Published by TMR Research Insights
Posted on October 1, 2021
5 min readLast updated: February 1, 2026
The digital packaging market is poised for significant growth by 2025, driven by technologies like RFID and IoT, enhancing efficiency and safety in the supply chain.
Digital packaging refers to the use of modern digital technologies as a core part of packaging elements used for several products, especially in the consumer goods industry. This can imply the use of printed elements on the packaging that users or consumers can use to gain access to digital content or products. At the same time, digital packaging is being used on large scales internally by manufacturing companies and other corporations in order to identify packages faster and also to maintain delivering efficiency and product safety. The food and beverages industry, for instance, is increasingly making use of RFID technologies in packaging in order to speed up transportation, processing, and delivery of products, while additionally using rapid scanning technologies to ensure that the products being transported are protected and fresh. RFID is just one of the many technologies being used in the global digital packaging market that has transcended from being a niche quirk for developers and enthusiasts to large scale implementations that can cut down some serious time.
QR codes are another key technology being used in the global digital packaging market. These codes are machine readable and mobile friendly codes that contain vital information regarding a package that can be used across the distribution chain to ensure safe transportation of a package. It also allows consumers to gain direct information of the products they are buying, including online manuals and warranty registrations.
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Digital packaging can be defined as the incorporation of digital technology into the packaging of products. Digital technology incorporated into packaging includes near field communication (NFC), radio frequency identification (RFID), Bluetooth, Wi-Fi, QR codes, Barcodes, etc. The implementation of digital packaging therefore encompasses broad range of packaging systems such as labels, tags, closures, flexible packaging, rigid packaging, etc.
The global digital packaging market is observed to be in the germination stage and is anticipated to expand considerably over the forecast period 2017-2027. The US$ 800 billion global packaging market offers enormous growth potential for the digital packaging segment in terms of engineering, design, innovation and product development activities. Market players entering into the digital packaging market are streamlining their product life cycle (PLC) strategies in order to grab the early mover’s advantage.
Historical analysis into the evolution and growth of digital packaging market has brought to the surface innovative products in packaging that include smart tags, labels, smart pharmaceutical bottles, hydration reminder smart water bottles, interactive packaging, digitally connected packaging systems, etc.
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Global Digital Packaging Market: Market Dynamics
Emergence of internet of things (IOT) has led to packaging manufacturers incorporating smart sensors into their packaging solutions in order to broaden the packaging functionality. Smart sensors used in the digital packaging market have the ability to track information regarding temperature, motion and pressure. Smart sensors, smart labels and barcodes have allowed manufacturers to track products in the supply chain and logistics processes. End use industries such as food, beverages and pharmaceuticals have prominently leveraged the use of connected technology to gauge and record information pertaining to temperature, internal atmosphere, pressure and motion.
In February 2017, manufacturer of snacks foods Frito-Lay, Inc. incorporated digital technology in the packaging of their tortilla-chip snack Tostitos. The bags used for packaging of Tostitos are incorporated with alcohol sensors coupled with LED lights and NFC technology. The smart sensors allowed consumer engagement by promoting the notion safe driving.
Manufacturers and especially consumer brands are looking at packaging as the gateway to the perceptual understanding among consumers. The use of QR codes on packaging has enabled consumer packaged goods (CPG) manufacturers to engage consumers in innovative ways and drive sales and business growth. QR codes have enabled brands to offer discounts, prizes, gather feedback or supply product related information.
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Digital packaging market is observed to gradually include traditional packaging formats which are remodeled to incorporate the principles of digital packaging. Smart bottles are incorporated with digital technology to provide enhanced functionalities such as hydration reminders, medical dosage reminders, time and temperature indication, tracking and recording the quality of wines, etc. The smart bottle segment within the digital packaging market itself is estimated to be reach US$ 200 million by 2024.
Global Digital Packaging Market: Regional Outlook
Geographically the global digital packaging market is segmented into 7 key regions including North America, Latin America, Europe, Asia Pacific excluding Japan (APEJ), Japan, and Middle East and Africa (MEA).
Global Digital Packaging Market: Key Players
Some of the players operating in the digital packaging market include Thin Film Electronics ASA, Avery Dennison, Trago, Inc., Thermos L.L.C., AdhereTech Inc., Weber Packaging Solutions, Inc., Saralon Gmbh, Amcor Limited
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The article discusses the growth and technologies involved in the digital packaging market.
Technologies include RFID, QR codes, NFC, Bluetooth, and smart sensors.
Industries like food, beverages, and pharmaceuticals are prominently adopting digital packaging.
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