Next Generation Packaging Technologies Enabling Circularity: Future Market Insights

Next Generation Packaging Technologies Enabling Circularity: Future Market Insights

The global packaging market is witnessing rapid growth due to increasing population, technological advancements, and rising consumers’ demands for advanced product packaging solutions like next generation packaging. According to Future Market Insights, the global next generation packaging market would witness growth at CAGR of 6.1% between 2022 and 2032, reaching US$ 49.3 Billion in the next decade. Next generation packaging is an aggregation of three types of packaging, namely active packaging (includes antimicrobials, gas scavengers, emitters and others), sustainable and intelligent packaging (includes sensors, indicators, and tags) and modified atmosphere packaging. While all three would play a key role in enabling circularity, sustainable and intelligent packaging’s multifaceted ability to create a lasting impression and maintain product quality has made it an essential asset for different end user industries. Various industries including pharmaceutical, food & beverage and consumer goods industries are driving the growth of their businesses through intelligent packaging. 

Next-generation packaging 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. 

Next-Generation Packaging and Demand for Sustainable Packaging Solutions

Consumer choices play a major role in reshaping the intelligent packaging industry. According to a whitepaper published by Future Market Insights in collaboration with Avery Dennison and Graham Packaging on Intelligent Packaging, millennials and Generation Z are becoming conscious of their purchasing choices and want to invest in products that are sustainably packaged. 

The packaging industry has been under constant scrutiny for its non-degradable packaging solutions that create tons of waste and pollute the planet in more ways than one. This has led packaging companies to redesign their 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 sustainable next generation packaging. 

Sustainable packaging has opened doors of opportunities for  next generation packaging technology. 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 overall  next generation packaging industry.

To top it all up, the  next generation packaging industry is offering a promising change of sustainability and delivering on the same. Thus, the amalgamation of sustainability and technology is changing the global packaging industry in more ways than one. 

The Market Potential Of Next Generation Packaging 

Major participants are focusing more on expanding their portfolio share in advanced packaging portfolio and technology in a bid to enhance their global presence. In addition, these key players are emphasizing on expanding their sustainable and intelligent packaging product portfolio through acquisitions and mergers. Government initiatives and measures, such as offering funding to leading players for research and development activities is also expected to help in growth of the next generation packaging market, in years to come.

The potential of next generation packaging is undoubtedly benefitting various industries. Within food specifically the fruit & vegetables segment, dairy segment, and ready to eat segment are the major revenue earners for intelligent packaging creating an incremental opportunity of US$ ~5.5 Billion in the years to come. Moreover, the trend that follows with the growth of the next generation packaging market includes increasing research and development spending on packaging technology, growing adoption of QR codes, RFID labels on packaging, and development of advanced sensors.

Looking Ahead

The global packaging industry is at the cusp of a sea change. With over 80% of the development directed towards ushering in sustainability, significant evolutions are becoming commonplace across the entire value chain. While circular economy oriented intelligent packaging aims to reduce the quantity of packaging waste generated, there is also heightened emphasis on mitigating recycling and reprocessing costs. Manufacturers are likely to experiment with cross-functionality of intelligent packaging and focus on exploring its abilities to reduce wastage and incur significant cost savings.

Furthermore, increasing consciousness regarding packaged products being recyclable has become extremely essential. Thus, through next generation packaging manufacturers are integrating blockchain technology to trace and track products easily. Sustainability is a key word across various end user industries. Companies are taking steps to recycle plastic products along with changing the same with sustainable alternatives. Moving ahead, next generation packaging manufacturers are expected to develop dissolvable packaging. 

Dissolvable packaging relies on natural and raw materials such as natural dyes and sweeteners and algae. Owing to its edible nature, dissolvable packages can not only be discarded in water but can be consumed too. As the demand for biodegradable packaging increases, dissolvable packaging is expected to intertwine with eco-friendly packaging.  

Lastly, packaging manufacturers and technology providers are expected to lead the way striking a perfect balance between radical innovations and practicality in order to introduce offerings that are cost effective, personalized and sustainable.