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Thematic Research: Packaging

Augmented Reality in Packaging

April 6, 2022 GDCG-TR-S049
Augmented Reality in Packaging | April 6, 2022

| Contents
Executive Summary ...................................................................................................................................................... 3

Augmented Reality Value Chain ................................................................................................................................... 4

Semiconductors ................................................................................................................................................................ 5
Components ..................................................................................................................................................................... 8
Devices ........................................................................................................................................................................... 11
Platforms........................................................................................................................................................................ 12
Apps and content ........................................................................................................................................................... 15

Packaging Challenges .................................................................................................................................................. 16

The Impact of Augmented Reality on Packaging ......................................................................................................... 17

Case Studies ............................................................................................................................................................... 21

Data Analysis .............................................................................................................................................................. 23

Market size and growth forecasts ................................................................................................................................. 23
Mergers and acquisitions ............................................................................................................................................... 27
Partnerships in packaging .............................................................................................................................................. 28
Augmented reality timeline ........................................................................................................................................... 29

Companies .................................................................................................................................................................. 30
Leading augmented reality adopters in packaging ....................................................................................................... 30
Leading augmented reality vendors .............................................................................................................................. 32
Specialist augmented reality vendors in packaging ....................................................................................................... 37

Sector Scorecard ......................................................................................................................................................... 38

Packaging sector scorecard ........................................................................................................................................... 38

Glossary ...................................................................................................................................................................... 41

Further Reading .......................................................................................................................................................... 44

| Our Thematic Research Methodology ...................................................................................................................... 45

| About GlobalData .................................................................................................................................................... 47

| Contact Us ............................................................................................................................................................... 48

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Augmented Reality in Packaging | April 6, 2022

Executive Summary
Augmented reality (AR) is a technology that allows the user to see the real world Inside
overlaid with digital data. From aerospace to consumer goods, various industries ▪ Players
use AR technology. One of the most popular consumer applications to date is
▪ Value chain
Pokémon Go. Launched in July 2016, Pokémon Go is a mobile game that tech experts
▪ Packaging challenges
credit for catapulting AR into the mainstream. The game requires users to find and
catch virtual Pokémon hidden throughout the real world. The three types of AR ▪ The impact of AR on packaging
‘triggers’ are marker-based, marker-less AR, and location-based. These triggers help ▪ Case studies
the AR application determine where to place the computer-generated content to ▪ Data analysis
align with the real-world image on the device. ▪ Companies
▪ Sector scorecard
AR can enhance the consumer experience
Packaging leaders Tetra Pak and Elopak have adopted AR in their packaging labels. ▪ Glossary
In December 2021, Tetra Pak partnered with Vietnamese brand Vinasoy to create ▪ Further reading
an AR-integrated soya milk carton. To access the AR features, customers had to ▪ Thematic methodology
download the PackStory app on their devices and scan the QR code on the carton.
This then launched an AR world that provided information about soybeans and
instructions on storing and recycling the carton. In 2018, Elopak used AR for ________________________________
Ukrainian dairy product company Molokija. The AR-enabled packaging aimed to
help communicate the "magic of drinking milk before sleep, for growing kids
through stories and lullabies."
Related reports
AR is being used to raise ESG awareness
▪ Augmented Reality (2021)
Several packaging companies and retailers have adopted AR in packaging to raise
awareness of environmental, social, and governance (ESG) issues by integrating QR ▪ Internet of Things in Packaging
codes into products’ outer packaging. When a smartphone device hovers over the (2021)
product, AR digital experiences are launched. Herbal Essences and Unilever are
pioneers in using AR to bring more attention to making environmentally conscious
________________________________
decisions. Packaging specialist Stora Enso also used AR in its Multicopy Zero
campaign.

Leaders and laggards

Below we list some of the leading and lagging players in the AR value chain. Report type
▪ Single theme
Packaging adopters
▪ Multi-theme
▪ Leaders: Amcor Avery Dennison, DS Smith, Elopak, Encirc, Mondi, Stora
Enso, Tetra Pak, Verallia. ▪ Sector Scorecard

▪ Laggards: Oji Holdings, Berry Global, Ball Corp, Smurfit Kappa, Pactiv
Evergreen.
Packaging vendors
▪ 3D Click, AR Packaging, Blippar, Blix22 Interactive, Roar AR, Tactic, UniteAR,
Qualcomm (Wikitude).

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Augmented Reality Value Chain

This section provides an overview of augmented reality, which is broken down into our value chain framework. For more
detail, please download the Augmented Reality report.

Key players in the augmented reality value chain

This graphic shows the key players in the AR value chain. Most of the major tech companies are present among the
leading vendors. Specialist vendors offer AR products made specifically for the packaging industry. The absence of
leading adopters in some value chain layers is due to a general focus on the end-user experience. The leading adopters
are generally the largest packaging companies.

