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5 Ways AI Is Transforming the Packaging Industry
Did you know the total market value for packaging materials across North America was $217.91 billion in 2022?
21:02 10 September 2024
Did you know the total market value for packaging materials across North America was $217.91 billion in 2022?
That's according to Statista, which adds that paper and board represented most of the market share with a combined total of 32% that year. It further adds that paper and board packaging materials in 2022 added up to $70.32 billion. The segment is on pace to reach $82.56 billion in 2030.
Meanwhile, Statista says the total market value worldwide for packaging materials was nearly $896 billion in 2022. That number could get to around $1.15 trillion by 2030.
No matter how you slice or dice it, the packaging industry is a big one in terms of market value.
But one trend that’s starting to make its presence felt in the industry is artificial intelligence. AI is impacting, for better or worse, many industries – and packaging is one of them. While there are things about AI and its potential that can raise red flags, there’s no denying it offers benefits.
Continue reading to see five ways AI is transforming the packaging industry.
- It Offers Better Product Tracking
AI equips machines and computers to simulate human learning, problem-solving, and comprehension. One way that's being used in the packaging industry is by improving product tracking. We live in a time when consumers want what they want immediately...or as quickly as possible. How can AI help? Companies can employ chatbots, which are online applications designed to simulate human conversations through voice or text, to offer updates to customers.
Customers can find out the expected arrival date, where the packages are at any stage of the delivery process, and other bits of information that keep them in the loop. Customers don’t like waiting for much-needed packages while not knowing whether they’ve already been mailed, where they are if they’ve been mailed, and when they’ll arrive.
AI can allow greater visibility to keep customers informed. That will allow for a more pleasant overall experience.
- Smart Packaging Safeguards
AI also affords smart packaging protection that can take packaging solutions to the next level. Smart packaging incorporates sensors to keep track of environmental conditions like humidity and temperature. Does your company handle materials or products that are sensitive to environmental conditions? If so, smart packaging protection is a godsend. Some materials must be kept in temperature-controlled environments to maintain quality and safety.
- Personalization
Another benefit of AI in the packaging space is personalization. While you can get packaging solutions from third parties, you can also use AI to create personalized packaging designs that reflect your company's brand, message, and other things consumers in your demographic appreciate. AI can, after you input information on what you're looking for, generate packaging employing different graphics, messages, and colors that will resonate with your target audience.
It can be another way to convey your unique value proposition and better connect with customers.
- Supply Chain Optimization
Yet another way AI is impacting the packaging industry is by helping with supply chain optimization. Companies can use AI tools to streamline the packaging process, from sourcing to distribution. There are many supply chain management challenges in packaging. Challenges include flexibility, raw materials sourcing, sustainability, cost-effective shipping, packaging complexity, packaging variety, and more. AI can help companies better deal with these challenges.
- Quality Control
AI can be used to identify defects and imperfections in packaging. So, if quality control is an issue in your company's packaging process, AI can help businesses improve on that front.
While some businesses do packaging in-house, others rely on dedicated third parties with expertise. You can find a service provider to meticulously package processed materials, safeguard their integrity, and ensure safe transportation so they arrive at the intended destination in good condition.
AI isn’t going away. In fact, it’ll likely continue to change the packaging industry. But there’ll always be a need for companies specializing in packaging to provide that needed human touch.