Unlocking Smart Packaging

At the heart of the smart packaging opportunity for label and package printing companies are radio-frequency identification (RFID) tags and QR codes. These technologies can transform static packaging into connected gateways to elevate brand experiences and power inventory tracking and management tools, increasing the value of every label and package manufactured by converters.

Driving Transformative Change

Brands and their suppliers are no strangers to Walmart’s ability to bring transformative change to the packaged goods industry. After all, the retail giant ushered in a pivotal moment for eco-efficient packaging when its Sustainability Value Networks introduced Walmart’s Sustainability Scorecard to the CPG industry at the 2008 Pack Expo International.

Walmart is again serving as a catalyst in the evolution of packaging manufacturing with its latest RFID initiative. Critics might argue that this isn’t Walmart’s first foray into mandating RFID, but all feedback on and off the record heard by Packaging Impressions indicates that this push appears to be more aggressive. As Mark Potter, director of sales at Meyers, Minneapolis, Minnesota, says, “This time, Walmart is all in.”

Typically and historically comprising an RFID tag with an antenna, a microchip, and a reader that decodes the signal, RFID can drive business systems for brands and retailers. Today, these systems are even more powerful due to how the technology is being implemented.

Mark Volz, vice president of sales and marketing at Phenix Label in Olathe, Kansas, says retailers traditionally deployed RFID on the pallet or case level. Now, technology is typically applied at the item level rather than the case or pallet level. Item-level RFID implementation means every packaged product that's part of an RFID initiative can be identified and monitored.

Potter explains why item-level implementation is important: “The biggest thing [for Walmart] now is competing with Amazon. If Walmart doesn’t have its inventory levels accurate, they can’t tell a consumer living in, say, Sachse, Texas, ‘Your local Walmart has what you’re looking for and you can either order it for pickup and have it available immediately, or have Walmart deliver it to you the next day.’”

In other words, RFID has the transformative power to enable Walmart to deliver the type of immediate purchasing experience that has colloquially been named “the Amazon effect.” Additionally, with its brick-and-mortar stores, Walmart has an opportunity to use RFID to do “the Amazon effect” one better.

“What’s interesting,” Potter says, “is it’s not just Walmart. Dick’s Sporting Goods has now instituted similar protocols requiring RFID on product coming into their stores. I know Lowe’s is dabbling in it right now. So, RFID is not going away. I think you’re going to see more and more big box retailers adopting this now that they see Walmart’s success.”

As a result, the global RFID market is robust and expected to get even stronger. Technology research firm Technavio predicts the global RFID market will enjoy double-digit compound annual growth from 2025 to 2029, with much of that growth (43%) coming from North America.

Creating New Standards

Implementing RFID technology into packaging can be a complex process that requires careful planning and execution. It involves multiple steps, from understanding the requirements to selecting the most compatible tags, integrating the technology into existing processes, and ensuring ongoing compliance. Luckily, like how the retail giant improved the CPG industry’s approach to eco-friendly packaging with its Sustainability Scorecard, Walmart is also leading the charge in creating new standards for RFID packaging.

Potter explains the retailer is developing very detailed playbooks for each brand. These playbooks explicitly state the retailer’s specific guidelines based on industry standards set by GS1 and performance testing by Auburn University. One requirement Potter and Volz say is in every playbook is testing by Auburn University’s RFID Lab.

The lab freely distributes all qualifications documentation on the Auburn.edu website, emphasizing that although the documentation is fully fleshed out and requirements are clearly defined, those requirements are undergoing continual assessment and enhancement. Therefore, the university discourages the distribution of RFID-related data downloaded from the site, and instead encourages all stakeholders in RFID-tagged projects to refer to and continuously access the most recent documentation from the university’s website at time of use.

Some steps have been consistent in these guidelines, Potter and Volz explain, and converters can use their knowledge of the collaborative process with the RFID Lab to advise brands on how to best test their RFID-tagged packaging.

When starting work with brands on RFID packaging projects, Potter likes to distill the process into four essential steps. The first is sending in six of the finished packages completely mocked up with a live tag on it. The second essential step is identifying multiple Auburn University-certified tag suppliers. “Most tag production is still taking place overseas,” he explains. This means global political and social events can impact RFID inlay supply. Keep in mind, though, some suppliers are working to move more RFID tag production to the States. The third step is encoding relevant data, and the final step is inserting the tag.

This simplified approach, Volz says, helps alleviate some of the overwhelm packaging buyers might experience when receiving their Walmart playbooks. To make the process even easier, Volz encourages brands to tap into the institutional knowledge of the package printing companies that offer RFID-enabled packaging.