Key players in the augmented reality value chain

Augmented reality Specialist AR vendors in Leading AR adopters in
Leading AR vendors
value chain packaging packaging

AMD SK Hynix
Semiconductors Apple Skyworks
Nvidia Sony
Qualcomm Yangtze Memory
Softbank (Arm) TDK (InvenSense)
Analog Devices Samsung Electronics
Infineon NXP Semiconductors
Micron STMicroelectronics

Alphabet (Google) AAC Technologies

Components Apple Cognex
DigiLens Goertek
Lumus Himax
Magic Leap Leica
Microsoft Sennheiser
Panasonic Sony
PMD Samsung Electronics
BYD UltraLeap

Devices Apple Huawei

BBK Electronics Microsoft
Rokid ThirdEye
Seiko Epson Xiaomi
Vuzix Samsung Electronics
Alphabet (Google)
Alphabet (Google) Akamai 3D Click Amcor
Platforms Apple Alibaba AR Packaging Avery Dennison
Autodesk Amazon Blippar DS Smith
Epic Games ARToolkit Blix22 Interactive Encirc
Meta (Facebook) F5 Networks Roar AR Stora Enso
Microsoft PTC Tactic Tetra Pak
Qualcomm Dassault Systèmes UniteAR
Snap TeamViewer Qualcomm
Unity Tencent (Wikitude)
Adobe

Adobe Zoom 3D Click Amcor

Apps & content
Alibaba NetEase AR Packaging Avery Dennison
Alphabet (Google) Niantic Blippar DS Smith
Atheer Square Enix Blix22 Interactive Elopak
Apple Tencent Roar AR Stora Enso
Boeing Walt Disney Tactic Tetra Pak
Ikea Comcast UniteAR
Microsoft Netflix Qualcomm
Augmedix Viacom CBS (Wikitude)
Autodesk Dassault Systèmes
Oracle Meta (Facebook)
Orca Health Lockheed Martin
PTC Northrop Grumman
Sephora Samsung Electronics
Snap AT&T (WarnerMedia)
Walmart

Source: GlobalData

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GlobalData’s augmented reality value chain is split into five segments: semiconductors, components, devices,
platforms, and applications and content.

The augmented reality value chain

An overview
Hardware Middleware Software

Semiconductors Components Devices Platforms Apps & content

Central processing units

Motion tracking Smartphones APIs & SDKs Engineering apps
(CPUs)

Graphics processing units

(GPUs) AR engines - Healthcare apps
Batteries AR smart glasses
games

Vision processing units

Ecommerce apps
(VPUs)
AR engines -
Displays AR headsets
enterprises

Image processors Social apps

Artificial intelligence
Cameras & 3D lenses
(AI)
Communication chips Military apps

Content delivery
Micro-electromechanical Audio components
networks Video games
systems (MEMS)

Application delivery
Memory chips Machine vision Films
networks

Source: GlobalData

In the sections below, we will take a closer look at each of the segments of the AR value chain.

Semiconductors
Semiconductors are one of the key battlegrounds in AR today. Up until 2018, AR device makers largely relied on powerful
smartphone and PC chips, but Qualcomm’s introduction of the XR1 AR and VR-specific chipset changed all that.
Subsequently, in 2019, Qualcomm launched the XR2 5G platform, describing it as the “world’s first 5G-supported
extended reality (XR) platform”. Although no new AR-specific silicon has arrived on the market following the launch of
the XR2 5G, chipmakers are striving to improve their existing capabilities to suit the evolving requirements of AR, mostly
around screen resolution, frame rates, processing speed, and connectivity.

CPUs
Qualcomm is the leading player in the AR central processing unit (CPU) space, primarily due to its strong position in the
smartphone market. At Mobile World Congress (MWC) 2019, Qualcomm announced the XR-optimized certification
program, enabling smartphones running on the Snapdragon-series system on a chip (SoC) to access 5G-powered AR
content. The XR2 chip, according to Qualcomm, offers twice the CPU performance of its predecessor, making it capable
of offering more immersive AR experiences. In addition, the Snapdragon 855 Plus and 888 5G SoCs are specifically
designed to boost smartphone-based AR, especially gaming.

Qualcomm’s powerful Kryo CPUs are used in AR headsets and smart glasses from several vendors. For example,
Microsoft’s HoloLens 2 is powered by the Snapdragon 850 SoC, while Google Glass Enterprise Edition 2 features the XR1
platform. The upcoming Photon smart glasses and Lynx MR headsets will run on the XR2 platform.

Apple is also in a strong position thanks to the TSMC-made A-series processors that power its iPhones and iPads and the
M-series processors, which power Mac devices. Magic Leap is replacing Nvidia SoCs with AMD SoCs in the Magic Leap
Two headsets, scheduled to launch in 2021. MediaTek, Huawei, Samsung Electronics, Intel, Texas Instruments, and Arm
are also working on AR-compatible chipsets. Most of their efforts are focused on efficient battery and power

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management with longer standby times, improved frame rates, high projection displays, high fidelity audio, and
enhanced haptics.

GPUs
In the graphics processing unit (GPU) space, Nvidia is the leading player, with AMD in second position. Other chipmakers
looking to challenge in this market include Intel, which acquired Ineda Systems in 2019 and is banking on its fabrication
capabilities to undercut the fabless Nvidia and AMD on price. Qualcomm integrated its Adreno GPUs on its Snapdragon
SoCs to strengthen its smartphone portfolio, while Samsung Electronics has licensed AMD’s Radeon GPU architecture to
support its Exynos SoCs to boost the graphics on its smartphones. Arm, with its Mali-G77 (launched in 2019), G78 (2020),
and G310 (2021) GPUs, is also targeting the smartphone-based AR market, promising high-end graphics support for AR
gaming. The latest Mali-G310 GPU is designed for entry-level smart devices such as smartphones, promising superior
performance for real-time 3D graphics applications than the Mali-G31 GPU that powered smartphones and smart TVs.

