However, initial capital needed due to higher costs of installation and implementation, and security issues regarding these systems, are challenging the growth of the market. All these factors account for a substantial rise in the demand for active and intelligent packaging. The increase in counterfeit products, especially in the pharmaceutical and personal care industries in emerging economies, has also compelled companies to use technologies such as RFID during packaging.However, on the flip-side, it also raises issues of contamination, as plastic seepage into foods may lead to health complications. Active packaging, for instance, may change the composition and organoleptic characteristics of food, provided the changes are consistent with the provisions for food. The primary advantage of active and intelligent packaging solution is its ability to interact with the enclosed product, playing a dynamic role in its preservation and in the process also keep intact the track of tagged information throughout the supply chain.It requires them to procure the raw materials, as well as supply them to distributors, in way that is safe, easy to handle, and quick to move across the supply chain.

The manufacturing and processing units, especially in the food and beverage industry, have their supply chain spread across the globe. Globalization has created the demand for products to be transported across the world, without any loss in nutritional values, or change in chemical compositions.

With supply chains becoming global, longer shelf life is crucial, for the products to reach the intended customers.

The significant pressure on manufacturers to reduce the use of preservatives in food products has increased the importance of packaging across end-user verticals.The Commission of the an Communities, in 2004, provided the following legal definition of intelligent packaging: intelligent food contact materials and articles that monitor the condition of packaged food or the environment surrounding the food. The global Active and Intelligent Packaging Market was valued at USD 16.39 billion in 2018, and it is expected to reach a value of USD 24.5 billion by 2024, at a CAGR of 6.78%, during the forecast period (2019 - 2024).

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