The global active packaging market size takes center stage with a projected growth from USD 19.2 billion in 2022 to an estimated USD 39.51 billion by 2032, boasting a compelling Compound Annual Growth Rate (CAGR) of 7.5% during the period of 2023 to 2032.
Active Packaging: A Paradigm Shift in Preservation Strategies
Traditionally, packaging materials have been passive, merely serving as containers for products. However, the contemporary packaging arena is witnessing a profound shift towards active packaging strategies that actively engage in preserving product quality. These innovative concepts intentionally incorporate substances that interact with the internal atmosphere of the packaging or the product, proactively enhancing freshness and extending shelf life.
1. Tailored Solutions for Diverse Products
A defining characteristic of active packaging lies in its ability to engage with the product or internal atmosphere, aiming to prevent quality deterioration and extend shelf life. Recognizing the diverse nature of products and the factors influencing quality loss, active packaging adopts a tailored approach. This ensures optimal suitability to address specific quality challenges associated with each product category, maximizing its efficacy.
2. Industrial Adoption for Enhanced Longevity
Active packaging is gaining significant traction in the industrial sector, particularly in the food industry. Here, it serves as a stalwart guardian, preserving perishable items and preventing spoilage. The utilization of active packaging components, such as sorbents, contributes to the maintenance of quality standards. However, the industry faces challenges as the escalating costs associated with these components may pose hurdles to market growth in the foreseeable future.
Navigating Industry Trends and Transformations
As we traverse the landscape of the active packaging market, several trends and transformative shifts become apparent, steering the industry towards a dynamic and sustainable future.
1. Post-Pandemic Resurgence in Online Food Delivery
The relaxation of lockdown restrictions post the COVID-19 pandemic has catalyzed a surge in online food delivery demand. This, in turn, opens up new revenue streams within the global active packaging industry. Simultaneously, advancements in package engineering have played a pivotal role in accommodating this trend, aligning with the rise of urbanization, diverse socioeconomic factors, and increased disposable income that drive demand for packaged, frozen, and ready-to-eat meals.
2. Global Trade Expansion and Specialized Packaging
With expanding global trade patterns, especially in fresh produce, meat, and frozen commodities, there is an increased demand for specialized packaging solutions. This demand arises from the necessity to ensure product freshness, quality maintenance, and extended shelf life during transportation and distribution. As the global transportation network improves, facilitating efficient and timely delivery of goods, it presents opportunities to expand the active packaging market.
3. Healthcare Sector Driving Innovation
The healthcare sector, experiencing expansion due to an aging population and rising rates of chronic illnesses, is contributing to the growth of the active packaging market. Stringent regulations on pharmaceutical product packaging have led to increased investments in active packaging solutions. These solutions play a crucial role in ensuring the safety, efficacy, and stability of pharmaceutical products, meeting the evolving needs of the healthcare industry.
4. Consumer Trends Shaping the Beverage Sector
The active packaging industry witnesses a surge in demand, driven by the growing popularity of packaged and ready-to-eat foods. The beverage sector, including products like beverage pouches and bottled water, is expected to positively impact the active packaging market. Increasing disposable income propels consumers towards convenient, packaged food and beverage options, emphasizing the need for active packaging solutions to maintain product quality, freshness, and safety throughout their shelf life.
Seizing Regional Growth: Business Opportunities in the Active Packaging Market
The North American Active Packaging market is projected to exhibit a compound annual growth rate (CAGR) of 6.4% during the forecast period from 2021 to 2032. However, the recent outbreak of the COVID-19 pandemic has posed temporary challenges for active and intelligent packaging manufacturers in the region. These challenges are expected to have short-term effects.
The lockdown measures implemented to contain the spread of the virus have resulted in several issues for manufacturers. Supply chain disruptions have occurred, leading to delays and difficulties in sourcing raw materials required for manufacturing. Additionally, labour shortages have been observed, further impacting production capabilities. Fluctuating prices of materials and other resources have caused budgetary concerns and the potential for increased production costs. Furthermore, shipping problems have arisen, affecting the timely delivery of products.
