According to a Pira report, RFID and printed electronics will have a big impact on the printing and publishing industries 
A little longer than 80 days perhaps, but UV-cure inkjet is circumnavigating the globe at its own accelerating pace. 
| Future of smart packaging |
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| Written by Pira International, 2007 | |
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Intelligent and smart packaging can benefit many end-use sectors, but none more so than food, drinks, pharmaceuticals and cosmetics. Pira International takes a closer look. The global food sector is the main market for smart packaging, not just because of its size but also because active and intelligent packaging can help to meet consumer demand for improved quality and safety of food products, as well as more convenience. Among end-use sectors, the biggest sales of active and intelligent packaging will continue to be generated by the global food market.The food and drink market will be the fastest-growing outlet for sales of intelligent packaging. This will be mainly because of increased demand for diagnostic packaging in response to consumer desires for more information about freshness of foods, and also because of the need for track-and-trace systems. Intelligent packaging sales in this sector are expected to rise by more than fivefold to over $250 million (€199 million) between 2005 and the end of the decade. Rising sales of oxygen scavengers, and to a lesser extent UV blockers, will be helped by the continued rapid rise of PET as a bottling material. The growing problem of counterfeiting, which electronic tracking systems can help to combat, will be a strong impetus behind sales of RFID components in the pharmaceutical, cosmetics and apparel markets. Alcohol and beveragesThis sector saw the first applications of active packaging methods, in some cases before modern packaging technologies evolved. Hence in many alcohol markets, glass has retained its centuries-old dominance.Glass is a highly effective barrier against oxygen and - when coloured - light, which together are the major contributors to the deterioration of packaged drinks. In the non-alcohol sector, however, glass has been losing ground to rival materials, although remains popular in some local soft drink segments. In the milk market, for example, glass bottles were first replaced by paper cartons with coated inlays, and now increasingly by plastic containers. Glass, and to a lesser extent metal, are now under attack from plastic materials - in particular polyethylene terephthalate (PET) - across a broad range of both non-alcohol and alcohol sectors. Changes in lifestyles and consumer consumption patterns have been a major impetus behind a switch to plastics. The poor oxygen and light barrier properties of plastics has provided opportunities for suppliers of active packaging components to improve performance. For example, the amount of oxygen entering a PET bottle without an oxygen scavenger can be six to eight times higher, in the first 60-100 days of the shelf-life of its contents, than in one with a scavenger integrated into polymer. AlcoholArguably the oldest form of active packaging has been the use of wooden barrels to help continue the fermentation and flavouring of alcohols during their storage, in particular spirits such as whisky and brandy, and to a lesser extent wines.As a packaging application, the barrels have releasing and absorbing capabilities to change and improve the organoleptic qualities of the drink. European Union regulators have decided that these traditional storage methods should be considered part of the manufacturing process rather than as a packaging system. The traditional wine bottles were designed for the continuation of fermentation and flavouring. Corks considerably reduce oxygen permeability but do not completely halt it. Wine experts believe the cork helps the continued fermentation of fine wines by admitting small amounts of oxygen into the bottle. Recently this process has been reversed by the introduction of plastic corks and screwtops, mainly in response to the contamination of corks, which can spoil 1-5 per cent of wines. Alcohol remains the principal supporter of glass packaging in many parts of the world, not only because of its capacity to keep out oxygen, but also because it has the image of a premium packaging material, especially in North America and Europe. However, in some regions PET bottles have virtually taken over the market, especially in the beer segment. Unlike in the established markets of industrialised countries, glass in many emerging economies has a reputation for poor quality and lack of cleanliness, owing to the way glass bottles were reused and not washed properly by bottlers in the past.  