The trend of Next-Generation Packaging refers to the evolving options for materials used for primary, secondary, and tertiary packaging as well as the technology added to this packaging. These materials and new technologies enable packaging to sense and react to changes in the environment and changes in the packaged contents. This trend also incorporates elements of sustainability, using new packaging materials that are often more bio-based, recyclable, reusable, and biodegradable.
From the continued boom and rise of e-commerce to the global drive for sustainability, the need is growing for smarter and yet cost-efficient packaging solutions with a strong focus on the reduction of CO2 footprints. In order to meet customer demand, there is emphasis on recyclability, reusability, compostability, and biodegradability and a rising demand for antimicrobial packaging. At the same time, there are pressures to improve package traceability and condition-monitoring. It is increasingly important for logistics organizations to meet these needs.
Propelled by population growth, technological developments, and changing consumer expectations about product packaging, the global packaging market has seen rapid growth in recent years. With a 2023 market size of almost US$ 13 billion, the global next-generation packaging market has a predicted 10-year compound annual growth rate (CAGR) of 6.43%, reaching a market size of almost $24 billion by 2033.
Recent advances in packaging technology include the incorporation of radio-frequency identification (RFID) tags, other IOT sensors, and indicators for content conditions, as well as redefining the way packaging materials are sourced.
With developments in this trend set to continue over the next five years, more and more companies are reconsidering the materials and technology used in and for their packaging. As more companies change the ways they use materials and sustainable goods, logistics organizations also need to make adjustments, implementing next-generation packaging practices and reevaluating current operations to ensure new types of packaging can be processed safely through conveyor belts, scanners, and more. And, of course, the contents of this packaging can be delivered to recipients without damage.
Furthermore, the cost of packaging remains a factor that is crucial to extensive scalability. Especially during unstable economic periods, companies may opt for a cheaper solution rather than spending extra on a more sustainable and technology-enabled alternatives.