How Intelligent Packaging Enhances Customer Satisfaction and Brand Identity, by Future Market Insights

November 30, 2022

The FMI, Future Market Insights, delves into the increasing frequency of adoption of intelligent packaging solutions.

In the past decade, intelligent packaging has attracted ample popularity and created a lasting impression, making it an essential asset for various industries. From pharmaceuticals to food & beverage and consumer goods, there has been an increase in the frequency of adoption of intelligent packaging solutions. According to Future Market Insights, the intelligent packaging market is expected to register a CAGR of 9% by garnering a market value of US$ 46.7 Billion by the end of 2031. The packaging industry is reshaping and re-inclining its strong focus on sustainable packaging solutions for a circular economy.

Not just this, consumers at a global level are seeking packaging solutions which are smart, connected, and interactive, and are considered under the umbrella of intelligent packaging. These solutions are designed to perform intelligent functions such as tracing, tracking, recording, detecting, and help in improving the quality of product, providing information, ensuring safety, and increasing product shelf life. Leading food and beverage company Nestlé is using SIG’s QR code closure solution called “One Cap, One Code” in Vietnam which helps in appealing to the Gen Z customers along with strengthening brand loyalty.

Consumer choices play a major role in reshaping the intelligent packaging industry. According to a whitepaper published by Future Market Insights on Intelligent Packaging, millennials and Generation Z are becoming conscious of their purchasing choices and want to invest in products that are sustainably packaged. In this blog, we will discuss how intelligent packaging enhances customer satisfaction and brand identity. We will also talk about the different ways in which intelligent packaging is expected to grow along with the competitive landscape of the intelligent packaging market.

Richer Consumer Communication to Enhance Consumer Satisfaction

Major global brands face huge losses due to the presence of duplicate products in the market. To overcome such drawbacks of traditional packaging, heavy expenditure is incurred by key packaging industry players in the development of innovative and next-generation packaging solutions. It is necessary for packaging manufacturers to incorporate intelligent packaging solutions with the help of which consumers are able to track, trace and seek information about the product. A leading beverage brand, Coca-Cola, has shifted to intelligent packaging by offering electronically printed NFC (Near Field Communication) labels on its bottles.

The demand for interactive packaging is rising as more brands, especially fresh food and the FMCG sectors adopt intelligent and modern packaging technologies like RFID, advanced sensors, artificial intelligence and machine learning. The intelligence in an intelligent label can be a simple QR code.

In 2021, Avery Dennison announced that it is partnering with apparel brand UpWest and apparel resale innovator ReCircled to leverage Avery Dennison’s digital care labels to increase the re-use of clothing. The labels contain a QR code that links to an app detailing how a particular garment was manufactured, how it should be cared for, and finally, where it can be sent for recycling. The app is powered by atma.io, Avery Dennison’s connected cloud platform.

Intelligent Packaging Combating Food Wastage

The problem of food wastage is on the rise, especially when we talk about food delivery services. According to the UN Environment Programme, approximately 1.3 Billion food gets wasted every year globally. In response to this, Governments and private sectors worldwide have realized intelligent packaging could be a means to solving global issues such as waste generation and resource depletion. In addition, the food manufacturers are continuously investing in effective packaging solutions that help in sustaining the food life and avoiding wastage.

Furthermore, when the food products come in contact with the environment, their temperature changes, causing moisture in the food packets. The moisture tends to contaminate the food and lead to health issues if consumed. To avoid the same, food manufacturers are using moisture resistant coatings which not only protect the food during shipment but work once the seal is opened.

Curtec, a packaging company is leveraging its opportunities by offering sustainable plastic drums, jars and pails for the cannabis industry. The consumption of cannabis is increasing in North America and Europe. Thus, Curtec’s sustainable drums and jars are designed to improve the flavour of the cannabis as they have vapour tight screw lids. Owing to these lids, the drying and curing process of the cannabis has fastened too.

How is Intelligent Packaging Turning into a New Approach to Collecting Plastics?

Plastic waste is the “environmental menace” of the 21st century. Surge in production of disposable plastic products has significantly strained the world’s ability to recycle and reuse them. Upon food wastage, the plastic wastage also increases as most of the food items are packed in plastic; causing relentless plastic pollution. The Organization for Economic Co-operation and Development states that only 9% of plastic is recycled and 22% of plastic waste is mismanaged. Owing to these factors, segregation and collection of plastic waste has become a major concern for the food and beverage industry across economies.

Developed economies have low recycling rates and are facing problems collecting discarded plastic packaging. Containers and packaging make up a major portion of municipal solid waste, amounting to 82.2 Million tons of generation (28.1% of total generation). In order to control the increasing plastic pollution, various companies are taking steps to make plastic collection and recycling easier.

For instance, Unilever pledged to collect and process plastic by roping in urban communities to collect and sell waste. The company is integrating technology in Indonesia that makes it easier for people to find the nearest waste banks via Google maps. This, in turn, helps the people from the region to collect plastic easily. Unilever is developing new businesses to reuse packaging and increase plastic collection. The company has implemented a sachet recovery program in the Philippines that collects sachet waste in and around Manila. Through intelligent packaging solutions, the company is collecting and recycling mono-material sachets of CLEAR shampoo. Furthermore, the recycled material is used for making refuse bags and containers.

Looking Forward

The adoption of Intelligent packaging in various end use industries is intended to drive customer engagement. Research shows that the younger population is likely to buy products with intelligent packaging as they are the leaders of tomorrow in sustainability and are willing to spend extra money on intelligent packaging. In the years to come, 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.

Looking forward, dissolvable packaging is expected to take over the global packaging industry. Dissolvable packaging relies on natural and raw materials such as natural dyes and sweeteners and algae. The best part about the dissolvable packages is that Owing to its edible nature, dissolvable packages are water friendly and can be consumed too. Considering the aforementioned factors, the market for intelligent packaging is projected to grow immensely.

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