Track and trace in packaging to reach USD 19.35-bn
The track and trace packaging market is expected to soar from USD 6.97-billion in 2025 to USD 19.35 billion by 2034, powered by a CAGR of 12.02%. A report by Towards Packaging.
09 Oct 2025 | 266 Views | By Abhay Avadhani
Track and trace integrates technologies like barcodes, RFID tags, 2D matrix codes, and even blockchain into product packaging, allowing stakeholders to monitor a product’s journey from factory to consumer.
The growth is being driven by increased regulation, rising counterfeit threats, and the growth of eCommerce. Government mandates like the US Drug Supply Chain Security Act (DSCSA) and the EU Falsified Medicines Directive (FMD) now require full traceability for certain goods, particularly in pharmaceuticals and food safety.
But there's also a consumer-driven shift at play: More than ever, buyers want to know where their products come from, how they were handled, and if they're genuine. In fact, 42% of European shoppers and 37% in North America have admitted to avoiding products with excessive or unclear packaging.
Asia Pacific is poised for the fastest growth, driven by booming eCommerce, manufacturing, and government efforts in India and China.
Top technologies in track and trace
Barcodes (1D & 2D): These continue to dominate due to their simplicity, affordability, and widespread compatibility.
Blockchain-based traceability: Blockchain ensures tamper-proof, decentralised tracking, offering transparency and security.
RFID-embedded packaging: RFID tags are becoming more affordable and allow non-line-of-sight scanning, enabling real-time monitoring of entire batches of goods simultaneously.
AI integration: AI analyses movement patterns, predicts disruptions, and uses image recognition to flag counterfeits. It’s driving smarter routing and dynamic inventory control.
Track and trace is also pushing eco-innovation:
Biodegradable packaging made from seaweed, mushroom mycelium, or even orange peels is gaining ground.
Returnable systems like reusable kegs or bottles are reducing waste in food and beverage sectors.
Smart sensors are helping optimise waste collection and recycling.
The future of track and trace in packaging is not just digital, it's intelligent, sustainable, and customer-focused. With AI, blockchain, and IoT driving transformations, we’re heading toward a world where every product is not only traceable but interactive, smart, and secure.