Driven by retailers' efforts to track their products and by fast growth in emerging countries, the global "smart-packaging" market could reach $26.7 billion by 2024, a new report says.
That would represent a jump from the estimated $10.8 billion in 2015 for smart packages, which are parcels that not only contain goods but also provide services such as tracking, location, and protection from oxygen and moisture, according to the report from San Francisco-based market research firm Grand View Research Inc.
Retailers in the electronics and automotive industries will lead the charge, deploying RFID tags at many levels in the supply chain to help them locate products, improve real-time information gathering, and reduce product loss, Grand View Research found. Smart-packaging growth over the next eight years will also be fueled by rising industrialization in emerging regions, including Asia Pacific and the Middle East, and particularly China and India.
Companies set to benefit from the growth of smart packaging include providers such as 3M, BASF, DuPont, Avery Dennison Corp., Amcor Ltd., Sealed Air Corp. and International Paper.
The smart-packaging industry is currently dominated by active packaging, which accounts for some 70 percent of the sector's revenue and is valued by shippers and retailers for its ability to control corrosion and moisture, the report said. Active packaging usually includes either small sachets placed inside of packages or active ingredients included directly in the packaging materials.
The report also found that: