Augmented Reality Packaging Market Expanding Application Areas To Drive The Global Market Growth 2017 – 2025

Augmented reality is a technology that connects reality to the virtual world. It is gradually becoming an important technology. In order to replace the traditional process of purchasing and to increase customer engagement, major packaging manufacturers have started employing augmented reality packaging. Augmented reality packaging also aids in reducing the sales cycle. Tech-savvy customers are exhibiting increased interest in this technology. Augmented reality is creating an impactful mark on the consumer packaged goods (CPG) industry and essentially helping manufacturers bring more products to retailers and expand to new markets continually and impressively. While several packaging manufacturers are still getting acquainted with augmented reality packaging; major players such as Coco Cola, Kraft, L’Oréal, and Simmons have already adopted this technology for demonstration, promotion, and product differentiation.

Major growth drivers for the augmented reality packaging market include the increase in demand for smart and digital packaging and rise in demand for FMCG products. Moreover, forthcoming technological advancements, industrial development, and innovative techniques developed for the use of augmented reality packaging would be key factors responsible for growth of the market. The augmented reality packaging market has been witnessing high growth over the last few years, owing to high demand from end-user industries based in the U.S., Germany, France, China, and Japan. However, factors such as low awareness among consumers and restricted size of storage devices may hamper the market in the near future.

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Based on technology, the augmented reality packaging market has been segmented into head-mounted displays, applications (apps), and others. The market is dominated by the apps segment, as apps give handy experience to customers and are relatively less expensive. However, the head-mounted displays segment is projected to expand at a high rate during the forecast period, owing to changing lifestyle and increase in consumer spending on digital technology.

Based on application, the market can be classified into mobile & tablet devices, showroom, web, retail, and others. The mobile & tablet devices segment dominates the global augmented reality packaging market, as these devices make advertising and promotional campaigns available only at the touch of a button. Augmented reality is the way of the future in on-pack communication. It is changing how consumers interact with products and use them. It lays a strong foundation for building brand loyalty.

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An emerging trend of intensifying conjunction between wearable devices, AR, and GPS is projected to drive the augmented reality packaging market in the next few years. Increasing diffusion of smartphones and tablets is a major factor encouraging the adoption of augmented reality packaging. In addition, rising investments by packaging manufacturers in the augmented reality packaging market have played a major role in promoting growth of the market.

In terms of geography, the global augmented reality packaging market has been segmented into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America. Currently, packaging manufacturers based in North America are largely adopting augmented reality packaging, with the U.S. and Canada being major contributing countries. In Asia Pacific, urbanization and rapid digitization have boosted the information technology sector. This, in turn, has helped in raising the demand for augmented reality packaging in the region. Furthermore, Europe and Latin America are highly active markets, in terms of strategic initiatives and emerging demand from the end user industries. Some of the factors fueling the market in these regions are high growth of end-user industries, increased local manufacturing, and risen number of domestic players in industrial applications in the regions.

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Key players operating in the global augmented reality packaging market include Coco Cola, Kraft, L’Oréal, and Simmons.

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The regional analysis covers:

  • North America (U.S. and Canada)
  • Latin America (Mexico, Brazil, Peru, Chile, and others)
  • Western Europe (Germany, U.K., France, Spain, Italy, Nordic countries, Belgium, Netherlands, and Luxembourg)
  • Eastern Europe (Poland and Russia)
  • Asia Pacific (China, India, Japan, ASEAN, Australia, and New Zealand)
  • Middle East and Africa (GCC, Southern Africa, and North Africa)

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