How Is Packaging Improving for Internet of Things?

The internet of things (IoT) revolves around how everyday items can have network connectivity, allowing them to send and receive data. Product packaging isn't just created for looks and functionality anymore, it is now being designed with network connectivity in mind. Scannable smart labels, radio-frequency identification sensors, and interactive packaging that changes colors are a few examples of packaging being elevated to the IoT. According to Packaging Digest, this isn’t just a fad. In a 2013 report by General Electric, it is reported that the IoT will boost global gross domestic product by up to $15 trillion in the next 20 years. Discover how to gain traction in this exploding market while your business benefits through an engaged exchange between your consumers and your packaged products.

Big Business Benefits

Businesses are constantly looking for ways to connect with consumers. The days of conventional marketing are over, and it's up to you to determine the best networking outlets for your product's market. As noted by Forbes, here are some examples of how your business can incorporate the internet of things into your packaging development:

• Utilize a combination of rigid and flexible packaging materials to better suit the consumers’ shelving needs, and to increase shelf presence for marketing.
• Embed QR codes that are easily scanned by the customer, allowing them to further engage with the product and so your company can track the customer’s shopping habits.
• Add sensors, such as radio-frequency identification and near-field communication, to packaging to help your company track its products through the supply chain.
• Update to include interactive packaging to increase product safety and shelf stability, and to ensure OSHA compliance.

These methods allow businesses and manufacturers to learn more about their consumers through big data exchanges. Consumers, however, aren’t simply used as data points in the product packaging experience with the internet of things.

Customer Satisfaction Improvements

Just as businesses benefit from the IoT, consumers are able to connect to their products in amazing new ways. Instead of simply purchasing products for their baseline value, consumers extend their experience through packaging innovations.

For example:

• QR codes encourage consumers to look up recipes, food prep tips and nutritional facts for products using their mobile phones.
• Product safety is ensured by packaging that changes colors according to product temperature.
• Interactive packaging prevents counterfeit products from reaching consumers.
• Consumers’ shopping habits are tracked, allowing companies to predict which product and packaging ideas would be most successful and beneficial to a particular demographic.

As noted in Packaging World, “There is no doubt that the Internet of Things is becoming a must in current and future manufacturing operations in order to remain efficient and effective in an ever more competitive world. These smart and necessary tools enable us to gather data, analyze that data, and use the data to remain competitive." Connecting with consumers and using their information to make more pertinent packaging decisions helps everyone across the board. The key information provided through the internet of things has found a way to make business better through packaging innovation.