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Next-Generation packaging

Source: Packmojo (2024): What is Smart Packaging & How Does it Work?

Relevance to the Future of Logistics

(Active) Packaging & Tracking

Active packaging incorporates additives to maintain or extend product quality and shelf life. Active packaging solutions today account for an over 36% share of the global next-generation packaging market and are predicted to remain dominant for the next 10 years. Examples of active packaging include antimicrobial packaging, heating/cooling packaging, items including gas emitters, absorbers and scavengers, moisture/ odor/ flavor-absorbing and releasing packaging, corrosion control packaging, and spoilage retardant items.

These types of packaging are engineered to respond and react to changes in the external and internal atmosphere of a package and are therefore of utmost importance and significance to e.g. the pharmaceutical and nutraceutical industries as well as for lithium-ion batteries . Logistics organizations, in turn, need to have fresh chain and cold chain operational capabilities in place to ensure product delivery meets the standards set by customers and aligns with varying fresh and cold chain legislation.

Logistics companies today are developing more solutions to improve active temperature retention and eliminate reliance on dry ice or liquid nitrogen which have to be handled as dangerous goods , particularly in air freight scenarios. Sensors and Internet of Things (IoT) monitoring are increasingly used to check various conditions such as temperature, shock, light, humidity, inversion/tilt, location, and thermal runaway.

In any case, the use of active trackers is limited by the fact that their batteries are classified as dangerous goods, too, adding complexity to air shipping. Bluetooth trackers represent a cost-effective alternative, leveraging existing infrastructure like smartphones for status monitoring. The small batteries in Bluetooth trackers are not classified as dangerous goods. However, their one-time usage contributes to growing e-waste whereas active trackers can be used in circular solutions.

Intelligent Packaging Solutions for Asset Monitoring

Intelligent packaging systems monitor the internal condition of packaged goods to give information on quality during transportation and storage. Simply defined as packaging which senses and informs, these systems integrate hardware components such as time temperature indicators (TTI), freshness and ripening sensors, and RFID and other tags. This helps maintain the quality of products, contributing to a reduction in global waste. The healthcare and pharmaceutical industries are considered major growth markets, highlighted by the Covid-19 pandemic, as there is a growing need to improve supply chain visibility in these sectors.

Application opportunities for intelligent packaging are not limited to just these industries, however. Within logistics and supply chain operations, smart packaging solutions are vital to goods in many other industries, better protecting them with real-time tracking as this cuts the risk of theft, last-mile delivery diversion, counterfeiting, and other crimes.

Monitoring solutions play a vital role in fresh and cold chain packaging, ensuring temperature stability during transit and enabling shipment status checks upon arrival. Previously, active trackers were often used for location checking but this need is overtaken today by requirements for temperature stability monitoring.An example of this is the Digital Shipping Label & Asset Tracker from the British start-up Envio that lets the shipper remotely track and re-label a shipment using an e-ink digital shipping label. This solution also sends out notifications when a shipment is opened, dropped, or exceeds a temperature threshold.

Modified Atmosphere Packaging

The vast expansion of global shipping and transportation capacity has enabled rapid transportation around the world of perishable goods and atmosphere-sensitive products. Within this complex process to ensure products arrive in best condition, the internal atmosphere of the storage container or packaging must be continuously monitored, maintained, and may need to be changed. As such, the use of modified atmosphere packaging (MAP) becomes central to the effectiveness of transportation and delivery.

The benefits of MAP technology include reducing global food wastage, extending shelf life by days and even weeks, and achieving a more profitable and secure global food supply chain. For nutraceuticals, goods that tend to deteriorate through oxidation can be protected by actively replacing oxygen with nitrogen.

The Covid-19 pandemic also highlighted the need for MAP solutions to facilitate global vaccine shipments, particularly controlling and modifying atmospheric temperature during transportation. One example of this is the development of packaging that incorporates internal dry ice.

Green Packaging Alternatives

Sustainable packaging is a significant and evolving topic. It encompasses the optimization of packaging, the utilization of recycled or bio-based materials, and the implementation of circular or refillable systems within the supply chain.

However, there are notable challenges to the adoption of sustainable packaging solutions in the logistics and business-to-business (B2B) sectors, with limited integration beyond specific industries. Wider implementation is hindered by the lack of return services for reusable solutions, the influence of pricing considerations, and more. Research conducted by DHL eCommerce reveals that, while 28% of global customers express willingness to pay for sustainable packaging, an equal percentage would not.

Extensive exploration of innovative alternatives, encompassing water-soluble, edible, plantable, and biodegradable options, is currently underway to effectively address sustainability challenges. In order to replicate the properties of conventional packaging, these sustainable solutions must be compatible with sensitive products, ensuring the safe storage and delivery of each package’s contents.

A growing number of companies are additionally embracing minimalistic packaging approaches, such as employing non-colored kraft box packaging and optimizing package sizes to reduce shipment size, packing material usage, and overall CO2e emissions. As an example, Continental, the German automotive parts manufacturer, has implemented smaller and more sustainable packaging for its timing belt kits with a water pump, resulting in a 70% package size reduction, reduced CO2 emissions, and fewer truck trips for logistics.

Regulations and governmental legislation, such as recent new rules on sustainable packaging in the European Union (EU), will drive companies towards adopting green and efficient packaging solutions. This EU agreement sets packaging reduction targets (5% by 2030, 10% by 2035, and 15% by 2040) and mandates EU countries to reduce plastic packaging waste.

Challenges

Challenge 1

Next-generation packaging sometimes includes components such as batteries, sensors, displays, and circuits which are challenging to recycle; the long-term viability of such solutions is determined by their environmental impact.

Challenge 2

Different regulations apply in various countries and regions, and specific additional regulations often apply to the multiple components of smart packaging, so significant time and resources are needed to ensure compliance in a fast-changing world.

Challenge 3

The successful implementation of sustainable packaging solutions necessitates substantial investments and collaborative efforts among various supply chain stakeholders, but collaboration is crucial to the adoption of innovative, circular packaging solutions.

Next-generation packaging sometimes includes components such as batteries, sensors, displays, and circuits which are challenging to recycle; the long-term viability of such solutions is determined by their environmental impact.
Different regulations apply in various countries and regions, and specific additional regulations often apply to the multiple components of smart packaging, so significant time and resources are needed to ensure compliance in a fast-changing world.
The successful implementation of sustainable packaging solutions necessitates substantial investments and collaborative efforts among various supply chain stakeholders, but collaboration is crucial to the adoption of innovative, circular packaging solutions.

Outlook

Next-generation packaging has the potential to enhance visibility, boost security, and optimize supply chain reliability, particularly for cold-chain shipments. As technology advances, even more will be achieved, effectively improving the efficiency and dependability of logistics and the supply chain.

Future developments in sustainable packaging will focus on reliability, durability, pricing strategies, and regulatory guidelines to tackle the problems of unrecycled single-use plastic and non-sustainable packaging. The financing of closed-loop solutions will likely play a vital role in promoting a circular economy, minimizing waste and maximizing resource efficiency for a more environmentally responsible and economically viable packaging landscape.

This trend should be CAREFULLY monitored,with use cases in some applications that can already be addressed today.

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Sources

  1. Future Market Insights (2023): Next Generation Packaging Market Outlook for 2023 to 2033
  2. European Parliament (2024): Deal on new rules for more sustainable packaging in the EU