While these challenges have created obstacles for the active and intelligent packaging industry in the short term, they will gradually be resolved as the situation improves. As the pandemic subsides and measures are relaxed, the industry will likely regain stability and resume its growth trajectory in the North American market.
The North American active packaging solutions market is primarily driven by the imperative to effectively control the increasing incidence of foodborne diseases resulting from inadequate food packaging practices. The market’s growth is attributed to ongoing innovations and strategic initiatives organizations undertake to develop advanced packaging solutions.
From a geographical perspective, the United States is projected to account for a significant share of the demand for active packaging solutions in the North American region, owing to its substantial market size and well-established industry. This is further bolstered by stringent regulations and standards governing food safety and packaging practices in the country. Canada and Mexico are also expected to contribute to the demand for active packaging solutions, albeit relatively less than the United States.
Based on research conducted by the Centers for Disease Control and Prevention, it has been found that in the United States alone, approximately 48 million cases of foodborne illnesses occur annually, affecting roughly one in six Americans each year. These illnesses have led to an estimated 128,000 hospitalizations and 3,000 deaths.
The rising awareness regarding foodborne diseases and the growing consumer demand for fresh and high-quality packaged food has significantly contributed to expanding the active and intelligent packaging market. Manufacturers are increasingly focused on ensuring longer shelf-life for their food products, thus driving the adoption of active packaging solutions. This market trend is driven by the collective goal of enhancing food safety, improving product quality, and addressing consumer concerns regarding foodborne illnesses.
The proliferation of counterfeit products, particularly within the pharmaceutical and personal care sectors, has prompted companies to adopt advanced technologies like RFID (Radio Frequency Identification) in their packaging processes. This growing concern over counterfeiting and other factors has significantly increased the demand for active packaging solutions.
However, the adoption of active packaging faces certain challenges. The initial capital investment required to install and implement these systems is relatively high, which can pose a barrier to entry for some companies. Additionally, security concerns related to these advanced packaging systems, such as data privacy and unauthorized access, present additional challenges for market growth. Overcoming these challenges will require continuous innovation, cost optimization, and addressing security issues to ensure the active packaging market’s widespread adoption and sustained growth.
- Instance, August 2021, Amcor, a renowned global leader in the development and manufacturing of diverse packaging solutions, has recently introduced a proprietary healthcare lidding technology. This innovation is specifically designed for combination products that incorporate two or more regulated components, such as devices, drugs, or biologics. The technology is based on Amcor’s patented development of an inert film and laminate design.
Amcor’s healthcare lidding solution offers exceptional performance, particularly in environments requiring heat sterilization. This advanced technology not only ensures the preservation and sterilization of the packaged products but also prevents the absorption of drugs into the packaging. By effectively addressing these critical requirements, Amcor’s healthcare lidding technology brings significant value to the healthcare industry and supports the safe and efficient packaging of combination products.
In the United States, retailers heavily depend on fresh-cut operations at the back of stores, often working in collaboration with regional processors. An example of such a company is Church Brothers Farms, which primarily serves the food service industry, with approximately 16% of its products being supplied to retail establishments. This suggests that a significant portion of the country’s retail sector has yet to transition to Modified Atmosphere Packaging (MAP).
The North American Active Packaging market, demonstrates a moderate level of consolidation, with several key players holding prominent positions in the region. Notable companies in this market include BASF SE, Bemis Company Inc., Honeywell International Inc., Amcor Ltd, Landec Corporation, Crown Holdings Inc., and Ball Corporation.
These companies maintain a significant market presence and actively invest in various strategies to enhance their market share. This includes forging strategic partnerships with other organizations and developing new products to cater to evolving customer needs and market demands.
These key players aim to strengthen their competitive positions and expand their market reach within the North American Active Packaging industry by pursuing such initiatives.
Enhancing Food Safety and Quality: The Evolution of Active Packaging Solutions
Packaging has become a crucial component in modern trade, particularly in ensuring the preservation and quality of food products. Its primary function is to protect packaged goods from external factors impacting their quality and safety. Additionally, packaging facilitates product transportation, storage, and dispensing, making these processes more efficient and convenient.
The increasing significance of packaging in various industries has led to continuous advancements in production methods and techniques. Manufacturers constantly strive to improve packaging solutions to enhance product protection, extend shelf life, and meet consumer expectations. This dynamic growth in the importance of packaging drives innovation and improvements in packaging materials, designs, and technologies.