This institutional knowledge is great because the number of U.S. converters offering RFID is small. “If I had to approximate a number, I would say there are only 40 printers out there,” Volz says. The small number of players enables the RFID converter community to build strong relationships with Auburn University, Walmart, and each other.

Giving an example of the treasure trove of institutional knowledge an RFID package printer has about navigating obstacles to successful qualification, Volz holds up a liquid-filled package. He points to the product’s waterline and offers the following example of a pitfall a knowledgeable printer can help brands avoid: “If you try and bury a [regular RFID-enabled] label underneath here, the RFID won’t work. The package won’t get approved.” Most RFID-powered-packaging providers will recommend alternative placements for the RFID tag, he says. One printed packaging provider will offer an innovation.

Ripping Away Obstacles

In late 2024, Phenix Label announced an innovative offering for improved RFID scanning of liquid-filled packages and improved overall packaging sustainability. The patent-pending Phenix Label product includes an RFID inlay from Tageos embedded into the label above fill levels.

To deliver maximum performance in a small footprint, Phenix Label incorporates the Tageos EOS-261 M730 RFID inlay into the tear-away label. The passive RFID inlay meets a wide range of Auburn’s ARC specifications, making the Phenix Label design compliant with the ARC Program RFID performance requirements even when used on primary packaging for automotive, lawn and garden, and health and beauty products with high water content.

To ensure the label meets RFID tagging mandates from major retailers, including Walmart, Phenix Label collaborated with contract packager Goodwin Company to create an RFID-tagged liquid chemical product for retail brands that leveraged the Phenix Label tear-away tab design.

Another benefit of the Phenix Label tear-away design is the ability for consumers to easily remove the RFID portion of the label — an increasingly important feature as more brands consider RFID for digital product passport applications. (We’ll explore digital product passports more in our discussion about QR Codes. For now, think of digital product passports like blockchain but for packaged goods versus financial assets.) Despite all its promise for helping brands better understand the carbon footprint of packaging through the seamless tracking of the goods throughout the distribution chain, traditional RFID tags have a big problem. RFID tags introduce metal into the material stream when a consumer attempts to recycle a package. The tear-away design of Phenix Label’s innovation can eliminate potential contamination of the recycled polymer or fiber material streams when the primary package is recycled.

Bullish on RFID’s Future

Phenix Label’s innovation is just one example of how companies are refining RFID technology to meet evolving packaging demands. As more retailers mandate RFID adoption, converters investing in these advancements are well-positioned for growth. Naturally, Potter and Volz are enthusiastic about the future of RFID technologies and what they can do for their companies.

In August 2023, Meyers, which had been producing labels and cards with RFID technology for approximately 20 years, introduced a new RFID label offering. A written statement from the company noted that the critical component of the new offering was an advanced RFID label press that embeds RFID components within existing primary pressure-sensitive labels. In that same statement, Meyers COO Dave McConnon said, “Throughout my time at Meyers, we’ve acquired numerous specialty presses. However, this one stands out in the industry because the technology is custom-fitted to what we want to do for CPG brands as they integrate RFID into their prime labels and other types of packaging. It will allow our team to forge new pathways to achieve these goals much more quickly and reliably than before.”

Phenix also made a significant investment in expanding its RFID capabilities. In January 2025, the large, family-owned label converter
announced it had doubled the production capacity of the aforementioned tear-away label product.

A Technology Already in Your Wheelhouse

Not every label and package printing company is in a position to make these kinds of investments. This doesn’t mean the smart packaging market is closed to these converters. In fact, these print service providers might already be producing smart packaging but not reaping or recognizing the elevated value of these labels or packages. The technology? QR codes.

QR codes are often discounted because they usually don’t require printing companies to buy new or specialized equipment, but they can transform printed labels and packaging from static offerings to interactive experiences. But make no mistake, these connected labels and packages deliver higher value to brands. Sometimes, QR codes literally expand markets for printed packaging buyers.

Increasing the Value of Printed Packaging

In September 2024, Ketel One Family Made Vodka announced it would be the world’s first spirits brand to implement accessible QR (AQR)codes on its packaging. The brand said the inclusive packaging will help it “to deliver an exceptional spirit to all cocktail drinkers.” The operative word being all.

The AQR codes will empower Ketel One to reach more of the cocktail drinking market by helping legally blind and low-vision people retain their independence. The way an AQR code empowers vision-challenged shoppers is by enabling them to access product information without the assistance of another shopper or retail employee. For example, a legally blind shopper interested in Ketel One vodka can use the AQR code on the package along with an accessibility app such as Microsoft Seeing AI or Be My Eyes to have the product information read to them.

