Top Trends in Packaging Solutions Industry: Impact of IoT and Sustainability on the Sector
In the post-globalization era, the growing volume of international trade and commerce has increased the pace of industrialization. As a result of the demographic, socioeconomic and cultural factors associated with urbanization in metropolitan cities, dietary habits, preferences, and consumption patterns have changed drastically in recent past. The busy schedules and hectic lifestyles followed by people in urban areas have increased demand for packaged and frozen foods. To cater to the evolving needs of their customer base, several multinational companies have started investing in new packaging technologies and solutions to effectively transport and deliver their products.
Use of IoT Technology in Packaging Solutions
The emergence of the Internet of Things technology has proved to be extremely beneficial for the packaging solutions industry. In the last few years, the use of IoT-powered sensors and imaging devices has increased in logistics and supply chain management companies. These businesses have started deploying IoT sensors for real-time monitoring of the packaged goods and tracking the status of the products being delivered seamlessly.
Furthermore, use of advanced IoT solutions aid food companies to collect data on various parameters such as temperature, humidity, and pressure inside the container shipping the product. This helps transport companies to maintain ideal conditions inside their trucks and lorries, while delivering perishable items like fruits, vegetables, and dairy products. Also, IoT devices help companies and customers determine whether a product has been tampered with or not. This ultimately aids businesses in maintaining the safety and integrity of their products, thereby improving the trust in their brand in the long run.
Transition Toward Sustainability Creating New Investment Opportunities
As per a report by Allied Market Research, the packaging solutions market accounted for $1 trillion in 2021. The industry is expected to gather a revenue of $1.6 trillion by 2031, rising at a CAGR of 4.3% during 2022-2031. The shift toward eco-friendly packaging solutions is one of the most important factors impacting the growth of the sector in recent times. Since the Paris Climate Agreement in 2015, governments across the globe have been enacting laws and regulations to reduce the use of plastic in packaging applications. In addition, rise in awareness regarding the hazardous effects of microplastics has played an important role in the growth in demand for biodegradable packaging solutions.
In the last few years, many leading companies have launched innovative products in the packaging solutions industry to expand their footprint in the sector. For instance, in January 2024, SEE, a sustainable products design company, announced the launch of CRYOVAC® brand compostable overwrap tray for protein packaging. Designed using renewable wood cellulose and bio-based, food-contact grade resin, this USDA-certified product has become a popular alternative to EPS packaging material, which is traditionally used for poultry and red meat items. This novel product was launched by SEE at the International Product & Processing Expo (IPPE), the largest animal food industry event, held in Atlanta.
In September 2024, Pakka, a leading company in the compostable packaging solutions segment, unveiled a new range of flexible, eco-friendly materials for confectioneries, chocolates, nuts, and granola bars. The high-quality barrier properties, lightweight nature, and heat & cold sealability offered by these solutions have made them one of the most sought packaging materials in the sector. As per the press release issued by the company, these new products are expected to revolutionize the food processing, packaging, logistics, and supply chain management activities in the coming period.
In summary, the packaging solutions market is anticipated to witness growth in the near future, owing to rise in technological advancements in the sector. The advent of IoT technology and the transition toward environmental sustainability are expected to open new avenues for growth in the industry.