Packaging has evolved far beyond being a simple protective shell for products. In the digital-first era, it has become a powerful medium of interaction, sustainability, traceability, and consumer engagement. Markets such as connected packaging, smart packaging, RFID-enabled solutions, blockchain-integrated formats, and digitally advanced corrugated systems are converging to form an intelligent packaging ecosystem poised to revolutionize industries worldwide.

Connected Packaging: Bridging Physical and Digital Spaces

The connected packaging market is projected to grow from USD 50.41 billion in 2025 to USD 83.02 billion by 2034, expanding at a CAGR of 5.7%. The rise of QR codes, RFID, and NFC technologies is at the heart of this transformation, enabling seamless consumer engagement and providing valuable brand insights.

• Consumer Engagement: Connected packaging allows customers to scan QR codes that redirect them to websites, manuals, promotions, or immersive experiences such as gamification, music, and AR.
• Personalization: Geo-location and device settings create tailored consumer journeys. For example, a Spanish-speaking consumer scanning a U.S.-made product may be redirected to a Spanish-language website.
• E-commerce Growth: Accelerated by the pandemic, e-commerce platforms now demand packaging that bridges offline and online experiences. U.S. e-commerce sales grew by 7.8% in Q1 2023, underlining the demand for digital integration.
• Sustainability: Brands are using connected packaging for recycling guidance through cloud-based watermark detection systems with 99% accuracy.

Example: In March 2024, Fedrigoni strengthened its connected packaging solutions by acquiring a stake in SharpEnd, an IoT solutions provider for smart labels and papers.

Smart Packaging: From Data to Direct Interaction

The global smart packaging market is expected to expand from USD 43.65 billion in 2025 to USD 78.91 billion by 2034 at a 6.8% CAGR. The integration of IoT, sensors, and digital printing is turning ordinary packaging into intelligent communication tools.

• Traceability & Safety: Active packaging technologies monitor freshness, detect tampering, and track supply chains in real time.
• Food & Beverages Leadership: This segment dominated smart packaging applications in 2024, driven by rising consumer demand for transparency.
• North America Dominance: The region led in 2024, while Asia Pacific is expected to post the fastest growth.

Smart packaging has become a digital identity system. Each package can be serialized with unique codes, ensuring authenticity, combating counterfeiting, and giving marketers a platform to deliver personalized campaigns.

RFID Smart Packaging: Precision in Transparency

The RFID smart packaging market is booming, driven by the expansion of the food, pharmaceutical, and retail industries. RFID tags, both passive and active, are reshaping logistics by enabling:

• Real-time inventory tracking
• Anti-counterfeiting systems
• Data collection and telemetry sensing

Incorporating nanosensors, RFID packaging can now detect freshness, shelf-life, and environmental factors. By 2034, RFID is expected to power sustainable transportation and next-generation supply chains.

Key Metrics:

• Dominant Region: North America
• Fastest-growing Region: Asia Pacific
• Top End-users: Food & Beverage (largest), Pharmaceuticals (fastest growth)
• Leading Companies: Avery Dennison, Zebra Technologies, NXP Semiconductors, Smartrac

Smart Corrugated Packaging: Sustainable Digital Integration

The smart corrugated packaging market is forecast to grow from USD 340.06 billion in 2025 to USD 501.21 billion by 2034, at a 4.40% CAGR. Driven by ready-to-eat foods, pharmaceuticals, and healthcare, corrugated packaging is being transformed through QR codes, IoT sensors, and time-temperature indicators.

• Slotted Boxes Lead: Widely used in food & beverages due to growing urban workforces.
• Europe Leads Adoption: With its strong emphasis on sustainable packaging.
• IoT-enabled Corrugated: Real-time monitoring and modified atmosphere packaging (MAP) are advancing adoption.

This fusion of eco-friendly corrugated boards with smart digital overlays positions the sector as a sustainable leader.

Blockchain-Integrated Smart Packaging: Trust Through Transparency

Blockchain technology is emerging as a game-changer in packaging by ensuring immutable product records and secure traceability. The blockchain-integrated smart packaging market is projected to generate hundreds of millions in revenue between 2025 and 2034.

• Top Functionality: Supply chain traceability accounted for 33% of revenue in 2024.
• Industry Leaders: Pharmaceuticals held 32% market share, followed by food & beverages.
• Key Tech Segment: QR code + blockchain dominated with 28% market share in 2024.

With private blockchains (42% market share) leading adoption, the technology is set to combat counterfeiting, authenticate products, and support sustainability reporting.

Smart Packaging for Retail & E-commerce: Enhancing Customer Experience

The retail and e-commerce smart packaging market is surging, driven by the rapid growth of online shopping. By combining RFID, NFC, QR codes, and sensors, brands are redefining product safety, authentication, and unboxing experiences.

• Market Drivers: Transparency, anti-counterfeiting, and sustainability.
• Applications: Food & beverages led with 30% market share in 2024, while pharmaceuticals & luxury goods are the fastest-growing segment.
• Technology Leaders: Connected packaging/IoT-enabled solutions dominate, while sensor-based formats are projected to grow fastest.

As e-commerce platforms battle counterfeiting and delivery challenges, smart packaging provides an edge in brand differentiation and customer loyalty.

Smart Packaging for D2C: The Consumer at the Core

The direct-to-consumer (D2C) smart packaging market is accelerating, with North America leading adoption. By embedding QR codes, NFC tags, RFID, and even AR experiences, brands are making packaging the centerpiece of consumer interaction.

• Top Segment: Intelligent packaging dominates, while connected packaging is expected to grow fastest.
• Functionality: Product safety leads today, but consumer engagement will grow most rapidly.
• End-Use Leadership: Food & beverages dominate, with beauty & personal care growing fastest.
• Material Focus: Paper & paperboard hold the largest share, while biodegradable composites are emerging.

For D2C brands, where packaging is often the first and only touchpoint with the consumer, smart packaging ensures trust, transparency, and loyalty.

Conclusion: A Converging Future

Across connected, smart, RFID, blockchain-integrated, corrugated, retail, and D2C channels, packaging is no longer a passive container but an active enabler of transparency, sustainability, and consumer experience.

From Fedrigoni’s strategic acquisitions to blockchain’s immutable trust, and from RFID’s real-time logistics to D2C’s personalization drive, packaging has become the bridge between brands and consumers in a tech-driven marketplace.

As industries continue to embrace digital-first solutions, smart and connected packaging will not just carry products it will carry experiences, trust, and brand identity into the next decade.

Vidyesh Swar is a Senior Research Analyst at Towards Packaging, bringing over 4 years of dedicated expertise in market intelligence and strategic analysis across the dynamic world of packaging technologies and solutions.

This article originally appeared in the November/December, 2025 issue of PARCEL.