Smart packaging is becoming an essential compliance tool for the global FMCG industry as new packaging regulations increase demand for product traceability, transparency and better consumer information, according to GlobalData.
The research company says packaging is evolving beyond its traditional role of protecting products. Today, it is becoming part of a wider information system that connects regulators, manufacturers, retailers and consumers.
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As governments introduce measures such as Extended Producer Responsibility (EPR) schemes and recycled-content requirements, businesses are under growing pressure to provide accurate reporting and proof of compliance.
GlobalData says smart packaging is helping companies meet these demands while also giving consumers easier access to product information.
Regulations drive adoption
GlobalData’s latest Industry Insights: Smart Packaging report says demand for smart packaging is being fuelled by stricter environmental regulations, food and drug safety requirements, and the need for better supply chain traceability.
Richard Parker, Principal Consumer Analyst at GlobalData, said increasingly complex reporting requirements are encouraging wider use of digital packaging technologies.
“Regulators’ complex reporting demands” are increasing the use of “scannable and trackable features.”
He said active packaging technologies, including freshness indicators, also provide practical benefits that help build “confidence in quality and transparency”.
According to the report, smart packaging now falls into two main categories.
Active packaging uses materials and built-in features to improve product performance, such as antimicrobial coatings and indicators that monitor temperature or freshness. Connected packaging uses digital technologies, including QR codes, RFID and NFC tags, to exchange information throughout the supply chain and with consumers.
Sustainability shapes packaging design
The report says the shift towards more sustainable packaging is influencing how smart technologies are applied.
As packaging materials change to support recycling and circular economy goals, companies must also provide clearer disposal instructions and collect more data for regulatory reporting. Smart packaging can support these requirements by linking products to material-specific information and compliance data.
GlobalData says packaging information may also need to vary between regions as regulations continue to differ across countries and even within national markets.
The report notes, however, that adoption is not without challenges. Companies face significant investment costs to upgrade production lines and digital systems, while many consumers continue to prioritise value for money over smart packaging features.
Practical value is key
Beyond regulatory compliance, smart packaging can also help companies understand consumer behaviour.
Digital features can provide information about purchasing preferences, regional demand and product performance. Scan-based surveys can also capture immediate feedback on new products, flavours and limited editions.
Parker said businesses should focus on practical applications rather than technology for its own sake.
“Smart packaging must be integral, practical, and beneficial” to products and business operations.
He said companies should invest where smart packaging delivers the greatest value by supporting compliance, improving material choices and increasing operational efficiency.
For consumers, he added, smart packaging should provide “essential service benefits, trust, and transparency”, while engagement features should offer genuine value rather than become unnecessary gimmicks.
GlobalData concludes that the future of smart packaging will depend on balancing regulatory compliance, sustainability, operational efficiency and customer experience, making packaging an increasingly important source of information throughout the product lifecycle.
