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US demand for active packaging on the rise

September 4, 2007

Demand for active and intelligent packaging is projected to climb 13 percent annually to $1.1 billion in 2011.

Demand for active and intelligent packaging is projected to climb 13 percent annually to $1.1 billion in 2011. Growth will be fueled by the development of new generations of products with improved performance at more cost-competitive prices, which will spur greater market acceptance for many product types. The majority of active and intelligent packaging technologies are still specialty niches in the broad US packaging sector due to the relatively high cost of many product types. These and other trends are presented in Active & Intelligent Packaging, a new study from The Freedonia Group Inc., a market research firm based in Cleveland, OH, USA.

Significant advances are anticipated in the intelligent packaging segment, where demand will expand more than 30 percent per annum to $165 million in 2011. Gains will be based on the emergence of lower cost time-temperature indicator (TTI) labels as well as the growing awareness of these products as critical tools in improving food safety and reducing losses in perishables from temperature abuse in the supply chain. Increasing cost-competitiveness will support strong opportunities for other intelligent packaging, such as compliance monitoring packaging for pharmaceuticals, active pharmaceutical reminders, ripeness detecting labels, and thermochromic labels.

According to the study, active packaging is projected to advance more than 11 percent per year to $975 million in 2011, fueled by robust growth for gas scavengers based on changes in the food product mix and increased cost-competitiveness driving expanded applications for oxygen scavengers. Moisture control packaging demand will rise more slowly due to the presence of mature products such as desiccants and purge control pads for meat. Still, prospects will benefit from pharmaceutical shipment growth and the use of more costly, higher performing products.
Food and beverages are the two largest markets for active and intelligent packaging, accounting for a combined 72 percent of demand in 2006. Fastest gains are expected in pharmaceuticals and beverages, with food uses also logging solid advances. Food applications will advance at nearly the industry average and will be driven by the need to maintain longer shelf life with processed foods and packaged fresh foods, which will bode well for oxygen scavengers and ethylene scavenging films.

Active & Intelligent Packaging is available for $4,400 from The Freedonia Group Inc., 767 Beta Drive, Cleveland, OH 44143-2326 USA. For further details, contact Corinne Gangloff by phone at 440-684-9600 or by e-mail at Information may also be obtained through
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