The intensifying competition in the GPU space is likely to have a positive impact on AR. GPUs will become faster (in terms
of processing speed), sharper (in terms of display quality), and more robust (in terms of load handling), all of which will
lead to more effective power management and improved experiences.

VPUs
Vision processing units (VPUs) – an emerging microprocessor class designed to accelerate machine vision tasks – are
responsible for anchoring virtual objects in the real world in an AR headset.

Intel (with the Movidius Myriad X) and Nvidia (with Programmable Vision Accelerators) are strong in this field, while
Qualcomm, Samsung Electronics, Cadence, Renesas, Synopsys, and MediaTek also offer VPUs. Google’s adoption of the
Qualcomm XR1 chipset for the Google Glass Enterprise Edition 2 smart glasses is attributed mainly to its vision processing
capabilities, which support visual-inertial odometry (VIO), a technique used to create a correlation between real and
virtual spaces. We expect robust investment in VPUs over the next three years, driven by the maturity of AR technology
and the increasing demand for realistic graphics content.

Image processors
Growth in the image processing field is being driven by demand for real-time and high-quality images. Image signal
processors (ISPs) are vital for two AR-related functions: noise reduction (where digital artifacts that can tarnish images
are removed) and image sharpening (enhancing the depth and clarity of images). Qualcomm, Sony, Ambarella, and Arm
are leaders in this field. Qualcomm’s Spectra 380 (launched in 2018) was positioned as the industry’s first AI ISP and is
now available as an integrated element in Snapdragon SoCs. In 2019, ARM launched the Mali-C52 and Mali-C32 ISPs,
which offer high-quality images (600 megapixels per second) at premium smartphone level frame rates (60 frames per
second). The aforementioned vendors compete against Infineon, STMicroelectronics, NXP Semiconductors, Toshiba,
OnSemi, and Omnivision in the AR space.

Communication chips
AR devices rely mostly on Bluetooth, 4G LTE, and Wi-Fi – all integrated on SoCs – while 5G connections are also becoming
available. Qualcomm is integrating 5G modems on its Snapdragon SoCs, while Qorvo, Murata, Skyworks, and Qualcomm
compete around 5G radio frequency (RF). Qualcomm is an outright leader in this space, with its 5G-capable AR-specific
XR2 chipset. The company also offers the Snapdragon X55 4G and 5G dual-modem to Apple’s flagship A14 Bionic
processors. Samsung Electronics, Broadcom, Unisoc Technologies (part of Tsinghua Unigroup), MediaTek, and Arm are
also actively developing 5G chipsets.

In March 2021, Arm launched the Armv9 architecture, offering 5G processing, AI, and AR capabilities. The company
believes that it will be integrated into the next 300 billion Arm-based chips. Subsequently, in April 2021, Unisoc
announced a 5G chipset called Tanggula, positioning it against Qualcomm’s Snapdragon 800 SoCs in the smartphone
market. It has partnered with Xiaomi and Oppo to develop in-house 5G chipsets. This partnership will allow Xiaomi and
Oppo to enable AR experiences on their devices powered by Google’s ARCore. Due to US sanctions, Huawei, which
dominated the smartphone-based 5G chipsets market in 2020, is running out of its own Kirin chips for smartphones.

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Huawei will lose out in the AR communication chips market over the next two years, as US sanctions limit its access to
5G technology from US chipmakers like Qualcomm.

MEMS
Due to the intensifying miniaturization drive in the semiconductors sector, MEMS manufacturers are seeing rising
demand. The emergence of 5G chipsets will only increase the pressure on MEMS vendors to deliver further
miniaturization. A significant amount of the storage and processing power will move to the network and server levels,
resulting in smaller SoCs. Thus, designers will race to integrate more sensors and expand the operational capabilities of
their devices. This should also positively impact user experience, particularly in terms of weight, movement accuracy,
and battery life, all of which are essential for AR’s success in the consumer market.

STMicroelectronics, InvenSense (part of TDK), Bosch, NXP Semiconductors, Infineon, and Analog Devices are all strong
players in the MEMS field. At CES 2021, STMicroelectronics demonstrated proof-of-concept AR smart glasses based on
its first-generation MEMS ScanAR reference platform. This platform is designed to increase the performance and daily
usability of AR smart glasses by reducing size, weight, and power consumption. It was developed by the LaSAR Alliance,
a group formed in 2020 and comprising STMicroelectronics, Applied Materials, Dispelix, Mega1, and Osram. In 2019, TDK
collaborated with Qualcomm to make inside-out six degrees of freedom (6DoF) controller tracking available to AR and
VR headsets powered by Snapdragon XR. This collaboration offers high-precision, low-latency 6DoF tracking in AR and
VR headsets, with low power consumption and real-time computation capabilities. To address issues such as motion
sickness and latency, a significant share of MEMS investment is being directed towards improving inertial measurement
units (IMUs), accelerometers, and gyroscopes.

Memory chips
Memory-based CPU architecture, which locates faster, denser memory closer to processing units, is a developing
investment theme in the critical memory chips sector. The in-memory chips – powered by AI –promise storage-level
computation of data, thus allowing faster results. In the race to develop such chips, the leading integrated memory chip
makers – Samsung Electronics, SK Hynix, Micron, Western Digital, and Kioxia – face a significant challenge from China’s
memory chip leader Yangtze Memory Technologies (an affiliate of Tsinghua Unigroup).