Table 1. Estimated sales of beer bottles with oxygen scavenger properties by region 2001-05. In these relatively new markets for PET bottles, the material has tended to be applied as a single-layer barrier in which oxygen scavengers have been incorporated to prevent quick degradation of the alcohol. Higher grade PET - often still requiring active packaging components - has begun to gain comparatively big shares of certain alcohol markets in North America and to a lesser extent Europe. PET now accounts for 20 per cent by volume of spirits packaged in the US. Soft drinksThe fast growth of carbonated soft drinks in many parts of the world has been driven by PET. Its weight, stackability and unbreakability have made soft drinks much easier and cheaper to distribute.Unlike with alcoholic drinks, particularly beer, PET bottles for carbonated soft drinks do not typically require oxygen scavengers because they often have an interior coating. The main purpose of this coating is to keep in the carbon dioxide, but it also acts as a barrier to permeation of oxygen. There is, by contrast, a relatively big demand for oxygen scavengers in plastic bottles for non-carbonated drinks such as juices, sports and functional drinks, the ingredients of which can be sensitive to oxygen. There is an increasing demand in areas such as North America for antimicrobial components in PET and other plastic bottles for water. This is mainly because the water is packaged in larger bottles than in other regions, such as Europe, which can precipitate the accumulation of bacteria. Pharmaceutical and healthcareTraditionally, the main requirements from packaging for pharmaceuticals, diagnostic medicines and other healthcare products were, besides the provision of basic identification and safety data, protection against damage and quick degradation. Recently these needs have been extended to safeguard against tampering, theft and counterfeiting, helping with brand protection.In some areas of the world, including Western Europe, pharmaceutical companies are looking for active and intelligent packaging solutions to the problem of parallel trading. This is a practice under which distributors or traders buy branded pharmaceuticals in a country with low drug prices and sell them in another with higher prices. Smart packaging is also seen as having the potential to improve patients' compliance with dosage regimes. It could even provide a means for self-diagnosis of some conditions.  Table 2. Value and growth (%) of intelligent retail packaging in the pharmaceutical and healthcare sector 2001-10 ($ million). RFID and other electronic systems with data memories and transmission capabilities are increasingly being employed by pharmaceutical companies and distributors to track and trace medical products through the supply chain. In the US, the Food and Drug Administration (FDA) has been working on regulations to make such systems obligatory. CounterfeitingCounterfeiting of pharmaceuticals has become a widespread problem. The World Health Organization (WHO) estimated that 7 per cent of all drugs sold worldwide are fakes, which generate sales of around $30 billion (€25.2 billion) annually.In some parts of the developing world and emerging markets, counterfeiting is particularly rampant. In Pakistan and Nigeria, for example, around half of pharmaceuticals are estimated to be bogus. In China and Russia, counterfeits account for a large proportion of the sale of certain brands of medicines. In India, counterfeit medicines are estimated to make up as much as 20 per cent of the country's drugs market. The Indian government is taking the rise in fake medicines so seriously that it has even proposed introducing the death penalty for criminals found guilty of counterfeiting medicines. In North America and Western Europe, counterfeits comprise as much as 5 per cent of sales, which has prompted regulators to consider steps to protect the population. The FDA has been drawing up a series of proposed measures, which could include the use of RFID systems to authenticate medicines. The agency issued a warning in May 2005 about the sale in the US of counterfeit versions of leading drugs such as the anti-cholesterol treatment Lipitor, the erectile dysfunctional drug Viagra, and the anti-osteoporosis medication Evista. Analysis of the drugs showed they contained no active ingredients. Intelligent packaging technologies could help to combat counterfeiting by providing hidden components in the packaging materials, which, with the help of scanners, can be identified as containing the genuine product. Parallel trading could also be curbed by similar initiatives. Although some parallel traders repackage branded drugs, they make no attempts to market them as other than the original branded medicines. So for pharmaceutical companies the practice can present a major challenge, because in most cases parallel trading is legal. The drug manufacturers may have to persuade distributors and retailers to co-operate in any moves to thwart it. Much research and development work is being done on intelligent packaging systems that can help patients to take their medicines at the frequency and quantities prescribed. Some have already been commercialised. In the US, the costs of non-compliance in the consumption of medicines is calculated to be as much as $100 billion, when the expense of hospitalisations is taken into account. Around 8 per cent of these extra costs are thought to fall on the drugs industry itself. Intelligent packaging can contribute to the effectiveness of clinical trials of new medicines by helping to ensure compliance by participants. MeadWestvaco Healthcare Packaging of the US has recently introduced Cerepak, which is initially being employed in clinical trials. Developed in co-operation with Cypac of Sweden, it comprises a blister structure with individual compartments for each pill and incorporates a microprocessor and printed conductive ink. The electronic components enable it to record data on the time when a pill is taken, on side-effects through a reusable questionnaire pad, and to provide an audible reminder if necessary. The information from the package can be downloaded onto a PC so that the level of the patient's compliance can be checked by a doctor, while it also provides useful clinical trial data. Cypac, which specialises in the development of electronic systems such as embedded microcomputers in paper packaging materials, is testing methods for integrating blood biosensors in paperboard packaging. These would help the self-diagnosis of excess sugar levels in diabetes patients, and levels of cholesterol in people with cardiovascular problems.  