Talkin’ Things on connected packaging: Where is it going?

03 Aug 2018 --- Connected, smart and digital are all words that are becoming firmly embedded in the packaging industry’s wordbook. As the industry begins to apply the technology for both consumer-facing and logistical means, the market is growing at an unprecedented pace. PackagingInsights speaks to Talkin’ Things CEO Marcin Pilarz about what he thinks is behind this market growth and what we can expect from the sector in the future. Even if smart packaging is a fad, its B2B potential is unrivaled.

Talkin’ Things data predicts that the total market potential of connected packaging and labels will reach 1.5 trillion by 2021, marking it as one of the biggest innovations to hit the industry. Pilarz likens its uprising to that of digital printing that came into the market about 15 years ago, revolutionizing how manufacturers could print large volumes of labels and cartons that were also personalized, for example.

In essence, everything you cannot do with traditional packaging, you can do with smart packaging, Pilarz explains. From anti-counterfeiting protection, brand protection, one to one communication with the customer to more advanced systems such as sensors to check the temperature of products or the history of the temperature, which can influence its safety.

Communication with the end consumer
Connected packaging came onto the scene largely with the use of QR codes, which are commonly found on packages or advertisements and can be scanned with a smart-phone to reveal information about the product or brand. But consumer faced smart packaging now comes with a far more extensive range of options, due to the employment of more complicated technologies such as Augmented Reality (AR), Virtual Reality (VR) and Near Field Communication (NFC).

These technologies can be employed to provide entertainment to consumers, a popular avenue for the smart packaging market. “If you have a consumer-facing campaign, then you need to give them an incentive that they want to scan this product,” says Pilarz. A fun augmented reality could be just the incentive in his book.

Talkin’ Things and Multi-Color Corporation (MCC) were the first Internet of Things (IoT) companies to combine AR and NFC for a unique consumer experience in the form of a talking skull, on the label of Black Red Ale beer. The skull uses advanced AR mood recognition and dynamic scenarios dependent on users’ emotions which give the impression of a full-blown conversation.

However, entertainment is not the only wave that smart packaging is riding. “You see an increase in the implementation on the market where the consumer can see the logistical process of the product. For example, if you buy a chocolate bar, you can see where the cocoa comes from, its journey and how it was processed. You can track and trace.” In this way, smart packaging can play a huge role in brands trying to build trusting relationships with the modern, mindful consumer.

“Everybody is looking to communicate with the end customer. You may buy the product and you want more from the brand. The bridge needs to be made between consumer and brand and this bridge is smart packaging. Consumer want to connect with iconic brands especially.”

This is recognized by a host of larger companies who are dedicating staff to digital transformation and smart packaging, he adds. 

There are many critics out there who label the smart packaging movement as a fad that will pass as people lose interest in the exciting, new quality of it. “There are questions and curiosity about whether or not this is a short-term thing. I don’t believe it could be a short-term innovation – everything today is connected to the Internet of Things.”

Within the scope, specific technologies may trend at some points more than others, he explains, with QR codes being an example of a technology that went down in popularity but is now seeing growth. At the moment, AR is popular but perhaps it will take a dip when new image recognition technologies come along. 

B2B opportunities
However, Pilarz was also quick to point out the bright future of smart packaging in the B2B sector. “Once we are talking about B2B applications, nobody asks these questions [about fads].”

The smart packaging that may attract consumers, and be used on the consumer-facing end, can also be utilized in B2B and logistics management. For example, by making the full supply chain on a chocolate bar visible to the consumer, the brand is sharing information that is valuable to its logistical processes and track and trace functionalities.

Warehousing and inventory management processes can be made more efficient and accurate utilizing RFID technologies into a packaging. And more accurate planning and decision making is enabled by the data gathered from the intelligently connected packages.

B2B applications also add value regarding offering security to avoid situations where copies are being made of the product, Pilarz adds.

The connected packaging market appears to show no signs of stagnating. PackagingInsights has been following this trend closely, reporting on the presence of connected packaging technologies in the pharmaceutical space and how QR codes have boosted dairy sales in Brazil, in addition to an in-depth report on the topic.

By Laxmi Haigh