Connected Packaging Market: Smart Solutions and Sustainability Drive Growth Amidst Tariff Challenges

The connected packaging market is expected to grow at a CAGR of 7.9% from 2025 to 2034, driven by the surge in demand for smart packaging solutions like QR codes and NFC tags. The market was valued at USD 26.2 billion in 2024 and is expected to reach USD 55.6 billion by 2034. Despite initial cost hikes from trade tariffs, U.S. and European firms are investing in local manufacturing, fostering innovation and improving profit margins. Key players are focusing on smart and sustainable solutions to meet consumer demands.

The connected packaging market is poised for robust growth, with a projected CAGR of 7.9% from 2025 to 2034. Valued at USD 26.2 billion in 2024, the market is expected to reach USD 55.6 billion by 2034 [1]. This growth is primarily driven by the increasing demand for smart packaging solutions, including QR codes and NFC tags, which enhance product traceability and consumer engagement.

The market's expansion is underpinned by several key trends. One of the most significant is the integration of digital technologies into packaging. QR codes and NFC tags are becoming increasingly popular, particularly in premium over-the-counter and prescription dermatology markets. While the adoption of smart packaging is currently at an early stage, it is anticipated to accelerate post-2026, with widespread commercial adoption expected by 2028 [1]. This shift aligns with the growing reliance on digitally connected healthcare systems and the maturing acceptance of regulatory frameworks on connected packaging.

Sustainability is another defining trend in the connected packaging market. Companies are adopting recyclable plastics, compostable laminates, and refillable systems as competitive requirements. This trend is expected to peak significantly between 2027 and 2029, as sustainable packaging becomes a key differentiator in the market [1]. The increasing demand for biologic-based topical formulations is also driving the trend toward high-performance packaging solutions. These formulations are particularly vulnerable to damage from heat, oxygen, and ultraviolet radiation, necessitating barrier-enhanced materials such as foil-laminated structures, multilayer tubes, and amber glass [1].

Despite initial cost hikes from trade tariffs, U.S. and European firms are investing in local manufacturing, fostering innovation and improving profit margins. Key players are focusing on smart and sustainable solutions to meet consumer demands. The market in North America, for instance, is advancing steadily due to high consumer reliance on over-the-counter (OTC) products and robust pharmaceutical infrastructure. The rising inclination toward self-diagnosis and self-treatment, coupled with the expansion of e-commerce platforms, is propelling the need for convenient, tamper-proof, and compliance-focused packaging in the United States and Canada [1].

In conclusion, the connected packaging market is experiencing significant growth, driven by technological advancements and sustainability trends. Key players are investing in smart and sustainable solutions to meet consumer demands, positioning the market for continued expansion.

References:
[1] https://www.gminsights.com/industry-analysis/topical-drugs-packaging-market