Yangtze reportedly aims to boost its memory chip production to reduce the gap with Samsung Electronics and Micron.
According to a Nikkei Asia report published in January 2021, it is also planning to begin trial-production of 192-layer 3D
NAND flash chips, a feat that no chip maker has attempted as yet. Yangtze’s move could result in significant changes in
the global memory chips market, as the Chinese have the potential to oversupply their products and undermine the
market command of established global players.

On the other hand, in October 2020, SK Hynix acquired Intel’s NAND memory chips unit for $9bn and began producing
176-layer chips. However, the deal did not include Intel’s memory technology 3D XPoint, developed in association with
Micron, for higher data transfer speeds than conventional NAND flash. With Optane chips, developed using 3D XPoint,
Intel is strengthening its grip on PC-based AR applications, especially 4K streaming, HD images, and multi-player
gameplay. Huawei is reportedly self-developing memory chips through its subsidiary HiSilicon, having lost Micron as its
supplier in 2020 due to US sanctions. A teardown report published in November 2020 by GSMArena revealed HiSilicon-
branded flash memory chips inside Huawei’s Mate 40 RS smartphone. However, as Huawei struggles to keep up its
smartphone business, its future in the memory chips space and, therefore, the AR market is bleak.

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AR value chain - Semiconductors

Market leaders and challengers

Semiconductors Leaders Challengers

Qualcomm Apple AMD Intel

CPUs Softbank (Arm) Huawei
Texas Instruments MediaTek
Samsung Electronics
Nvidia AMD Qualcomm Intel
GPUs Samsung Electronics Softbank (Arm)

Intel Nvidia MediaTek Cadence

VPUs Qualcomm Renesas
Samsung Electronics Synopsys
Ambarella Sony Infineon OnSemi
Image processors Softbank (Arm) Qualcomm STMicroelectronics Toshiba
NXP Semiconductors OmniVision
Qorvo Skyworks MediaTek Murata
Communication chips Qualcomm Broadcom Cirrus Logic Blu Wireless
Samsung Electronics Softbank (Arm) Unisoc Technologies Analog Devices
TDK (InvenSense) Bosch Qorvo TSMC
MEMS STMicroelectronics Infineon Goertek Sensata
NXP Semiconductors Analog Devices

Micron Western Digital Intel Huawei

Memory chips SK Hynix Yangtze Memory Kioxia Nanya Tech
Samsung Electronics

Source: GlobalData

Components
Much of the major action in AR components is around 3D sensors, cameras, audio, displays, and batteries. These
components come together for positional tracking, motion tracking, gesture recognition, and machine vision. To avoid
motion sickness when using AR smart glasses, many of these components are being re-invented with a focus on lowering
sensor latency. The aim is to reduce the lag between the user’s motion and the corresponding computer-generated
response from the device.

Motion tracking
Cameras, light sensors, depth sensors, accelerometers, and gyroscopes are essential components for motion tracking in
smartphones, AR smart glasses, and AR headsets. With the simultaneous use of these components, aided by computer
vision, AR devices can map the environment and track users’ movements in the real world. Sensor suppliers, mapping
and tracking companies, and computer vision benefit from the rising demand for motion tracking on AR devices.

Microsoft has the Azure Kinect DK – a standalone hardware kit for sophisticated computer vision and speech models –
that features AI sensors, depth sensors, and spatial microphone array. Google and Apple are working to improve the
motion tracking capabilities of their ARCore and ARKit tools. Magic Leap and Ultraleap both claim that their input-
controller devices offer exceptional motion and hand gesture tracking for AR headsets and smart glasses. Augment,
Wikitude, Visometry, Sixense, and ViewAR are also developing all-in-one tracking solutions, primarily targeted at
enterprise use cases. In April 2021, Visometry introduced Twyn, an AR-based automatic quality inspection system that
uses digital twin technology to register and track objects. Twyn runs on Visometry’s VisionLib AR tracking engine. Intel is
also a strong player, but its activities around AR motion tracking capabilities are focused on autonomous vehicles.

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Batteries
All-day batteries, coupled with small but powerful snap-on chargers, are a must if AR is to take off. Today’s commercially
available AR smart glasses offer eight hours of battery life on average. Still, prolonged use of services like navigation,
voice calling, and music streaming will drain batteries more quickly. Similarly, AR headsets also come with limited battery
life support. For example, HoloLens 2 and Magic Leap One headsets offer two to three hours of battery life during
continuous use. Smartphones offer better power support, but AR apps will quickly drain batteries.

Device makers continue to rely on lithium-ion batteries, but there is the potential for solid-state batteries to be used in
smartphones and wearable AR devices. Leading vendors like Panasonic, Samsung SDI, LG Chem, and BYD are improving
their battery capabilities. For example, Samsung SDI is reportedly working on a graphene-based smartphone battery,
scheduled for launch in 2021, which will support longer use and offer fast charging. CBAK Energy Technologies, TDK
(ATL), Grepow, and Dynapack are also pursuing growth in the AR market. For example, Microsoft’s HoloLens 2 headset
runs on Dynapack batteries, while Google Glass Enterprise Edition 2 and Vuzix Blade smart glasses use ATL and Grepow
batteries, respectively.

