing the intelligent packaging industry in more ways than one.
GRAHAM PACKAGING CASE STUDY
Based on an interview with Mr. Ken Chrisman, President of Beverages atGraham Packaging, this chapter gives an understanding of how Graham Packaging, a leading player in innovative and sustainable packaging solutions, is designing intelligent packaging options that directly speaks to the intelligence behind how plastic packaging would be used, how it can be reused, and how it can communicate different value propositions like sustainability, environment friendly and reusability.
HOLY GRAIL 2.0- AN ENDEAVOR TO REALIZE NET ZERO EMISSIONS?
Graham Packaging joined the Digital Watermarks Initiative Holy Grail 2.0 project in 2020, with the objective to show the utilization of digital watermarking technologies and its potential benefits in improving recycling operations, especially for difficult to recycle materials like black plastic. The company is looking to integrate digital watermarks into mold with no environmental impact.
Other top packaging leaders such as Amcor, Avery Dennison, in addition to consumer brands such as Unilever, P&G, PepsiCo, and Kellogg’s are part of this initiative. Through their work with Holy Grail 2.0 project, Graham Packaging directly addresses consumer concerns regarding recyclability. The branded goods industry is touted to be the primary beneficiary of Holy Grail 2.0, as prominent giants seek to initiative a cross-value chain initiative to assess how a pioneering digital technology facilitates enhanced sorting and higher-quality recycling rates.
AVERY DENNISON CASE STUDY ON INTELLIGENT LABELS
Based on an interview with Flor Peña Herron, Senior Manager, Sustainability & Circular Economy EMEA and Tyler Chaffo, Manager, Global Sustainability atAvery Dennison, this chapter highlights the action plan of Avery Dennison, a leading material sciences company, for a zero-waste future; their packaging best practices and solutions across the following
Moving away from single use plastic: Move towards reusable packaging
Avery Dennison has integrated sustainability throughout its business. Its commitment to sustainability is codified in its 2030 sustainability goals, which, among other objectives, calls for the company to deliver innovations that advance the circular economy, and includes targets for all of the company’s standard label products to contain recycled or renewable content, and for all operating regions to offer labels that enable the circularity of plastics. Avery Dennison is offering its sustainability solutions primarily through two product lines: its Sustainable Advantage portfolio of label materials, and its Intelligent Labels platform.
Despite the fact that label waste is recyclable, many tons of it—the liners and matrix leftover after label materials have been printed and applied to packaging—are sent to landfills and incinerators every year. Avery Dennison has created several programs to make it easy and cost-effective for converters and brands to recycle their label waste.
Market Adoption of Intelligent Packaging
The intelligent packaging market is in the nascent stages of evolution, however, its potential and benefits are immense. Today, out of every US $1,000 spent on packaging, ~US$ 20 is spent on Intelligent Packaging and these numbers are expected to grow quickly. The primary beneficiary in the intelligent packaging market is undoubtedly the food industry. Real-time food monitoring is the core function of intelligent food packaging, enabling tracking and gathering of information concerning processes such as oxidation, rancidity or reaction with other biotic components. Some prominent approaches include modified atmosphere packages (MAPs) for oxygen detection, carbon dioxide detectors and humidity sensors to name a few.
As part of the white paper, Future Market Insights also conducted a survey amongst packaging manufacturers, end use industries and buyers about the market perception and impact of intelligent packaging. The survey results clearly indicate that driven by consumers penchant for being associated with sustainable solutions, as well as innovation by leading players in the intelligent packaging market, this industry is poised for strong and sustainable growth in years to come!
