Connected Packaging Market Size - By Connectivity Technology, By Packaging Material, By End Use Industry – Global Forecast, 2025 – 2034

Connected Packaging Market Size

The global connected packaging market size was valued at USD 26.2 billion in 2024 and is estimated to grow at a 7.9% CAGR from 2025 to 2034, driven by demand for smart packaging solutions. The tariffs by the Trump administration on the imported goods, particularly from China, has led to disruption in the global supply chain and increase in the cost of imported raw material for the manufacturers.
 

Companies in the connected packaging market faced high cost of components such as RFID chips and smart labels, which in turn reduced the profit margin. The manufacturers had to pass the increased costs to the consumers which led to slow down in adoption of premium connected packaging. The tariffs had positive effects on the domestic manufacturing of the countries, as U.S. and European firms started to invest in local manufacturing of the connected packaging solution to meet demand and increase profit margin.
 

Brands are investing in technologies such as QR codes, NFC tags, and augmented reality to increase consumer engagement and brand loyalty. The technology in connected packaging allows real time product information such as product health and location. Technology ensures the product is authentic which increases consumer confidence on the brand and e-commerce company shipping it. This has led to increased adoption of connected packaging across various industries such as food & beverage, pharmaceuticals, and consumer electronics. According to Accenture study, share of retailers adopting radio frequency identification (RFID) in North America was 34% in 2014, which increased to 93% by 2020.
 

Another major driver is the increasing need for supply chain visibility and efficiency. Connected packaging enables real-time tracking of products from manufacturing to delivery, reducing losses and counterfeiting. Companies can monitor storage conditions, such as temperature and humidity, ensuring product quality. This is particularly crucial for perishable goods and pharmaceuticals. Enhanced traceability also helps brands comply with stringent regulatory requirements. Thus, businesses are investing in connected packaging to optimize logistics and build consumer trust.

The rise in e-commerce activities is fueling the growth of connected packaging. Online shopping requires robust packaging solutions that ensure product safety and enable seamless delivery tracking. Connected packaging provides customers with delivery updates and personalized unboxing experiences. Brands leverage this technology to gather consumer data and improve marketing strategies. As e-commerce continues to expand globally, the demand for intelligent packaging solutions is expected to surge.

Sustainability concerns are also driving the adoption of connected packaging. Consumers and regulators are pushing for eco-friendly packaging with minimal waste. Connected packaging often incorporates recyclable materials while offering digital alternatives to printed manuals and labels. Brands use this technology to educate consumers on proper disposal and recycling methods. By combining sustainability with smart features, companies can meet environmental goals while enhancing brand loyalty. This dual benefit is accelerating the shift toward connected packaging solutions worldwide.

To capitalize on the growing demand for smart packaging, players should invest in scalable technologies like NFC and AR to enhance consumer engagement while ensuring seamless integration with mobile platforms. Companies must prioritize supply chain optimization by leveraging IoT-enabled packaging for real-time tracking and anti-counterfeiting measures, particularly in high-value industries like pharmaceuticals and luxury goods.
 

 Connected Packaging Market Trends

• The integration of blockchain technology with connected packaging is gaining momentum as brands seek tamper-proof product authentication. This ensures transparency in supply chains while combating counterfeit goods, especially in pharmaceuticals and luxury items. Consumers can verify product origins and authenticity through immutable digital records. Blockchain-enabled packaging also enhances trust and loyalty by providing end-to-end traceability.
   
• Personalized and interactive unboxing experiences are becoming a major trend, with brands using connected packaging to deliver customized content, promotions, and loyalty rewards. Augmented reality (AR) and near-field communication (NFC) enable immersive storytelling and gamification. This trend is particularly popular in cosmetics, beverages, and retail, where engagement drives repeat purchases. Data collected from these interactions also helps brands refine marketing strategies.
   
• The rise of reusable and returnable smart packaging is reshaping sustainability efforts, with brands embedding sensors to track packaging lifecycle and incentivize returns. IoT-enabled containers can monitor usage patterns, enabling efficient recycling or refill programs. This circular economy approach reduces waste while maintaining the benefits of connected technology. Companies adopting this model gain a competitive edge by aligning with eco-conscious consumer preferences.
   

Connected Packaging Market Analysis

Based on connectivity technology, the market is divided into QR codes and RFID.
 

• The QR codes segment was valued at USD 21.6 billion in 2024. QR codes dominate the market due to their low cost, easy scalability, and universal smartphone compatibility, making them ideal for mass-market adoption. They enable real-time consumer engagement by linking to dynamic digital content like promotions, authenticity verification, and sustainability information. Brands leverage QR codes for supply chain traceability, allowing end-to-end product tracking from manufacturing to point-of-sale. Advanced cloud based QR systems support data analytics, helping companies personalize marketing and combat counterfeiting.
   
