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Home » Blogs » Think Tank » Next-Generation Packaging Brings Reliability and Visibility to Supply Chains

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Next-Generation Packaging Brings Reliability and Visibility to Supply Chains

A brown cardboard box with a green plant growing out of the top.
Photo: iStock / Julia_Sudnitskaya
April 12, 2024
Alicemarie Geoffrion, SCB Contributor

From the rise of e-commerce to the global drive for sustainability, the need is growing for creative and cost-efficient packaging, with a focus on reducing CO2 footprints. 

The “next generation” of packaging must meet strict standards of recyclability, reusability, compostability, biodegradability and traceability. 

The shift comes with multiple challenges. Next-generation packaging often incorporates components such as batteries, sensors, displays and circuits, which can be difficult to recycle. The long-term viability of such solutions will be determined by their environmental impact, as well as their ability to conform to differing regulations and legislation.

Smart packaging with real-time tracking and monitoring raises data-privacy issues, especially if personal information such as end-user location, identity and preferences is in danger of being accessed by unauthorized users. While cryptography and blockchain technology can mitigate this threat, they can also significantly increase the cost and resources required to deploy secure solutions.

Assuming these challenges are adequately addressed, next-generation packaging offers significant benefits to companies and their customers. Following are three examples that illustrate its substantial potential.

Active packaging for the fresh and cold chain. Additives to packaging are required to maintain or extend product quality, with shelf life engineered to react to changes in external and internal atmospheres. This capability is of particular value to the pharmaceutical and nutraceutical industries. 

Elements of active packaging include heating and cooling capabilities, corrosion control and spoilage-retardant qualities. Such solutions today account for more than a 36% share of the global packaging market, and are predicted to become even more dominant over the next 10 years.

Modified atmosphere packaging. To ensure that products arrive in optimal condition, the internal atmosphere of the packaging must be continuously maintained and adjusted in line with changing conditions. The use of modified atmosphere packaging (MAP) is central to the effectiveness of this type of transportation and delivery. 

Benefits of MAP technology include reduced food waste, extended shelf life by days and even weeks, and a more profitable and secure global food supply chain. The COVID-19 pandemic highlighted the need for MAP to facilitate global vaccine shipments, particularly when it comes to controlling and modifying atmospheric temperatures during transportation. An example is the development of packaging that incorporates internal dry ice.

Intelligent packaging for asset monitoring. These systems integrate hardware components such as time and temperature indicators, freshness and ripening sensors, radio frequency identification and other tag types.

Opportunities for applying intelligent packaging extend well beyond the healthcare and pharmaceutical industries. Logistics and supply chain providers, for one, can benefit from real-time tracking, with its ability to reduce the risk of theft, product counterfeiting and last-mile delivery diversion, among other crimes. 

Smart packaging is poised to replace many traditional systems as e-commerce continues to reshape the retail industry, and consumers and regulators demand greater sustainability and a smaller environmental footprint in logistics.

Alicemarie Geoffrion is president, packaging operations with DHL Supply Chain, North America.

Last Mile Delivery Supply Chain Visibility Quality & Metrics Regulation & Compliance Supply Chain Security & Risk Mgmt Sustainability & Corporate Social Responsibility Packaging Retail

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