Table 3. Estimates of revenue loss by sector in Europe owing to counterfeiting 1998 (€ million). Cosmetics and toiletriesPackaging of cosmetics and toiletries has similar needs to that of pharmaceuticals. Because of their strong brand value, many cosmetics, particularly perfumes, are counterfeited. Cosmetics and toiletries are also subject to tampering. Some are heat-sensitive, so require a certain amount of temperature control when stored. Certain types of cosmetics are also vulnerable to oxygen and other gases, and to the effects of light. In some hot climates they are even susceptible to microbes.Counterfeit products are estimated to account for around 10 per cent of the global cosmetics and toiletries market. As with pharmaceuticals, fake cosmetics have the largest proportion of sales in developing countries, particularly in Asia. Nonetheless, even in Western Europe bogus cosmetics are thought to have a share of 7 per cent of the market. A report by the Centre for Economics and Business Research (CEBR) for the Global Anti- Counterfeiting Group (GACC), representing leading multinational companies, has estimated that counterfeiting in the EU has cut revenues from perfumes and cosmetics by €3 billion annually. The profits of perfume and cosmetic companies were reduced by €555 million by the activities of counterfeiters in the EU alone. Along with the pharmaceuticals sector, the cosmetics industry has been one of biggest spenders on security measures to protect itself against counterfeiters. Some of these initiatives have involved adopting innovations in intelligent packaging such as electronic tagging, digital watermarks, electromagnetic components and thermochromic inks. Expenditure on intelligent packaging within the cosmetics and toiletries sector is predicted to grow by 75 per cent to $64 million between 2005 and 2010.  Table 4. Value and growth (%) of intelligent retail packaging in cosmetic and toiletries 2001-10 ($ million). Other sectors on the moveApparel Fabrics provide a small outlet for oxygen scavengers as an aid to the preservation of natural fibres in storage and transit. However, the sector has the potential to be a significant market for intelligent packaging systems, particularly because of increasing pressure on clothing retailers to improve the efficiency of their supply chains. In Europe, the fast fashion segment of the clothing market, which responds rapidly to trends determined by catwalk shows, increased by almost half between 2001 and 2005. The Spanish retail chain Zara can now design, manufacture and have a piece of clothing on its shelves within 15 days. The speed of its distribution is helped by an IT infrastructure using intelligent labelling systems along its supply chain.
Music, videos and softwareThe music, audiovisual and software industries have been trying to find ways of using intelligent packaging to fight piracy and counterfeiting. Illegal music sales are worth €4 billion globally, or one-eighth of the value of the worldwide music market. In the five years to 2005, the number of pirated discs has doubled to more than one billion, equivalent to one in three of all music CDs, according to the International Federation for the Phonographic Industry (IFPI). Among the cheaper methods has been digital watermarking, which is an image, digital signal or pattern that is embedded into the packaging. They can be like logos so that they are visually recognisable, or can carry covert serial numbers to verify authenticity. CDs, DVDs and videos are also fitted with anti-theft devices by retailers because they are among the most frequently stolen items. ElectronicsThe electronics sector is a major outlet for various active packaging systems for protecting electronic equipment from moisture during storage and transit, particularly in humid and tropical areas. Moisture or condensation can cause irreversible damage to highly sensitive electronic goods. The packaging techniques for safeguarding the equipment include desiccants, corrosive gas scavenging bags, vapour-phase corrosion inhibitors (VCIs) and moisture-vapour barrier systems. Their level of application depends on costs, effectiveness and practicability. The use of films with moisture-absorbing components, such as VCIs, has been eliminating the need for desiccant sachets. Takeaways
This article contains research from the report The Future of Smart Packaging, published recently by Pira. To find out more, or to order a copy, contact: Mr Rav Lall, Tel: +44 (0)1372 802271, Email: This e-mail address is being protected from spam bots, you need JavaScript enabled to view it |
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