Smart Tag Packaging Market Size, Share, Trends, Growth and Forecast 2032

Smart Tag Packaging Industry Prospective:

The global smart tag packaging market size was worth around USD 10.06 billion in 2023 and is predicted to grow to around USD 27.51 billion by 2032, with a compound annual growth rate (CAGR) of roughly 11.82% between 2024 and 2032.

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Smart Tag Packaging Market: Overview

Smart tag packaging is a label-based modern packaging solution used across industries. It allows easy access to product-related information using a quick scan method.

Buyers can obtain critical information such as the current condition of the item stored within the packaging or its origin, thus allowing them to make more informed decisions. Smart tag packaging uses functional tools that can be attached to the original packaging.

Some of the most common tools used in the case of smart tag-based packaging include near-field communication, radio frequency identification (RFID), environment sensing, and 2D barcodes.

The industry for smart tag packaging is expected to succeed due to the changing consumer demands from brands as buyers want to be more aware of the several aspects of the product they are buying.

Additionally, increased demand for smart tag packaging across major product retails, especially in the food & beverages and healthcare sectors, is projected to fuel greater revenue in the industry.

However, the high cost of technology and ancillary infrastructure, along with the risks concerning cyber-attacks, could impact the smart tag packaging industry's growth rate over the forecast period.

Key Insights:

• As per the analysis shared by our research analyst, the global smart tag packaging market is estimated to grow annually at a CAGR of around 11.82% over the forecast period (2024-2032)
• In terms of revenue, the global smart tag packaging market size was valued at around USD 10.06 billion in 2023 and is projected to reach USD 27.51 billion by 2032.
• The smart tag packaging market is projected to grow at a significant rate due to the increased demand from consumers for product-related information comprehensive information.
• Based on application, the interactive packaging segment is growing at a high rate and will continue to dominate the global market, as per industry projections.
• Based on type, the radio-frequency identification (RFID) tags segment is anticipated to command the largest market share.
• Based on region, Asia-Pacific is projected to dominate the global market during the forecast period.

Smart Tag Packaging Market: Growth Drivers

Increased demand from consumers for product-related information comprehensive information will drive the market growth rate

The global smart tag packaging market is expected to grow due to increasing demand from consumers. Modern buyers are increasingly choosing companies that allow greater transparency of several aspects related to products.

For instance, buyers seek information about the origin of the raw materials, the production process, and the exact condition of the packaged goods. The information thus generated allows customers to make informed decisions.

Additionally, a growing number of buyers are actively choosing products that are environmentally friendly and use sustainable means of production, such as avoiding any form of animal cruelty when testing products before they are made available for commercial sale.

As consumers seek more information from brand owners, they are likely to incorporate smart tag packaging which is an excellent means by which consumers can obtain desired information.

According to recent findings, more than 56% of consumers globally who indulged in online shopping of products recorded that transparency and trustworthiness were crucial to making purchase-related decisions.

Rising use of intelligent tag-based packaging in healthcare will fuel the industry’s expansion trends

Smart tag packaging is considered highly beneficial in managing inventory and tracking products from the point of selling to the final sale.

Moreover, the tags can be used to authenticate the products at any point in the sale. These features are ideal for application in the healthcare sector to manage inventory related to healthcare technologies and medications.

The rising cases of counterfeit medical devices sold commercially have further strengthened the need to incorporate solutions available in the smart tag packaging industry.

According to market experts, smart packaging solutions can revolutionize the pharmaceutical and healthcare industries by introducing more interactive and responsive packaging solutions.

Smart Tag Packaging Market: Restraints

High cost of the technology will act as a major market growth restrictor

The global industry for smart tag packaging is projected to be restricted due to the high cost of the technology. Conventionally used packaging solutions are easily available. The manufacturing technique of producing basic packaging materials is well-established.

However, smart tag packaging providers are currently limited in the commercial market leading to higher costs. Moreover, the expenses further escalate due to the use of advanced technologies to make smart tag packaging functional.

Smart Tag Packaging Market: Opportunities

Investments in renewable cutting-edge tag packaging solutions to generate more growth opportunities

The global smart tag packaging market players are increasingly investing in renewable versions. Using such concepts will allow manufacturers of smart tag packaging to cater to the needs of consumers and stay environmentally responsible.

