Asia Pacific Active and Intelligent Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Asia Pacific Active and Intelligent Packaging market is expected to register a CAGR of 6.2% over the forecast period (2021 - 2026). With the recent outbreak of COVID 19, the active and intelligent packaging manufacturers were flooded with a pool of issues that are expected to only last for the short term. Some of the effects of the lockdown include supply chain disruptions, lack of availability of raw materials used in the manufacturing process, labor shortages, fluctuating prices that could cause the final product's production to inflate and go beyond budget, and shipping problems.

Key Highlights

• The growing geriatric population, rising number of chronic ailments, and increased demand for over-the-counter pharmaceuticals contribute to the Healthcare segment's growth. Active packaging solutions are becoming more popular as pharmaceutical packaging rules become more stringent. The market for active packages is expected to grow throughout the projected period, owing to the increasing complexity of products that must be stored or transferred to remote locations while keeping their integrity.
• Due to market maturity, growth in demand for corrosion control packaging, desiccants, and microwave susceptors will be more moderate. However, when new products are introduced to execute these standard functions more efficiently, healthy increases will continue to be seen. New ecologically friendly corrosion control scavengers, for example, have been created, and desiccants are now integrated into pharmaceutical bottles or caps to provide moisture management.
• Time-temperature indicators, as well as smart labels and tags, are becoming more widespread. Although many of these devices were previously thought to be unneeded or prohibitively expensive, technological advancements that allow for low-cost printed electronics manufacture and the replacement of specialist electronic readers with smartphones will allow them to enter the mainstream. Recent legislation in the pharmaceutical and food industries, which forces manufacturers to make products safer and easier to recall, will push the rapid adoption of tracking-enabled or interactive packaging components.
• Although intelligent packaging is distinctly different from active packaging, the features of intelligent packaging enable the user to use it to check the effectiveness and integrity of active packaging systems, bringing added features and complementing each other. Intelligent packaging can be considered the enabler of the other packaging features that end-user industries can utilize, and in the process, help their customers offer quality products.

Key Market Trends

RFID is One of the Factor Driving the Market

• The use of intelligent packaging in the supply chain management of food goods helps prevent theft and counterfeiting while also improving the image of food firms in terms of branding and marketing. By employing RFID smart and intelligent packaging in the eCommerce and supply chain, users can track products at every stage of their journey, including their location. A consumer can get more information via RFID labels and tags than from a regular label.
• High prices, limited availability, and a lack of consumer knowledge of flexible plastic materials are all limiting issues in the RFID Intelligent Packaging market's growth. The shortage of integrators and complete product designers is another factor. Some of the opportunities in the RFID intelligent packaging market are related to advances in printing technology, which can boost the market.
• Manufacturers can achieve this goal by utilizing RFID technology for plant asset management. To oversee and maintain the quality and output of a manufacturing process, a combination of RFID tags and sensor technologies is a suitable solution for many locations in a production facility, such as conveyors, cameras, boilers, tanks, pipes, and so on. RFID tags are used to track movable assets in the manufacturing industry, such as tools, production equipment, and process components (e.g., doors, engine, wheels, mirrors, and other vehicle pieces) that are part of the end product.
• The increase in counterfeit products, especially in the pharmaceutical and personal care industries in emerging economies, also compelled companies to use technologies, such as RFID during packaging. All these factors account for a substantial rise in the demand for active and intelligent packaging. However, the initial capital needed due to higher costs of installation and implementation and security issues regarding with these systems are challenging the growth of the market

Pharmaceutical Plays a Significant Role in Market Growth

• The growing significance of modern packaging in the pharmaceutical industry has led the brands to utilize the potential of distinctive active packaging to stand out from the rest of their competition and increase profitability.​
• Initiatives by companies, such as Amcor and others, which design more than two-thirds of their pharma packaging to be recyclable or reusable (Formpack Blister + PTF portfolio), are expected to drive recyclability among the region's pharmaceutical packaging providers, driving sustainability. ​
• Serialization continues to be a driving factor for flexible sterile packaging used for medical equipment, devices, implantable devices, and consumables, such as vials and syringes, among others. ​The increased demand for administering oral drugs, prescription dose medicines, and over-the-counter (OTC) medicines are expected to increase the use of flexible aluminum foil in the pharmaceutical sector. ​
• The pharma brands continue to evolve in the market, covering most of the beauty and personal care categories. Pharma brands’ participation in promotional campaigns, such as discounts and offers in essential chemists/pharmacies, drugstores/para pharmacies, and online retailers, throughout the year, continue to stimulate purchases.

Competitive Landscape

The Asia Pacific Active and Intelligent Packaging market are moderately consolidated, with a few major companies like BASF SE, Amcor Ltd, Honeywell International Inc., Landec Corporation, Bemis Company Inc., Crown Holdings Inc.Ball Corporation, Timestrip UK Ltd are some players. The companies are continuously investing in making strategic partnerships and product developments to gain more market share. Some of the recent developments in the market are:

• August 2021 - Zai Urban Winery's organic wine was launched in beverage cans. Crown Bevcan Europe & Middle East (Crown) was tasked with bringing this visually engaging story to life as the brand's partner for the manufacture and design of the six unique cans, which feature high-quality graphics and a premium appearance.
• August 2021 - Amcor, one of the global pioneers in developing and producing a diverse range of reliable packaging solutions, today announced the debut of a proprietary healthcare lidding technology that will be used for combination products containing two or more regulated components (device, drug, or biologic). Amcor's most recent invention is based on patented inert film development and laminate design. It offers a lidding solution that can endure heat sterilization, which conserves and sterilizes products while preventing drug uptake into the package.

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• The market estimate (ME) sheet in Excel format
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