Packaging plays a vital role in safeguarding products’ quality, safety, and integrity while also contributing to the overall convenience and efficiency of the supply chain and consumer experience.
According to experts’ forecasts, the future of food packaging lies in the emerging generations of active packaging. Currently, advanced packaging solutions constitute approximately 5.8% of the total packaging market value, with active systems accounting for 36% of this segment. Although active packaging represents a small share in terms of overall packaging sales value, there are indications of rapid growth in the coming years.
The interest in active packaging solutions is evident in the increasing number of patent applications and granted patents. These solutions were initially introduced in Japan and the USA and have gradually entered the European market. The delayed introduction in Europe may be attributed to more stringent legal regulations governing packaging. However, the growing number of research projects focused on their development reflects the intensifying interest in active and intelligent packaging in Europe.
This suggests a rising demand for active and intelligent packaging solutions in Europe, highlighting the industry’s drive towards innovative and technologically advanced packaging systems to meet evolving consumer expectations and regulatory requirements.
Active packaging is a solution where the packaging, product, and environment interact to bring about beneficial changes. These systems, through chemical, physical, and biological activities, actively modify the conditions of the packaged food. As a result, they extend the food’s sustainability and shelf life while ensuring or significantly improving its microbiological safety and sensory properties, all while maintaining its overall quality.
- In contrast to traditional packaging materials, active packaging actively contributes to extending a food’s shelf life and preserving its higher quality through interactions with the internal atmosphere and the product itself. Therefore, active packaging systems represent an innovative approach to food packaging. They engage with the packaged product, alter its conditions, and simultaneously monitor and control its quality, providing a comprehensive and effective solution for maintaining food freshness and safety.
- Active packaging encompasses various purposes and solutions, offering diverse benefits for multiple applications. By utilizing appropriate active packaging solutions, the shelf life of products can be extended through their positive influence on various processes occurring in food:
- Physiological Processes: Fresh fruits and vegetables undergo physiological processes. Active packaging can help regulate the exchange of gases, such as oxygen and carbon dioxide, to maintain optimal conditions and slow the ripening process, thereby extending the shelf life of these perishable products.
- Chemical Processes: Active packaging can inhibit or slow down chemical processes, such as the oxidation of fats. By incorporating oxygen scavengers or antioxidants, active packaging helps to reduce the exposure of fats to oxygen, preventing rancidity and maintaining the quality of packaged products.
- Physical Processes: Active packaging can address physical processes like bread staling. By regulating moisture levels and controlling moisture migration, active packaging helps to preserve the texture and freshness of bread, preventing it from becoming stale quickly.
- Microbiological Changes: Active packaging can incorporate antimicrobial agents that inhibit the growth of microorganisms. This helps to control the growth of bacteria, yeasts, and Molds, minimizing microbial spoilage and extending the shelf life of food products.
- Insect Infestation: Active packaging solutions can also protect against insect infestation. By using insect-repellent materials or incorporating insecticides, active packaging helps to prevent or reduce insect-related contamination and damage to food products.
The Oxygen Scavengers Market in Active Packaging: Driving Innovation for Extended Product Freshness
Among the various segments within the active packaging market, oxygen scavengers hold the largest market share and are expected to continue leading the market in the projected period. The primary objective of oxygen scavenger technology is to limit the presence of oxygen, which can lead to deteriorative reactions in various items such as food, metals, and medications. By reducing oxygen levels, oxygen scavengers help preserve the quality and extend the shelf life of these products. This technology plays a crucial role in preventing oxidative processes, maintaining freshness, and enhancing the overall stability of packaged items.
High oxygen levels within food packages can lead to detrimental effects such as increased microbial growth, the development of off-Flavors and off-Odors, colour changes, and nutritional losses. These reactions significantly reduce the shelf life of food products. Therefore, controlling oxygen levels in packaging is crucial to minimize food deterioration and spoilage reactions.
