Smart Packaging is rapidly transitioning from a niche concept to a market poised for exponential growth. With the global market projected to expand from $38 billion in 2024 to $64 billion by 2033, the momentum is undeniable. Emerald’s latest Sprint on Smart Packaging provided a deep dive into this evolving field, highlighting not only the technologies shaping its trajectory but also the corporate challenges and innovation opportunities that will define the next decade.
Why Smart Packaging Matters
A package must contain, protect and deliver a product, but if that’s all it does, it’s a wasted opportunity. Enter smart packaging. Smart Packaging encompasses three interconnected domains: active packaging, which extends shelf life and preserves freshness of perishable goods; intelligent packaging, which monitors product conditions through sensors and indicators; and connected packaging, which links products of all kinds with consumers via QR codes, RFID tags, NFC, and IoT-enabled devices.
These functions address pressing global needs—from reducing food waste and ensuring product safety to improving traceability, enabling digital product passports, and reshaping consumer engagement. But the real potential lies in combining these roles to make packaging not just a container, but the single source of truth.
Market Dynamics and Technology Trends
The Sprint’s key trends session emphasized that the adoption of smart packaging is accelerating as data, regulation, and consumer trust are colliding.
Several insights stood out:
- RFID labels as a growth driver: Pressure-sensitive RFID labels, now estimated at around 25 billion units globally, are projected to grow to 35 billion by 2027. Asia dominates production, largely driven by apparel tagging, but growth is accelerating in food, healthcare, and logistics. Retail and food & beverage are expected to be major growth engines, with food alone projected to grow at ~16% annually.
- Technology diversity: UHF (ultra-high frequency) dominates RFID adoption due to its suitability for logistics and supply chain applications. NFC and QR codes, while smaller in share, play pivotal roles in consumer engagement, marketing campaigns, and product storytelling.
- Regulatory catalysts: Europe’s Packaging and Packaging Waste Regulation (PPWR) and the Digital Product Passport mandate are accelerating adoption. By 2026, digital IDs will be required on products in several categories, setting a precedent for global regulation. Meanwhile, in North America, large retailers are voluntarily driving adoption through corporate mandates and of course many states have EPR regulations in place already.
- Cost and recyclability challenges: Despite falling prices, smart packaging still requires significant investment in both hardware and integration. There are also open questions about recyclability—particularly when RFID or NFC components contaminate recycling streams. This creates space for start-ups to innovate around low-cost, sustainable, and easily integrated solutions.
Corporate Perspectives on Smart Packaging
The Sprint brought together a record number and a highly diverse group of corporates, including plastic, paper and metal producers, ingredient suppliers, convertors, brand owners from the cosmetic, personal care and food & beverage sector as well as global leaders in recycling and waste management Their perspectives underscored both enthusiasm and the practical hurdles of adoption.
- Consumer goods companies highlighted the dual imperative of functionality and experience. They are exploring how smart packaging can monitor freshness, prevent waste, and improve convenience while simultaneously enhancing consumer engagement through QR codes, digital storytelling, and AI-driven personalization
- Packaging manufacturers emphasized the need for scalability and cost efficiency. For metal, fiber, and rigid plastic packaging providers, smart features must integrate seamlessly into existing production lines while remaining compatible with recycling infrastructure.
- Waste management and recycling companies brought a sobering perspective: end-of-life challenges are real. Technologies that look elegant in design often fail under the messy realities of sorting, compaction, and contamination. Solutions must be proven not just in theory, but in real-world recovery facilities.
- Innovation arms and venture units expressed strong interest in collaborating with start-ups to tackle persistent barriers. Opportunities lie in areas like digital watermarks for sorting, sustainable sensor materials, and consumer-friendly interfaces that don’t require extra effort from end users.
From Compliance to Opportunity
A recurring theme across discussions was the shift in mindset: regulation is no longer seen purely as a compliance burden but as an enabler of innovation. Digital product passports and EPR (extended producer responsibility) schemes are pushing companies to digitize packaging. Once in place, these systems unlock new value streams, from verified sustainability claims to precision recalls, loyalty programs, and interactive consumer engagement.
What’s Next for Smart Packaging?
The Sprint concluded that smart packaging is no longer optional—it is becoming a strategic necessity. The ecosystem is converging: regulators demand transparency, retailers require traceability, consumers expect interactivity, and brands are under pressure to cut waste and prove sustainability.
Emerald’s Sprint highlighted that while barriers remain—cost, integration complexity, consumer adoption, and recyclability—there is enormous white space for innovation. For investors, innovators, and corporates, this is a market on the cusp of mainstream adoption.
Industry insiders left the Sprint with one clear message: those who move now to pilot and scale smart packaging solutions will define the future of consumer products, supply chains, and sustainability.
More on Packaging & Materials at Emerald:
Shaping the Future of Packaging: Emerald’s Formed Fiber Sprint
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