HIGHLIGHTS
- Smart packaging market value was at USD 38.16 billion in 2020. According to Mordor Intelligence, this figure will reach USD 44 billion and USD 48.72 billion in 2024 and 2026, respectively.
- Smart packaging can help to maintain and improve properties related to health, appearance and quality, which extends expiry date.
- Some smart packaging types are equipped with QR codes, NFC tags or other communication protocols, which not only provide customers with additional information, but also help them to discover brand’s stories.
- Smart packaging is widely used and expected to reach nearly USD 48.72 billion globally by 2027 (Mordor Intelligence forecasted).
FULL ARTICLE
The past decade has seen a crossover between the physical and digital shopping experiences, especially during the Covid-19 pandemic. Consumer engagement on digital platforms is constantly increasing which peaked at 60%, much higher than last year (42%) (Source: Salesforce, State of the Connected Customer).
Digital commerce is dominating traditional sales which forced brick-and-mortar stores managers to change. It’s not just about developing on websites, streaming platforms and social apps, but they need another more outstanding factor – smart packaging.
Smart packaging market value was at USD 38.16 billion in 2020. According to Mordor Intelligence, this figure will reach USD 44 billion and USD 48.72 billion in 2024 and 2026, respectively. That will be relevant to the growth rate of approximately 28% within 6 years. Though, smart packaging market is small but its noticeable growth made businessmen reconsider about the future of traditional packaging that they used to use.
So what is smart packaging?
Jan Schnitker, CEO of Is It Fresh, a supply chain digitization startup, said that smart packaging was packaging systems that used technology such as sensors embedded, with additional functions beyond just containing and protecting the product inside.
So, what are special things about packages with modern technological systems? And what makes them considered as the replacement of traditional packages? Let’s figure it out.
Product quality maintenance
Smart packaging can help to maintain and improve properties related to health (such as oxidation reduction, smell, taste or color loss prevention), appearance and quality, which extends expiry date. Some bad changes in product properties caused by outside conditions may be worn.
BreatheWay packaging in Apio fresh product
20 years ago, experts at Landec were determined to reduce waste, preserve the quality of fresh products naturally. Thus, they developed the BreatheWay-technology package by placing a multi-layer membrane over a hole in a package of fresh fruit, in order to control the rate of oxygen and carbon dioxide permeability going in and out, keeping food fresh for up to 14 days. Today, BreatheWay is proud to be used on over 50 million packages annually.
Apio, a company specializing in providing high-quality vegetables, was owned by Landec Corporation, is applying BreatheWay technology more and more widely in supermarkets across the US. Nicholas DaCosta, vice president of value-added products at Apio, said that using this membrane could save material costs between 15% and 20%.
A tool to connect with consumers
Some smart packaging types are equipped with QR codes, NFC tags or other communication protocols, which not only provide customers with additional information, but also help them to discover brand’s stories.
“Sing It With Oreo” Campaign
When social distance is getting larger and the desire to family connection is more and more precious. Understanding that, OREO created a creative way to make this happen, just through a QR code.
The “Sing It With Oreo” campaign encourages consumers to send a musical message to loved ones, while also having a chance to win gifts including concert tickets, meeting and talking with Lady Gaga, only by scanning QR code printed on the package.
As a result, OREO became a trending topic on Twitter without paying any costs, and the campaign appeared on major national news organizations such as CNN, People, Delish and New York Magazine.
A great marketing campaign starts from the QR codes printed on the “smart package”, which helped OREO to draw up “virtual gates” that bring customers into the story the brand is trying to convey.
Pepsi uses QR codes on bottles
In the “Pepsi #Summergram” campaign, funny images with QR codes had been printed on more than 200 million Pepsi bottles. Users scanned this QR code with their smartphone to activate Instagram Story, where Pepsi pre-designed unique virtual reality (AR) filters.
After this campaign, Pepsi’s sales increased by more than 4% compared to previous programs, summer sales doubled its main competitors, and brand awareness increased in a comprehensive way.
The future of smart packaging
Smart packaging is widely used and expected to reach nearly USD 48.72 billion globally by (Mordor Intelligence forecasted). Brands are aware of the tremendous value of this type in boosting sales. Digital interactive experiences are becoming standard on packaging, creating touch points for consumers. This provides a new way of communication between brands and customers that companies should take advantage of.
By Mordor Intelligence, Asia, North America and Australia are forecasted as 3 biggest growing markets of smart packaging.
Like any brand story, new and interesting are not enough to guarantee sales, what consumers care about are stories which touch them. Thus, smart packaging is a starting point to maintain consumers’ loyalty, which is the most fragile thing nowadays.
Minh Ngo
