The primary function of packaging is to protect goods during transport from the manufacturer to the consumer. Depending on legal requirements, packaging may also need to carry information on the product details. Manufacturers may also incorporate information to benefit logistics partners, retailers, and customers and boost brand value. According to industry experts, technology in packaging, or smart packaging, could reach a whopping US$ 46.25 billion by 2025.
Smart Packaging Explained
A Smart Packaging System aims to extend the functionality of conventional packaging by linking it with digital markets. You can classify smart packing into two broad categories – active and intelligent packaging. Active packaging improves the lifecycle, shelf life, and product quality while it is in the package during storing and shipping. For example, the packaging may use technology to control temperature, remove harmful elements, or protect from adverse surroundings. On the other hand, intelligent packaging adds smart functions to the packaging to enhance the product value and better the customer experience. Examples include barcodes and NFC tags.
Benefits of Smart Packaging
Product protection: Active packaging helps to protect the products during the entire shipment process till they reach the customers. It can deal with potential hazards like moisture, light, and other harmful environmental agents.
Cost saving: Even though implementing Smart Packaging Solutions require considerable investment, the benefits more than offset it. Storage and transportation become more efficient, and keeping products protected is easier without adding extra packing materials, helping to make storing and shipping easier and less costly.
Marketing tool: Smart packaging helps add value to product marketing. You can use it to increase the appeal of your products and help them stand out from the competition. Smart Packaging Technology can help the brand to grab attention more easily. No wonder a study reports 72% of customers saying packing influences their decision to purchase.
Brand image boost: Manufacturers often use product packaging to reflect confidence, quality, and investment in the product. Customers are more likely to buy products with packaging that impresses them. Customers also carry this feel-good factor to other products by the same manufacturer, aiming them more loyal. Many customers favor products with eco-friendly packaging because they are concerned about the environment.
Brand transparency: Increasingly, customers are demanding better ethics, more sustainability, and better transparency from brands. Smart packaging can help address many of these concerns by providing a better Track and Trace System and accountability on materials, carbon footprint, and manufacturing processes. Brands can employ Smart Pack Packaging Solutions to create a more sustainable and ethical brand and connect better with customers.
Conclusion
The extent and mode of smart packaging manufacturers can adopt depends significantly on the nature of the products and the availability of funds. However, there is no denying the multiple benefits of smart packaging and that companies can use the opportunity to resonate better with their customers and deliver better-quality products to them.
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