A new study by IDTechEX comes to the conclusion that the market for Smart Packaging – that is packaging enhanced with imprinted electronics – will grow from 75 million to 1.45 billion US dollars over the next ten years. The reason: imprinted electronics are to become 99 per cent cheaper soon, and cartons are of course the ideal media for all things printed.
Electronics on packaging already exists, from flashing bottles of rum to talking pizza cartons, to sprays which dispel insects with electrically charged aerosols. There is even pharmaceutical packaging which registers how much medication was consumed and when, and also reminds patients. Even the design of mobile phones can be reprogrammed. The new study suggests that this is just the beginning.
The study is based on a qualitative survey of more than 50 globally operating companies covering the entire supply chain. The results suggest that imprinted electronics will drop in price by 99 per cent. This is the reason why many leading brand owners have established multi-disciplinary teams to ensure that the new paper-thin electronics will be present on their mass packaging. It should offer consumers a number of benefits and make competitors look old-fashioned. A changing surface is a big step forward for advertising on packaging.
Author Raghu Das comments: “The demand for electronic Smart Packaging has reached a turning point across the globe. The market will grow to 1.45 billion US dollars. The applications will focus largely on consumer goods (CPG: Consumer Packaged Goods) and will reach 14.5 billion units with electronic functions by 2023. They will serve to support sales promotion as well as offering customers improved product benefits.“
By using E-packaging, the brands will position their products new and prevent them from drowning in a flood of copied products. This also applies to trade brands. A third of consumers already experience difficulties in reading the ever smaller instructions for use – this is where Smart Packaging can certainly help.
The main factors for rapid growth
Leading companies in the consumer goods industry are currently testing these new developments. Six factors will drive this development:
• Ageing population
• Demanding consumers
• More affluent consumers
• Changing lifestyles
• Stricter regulations
• Fear of criminality
With these new technologies, the role of packaging will gain even more importance as a medium. These days, Smartphones can already read printed codes and access the product via a website. The new processes will also add NFC (Near Field Communication). And, as for codes, cartons will be the ideal medium for imprinted electronics.
This new development promises considerable advances in packaging - both in terms of convenience where packaging becomes more of an advisory partner, as well as in brand presentation.
