Active Packaging Market - Forecasts from 2024 to 2029

The active packaging market was estimated at US$18.304 billion in 2024, growing at a CAGR of 6.42% to reach US$24.979 billion by 2029.

Active packaging entails the addition of specific agents into packaging systems to maintain the quality and shelf-life of a product. Meanwhile, smart packaging can monitor the condition of enclosed foodstuff while it is in transit or storage, thereby delivering information about its quality. As a result, employing active packaging contributes to improved convenience and safety, freshness monitoring, quality information provision, and shelf-life extension. Foods and medications, along with other product categories, use active packaging. The packaged food industry's growth and convenience stores' increasing use of active packaging are two factors driving the growth.

Active Packaging Market Drivers:

The demand for packaging products that are both durable and environmentally sustainable is on the rise.

Conventional packaging has been developed to protect food during transportation and storage in the supply chain. Today, there is no supply chain without technology; its influence is felt everywhere regarding operational benefits that make companies more agile amid globalized markets.

Furthermore, laws have become easier to comply with, compared to earlier days, and fulfilling the needs of customers who are interested in honesty is possible due to digitalization. This shift is primarily driven by changing customer preferences for eco-friendly packaging solutions.

Growing awareness of health and wellness drives the market growth.

The active packaging market is experiencing massive growth due to consumer enlightenment on well-being and health. The more people seek goods that encourage fitness, the more they are mindful of their health status and that of others. This market expansion is also brought about by the increased use of technologies that support ensured taste and required food quality standards by preserving the product's life and freshness. To ensure that people achieve their health objectives by purchasing particular goods, these goods are provided with attributes. For example, oxygen barriers, UV light protection, as well as active packaging, which aids in maintaining vitamins, nutrients as well and flavors. In addition to this, customers are worried about how packaging substances can have negative impacts on the environment. This prompts an increased demand for eco-friendly packages alongside the already existing concerns about keeping fit.

Advances in Bio-based Active Packaging to Propel Market Growth

Biodegradable and biobased polymers are being used, which is contributing to the growing market share. Recent developments in bio-based active packaging - like the use of pullulan for fruits and vegetables - are showing promise as a key driver of market expansion. Pullulan is a microbial polysaccharide glucan gum that dissolves in water. A fungi that is biodegradable and non-toxic was used to make it in an oxygen-rich environment. It is gaining traction in food, chemical and pharmaceutical industries due to its immense utilisation lately. The creation of films from pullulan and its capability to act as an oxygen barrier are what makes it suitable to be used to develop functional biomolecules which will spur global growth of the market for these biomolecules. An increased demand for fresh fruits and vegetables resulting from people embracing healthy living is driving this market opportunity. Moreover, pullulan can have film-coating preservatives but also possess antimicrobial properties that help preserve fruits and vegetables for longer periods. They also stop microbial growth, nutrient loss, and food spoiling, which makes them a significant market trend.

Increasing demand of gas scavenger

The most advanced technology in active packaging material is gas scavenger/emitter. To prevent contamination, oxygen absorbers are either affixed as labels on the lid or added individually as tiny sachets in the package head-space. Food products like bread, cakes, cooked rice, and packaging containing meat and cheese are examples of oxygen scavengers.

Depending on the kind of food and beverage packaging, gas scavengers/emitters can also include carbon dioxide scavengers/emitters and ethylene scavengers. Fish, coffee, and fresh meat all use carbon dioxide emitters or scavengers. Fruits and vegetables are long-term preserved with the help of ethylene scavengers. Cereals, meat, fish, and poultry products all contain moisture absorbers. To separately absorb oxygen and moisture, gas scavengers/emitters are used in the packaging of pharmaceuticals and medical devices.

Active Packaging Market Restraint:

High implementation cost.

When compared to traditional packaging methods, the implementation costs of active packaging are relatively higher, which poses the primary market challenge. In most cases, the use of extra parts like sensors or active agents in active packaging technologies adds to the cost of production and packaging at large. Due to such added costs, certain businesses are discouraged from using active packaging solutions, especially those that have limited funds, i.e., SMEs. In order to guarantee business viability, active packaging solutions' cost-effectiveness and return on investment must be carefully assessed, which somewhat inhibits the market's growth.

Active Packaging Market Geographical Outlook

North America is witnessing exponential growth during the forecast period

Favorable regulations, the growing focus on sustainability, and increased demand across various sectors, especially in food and healthcare, are some reasons why the active packaging market has been growing significantly within the United States over the past few years. According to the Food and Agriculture Organization of the United States, it is estimated that around 133 billion pounds of food, costing USD 161 billion, go wasted every year.

Furthermore, in the United States, there is an increasing curiosity about active and smart packaging as a measure to reduce food wastage. Government efforts have had a huge stake in driving up the need for smart packaging, which, apart from aiding in food wastage reduction and ensuring its safety, can be used to track the whereabouts and nature of foodstuffs.

Active Packaging Market Developments:

• In January 2024, ProActive Intelligence Moisture Protect (MP-1000) is a pioneering moisture-absorbing technology that ProAmpac - a company famous for flexible packaging and material science - introduced and which had a pending patent. This innovation eliminated the necessity for desiccant packets. The MP-1000 platforms utilized Aptar’s CSP Technologies’ 3-Phase Activ-Polymer™ platform technology to reduce moisture levels in the packaging headspace, catering to applications demanding precise moisture control. These applications included point-of-care diagnostic kits, live culture probiotics, and hygroscopic powdery food products.
• In December 2022, BASF SE, headquartered in Ludwigshafen, Germany, collaborated with StePac Ltd., based in Tefen, Israel, to develop a new era of sustainable packaging tailored for the fresh produce industry. By furnishing StePac with its Ultramid® CcycledTM, a polyamide 6 material chemically recycled by BASF, the company granted its partner increased flexibility to enhance contact-sensitive packaging formats to a higher level of sustainability within the framework of the circular economy.

Key Market Segmentation:

Active packaging Market is segmented and analyzed as below:

By Packaging Technology

• Oxygen Scavengers
• Moisture Controllers
• Antimicrobial Agents
• UV Blocking
• Others

By Application

• Food
• Beverages
• Pharmaceuticals and Healthcare
• Electronics Applications
• Consumer Care
• Others

By Geography

• North America
• U.S.
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• U.K
• Germany
• Italy
• France
• Netherlands
• Spain
• Others
• Middle East and Africa
• Israel
• South Africa
• Saudi Arabia
• Others
• Asia-Pacific
• China
• Japan
• Australia
• South Korea
• India
• Others