AIPIA Summit Americas
Smart packaging to grow 11% annually reaching $39.7bn by 2020
The company will be presenting findings from its survey on the Future of Smart Packaging at this year’s AIPIA (Active & Intelligent Packaging Industry Association) US Summit in New Jersey, June 3-4, 2019.
This is the second annual AIPIA Summit Americas with two days of seminars, networking and disruptive packaging technology exhibitors. Topics include: augmented reality, brand protection, consumer engagement, smart labels, printed electronics, condition monitoring, fighting waste and supply chain control.
According to Deloitte, between $5-$10 trillion of consumables are sold globally each year and the majority of them are packaged in some way, generating a packaging market of $424bn in 2016.
“Packaging is often an overlooked and under-utilized aspect of product design that packs immense value for all stakeholders. Packaging with enhanced functionality, by way of new technologies, new materials, and thoughtful design ie smart packaging has enormous potential to create value and disrupt traditional business models,” said Mike Armstrong, MD, Monitor Deloitte.
He said Deloitte carried out a survey between November 2017 and February 2018 interviewing 425 North American business executives from 12 industries.
More than 70% of respondents represented companies with revenues of more than $1bn. Almost 90% were in senior management roles.
The results confirmed connected packaging falls into three categories; inventory and life cycle management; product integrity; and user experience and the first two are currently attracting the lion’s share of investment.
“Smart packaging is still emerging, but cannot be ignored, as it presents both significant opportunities and a real risk of disruption. It generated revenues of $23.5bn in 2015, and is expected to grow 11% annually, reaching $39.7bn by 2020," he added.
“Businesses are looking at packaging as a possible holistic solution to transform the way they deliver, sell, and use products. Market leaders across industries are embracing innovative smart packaging applications, particularly of the connected type, that generate and leverage data to make better business decisions and delight the customer.
“The potential upside for smart packaging participants is large, but they face at least four challenges: commercial, legal, technological, and organizational.”
The survey by Deloitte found most smart packaging falls into the “active” realm, using advanced chemistry and materials to offer corrosion/moisture control or thermochromatic capabilities, primarily for food and beverages, health care, and personal care consumer products.
Connected packaging, which can communicate with other packages or the internet, is still a relatively untapped opportunity, with simple bar coding and RFIDs used increasingly for tracking and tracing package location in the supply chain.
The report states adoption of connected packaging varies by industry, with consumer packaged goods, and manufacturing and industrial companies expressing the highest levels of interest. However, connected packaging is still in the initial stages of growth and no application or industry is close to reaching maturity.
“The smart packaging industry is still highly fragmented, as both large and small-to-medium-sized enterprises continue to focus on narrow, one-off solutions, as opposed to delivering an integrated, cohesive offering for large-scale implementation,” said Armstrong.
“The interconnected nature of the ecosystem and the wide array of participants from infrastructure providers to packagers, brands, retailers, and consumers have prevented smart packaging from accelerating rapidly.
“Innovation in the space has been driven primarily by small startups, and solutions have yet to achieve significant scale. Dominant industrywide Internet of Things (IoT) standards have yet to take hold, much like the days preceding the arrival of Bluetooth or Wi-Fi in local wireless networks. The cost of sensorization and connectivity is still high, even though it has declined significantly in recent years and we expect it to drop further.”
Francesco Fazio, principle, Deloitte and co-author on the report will present his seminar; ‘Capturing value from the smart packaging revolution’ at the Summit on Tuesday June 4, at 9am.
Another highlight at this year’s event is Mondelēz International which will be hosting the ‘Packaging Challenge’, inviting companies to pitch to Lou Fenech, packaging platform leader, Mondelēz International and Charles Halgren, packaging developer, Mondelēz International, with their active and intelligent packaging technology
“As we look to grow our impact in smart packaging, we recognize there are developing packaging technologies in the digital realm that can help us deliver on our mission,” said Fenech.
“For the purpose of this brief we have selected two areas in which we believe active and intelligent packaging can increase engagement and connectivity with consumers through our packaging; safety and sustainability.”
As part of the pitch, Mondelēz will be looking for technologies that demonstrate the authenticity and safety of its products through tamper evidence; packaging features that can act as a PIF (packaging integrity feature) and technologies that ensure the inner or primary package and contents matches the outer or secondary package.
As part of the company’s packaging sustainability goals of making 100% of its packaging recyclable by 2025 and to provide recycling information in markets around the world by 2025 it is looking for technologies/communication channels that can help consumers better understand how to recycle its products; connected platforms to incentivize consumers to recycle and technologies/infrastructure that allow for better sorting at MRF’s (Material Recovery Facilities) to drive recycling rates.
For information on the AIPIA Summit Americas click here. To register click here.