The trend of Next-Generation Packaging refers to the evolving changes in materials used for primary, secondary, and tertiary packaging as well as the technology added to this packaging. These materials and new technology enable packaging to sense and react to environmental changes and to changes in the packaged contents. This trend also incorporates elements of sustainability, incorporating new packaging materials that are 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 creative and cost-efficient packaging solutions with a heavy focus on the reduction of CO2 footprints. In order to meet customer demand, there is keen focus on recyclability, reusability, compostability, and biodegradability and a rising demand for antimicrobial packaging, package traceability, and condition-monitored packaging. It is increasingly important for logistics providers 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 current market size of 27.4 billion USD, the global next-generation packaging market is forecast at a 10-year CAGR of 6.1% to reach a market size of 49.3 billion USD by 2032.
This growth is mainly driven by consumer awareness around topics of sustainability and the development of new technologies to ensure product-handling safety and care in the end-to-end supply chain right up to final delivery. Recent advances in packaging technology include the incorporation of radio-frequency identification (RFID) tags, sensors, and indicators in packaging materials, as well as redefining the way packaging materials are sourced.
With developments in this trend set to continue in the next 5 years, more and more companies are reconsidering the materials used in their packaging. In May 2022, the global packaging company Amcor launched its latest technology bottles that are up to 30% lighter and made of 100% recycled materials. As more companies change the ways they use materials and sustainable goods, logistics players 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 the contents of this packaging can be delivered without damage to recipients.
Several big industry players are expanding packaging solution portfolios through partnerships, acquisitions, and mergers. For example, MeadWestvaco merged with Rock-Tenn to become WestRock, currently the second largest American packaging company. Another example is the collaboration between manufacturers Stora Enso and NXP Semiconductors to develop intelligent packaging with integrated RFID technology, a solution designed to enhance consumer engagement and improve supply chain efficiency.