Smart Packaging ‘Shields Food Sector Against Counterfeiting'

Smart packaging is evolving to fit anti-counterfeiting measures and drive AI growth in the food packaging market, a report says.

According to market research firm Technavio, the global food packaging industry – which it says is projected to expand by US75.3bn by 2028 – is undergoing a significant transformation. 

It says growth is being driven by factors including the urgent need to combat counterfeiting, the e-commerce boom and also to ensure product authenticity.

Counterfeiting in the food industry has become a global concern, as it is causing serious issues, ranging from economic losses to serious health risks.

As consumer awareness grows, and regulatory pressures intensify, companies are turning to smart packaging solutions to protect their brands and safeguard public health.

In response, packaging manufacturers are developing innovative technologies to authenticate products and deter fraudsters.

E-commerce smart food-packaging drivers

The food packaging market is experiencing robust growth, driven by the surge in e-commerce food sales, particularly in the US where it accounts for 18%-22% of e-commerce.

Whilst primary packaging (which is packaging that has direct contact with food) is crucial for maintaining product quality during transit and freshness, secondary packaging ensures safe delivery.

This means that with the rise of demand in e-commerce food sales, more secondary packaging is required which needs to meet anti-counterfeiting standards.

Another cause of increasing secondary packaging demand is the rise of healthy food options, such as snack bars.

This rise is leading to innovative packaging solutions, including E-commerce channels such as delivered baskets and meal kits, along with major players like Amazon entering the online grocery space through its AmazonFresh service, offering delivery of fresh produce and groceries.

The rise of anti-counterfeiting measures

One development in the food packaging industry is the integration of Radio-Frequency Identification (RFID) tags into food packaging.

These tags allow for real-time tracking of products throughout the supply chain, making it significantly more difficult for counterfeit items to enter the market undetected.

Additionally, QR codes and blockchain technology are being employed to provide consumers with instant access to product information, including origin and manufacturing details.

Smart labels that change colour or display messages when tampered with are also gaining traction.

These visual indicators serve as an immediate alert to consumers and retailers, enhancing trust in the product's integrity.

AI's role in shaping food packaging market trends

AI is also playing an increasingly crucial role in the food packaging industry, particularly in the fight against counterfeiting.

AI-powered systems can analyse vast amounts of data to identify patterns and anomalies that may indicate fraudulent activity.

Machine learning algorithms are being used to enhance the effectiveness of anti-counterfeiting measures.

For example, AI can improve the accuracy of image recognition systems used to verify packaging authenticity.

It can also predict potential weak points in the supply chain, where counterfeit products are most likely to be introduced, allowing companies to strengthen their defences proactively.

Furthermore, AI is driving innovation in packaging design itself.

By analysing consumer behaviour and market trends, AI is helping companies create packaging that is not only more secure but also more appealing to consumers.

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