• The RFID segment is expected to grow at a CAGR of 8.8% till 2034. RFID technology is a key enabler in the market, offering automated, contactless data capture for high-value supply chains like pharmaceuticals, luxury goods, and retail. Unlike QR codes, RFID tags do not require line-of-sight scanning, allowing bulk inventory tracking and real-time visibility across warehouses and retail environments. They provide enhanced security and anti-counterfeiting through unique serialization, making them critical for product authentication.
   

Based on packaging material, the connected packaging market is divided into plastic, paper & cardboard, glass, metal, and others.
 

• Paper & cardboard as packaging material for connected packaging was valued at USD 11 billion in 2024. Paper and cardboard dominate the market as the most sustainable and cost-effective materials, preferred for their recyclability and compatibility with smart labels such as QR codes and NFC. Their lightweight nature reduces shipping costs while meeting the rising demand for eco-friendly packaging solutions in FMCG, food, and e-commerce sectors. Advances in conductive inks and printed electronics enable seamless integration of connectivity features without compromising recyclability.
   
• Plastic as packaging material for connected packaging is expected to grow at a CAGR of 7.7% through 2034. Plastic remains a key material in the global connected packaging market, valued for its durability, flexibility, and moisture resistance, making it ideal for sectors such as healthcare, beverages, and electronics. While facing scrutiny over environmental concerns, innovations in recyclable and biodegradable plastics are enhancing its sustainability profile. Smart plastic packaging often integrates RFID, and QR codes for track-and-trace, authentication, and interactive consumer experiences. Its compatibility with advanced printing technologies allows for high-resolution branding and embedded connectivity features.
   

Based on End Use industry, the connected packaging market is divided into food & beverage, pharmaceutical & healthcare, personal care & cosmetics, consumer electronics, and others.
 

• The food & beverage market for connected packaging was valued at USD 12.2 billion in 2024. The food & beverage industry is a leading adopter of connected packaging, leveraging QR codes and RFIDs to enhance consumer engagement with nutritional info, promotions, and brand storytelling. Smart labels enable real-time freshness tracking (e.g., temperature-sensitive inks) and authenticity verification, combating counterfeit products in premium segments such as wine and dairy. Connected packaging also supports sustainability initiatives by guiding consumers on recycling and linking to refill programs. Interactive campaigns (e.g., AR games, loyalty rewards) drive repeat purchases, especially among younger demographics.
   
• The pharmaceutical & healthcare market for connected packaging is expected to grow at a CAGR of 8.7% till 2034. The pharmaceutical & healthcare industry relies heavily on connected packaging for drug authentication, patient safety, and regulatory compliance, using QR codes, and RFID to combat counterfeiting. The smart labels ensures that the product can be tracked and traced by the consumer, which leads to supply chain accountability from manufacturer to the end consumer. This type of supply chain integrity in the pharmaceutical sector meets the stringent norms set by Food and Drug Administration (FDA) and European Union Falsified Medicines Directive (FMD). Connected packaging technology helps patients to know dosage instructions, expiry alerts along with multilingual assistance by scanning the codes. RFID tags which have temperature sensitivity monitors vaccines and biologic shipments, which preserves the product’s integrity.
   

• The U.S. connected packaging market in the was valued at USD 7.2 billion in 2024. The U.S. leads the market with strict anti-counterfeiting laws such as Drug Supply Chain Security Act (DSCSA). The adoption of connected packaging is also high in the FMCG, healthcare, and logistics sectors in the U.S. Brand in the country use QR codes to improve consumer engagement with IoT enabled RFID technology mostly prevalent in the premium and regulated products segment. Companies such as Amazon are adopting sustainable along with smart packaging which further fuels the market. The market in U.S. benefits from the strong technology infrastructure and investments in blockchain technology for transparency.
   
• Germany connected packaging market is expected to grow at a CAGR of 7.5% till 2034. As Europe’s connected packaging hub, Germany thrives on automotive, pharmaceutical, and luxury goods applications, with a focus on sustainability (EU Green Deal) and smart labeling. QR Codes and RFID are widely used for tracking high-value exports and complying with EU FMD regulations. The country’s advanced manufacturing sector pioneer hybrid paper-plastic smart packaging with embedded sensors. Consumer preference for eco-friendly, interactive packaging fuels innovation in recyclable connected solutions.
   
• UK connected packaging market is expected to be valued at USD 1.94 billion by 2034. UK emphasizes QR code-driven campaigns in retail and alcohol packaging (e.g., Scotch whisky authentication) to combat counterfeiting. Post-Brexit supply chain digitization boosts demand for real-time tracking RFID tags. The cosmetics and FMCG sectors adopt AR-enabled packaging for immersive branding, while NHS-driven healthcare initiatives use smart labels for patient adherence. Strict plastic tax regulations push brands toward paper-based connected packaging with digital links.
   
