Active Packaging Market

Displaying substantial momentum, the global active packaging market is anticipated to display an excellent CAGR during the next few years. Greater emphasis on safety and integrity of food products predominantly drives the market ahead.

Market in Brief

The increased consumer awareness about the importance of product quality, safety, and sustainability, is influencing growth across the global active packaging market. Additionally, the rising concerns regarding foodborne contamination and illnesses have led to the emergence of packaging that enhances the safety and integrity of food products. Moreover, modern consumers and manufacturers both are seeking packaging solutions that can extend the shelf-life of products and ensure product freshness. Active packaging aligns with such market shifts and offers additional convenience features such as resealability.

In the coming years, the demand for active packaging will continue to soar owing to the increased regulations apropos to food safety and packaging waste reductions. The advances in packaging materials, smart sensors, and active agents are enabling the development of an effective and innovative active packaging market. These notable factors together are strengthening the revenue opportunities for the global active packaging market.

Key Market Trends

• The global active packaging market was an approximately US$22 Bn industry in the year 2021
• The burgeoning demand for packaged or ready-to-eat food is likely to bode well
• Smart packaging solutions gain stronger ground
• Demand from food and beverages industry remains significant
• North America remains a major region in the active packaging market amid intensified R&D efforts

Growth Drivers

Rising Demand for Sustainable and Long-lasting Packaging Solutions

In the present scenario, traditional packaging continues to dominate the packaging industry. In traditional packaging, while the product is protected from environmental dangers during the complete supply chain process, there is no or minimal interaction between food and packaging. Now, the growing demand for sustainable and long-lasting packaging amid environmental concerns is driving the need for innovative packaging, leading to the digitization. Digital packaging technologies such as RFID tags, and smart sensors, enable real-time monitoring of product conditions such as humidity, freshness, and temperature. This kind of monitoring ensures the maintenance of optimal product quality and extends the shelf life of perishable goods.

Evolving Consumer Lifestyle

An uptick in urban population coupled with changing lifestyles has created a considerable rise in demand for packaged, frozen, and ready-to-eat food. Urban consumers are also developing a taste for highly exotic produce, meat, and healthy food. As a result of this, the need for active packaging has emerged. Active packaging enhances product quality and ensures its safety by enabling better product monitoring. The synergy of changing consumer lifestyles and growing awareness for safe and convenient packaging is poised to unlock growth opportunities across the active packaging market.

Growth Challenges

High Raw Material Pricing

While the global active packaging market is anticipated to grow at an unabated rate, there are certain aspects that are likely to hinder market growth in the forthcoming years. The high raw material price associated with the production of active packaging solutions has emerged as a major hurdle. Apart from this, the growing expenditure on research and development could dampen market growth. Moreso world over, government authorities are imposing strict regulations against the use of plastic in convenience shops.

Overview of Key Segments

Smart Packaging to Gain Momentum

In recent years, smart packaging has gained significant traction. This prominence can be primarily attributed to the numerous advantages of smart packaging. Smart packaging enables the incorporation of sensors, indicators or labels that monitor and communicate important product information such as temperature, freshness, and expiration. Additionally, such packaging solutions incorporate components such as oxygen scavengers that prevent oxidation, aiding in preserving the freshness of food products.

Moreover, with the help of integrated sensors, it monitors various quality parameters such as gas emission, and spoilage indicators. Moreover, the sensors provide real-time data on the product’s condition, alerting manufacturers, retailers, and consumers if there are any quality issues.

Food and Beverages Industry Generates Notable Demand

The global active packaging market is expanded over various industries including food and beverages, pharmaceuticals, personal care and cosmetics, and shipping and logistics. Food and beverages exhibit high potential to hold a prominent share in the upcoming years. The cumulation of extended shelf-life, enhanced product safety, improved quality, and sustainability goals, has created the need for easy-to-use packaging solutions in the food and beverage industry.  This in turn is likely to strengthen revenue opportunities for the global active packaging in the food and beverage industry.

Regional Landscape

North America to Lead, Europe Closely Follows

North America is poised to take the major market share in the global active packaging market. The rapid transformation from traditional to smart wrapping methods is primarily contributing to market growth. Market players in the region are also well-equipped with resources to offer affordable and effective packaging solutions. Closely following, Europe is anticipated to maintain its position as the second-largest market. The recent expansion of pharmaceutical and vaccine development in the region has escalated the need for active packaging.

Competitive Landscape Analysis

To gain a competitive edge, leading industry participants in the global active packaging market are adopting several strategies. Superior operational efficiency, and utilization of safe and novel technology, are among the major focus of the market leaders.

Key players craving the growth curve for the active packaging market include AptarGroup Inc, Accutech Packaging, 3M (U.S.), Amcor Ltd.,  American Thermal Instruments, AIMPLAS Inc (Spain), Ampacet Corporation, Amelco Desiccants Inc, BASF SE, Dessicare Inc., Amerplast Ltd,   Emerson Electric Co.,  Avery Dennison,  MicrobeGuard Corporation, DuPont, International Paper,  R.R. Donnelly & Sons (RRD) Company, Graham Packaging Company (U.S.), Smartglyph Ltd, Sealed Air Corporation, R. Grace and Company, Smartrac N.V., Temptime Corporation, Stora Enso, and Thin Film Electronics ASA.

Recent Notable Developments

• In April 2022, Amcor PLC made a significant investment in enhancing the thermoforming capabilities of a medical packaging factory in Sligo, Ireland. This substantial investment aims to drive the growth of Amcor's sterile packaging division and expand its consumer base to Europe and North America with all-inclusive healthcare offerings
• In May 2022, Avery Dennison and Wiliot, a digital ID technologies company, unveiled their strategic collaboration. The partnership aims to accelerate the growth of the Internet of Things (IoT) through the integration of atma.io and the creation, design, and manufacturing of Wiliot tags. These innovative tags are aimed to revolutionise IoT, enabling enhanced intelligence and promoting seamless interconnection

Regional Classification of the Global Active Packaging Market is Listed Below:

North America

• U.S.
• Canada

Europe

• Germany
• France
• Spain
• U.K.
• Italy
• Russia
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Southeast Asia
• Rest of Asia Pacific

 Latin America

• Brazil
• Mexico
• Rest of Latin America

Middle East and Africa

• GCC
• South Africa
• Rest of Middle East & Africa

*Regions and countries are subject to change based on data availability.

Key Elements Included In The Study: Global Active Packaging Market

• Active Packaging Market by Product/Technology/Grade, Application/End-user, and Region
• Executive Summary (Opportunity Analysis and Key Trends)
• Historical Market Size and Estimates, Value and Volume, 2018 - 2022
• Volume Consumption at Regional and Country Level, 2023 - 2030
• Market Dynamics and Economic Overview
• Market Size in Value and Volume, Growth Rates, and Forecast Figures, 2023 - 2030
• Competitive Intelligence with Financials, Key Developments, and Portfolio of Leading Companies 
• Regional and Product/Grade/Application/End-user Price Trends Analysis
• Production Output Analysis (Major Producing Regions)
• Value Chain and Five Force’s Analysis
• Regional/Sub-region/Country Market Size and Trend Analysis
• Company Market Share Analysis and Key Player Profiles

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