This packaging move by Ketel One can be considered noble, but it can also be profitable. The visually impaired market is sizable. The World Health Organization reported in August 2023 that at least 2.2 billion people globally have a near- or distance-vision impairment. Zappar, the company that created the AQR, and the U.K.’s Royal National Institute of Blind People shared this telling statistic with Ketel One: More than 315 million people around the world are blind or have low vision, and nine out of 10 of those people find it challenging to access crucial information on packaging.

Additionally, Ketel One notes AQR codes can be used to improve the brand experience for its entire market as AQR “serves as another avenue to easily connect all consumers to a brand’s digital presence whether it be an interactive augmented reality (AR) campaign or a simple website landing page.”

The Coca-Cola Company and Warner Bros. did just this when they used connected packaging with a QR code to help the beverage brand Fanta connect with movie fans and hype up the release of “Beetlejuice Beetlejuice.”

Coca-Cola gave the complete Fanta flavor range limited-time makeovers featuring “Beetlejuice Beetlejuice” characters, including Orange – Astrid Deetz (played by Jenna Ortega), Strawberry – Lydia Deetz (played by Winona Ryder), Pineapple – Delia Deetz (played by Catherine O’Hara), Grape – Delores LaFerve (played by Monica Bellucci), and Lemon – Wolf Jackson (played by Willem Dafoe). Most importantly, each package featured a QR code that gave the consumer access to a rotating set of brand experiences.

It's not just beverage brands tapping into QR codes’ potential. When Crescent Foods sought to redesign its Halal hand-cut chicken breast packaging, the brand’s constellation of guiding stars included accessibility, distinctiveness, inclusivity, and convenience. In addition to new graphic designs and enhanced photography, the brand included a QR code. The QR code reveals 30-minute quick-and-easy recipes, elevating the chicken products into easy meals for shoppers.

When DEWAR’S Blended Scotch Whisky proudly announced the second release in its Collector’s Series — DEWAR’S Double Double 38-Year-Old Whisky — the brand included a QR code that unlocked a guided multisensorial tasting experience highlighting the unique process and regional influences of this particular Scotch blend.

Chobani used QR codes to deliver AR experiences to its brand fans with its Halloween 2024 packaging. Eight Chobani Flip flavors were chosen for this campaign, where consumers would scan a QR code on the multipack to access AR created by U.K. artist Dan Whitehouse, aka Super Freak. The immersive animations printed on the paperboard sleeves feature playful characters who pop off the packs to take on a life of their own.

Not all connected packaging experiences are fun and games. Remember the aforementioned digital product passport? DPPs first came into the public discourse as an initiative of the European Union’s Ecodesign for Sustainable Products Regulation. The EU originally envisioned the DPP as a tool for closing the gap between consumer demands for transparency and the current lack of reliable product data.

Today, DPP is used globally to describe a gateway to a detailed digital record of a product, such as the QR codes used on Seremoni Fish packaging. In October 2024, Seremoni announced the brand was using printed packaging to offer a better way to experience seafood.

Each package includes a QR code that shares the fish’s journey from ocean to table, highlighting the Seremoni Fish’s proprietary handling process that minimizes stress during capture and the meticulous cold storage chain that the brand says ensures freshness and quality.

Brands are also using QR codes in the promising hemp product market.

In January 2025, Curaleaf Holdings issued a statement in which Boris Jordan, chairman and CEO of Curaleaf, noted the company’s interest in the hemp market, which the brand estimates to be similar in size to that of the cannabis market but less regulated.

That same month, Curaleaf debuted a line of hemp-derived THC products — Select Zero Proof 2.5mg Hemp THC Seltzer — but brought the kind of product transparency that's often reserved for the more regulated cannabis market. Leveraging a QR code printed on each can, Curaleaf is giving consumers of Select Zero Proof 2.5mg Hemp THC Seltzer access to certificates of product analysis from independent testing labs.

Curaleaf says all of its hemp THC products will leverage QR codes.

Transforming the Printed Labels, Packaging Market

Converters that recognize and act on the smart packaging opportunity not only gain a competitive edge for their package printing businesses, they can also help change the perception of printed labels and packaging away from being viewed as a commodity. The more efficient and engaging experiences, and yes, the complexities of navigating some of these technologies, position package printers to be enlisted by brands as trusted partners versus suppliers to be pitted in a race to the bottom.