• China connected packaging market was valued at USD 2.55 billion in 2024, fueled by e-commerce giants using QR codes for omnichannel engagement. The government mandates digital traceability and invests in 5G-enabled smart packaging. RFID adoption is growing in luxury exports (e.g., electronics, apparel) to ensure authenticity. Low-cost printed electronics and biodegradable smart tags position China as a global manufacturing hub for connected packaging.
   
• India connected packaging market is expected to grow at a CAGR of 9.5% through 2034. India’s market surges with FMCG and pharmaceutical demand, using QR codes for vernacular content, rural outreach, and UPI payments (e.g., smart food labels). Government initiatives such as e-pharma serialization and anti-counterfeiting laws drive RFID adoption. E-commerce boom (Flipkart, JioMart) accelerates smart logistics packaging. Challenges include cost sensitivity, but innovations such as low-cost paper-based RFID tags aim to bridge the gap. Sustainability trends (e.g., edible QR codes) gain traction in dairy and organic products.
   

Connected Packaging Market Share

The global connected packaging industry is highly competitive, with the top 5 players, AVERY DENNISON CORPORATION, Amcor plc, WestRock Company, Sealed Air and, CCL Industries Inc. collectively accounting for a significant share of 28.9%. These companies are implementing diverse strategies to strengthen their market position and adapt to evolving consumer demands. Major players are investing heavily in eco-friendly materials, such as recyclable paper, compostable plastics, and biodegradable mailers, to align with global sustainability trends. Additionally, they are optimizing product lines by developing lightweight yet durable packaging solutions that reduce shipping costs while ensuring product protection.
 

To gain a competitive edge, leading firms are integrating smart packaging technologies, including QR codes and RFID, to enhance supply chain visibility, logistics efficiency, and consumer engagement. Another key trend is the rising demand for custom-branded packaging, which elevates the unboxing experience and boosts customer loyalty. Companies are expanding their market reach through strategic mergers, acquisitions, and partnerships, such as collaborations with logistics providers to develop packaging that meets both environmental standards and regulatory requirements. Furthermore, advancements in automation and digital printing are enabling manufacturers to streamline production and deliver cost-effective, customized packaging solutions at scale.
 

Connected Packaging Market Companies

Some of the prominent market participants operating in the connected packaging industry include:

• AVERY DENNISON CORPORATION
• Amcor plc
• WestRock Company
• Sealed Air
• CCL Industries Inc.
   

Amcor plc is a global leader in flexible and rigid packaging, with a strong focus on sustainable and connected solutions for industries such as food, beverage, and healthcare. The company invests heavily in smart packaging technologies, including QR codes and RFIDs, to enhance consumer engagement and supply chain transparency. Amcor’s EcoGuard and AmPrima recyclable materials align with circular economy goals while integrating digital traceability. Amcor serves major brands such as Nestlé and PepsiCo, driving innovation in active and intelligent packaging. Its partnerships with tech firms and recyclers strengthen its position in the connected packaging market.
 

Avery Dennison Corporation is a pioneer in RFID and intelligent labeling, offering cutting-edge solutions for retail, logistics, and healthcare. The company’s atma.io digital ID platform enables end-to-end product tracking, helping brands combat counterfeiting and improve sustainability. Avery Dennison’s high-performance RFID tags are widely used in apparel, pharmaceuticals, and e-commerce. It combines material science with digital innovation to deliver smart, scalable packaging solutions. Its collaborations with global brands and tech leaders cement its role as a key enabler of the connected packaging ecosystem.
 

Connected Packaging Industry News

• In April 2022, Sealed Air launched prismiq, a digital packaging brand offering design services, digital printing, and smart packaging solutions. With a USD 100 million investment, prismiq introduced the prismiq 5540, the world’s largest and fastest flexible digital printing system. This initiative aimed to enhance customer engagement, enable touchless automation, and promote sustainability in packaging.
   
• In 2024, ?CCL Label, in collaboration with Checkpoint Systems, unveiled advanced RFID solutions at Labelexpo 2024, showcasing innovations in smart labeling and packaging. These solutions aim to enhance inventory accuracy, reduce shrinkage, and improve supply chain transparency for various industries. The partnership underscores a commitment to integrating cutting-edge RFID technology into labeling solutions to meet evolving market demands. ?
   

The connected packaging market research report includes an in-depth coverage of the industry with estimates and forecast in terms of revenue (USD Billion) and volume (Kilo Tons) from 2021 to 2034, for the following segments:

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Market, By Connectivity Technology

• QR Codes
• RFID

Market, By Packaging Material

• Plastic
• Paper & Cardboard
• Glass
• Metal
• Others

Market, By End Use Industry

• Food & Beverage
• Pharmaceutical & Healthcare
• Personal Care & Cosmetics
• Consumer Electronics
• Others

The above information is provided for the following regions and countries:

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