Displays
The prominence of optical see-through displays is set to benefit the leading display vendors like DigiLens, Himax, Lumus,
and Microvision. Lenovo’s ThinkReality A6 and Microsoft’s HoloLens 2 headsets feature display units from Lumus and
Microvision, respectively, while Google Glass Enterprise Edition 2 smart glasses use Himax microdisplays. Universal
Display has partnered with Shanghai-based Seeya Technology to develop lightweight, low-power organic LED (OLED)
microdisplays for future AR devices. Apple is reportedly collaborating with TSMC on micro-OLED displays for its upcoming
Apple AR devices.

While the big companies are mostly focused on AR smart glasses and headsets, in December 2020, start-up firm Mojo
Vision partnered with Menicon, Japan’s largest and oldest contact lens manufacturer, to test its prototype AR contact
lenses. Together, the companies will perform feasibility studies on production and manufacturing and explore the
commercialization of the technology. In 2019, Mojo Vision introduced a 14,000 pixels-per-inch display (the world’s
smallest and densest displays at the time of writing), promising to benefit AR hardware design and content resolution.

Investments in the development of holographic displays are also increasing. Microsoft and Magic Leap are engaged in
improving their holographic displays, while Samsung and Apple are rumored to be working on similar technologies. In
March 2021, DigiLens introduced developer prototypes of MR smart glasses built on Qualcomm’s XR2 platform with
DigiLens’s Crystal50 holographic waveguide display. Promising start-ups such as WayRay and VividQ are also developing
holographic AR displays for use in automobiles. VividQ claims that its HoloLCD technology can convert normal LCD
screens into holographic displays that can incorporate AR for use in future smart glasses.

Cameras and 3D lenses

Depth cameras, specifically the time of flight (ToF) variant, are set to become staple features in AR devices. The ability
to precisely measure the distance to, and volume of, an object makes ToF cameras ideal choices for AR device makers.
They also support object scanning, indoor navigation, obstacle avoidance, object tracking, and gesture recognition, all of
which are essential for effective AR content development. Apple, Samsung, Huawei, and Oppo have already introduced
ToF cameras on their smartphones, with Sony their key supplier. In June 2021, Qualcomm partnered with PhotonicSENS,
a provider of single-lens 3D depth-perception cameras, to improve the quality of images and enable AR on smartphones
using the Snapdragon 888 5G platform.

Beyond smartphones, Microsoft’s HoloLens features the Azure Kinect DK (which is also available as a standalone
product). Occipital (competent in active stereo cameras) and PMD Technologies (which produces ToF depth cameras)
are also notable players in this market, while 3D lens makers like Sony, Carl Zeiss, Leica, and Adlens should benefit from
the growing demand for ToF cameras. In partnership with PMD, Leica launched the industry’s smallest 3D ToF camera
reference kit, called Holkin, during Mobile World Congress 2019, targeting smartphone makers, while rumors suggest
that the upcoming Apple smart glasses will feature Carl Zeiss lenses. Smartphone camera and sensor makers such as LG
Innotek, Olympus, and OmniVision are also well-positioned in the market as mobile AR gains traction.

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Audio components
Audio is a critical element for an immersive AR experience. The audio capabilities of smart glasses like Bose Frames and
Magic Leap One, along with the integration of conversational platforms in AR devices (such as Microsoft’s Cortana in the
HoloLens 2 and Amazon Alexa on Focals by North smart glasses), demonstrate the importance of sound to AR.

Sennheiser, Panasonic, Goertek, and AAC Technologies are already in this space, while chipmakers such as AMD and
Qualcomm offer audio technologies integrated into their SoCs. In March 2021, Qualcomm launched the Snapdragon
Sound suite, which integrates audio technologies and features such as active noise cancellation (ANC) and voice
communication. The suite is integrated with the Snapdragon 888 SoC, and Qualcomm promises immersive audio on
Android devices and compatible headsets and earbuds. Improvements in AR content and the growing maturity of devices
should present audio companies with new growth opportunities. 3D Sound Labs, USound, and Kinicho are partnering
with AR developers to establish a foothold in the market before competition intensifies.

Machine vision
Machine vision systems drive immersive effects and real-time environmental adjustments based on user’s activities. The
development of machine vision applications, such as 3D mapping and image processing, is a must for AR to become a
viable computing platform in the coming years. Cognex and Sony are strong players in this field, while Seiko Epson,
Occipital, Mantis Vision, and Sighthound are some of their closest competitors.

AR value chain - Components

Market leaders and challengers

Components Leaders Challengers

Microsoft Sony Intel Augment

Motion tracking UltraLeap Apple Sixense Visometry
Alphabet (Google) Magic Leap ViewAR
Panasonic BYD TDK (ATL) Dynapack
Batteries Samsung SDI LG Chem CBAK Energy Technology

DigiLens Himax LG Display LetinAR

Displays Lumus Microvision Mojo Vision Dispelix
Microsoft Magic Leap Universal Display Avegant
Applied Materials WayRay
Samsung Electronics VividQ
PMD Sony Intel Olympus
Cameras & 3D lenses Microsoft Leica Adlens LG Innotek
Samsung Electronics Occipital Carl Zeiss OmniVision
Sennheiser Panasonic AMD Kinicho
Audio components Dolby Labs Goertek Qualcomm USound
AAC Technologies Mimi (3D Sound Labs)
Cognex Sony Occipital Seiko Epson
Machine vision Sighthound Mantis Vision

Source: GlobalData

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Devices
AR-enabling hardware comes in various forms, including smartphones, eyewear (AR smart glasses), and AR headsets.
For consumer AR applications, smartphones are the most commonly-used platform, while enterprises typically prefer
AR headsets and AR smart glasses, which offer a broader range of functions.