In October 2023, Avery Dennison Smartrac, the leading labeling and packaging materials wing of Avery Dennison Corporation, announced the launch of sustainable RFID inlays and tags for the logistics, healthcare, and retail sectors. The new offering is labeled under Pure Line and is either 95% or 100% plastic-free.

Thus, the products will be recyclable at the end of the life cycle. In addition to this, market players must focus on emerging countries with growing middle-income groups and changing lifestyles.

For instance, in April 2024, Nexgen Packaging, a leading provider of next-generation packaging solutions, launched its headquarters in Kenya, Africa.

With this move, the company has managed to become the first global supplier in the smart packaging industry to establish its main office in Kenya, thus strengthening its foothold on the African continent. Market players can benefit from the rising consumer awareness in emerging markets.

Smart Tag Packaging Market: Challenges

Security concerns with RFID and QR-based tags to challenge the market expansion trends

The global smart tag packaging industry is projected to be challenged by the growing concerns over the security quotient of RFID, QR, and other smart solutions in the sector.

For instance, smart systems can be hacked using sophisticated software programs and applications, thus putting consumer privacy at risk. In addition to this, smart tag packaging may lead to additional waste generation, especially from the technology industry.

Smart Tag Packaging Market: Segmentation

The global smart tag packaging market is segmented based on application, end-user, type,  and region.

Based on the application, the global market segments are environment monitoring, traceability & authentication, food safety & quality assurance, interactive packaging, and others.

In 2023, the highest growth was witnessed in the interactive packaging sector, which held control over 28.01% of the total share.

Interactive packaging is known to impact consumer engagement with the brand and its products. Moreover, they are ideal for gathering critical information about the products and their makers.

Based on end-user, the global smart tag packaging industry segments are logistics & supply chain, aerospace, automotive, healthcare, and others.

Based on the type, the global market is divided into quick response (QR) codes, near-field communication (NFC) tags, radio-frequency identification (RFID) tags, and others.

In 2023, the highest demand was listed in the radio-frequency identification (RFID) tags segment, with control over 36.05% of the total share. These tags leverage radio-frequency waves for transmitting critical information from the tag to the reader.

These solutions have found wide-scale applications across major industries such as healthcare, food & beverages, and others. Moreover, increasing innovation in RFID-based technologies will help the segment thrive.

Smart Tag Packaging Market: Report Scope

Smart Tag Packaging Market: Regional Analysis

Asia-Pacific to continue dominating the market with exceptional growth trend

The global smart tag packaging market will be led by Asia-Pacific during the projection period. In 2023, it dominated nearly 37.02% of the global market revenue, led by South Korea, China, and Japan.

The increasing number of consumers in Asia-Pacific, especially in emerging economies such as China and India, are expected to promote the demand for smart tag packaging. Japan, on the other hand, is known for its culture of early adoption of technologies that improve consumer buying experience.

One of the ways the country attains customer satisfaction is by incorporating smart tag packaging solutions that provide a means of accessing product-related information.

In June 2021, regional player Toppan Printing, a leading provider of packaging, security, and communication solutions, among other offerings, announced the integration of tamper-evident NFC1 tag functions in the physical structure of packages made of paper.

The company has managed to develop smart packaging with this move, thus aligning the manufacturing process without impacting the package design.

Moreover, the expansion of regional players in neighboring and western international markets will help Asia-Pacific maintain its dominance in the long run.

Smart Tag Packaging Market: Competitive Analysis

The global smart tag packaging market is led by players like:

• Sato Holdings Corporation
• Avery Dennison Corporation
• Alien Technology Corporation
• Thin Film Electronics ASA
• Schreiner Group GmbH & Co. KG
• NXP Semiconductors N.V.
• Tageos SAS
• Zebra Technologies Corporation
• CCL Industries Inc.
• Checkpoint Systems Inc.
• Honeywell International Inc.
• Smartrac N.V.
• Impinj Inc.
• Identiv Inc.
• RFMicron Inc.

The global smart tag packaging market is segmented as follows:

By Application

• Environment Monitoring
• Traceability & Authentication
• Food Safety & Quality Assurance
• Interactive Packaging
• Others

By End-User

• Logistics & Supply Chain
• Aerospace
• Automotive
• Healthcare 
• Others

By Type

• Quick Response (QR) Code
• Near-Field Communication (NFC) Tags
• Radio-Frequency Identification (RFID) Tags
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa