Summary

Overview
Global Track and Trace Packaging Market reached US$ 2.3 billion in 2022 and is expected to reach US$ 3.8 billion by 2030, growing with a CAGR of 5.7% during the forecast period 2023-2030.
The global track and trace packaging market is experiencing significant growth due to its crucial role in ensuring the integrity, safety and efficiency of supply chains, particularly in the pharmaceutical sector. The adoption of track and trace systems in pharma packaging has become increasingly essential in today's complex supply chain landscape. Smart packaging, which integrates wireless communication and sensors within packaging, is emerging as a standard practice. The innovation allows products to actively communicate their status throughout the logistics journey, enhancing transparency and security.
Smart packaging extends product shelf life, improves yield in the food and pharmaceutical industries and reduces energy consumption. Artificial intelligence plays a key role in processing vast sensor data, while blockchain technology adds another layer of security and transparency. The developments create a digital twin of the supply chain, enabling the use of augmented reality, virtual reality and dynamic pricing.
North America's dominance in the track and trace packaging market is underscored by its robust trade and freight volumes, which contribute significantly to the demand for advanced packaging solutions. As per U.S. Department of Transportation (DoT) report, in August 2022, transborder freight between U.S. and other North American countries (Canada and Mexico) reached an impressive value of US$140.3 billion, marking a substantial increase of 24.1% compared to August 2021.
Dynamics
Growing Demand for Track and Trace Packaging in Pharmaceuticals
The track and trace packaging market is witnessing robust growth globally, with a particular surge in demand within the pharmaceutical industry. As supply chains grapple with various challenges, including geopolitical conflicts, extreme climate events and heightened demand for temperature-sensitive products like vaccines and medicines, pharmaceutical companies are increasingly turning to smart packaging solutions.
The innovations not only protect the integrity of drug products but also ensure regulatory compliance, safeguarding their efficacy throughout the supply chain. Investments in cold-chain storage and distribution capabilities, coupled with efforts to combat counterfeit medication, have fueled advancements in track and trace technologies, making them indispensable in the evolving pharmaceutical landscape.
SEA Vision and Marchesini Group have introduced a novel solution for primary pack serialization and aggregation, focusing on enhancing product identification in the healthcare industry. While secondary packaging is currently traceable, primary packaging like blisters often lacks serialization, creating a risk of counterfeiting. The new solution aims to address this gap by ensuring serialization and aggregation of blisters with cartons in a 4.0 environment. The technology not only enhances safety but also enables digitalization of drug leaflets, providing patients with easy access to crucial information, even when the drug is separated from its carton packaging.
Logistics Industry Spurs Demand
The growing logistics industry has significantly increased the demand. In today's complex supply chain management, real-time visibility and continuous monitoring of shipment chains have become essential. The lack of visibility across the extended supply chain has been identified as a major challenge for companies. Track and trace technology allows logistics providers and companies to create transparency in the supply chain by tracking the movement, status and even the temperature of goods. The technology offers several benefits, including trust reinforcement, cost reduction, superior customer service, improved inventory management, better security, identification of bottlenecks in the supply chain and real-time information about the delivery status.
Pod Group, in collaboration with SODAQ and Lufthansa Industry Solutions (LHIND), has introduced a groundbreaking paper-thin tracking device called the Smart Label, poised to transform the logistics sector. The Smart Label employs low-power cellular 5G connectivity (LTE CAT-M) to transmit location and temperature data to a centralized dashboard. The innovation allows logistics companies to track small and lightweight items, down to the size of an envelope containing crucial documents or as large as a full-sized oil painting.
Growing Threat of Cyber-Attacks
The track and trace packaging industry is affected by the rising threat of cyber-attacks and it faces significant vulnerabilities due to the increasing use of smart technology and digitalization. While digital technologies have brought efficiencies and automation to the packaging process, they have also created opportunities for malicious hackers.
Furthermore, the primary concerns for packaging companies is ransomware attacks, where hackers threaten to release sensitive data or block access until a ransom is paid. For companies dealing with advanced materials and intellectual property (IP), the stakes are high, as the objective may not only be financial gain but also the theft of valuable IP.
In 2021, a cyber-attack on Ardagh Group, a glass and metal packaging manufacturer, cost the company US$34 million and disrupted its supply chain operations. As cyber threats continue to evolve, packaging companies must prioritize cyber resilience to safeguard their operations and sensitive information from potential cyber-attacks and insider threats.
Segment Analysis
The global track and trace packaging market is segmented based on product, printing, end-user application and region.
Versatile RFID Technology Leading the Way in Supply Chain Management
RFID technology holds the largest share in the track and trace packaging market. Its widespread adoption can be attributed to its versatility and effectiveness in supply chain management. Modern passive RFID tags have transformed the way companies track their inventory, offering real-time visibility into the movement of products and packaging materials throughout the supply chain. It has led to a significant shift in the packaging industry, with approximately 90% of companies considering the integration of RFID technology into their packaging solutions, as revealed by a DHL survey.
In September 2023, Loftware and SATO jointly introduced an innovative cloud-based RFID tag encoding and logging solution. Leveraging SATO RFID printers, tags and Loftware's NiceLabel Cloud software, this pioneering solution caters to the stringent requirements of manufacturers in the medical devices, pharmaceuticals and luxury goods sectors. The system stores this data in a database via NiceLabel Cloud, offering precise details about the origin of each tag, including the factory, country and printer used. The anti-counterfeiting packaging market is projected to witness substantial growth in the coming years.
Geographical Penetration
North America's Dominance in Pharmaceutical Sales Boosts Track and Trace Packaging Market
The track and trace packaging market in North America is experiencing robust growth, underpinned by the region's significant share of the global pharmaceutical industry. As per European Federation of Pharmaceutical Industries and Associations, in 2021, North America accounted for an impressive 49.1% of the world's pharmaceutical sales, far surpassing Europe's share of 23.4%.
Furthermore, it shows how North America, particularly U.S., is a powerhouse in the global pharmaceutical market. The market prominence drives a growing need for advanced track-and-trace packaging solutions to ensure product safety, authenticity and compliance with evolving regulations. As the pharmaceutical sector in North America continues to expand, the track and trace packaging market is poised for continued growth to meet the unique challenges and opportunities presented by this influential region.
Competitive Landscape
The major global players in the market include TraceLink, Antares Vision, OPTEL GROUP, METTLER-TOLEDO, Systech International, Zebra Technologies, Honeywell, Bosch Rexroth, Siemens and Cognex.
COVID-19 Impact Analysis
COVID-19 pandemic significantly impacted the track and trace packaging market and accelerated the demand for track and trace technologies in various industries. The pandemic underscored the need for resilient and flexible supply chains, driving interest in track and trace solutions. While coding print remained a primary method, there was growing interest in on-pack RFID, NFC frequency antennas, covert taggants and software systems, including blockchain, for enhanced product identity processing, security, transparency and intelligent inventory management.
The pharmaceutical industry and rising e-commerce shipments drove the adoption of track and trace solutions in paperboard packaging and other common formats like metal, rigid plastic, flexible plastic and paper substrates. The packaging industry, with its wide applications, benefited from being associated with these essential sectors, resulting in a higher demand for packaging materials. E-commerce also saw significant growth during the pandemic, further driving up the need for packaging materials to ensure the safe transportation of products.
Russia-Ukraine War
The Russia-Ukraine war has had a notable impact on the track and trace packaging market. As geopolitical tensions escalated and international sanctions were imposed, many companies involved packaging industry, particularly those with global operations, faced significant challenges. The challenges included disruptions in supply chains, transportation routes and trade flows, which affected the production and distribution of track and trace packaging solutions.
Furthermore, the war and its associated uncertainties prompted some companies to reconsider their investments in the region, thus impacting the demand for track and trace packaging in Russia and Ukraine. The heightened geopolitical risks also raised concerns about the security and integrity of supply chains, making track and trace technologies more crucial than ever for ensuring the traceability and authenticity of products.
By Product
● Radio-Frequency Identification (RFID)
● Barcode Reader and Real-Time Locating System
By Printing
● Inkjet
● Laser Marking
● Thermal Printing
By End-User
● Food & Beverages
● Pharmaceutical
● Automotive
● Electrical and Electronics
● Consumer Goods
● Cosmetic & Personal Care
● Others
By Region
● North America
o U.S.
o Canada
o Mexico
● Europe
o Germany
o UK
o France
o Italy
o Russia
o Rest of Europe
● South America
o Brazil
o Argentina
o Rest of South America
● Asia-Pacific
o China
o India
o Japan
o Australia
o Rest of Asia-Pacific
● Middle East and Africa
Key Developments
● In April 2023, Siegwerk one of the leading global suppliers of printing inks for packaging applications and labels headquartered in Germany, has launched a new real-time tracking feature on it's SAP-based online customer portal. Siegwerk India customers ordering on the Siegwerk portal can now get a state-of-the-art eCommerce user experience and need not be worried about order delivery status. The real-time tracking feature is an addition to the complete contactless order management facility on the Siegwerk customer portal.
● In January 2022, Mettler-Toledo extended its track and trace capabilities and improved packaging quality control by launching new Integrated Mark & Verify systems and software. The innovations aim to assist pharmaceutical manufacturers in meeting increasing product safety and compliance requirements by simplifying the integration of code marking and verification capabilities into their production lines. The capabilities are also valuable for manufacturers in other industries, including food and beverage, clothing, cosmetics and petrochemicals, where traceability and product quality are paramount.
● In July 2023, Ardagh Glass Packaging (AGP) South Africa, formerly known as Consol Glass, introduced a web-based initiative called "money4glass" aimed at enhancing the effectiveness of glass recycling within the company's supply chain. The initiative leverages BanQu supply chain compliance software to facilitate the tracking and monitoring of all recycled glass or cullet, trades. Additionally, it aims to provide more transparent and expedited compensation to recyclers.
Why Purchase the Report?
● To visualize the global track and trace packaging market segmentation based on product, printing, end-user and region, as well as understand key commercial assets and players.
● Identify commercial opportunities by analyzing trends and co-development.
● Excel data sheet with numerous data points of track and trace packaging market-level with all segments.
● PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
● Product mapping available as excel consisting of key products of all the major players.
The global track and trace packaging market report would provide approximately 61 tables, 60 figures and 194 Pages.
Target Audience 2023
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies

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