Smartphones
Smartphones are the primary consumer AR device. Apple and Google are the biggest beneficiaries of the growth of
mobile AR, given their strong smartphone ecosystems and well-established AR SDKs. In June 2021, at its Worldwide
Developers Conference (WWDC), Apple announced the addition of upgraded location anchors to the upcoming ARKit 5
platform. The location anchors can tag AR content to specific real-world landmarks for shared experiences. Apple will
use the location anchors to improve the AR capabilities of its Maps app on iPhones.

Also in June 2021, Google expanded the ARCore SDK to 30 smartphones, including the latest OnePlus 9 and several
devices from Samsung, Xiaomi, and Vivo. This will help developers to create and expand their AR apps among users of
Android-based smartphones. Although user awareness of the technology behind the digital overlays during online
shopping or commuting remains low, AR is rapidly becoming a standard feature in smartphones and apps.

AR smart glasses
This high-profile failure of Google Glass was a significant early setback for the nascent AR smart glasses industry. It has
only recently begun to recover with the launch of devices such as North’s Focals and Vuzix’s Blade. However, demand
remains limited, as there are currently only a few things that these devices can do that cannot be done just as well using
a smartphone. Much of the marketing around AR smart glasses focuses on design, but product awareness remains low,
and high price tags and privacy concerns have also put consumers off. At the time of writing, AR smart glasses are mostly
targeted at early adopters to build brand recognition and demonstrate the technology’s capabilities.

The enterprise market, on the other hand, offers growth potential for AR smart glasses manufacturers. We believe
enterprises will be the leading adopters of AR smart glasses over the next few years. Companies such as DHL and
Schlumberger use AR smart glasses to streamline workflow management and speed up operations. Several healthcare
providers, like the Noordwest Hospital Group in the Netherlands, use AR smart glasses in surgical procedures. Smart
glasses manufacturers like Google, Vuzix, Seiko Epson, Toshiba, ThirdEye, and Iristick are primarily focused on enterprise
customers.

AR headsets
The AR headset space is significantly less crowded than the smart glasses segment. Microsoft is the de facto leader in
the field, following the collapse of rivals Daqri and Meta and the failure of Magic Leap. Varjo’s XR-3, Lenovo’s ThinkReality
A6, and RealWear’s HMT-series devices are also focused on enterprise applications. Magic Leap is planning to launch its
second headset, Magic Leap Two, in 2021, for the healthcare, manufacturing, defense, and public sector markets.

Competition in the consumer AR headsets market is limited. No leading technology company is active in it at the time of
writing. However, Jarvish, Eyelights, and IC Helmet produce consumer AR helmets, mainly targeted at motorbike
enthusiasts. Aryzon, on the other hand, offers cardboard-made AR headsets as an affordable alternative to experience
AR and MR, mostly in indoor setups.

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AR value chain - Devices

Market leaders and challengers

AR devices Leaders Challengers

Apple Xiaomi Lenovo Sony

Smartphones BBK Electronics Huawei Alphabet (Google) Asus
Samsung Electronics
Alphabet (Google) Seiko Epson nReal Iristick
AR smart glasses Rokid ThirdEye Jorjin Toshiba
Vuzix Xloong Lenovo
Realmax LLVision
Everysight NuEyes
EssilorLuxottica (Oakley) MAD Gaze
Microsoft Varjo Aryzon
AR headsets Lenovo Jarvish
RealWear EyeLights
Magic Leap IC Helmets

Source: GlobalData

Platforms
Building an AR ecosystem – incorporating both hardware and software – is essential for the long-term success of any
company in this market. There are five prerequisites for a successful AR ecosystem.