Oxygen-absorbing systems offer an effective solution to regulate package oxygen levels as an alternative to vacuum sealing or gas flushing methods. These systems improve product quality and extend shelf life by actively absorbing oxygen from the package’s environment. They help mitigate the negative effects of excess oxygen, preserving the freshness, taste, and appearance of food products.
Additionally, implementing oxygen-absorbing systems can be economically beneficial. They can reduce packaging costs by eliminating the need for excessive vacuum or gas flushing processes. Moreover, by enhancing the shelf life and maintaining product quality, these systems increase profitability for food manufacturers and suppliers.
Oxygen-absorbing systems are vital in controlling oxygen levels within food packages, mitigating spoilage reactions, and improving product quality while offering economic advantages for packaging operations.
Enzymatic oxygen scavenging systems involve enzymes that react with a substrate to effectively scavenge oxygen from the environment. While effective, these systems tend to be more costly than iron-based systems due to the expense associated with the enzymes used for oxygen scavenging.
One limitation of enzymatic oxidation systems is their sensitivity to various environmental factors. Factors such as temperature, pH level, water activity, and the presence of solvents or substrates in the sachet can significantly impact the performance and effectiveness of these enzyme-based systems. As a result, their widespread use is often limited.
The sensitivity of enzymatic systems to external conditions requires careful optimization and control of these factors to ensure optimal oxygen scavenging. This added complexity and potential limitations contribute to the higher cost and relatively narrower application range of enzymatic oxygen scavenging systems compared to iron-based alternatives.
A Comparative Assessment of Active Packaging Offerings
The active packaging market is highly competitive, with several key players vying for market share and driving innovation in the industry. Leading companies such as [insert examples of key players] dominate the market with their extensive product portfolios and established customer base. These companies offer diverse, active packaging solutions, including oxygen scavengers, moisture control agents, antimicrobial coatings, and temperature indicators.
In terms of market reach, multinational corporations have a global presence and cater to a wide range of industries, including food and beverages, pharmaceuticals, and consumer goods. They leverage their strong distribution networks and brand reputation to gain a competitive edge. Regional players, on the other hand, focus on specific geographical markets and cater to the unique needs of local customers.
Startups and smaller companies also play a significant role in the active packaging landscape, often bringing disruptive technologies and innovative solutions. They leverage their agility and flexibility to quickly adapt to changing customer demands and emerging trends. While these companies may have a smaller market share, their potential for growth and disruption should be noticed. In addition to product offerings, companies differentiate themselves through pricing strategies, customization capabilities, sustainability initiatives, and technical expertise.
The active packaging market is continuously evolving, driven by stringent regulations, increasing consumer awareness, and advancements in packaging materials and technologies. Companies that can effectively navigate these dynamics, innovate, and provide value-added solutions will likely gain a competitive advantage in this dynamic market.
Major key players in the Active packaging market includes R. Grace and Company (U.S.), Ampacet Corporation (U.S.), Ball Corporation (U.S.), Graham Packaging Company Inc. (U.S.), Rexam plc. (U.K.), Amcor Limited (Australia), Landec Corporation (U.K.), Bemis Company, Inc. (U.S.), Constar International Inc. (U.S.), Mitsubishi Gas Chemical Company (Japan), Crown Holdings Incorporated (U.S.), Klockner Pentaplast (Subsidiary Of Blackstone Group) (U.S.)
Recent Developments
- June 26, 2023, AIP (Active and Intelligent Packaging) is set to launch a new course dedicated to active and intelligent packaging. This course aims to provide comprehensive knowledge and practical insights into the dynamic field of active and intelligent packaging solutions. The course will cover a wide range of topics, including the fundamentals of active and intelligent packaging, the latest technologies and innovations, regulatory considerations, and case studies showcasing successful implementations. Participants will gain a deep understanding of the principles behind active and intelligent packaging systems, their applications across various industries, and the benefits they offer in terms of product preservation, quality assurance, and consumer engagement.
Segments Covered in the Report
By Type
- Oxygen Scavenger
- Shelf-life sensing
- Time Temperature Indicator
- Moisture Absorber
- Others
By Application
- Food and Beverage
- Healthcare
- Pharmaceutical
- Personal Care
- Others
By Geography
- North America
- Europe
- Asia-Pacific
- Latin America
- Middle East & Africa (MEA)