NEW research has highlighted the sustained use of connected packaging.
Appetite Creative, in partnership with Domino Printing Sciences, has released results from its third annual connected packaging survey. The research found that 82% of respondents have used connected packaging in the past 12 months, a slight rise on the 81% figure from the 2023 survey and significantly up on the 54% reported in 2022.
The barriers to using connected packaging have changed year-on-year with technology knowhow missing (15%), unsure how to handle the data (15%), poor application knowledge (12%) and lack of readiness (12%) listed as key concerns. Only 9% stated that connected packaging wasn’t a business requirement for this year, showing fluctuating business priorities when compared to 7% in the 2023 survey and 29% in 2022.
Connected packaging is considered important to inform product and marketing decisions (16%), alongside direct interaction with customers (15%), data collection (15%) and educating customers (13%). Connected packaging being an environmentally sustainable way to connect with and educate customers lagged behind at 11%.
The study found that increased investment in digital marketing spend is up to 96%, compared to 88% in 2023 and 59% in 2022. The number of respondents who plan to spend on connected packaging campaigns dropped slightly, with over a third (33%) planning to spend between $15,000 to $30,000 this year. A quarter (25%) plans to spend $31,000 to $50,000, down by 17% points year-on-year (previously 42%).
88% of respondents claim to be planning a connected packaging campaign this year. 80% cited that connected packaging will be increasingly important to the packaging industry in the next 12 months, a drop of 12% points year-on-year.
Looking to the year ahead, connected packaging is deemed increasingly important by respondents to provide access to valuable data and insights (11%), encourage customer loyalty (10%), offer an environmentally sustainable way to connect with and educate customers (10%), communicate directly with customers (10%) and utilise gamification a valuable way to engage with younger audiences (10%).
Jenny Stanley, MD at Appetite Creative, said, “We’re seeing an overall desire to increase investment in digital advertising this year and a stable investment in connected packaging. It’s great to see the perceived value of data collection through connected packaging rising, especially in the context of the imminent demise of third-party cookie data.
“It’s also interesting to see sustainability drop down the agenda despite new government-led regulations. We will continue to watch these trends closely and offer, what we consider to be, high value rewards to clients delivered via connected packaging.”
Craig Stobie, director global strategic sectors at Domino, added, “At Domino, we’re seeing increased interest from customers about the uses and benefits of deploying connected experiences via product packaging, especially across the circular economy, for medical equipment instructions and FMCG stock management. Demand is likely to rise with more packaging legislation expected.”