▪ Application programming interfaces (APIs) and SDKs. Owning the software platform on which all the applications
and content run is critical. Developers can then create content and applications for the operating system, provided
good APIs and SDKs are available. This creates a virtuous network effect whereby platforms with popular APIs and
SDKs attract more developers, which leads to more content, which leads to more customers, and higher
remuneration for the developers, which attracts more developers. All the leading AR companies – Apple, Google,
Microsoft, and others – offer SDKs and APIs to developers. Component suppliers such as Nvidia and Qualcomm and
services companies like Amazon, Autodesk, and Unity have also introduced SDKs and APIs to spur AR growth.
The availability of such a wide array of choices puts developers at risk. Selecting one platform enables them to curb
the development cost but offers less visibility while, with multiple platforms, the situation is reversed. Cross-
platform SDKs are a way of addressing this issue. Several cross-platform SDKs are available in the AR market, with
prominent names including PTC (with Vuforia) and Wikitude, and emerging names such as Maxst, Augment, DeepAR,
Zapworks, and Visionstar (EasyAR), among others.
▪ AR engines – games. An AR gaming engine helps creators develop games without relying on software engineers to
write the code. Apple (with ARKit), Google (ARCore), Unity, Epic Games (Unreal Engine), Meta (Spark AR), and Snap
(Lens Studio) are leaders in this field, while INDE, [Link], PTC, 8th Wall, and PlayCanvas are prominent challengers.
▪ AR engines – enterprise. Enterprise engines provide software that helps corporations quickly and easily build apps
for AR systems. Autodesk, TeamViewer (with Upskill), PTC, Microsoft, and Dassault Systèmes are strong in this area.
Amazon, 3D Systems, Scope AR, Siemens, Cisco, ARreverie, and Bosch, among others, are also jockeying for market
share in this space.
▪ AI: AR ecosystems depend on real-time AI to interpret the vast amounts of sensor-based data generated by AR
applications. Much of that AI capacity sits in algorithms, with more and more of these machine learning algorithms
being processed in the cloud. We will look in detail at the AI technology stack later in this section.
▪ Application delivery networks (ADNs) and content delivery networks (CDNs). The distribution of apps and content
is an important aspect of any successful AR ecosystem. Apple and Google maintain a duopoly in this domain, as most
smartphones worldwide run on either iOS or Android, with the Microsoft Store a dominant force at the PC level.
Companies such as Vuzix and Seiko Epson maintain online stores for PC-based distribution but are largely dependent

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Augmented Reality in Packaging | April 6, 2022

on Apple’s App Store and the Google Play Store at the smartphone level. Third-party developers also market their
apps and content through these stores and split the content revenues with the store owners. In the Chinese market,
regulatory restrictions on the Play Store have forced developers to use mobile stores offered by Tencent, Huawei,
Xiaomi, Alibaba, and Oppo (owned by BBK Electronics).
Effective AR experiences also require powerful CDNs, which store cached meta content on edge servers and act as
gateways for bi-directional data transfer between the servers and users. Google (with Google Hosted Libraries),
Microsoft (with the Azure CDN), Amazon (with the AWS-integrated Amazon CloudFront), Akamai, Alibaba, and F5
Networks are strong players in this segment, while Cloudflare, Fastly, StackPath, Verizon, and jsDelivr are potential
long-term beneficiaries from the growth in AR.

AR value chain - Platforms

Market leaders and challengers

AR platforms Leaders Challengers

Microsoft Apple Xzimg Maxst

APIs & SDKs Qualcomm ARToolkit Amazon ViewAR
Alphabet (Google) Magic Leap DeepAR Augment
PTC Visionstar (EasyAR) Zapworks
AR engines - Unity Snap PTC Amazon
games Meta Apple INDE ARGear
Alphabet (Google) Epic Games [Link] 8th Wall
Chukong Technologies PlayCanvas

AR engines -
Autodesk PTC Siemens Cisco
enterprises
TeamViewer Microsoft Amazon Bosch
Dassault Systèmes ScopeAR ARreverie
3D Systems Visometry
AI See AI technology stack on the following page

Application delivery Apple Snap Fastly Xiaomi

networks Akamai Amazon jsDelivr Huawei
& Tencent Alibaba Verizon StackPath
content delivery Meta Microsoft BBK Electronics Cloudflare
networks Alphabet (Google) F5 Networks Samsung Electronics

Source: GlobalData

AI
The ultimate aim of integrating AI with AR is to establish a strong relationship between man and machine, where virtual
environments gain intelligence to become more interactive. Deep learning, a subset of ML built using artificial neural
networks that model the way neurons in the human brain talk to each other, is one of the most popular investment
themes in the AR market. For example, smart glasses makers are adopting eye tracking – a deep learning-powered
functionality – to enhance screen resolution and deliver realistic responses to users’ eye movements. The same
technology is used to map physical environments and provide sentiment analysis and skills development. In March 2021,
Meta (formerly Facebook) announced that it is building a wrist-based device that uses electromyography (EMG), a non-
invasive neural interface technique. EMG translates electrical motor nerve signals into digital commands. This means
that users could potentially operate smart glasses by thinking about an action or gesture (e.g., moving a hand or finger
to scroll down a webpage). The device will work in conjunction with the second version of Meta’s upcoming smart
glasses. That said, AI is still maturing, and its continued development should enable more realistic AR experiences in the
future.

There are two approaches to integrating AI into AR devices: build neural network models or create custom AI chips,
architectures, and software suites. Google and Meta are taking the first approach, while Qualcomm, Arm, and Microsoft

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Augmented Reality in Packaging | April 6, 2022

are opting for the other route. Google’s play in this space is mainly reliant on the Edge tensor processing unit (TPU), an
application-specific integrated circuit (ASIC) chip designed to run neural network processes at the edge of the network.
Microsoft’s HoloLens 2 headsets feature a custom AI chip, called the holographic processing unit, which uses deep neural
networks to analyze onboard sensor data directly on the device.

