Connected packaging gains industry traction, report reveals

UK – Appetite Creative, a leading creative technology studio, in collaboration with Domino Printing Sciences (Domino), has unveiled the findings of its third annual connected packaging survey.

The research indicates sustained interest over the past year, with 82% of respondents reporting the use of connected packaging.

This figure demonstrates a slight increase from 81% in 2023 and a substantial rise from 54% in 2022.

Barriers to the adoption of connected packaging have evolved year-on-year, with challenges such as technology knowhow (15%), uncertainty about data handling (15%), inadequate application knowledge (12%), and readiness issues (12%) emerging as key concerns.

Only 9% cited connected packaging as unnecessary for business this year, showcasing fluctuating business priorities compared to 7% in 2023 and 29% in 2022.

Connected packaging is deemed crucial for informing product and marketing decisions (16%), facilitating direct interaction with customers (15%), data collection (15%), and customer education (13%).

However, its potential as an environmentally sustainable means of engaging and educating customers lags behind, with 11% of respondents acknowledging its importance.

The survey reveals a rise in digital marketing investment, with 96% of respondents planning increased spending compared to 88% in 2023 and 59% in 2022.

However, there’s a slight decline in the number of respondents planning investment in connected packaging campaigns.

While 88% plan such campaigns, 33% aim to spend between US$15,000 to US$30,000, and 25% plan to invest US$31,000 to US$50,000, down by 17% from the previous year.

Despite a slight decrease in perceived importance, 80% of respondents believe that connected packaging will play a significant role in the packaging industry in the next 12 months and beyond.

Looking ahead, respondents anticipate the importance of connected packaging in providing valuable data and insights (11%), enhancing customer loyalty (10%), serving as an environmentally sustainable communication tool (10%), facilitating direct customer communication (10%), and utilizing gamification to engage younger audiences (10%).

Furthermore, over three quarters (78%) agree that connected packaging enhances a company’s sustainability credentials, although this represents a drop from 91% in 2023 and 80% in 2022.

Jenny Stanley, Managing Director at Appetite Creative, commented on the findings, highlighting the increasing investment in digital advertising and stable interest in connected packaging.

Meanwhile, Craig Stobie, Director Global Strategic Sectors at Domino, noted growing customer interest in connected experiences via packaging, particularly in areas such as the circular economy, medical equipment instructions, and FMCG stock management.

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