Technology is moving forward at great speed in all sectors and of course, in the packaging sector we can also perceive innovation and evolution into a more digital market in order to adapt and evolve to the 4.0 industry. 

This new stage, packaging includes elements known as smart packaging. Packaging is a key element since it is the first contact that a client has with a product, it’s the products’ image. This is the reason why it is so important to find new ways to connect with the customer through our package and these new ways are smart packaging. 

What is smart packaging?

Smart packaging means not only protecting the product but also providing valuable information for the customer that can be addressed to the distributor and the consumer.

Types of applications

There are different types of smart packaging and every one has different applications:

Design type: This smart packaging is thought to improve its shape and functionality, that is why the consumer perceives an added value and improves his experience when he uses it. An example in the cosmetic packaging are dosing tubes. 

Active type: The main goal is to use better materials to improve the appearance or functionality of the product. It can be used to control the temperature or prevent moisture from impacting inside the package. 

Connected type: This smart packaging uses technology such as sensors or codes in order to generate data and save, treat and analyze the consumers’ behaviour. This type of packaging is capable of varying depending on the type of customer that is exposed to. This information can be used to improve the distribution of a product or locate a package. 

Types of objectives

Based on these three types of smart packaging, there is also a classification depending on the objectives of a brand or the necessity that needs to be fulfilled by the customer. 

Stock and life cycle

Tracking: you can know in real-time where your package is. For B2B companies this is an extremely important objective since trakking a product when it is part of a large supply chain is key to analyse possible problems and optimize processes. 

Agility: the data permits to optimize the supply chain

Sustainability: By controlling the life cycle of a packaging, you can reduce your carbon footprint impact and also track how and where it is being reused. 

Integrity of the product

Authenticity: to ensure that the product that the client receives is correct, and proceeds from the correct supplier in order to avoid fake products. 

Security: to protect the product from robbery and control that there haven’t been any inadequate uses. it is being used in a proper way. 

Quality: to guarantee that the product is in optimal conditions. 

User experience

Interaction and satisfaction: communication with the consumer for a much deeper interaction such as entertainment, instructing or informing. 

Use: simplifying and optimizing the delivery and preparation processes and understanding the human behaviour through technology. 

Acces: Improve the command process of products and also the delivery. 

Which are the challenges of smart packaging?

Although smart packaging is increasing in the packaging sector, it isn’t yet a priority for the majority of companies in the packaging industry. There is still a long journey until it becomes a must for companies since there are some challenges that need to be overcome. 

Commercial challenges: a better packaging also means a higher cost. In a saturated market such as packaging, rising prices can impact negatively on sales, but keeping the same prices and cutting benefits isn’t a good solution either since it isn’t cost-efficient. 

Legal changes: the regulation of smart packaging isn’t clear or fully developed. As a consequence, aspects such as consumer data collection and manipulation by companies can be conflictive in a future. 

Technological challenges: If smart packaging depends on technology this means that it will advance at the same speed as technology. Therefore, the better technology gets, the better will the packaging be. 

Organisational challenges: smart packaging involves different organisations such as the main company, the delivery companies, the QR developers, the client… therefore there needs to be a perfect process that takes into account how these different agents work in order to create a successful smart packaging. 

Conclusion: Smart packaging is around the corner

Smart packaging is a powerful tool that will help us provide a better service by answering questions such as “Where is my package at this very moment?”, “In which temperature conditions is my package during the distribution process?” By knowing this information we will be able to improve our supply chain processes and therefore improve the value perceived by our client.

According to Smart Packaging Market Research Report – Forecast to 2023, developed by Market Research Future, the global market value of smart packaging is 46.000 million dollars. 

Currently there are 11 multinational companies that are working intensively in this field. In a few years, packaging will overcome it’s protective mission and will transform into “super-packaging” with the mision to build a personalized and valuable experience for the consumer. Not only a product experience but also a shopping and brand experience: packages will help the customer make a purchasing-decision and even give the company feedback about the use, satisfaction and opinions of the product. Smart packaging will provide very valuable insights for companies to create real-time analytics. Packaging will create, strengthen and improve the collaboration and relation between all stakeholders. Therefore, it is important to take in mind how we are going to overcome some of the main challenges of smart packaging. 

All in all, smart packaging is an unstoppable trend that will revolutionize different sectors apart from packaging. It is a double revolution: on the one hand it improves the user experience (active packaging) and on the other hand it has a positive impact on the supply chain (intelligent packaging).