While this is not a true-world example, it shows the various smart packaging functions already available on the market or in development. It also highlights the potential for intelligent packaging to transform supply chains and improve customer experience Brand protection. Senior executives from operations, marketing, finance, and various other functions in packaging, industrial goods, and consumer packaged goods would be well advised to notice.
The survey results of over 400 business leaders showed that intelligent packaging, exceptionally connected packaging, was on the radar. This is because companies are seeking to take advantage of the opportunity. (Refer to the sidebar, “Research methodology”) Survey results validated that connected packaging solutions tend to fall into three broad categories–inventory and life cycle management, product integrity, and user experience–and that the first two are currently attracting the lion’s share of investment.
While innovative packaging is still a new concept, it should not be overlooked. It presents significant opportunities as well as a real threat of disruption. Figure 1. It generated revenue of US$ 23.5 billion in 2015 and is expected to grow 11 percent per year to reach US 39.7 billion by 2020. Packaging is being looked at as a potential holistic solution for businesses to transform how they deliver, sell, and use products. Market leaders are using innovative smart packaging applications across all industries.
Innovative packaging has significant potential and presents real risks of disruption. Innovative business models, practices, and strategies can help overcome obstacles and maximize the value and potential of intelligent packaging applications. A high-end shipment of skin care products leaves an offshore production facility. An embedded multifunction sensor in the pallet tracks the product’s location as it travels through various transport modes. The consumer packaged goods company can alert its retail partners about the expected arrival time.
Unfortunately, a pallet arrives at a domestic warehouse and is broken off from a skid. The sensor tracks the location and time of the shock to allow for later accountability and improvements in handling. The products arrive at the retail shop, where scanners read antitamper intelligent labels on the packages to confirm that they are not stolen and have not been altered. The cap contains a sensor that monitors user usage. This data is uploaded to a smart home hub that automatically reorders products when running low.
Competent packaging participants have much to gain but face many legal, organizational, technological, and commercial challenges. Reviewing the market and utility will help you understand the potential challenges and solutions for large-scale smart packaging adoption. Most intelligent packaging solutions currently available are in the “active,” which uses advanced chemistry and materials for moisture control and corrosion prevention. This is primarily used for food, beverages, health care, and personal care consumer products. Connected packaging is still a very untapped opportunity.
It can communicate with other packaged goods or the internet. With simple barcoding and RFIDs, it can be used to track and trace the location of packages in the supply chains. The survey results show that connected packaging adoption is varied by industry. Consumer packaged goods, manufacturing, and industrial companies expressed the highest levels. But related packaging is still beginning its growth, and no industry or application is near maturity.