Smart packaging takes centre stage as brands face new traceability demands

Brands also use connected packaging for information and engagement.

Smart packaging is becoming part of a wider information network that connects regulators, packaging manufacturers, brands, and consumers, rather than serving only as a protective layer around a product, according to GlobalData.

The expansion of regulations such as Extended Producer Responsibility (EPR) schemes and recycled-content requirements is increasing demand for packaging systems that can provide evidence, track materials, and support reporting.

As regulatory frameworks become more complex across markets, companies are turning to smart packaging to improve compliance, traceability, and consumer communication.

GlobalData’s report Industry Insights: Smart Packaging divides smart packaging into two main categories.

Active packaging uses materials or built-in features to influence or monitor product conditions, including antimicrobial coatings, shelf-life extension technologies, and indicators that show temperature changes or freshness levels.

Digitally connected packaging uses technologies such as QR codes, RFID, and NFC tags to share information across supply chains and with consumers.

Demand for smart packaging is being driven by stricter requirements around traceability, real-time monitoring, food and pharmaceutical safety, and environmental reporting.

Brands are also using connected packaging for consumer engagement through product information, education, and interactive experiences.

However, adoption remains limited by cost. Companies may need to invest in upgraded manufacturing equipment, digital systems, and data management capabilities.

Consumer interest is another barrier, as many shoppers continue to prioritise price and value over additional packaging features.

Changes in packaging materials are affecting how smart technologies are applied. As companies move toward recyclable and more sustainable formats, packaging systems increasingly need to include material-specific recycling instructions, regulatory data, and information required for producer responsibility schemes.

In some cases, this data must be adapted to local regulations, including differences between regions within the same country.

Smart packaging data can also support product development by showing how consumers respond to different product sizes, flavours, formats, and regional variations.

Packaging-linked surveys can provide direct feedback on factors such as taste, texture, and interest in limited-edition products.