App developers are also integrating AI into AR apps to offer immersive experiences. Some common examples include:

▪ Object labeling. Volkswagen’s Mobile Augmented Reality Technical Assistance (MARTA) AR app uses an iPad’s
camera to view a car’s engine and other associated parts. It runs ML models to match the camera images with
Volkswagen’s pre-defined classification library and presents an AR label overlaid in the user’s FOV on the iPad
screen. It allows users with step-by-step AR guidance to fix and replace certain parts of the vehicle.
▪ Object detection and recognition. IKEA’s Place app on iOS uses ARKit’s CoreML, an ML framework that supports
computer vision, to scan a specific environment, measure vertical and horizontal planes, estimate depth, and
thereby suggests suitable products.
▪ Text recognition and translation. The Google Translate app offers instant camera translation. As the user points the
smartphone camera towards a text in a foreign language, the app runs neural network models to convert it into the
user’s preferred language along with an AR overlay on the smartphone screen.
Within AI, there are seven key technology categories: machine learning, data science, conversational platforms,
computer vision, AI chips, smart robots, and context-aware computing. The convergence of all seven categories with AR,
in some form, will drive the expansion of the AR ecosystem.

AR value chain – Platforms – The AI technology stack

Market leaders and challengers

AI tech stack Leaders Challengers

Microsoft IBM [Link] BigML

Machine learning Meta Baidu [Link] dotData
AR platforms Alphabet (Google) Amazon PerceptiLabs Algorithmia
SparkCognition CognitiveScale
IBM SAS Alteryx Oracle
APIs & SDKs Data science Amazon Baidu Wolfram KNIME
Alphabet (Google) Microsoft Data Robot Ayasadi
RapidMiner MathWorks
AR engines -
Amazon IBM iFlytek Kasisto
games Conversational
Microsoft Apple Mobvoi [Link]
platforms
Alphabet (Google) Baidu LivePerson Hugging Face
SoundHound
AR engines - Baidu IBM Megvii Neurala
enterprise Computer vision Amazon Apple Clarifai Catchoom
Alphabet (Google) Microsoft Affectiva Cloudwalk
SenseTime Facewatch
AI
Nvidia IBM Alibaba Groq
AI chips Qualcomm Intel Cambricon Syntiant
Application delivery Alphabet (Google) AMD Horizon Robotics KnuEdge
networks Wave Computing Graphcore
& iRobot ABB Neato Robotics ElliQ
content delivery Smart robots Amazon Festo Diligent Robotics Ecovacs
networks Teradyne Robotiq Boston Dynamics Neurala
Blue Frog Robotics Miso Robotics
Microsoft Sony Flybits Grokr
Context-aware
Alphabet (Google) Apple Semusi Autodesk
computing
Samsung Electronics Meta [Link] UltraLeap
Cobalt Robotics Magic Leap
Source: GlobalData

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Augmented Reality in Packaging | April 6, 2022

Apps and content

Content is a major area of concern for AR companies. The industry has failed to build on the success of Pokémon Go
(released in 2016), largely due to an inability to move beyond the formula it established and a tendency to over-hype
mediocre titles. Games like Jurassic World Alive, The Walking Dead: Our World, Ingress Prime, and Ghostbusters World
were all heralded as successors to Pokémon Go’s crown but struggled to live up to their billing. In 2019, Tencent’s Let's
Hunt Monsters and Square Enix’s Dragon Quest Walk gained popularity in China and Japan, respectively, but failed to
match up to Pokémon Go. However, game publishers are increasingly investing in AR games. In 2020, Niantic updated
Pokémon Go and Harry Potter: Wizards Unite to support at-home gaming in response to COVID-19 lockdowns. In March
2021, Square Enix announced it was developing an AR version of Space Invaders for mobile devices.

As well as gaming, AR is also reaching consumers via social media, ecommerce, and general apps like Google Maps. We
expect one of these application areas to become the killer use case for AR over the next few years. Snap, Meta, Tencent,
and ByteDance have merged AR and ecommerce into their social media platforms, offering users the ability to try on
products virtually. The ease of viewing products online, coupled with the ability to interact with those products, gives
users a novel and immersive shopping experience. Snap’s 2021 Future of Shopping report, which analyzed the US market,
predicts that 57% of Snapchat users will use AR before buying a product online by 2025.

Enterprises are an increasingly important area of focus for AR companies. Media houses and ecommerce companies
have been early adopters of AR, while the technology is also used by healthcare, engineering, and military organizations.
Microsoft, PTC, Deloitte, McKinsey, and Accenture are investing in AR development platforms to support firms through
the AR implementation process. Start-ups such as Re’Flekt, Scope AR, Atheer, and TeamViewer have also joined the race.

AR value chain – Apps and content

Market leaders and challengers

Apps & content Leaders Challengers

Alphabet (Google) Apple Tencent Gravity Jack

General apps Samsung Electronics Microsoft EON Reality Groove Jones
Visionstar (EasyAR) Adobe
Adobe PTC Augment AVEVA
Engineering apps Autodesk IBM JBKnowledge RE'FLEKT
Dassault Systèmes Oracle Visionstar (EasyAR) Intellectsoft
Atheer Vipaar Accuvein Kapanu
Healthcare apps Proximie SentiAR XRhealth Saagara
Augmedix Orca Health Touch Surgery RE'FLEKT
Amazon Ikea eBay Target
Ecommerce apps Alibaba Shopify [Link] L'Oréal
Sephora Walmart Converse De Beers
John Lewis Brain Power
The Home Depot Inditex (Zara)
Snap Zoom Pinterest Cisco
Social apps Meta Tencent ByteDance ARShow
TeamViewer Snaappy
Lockheed Martin Boeing BAE Systems Vuzix
Military apps Northrop Grumman Microsoft Elbit Systems ThirdEye

Niantic Tencent Bandai Namco Next Games

Video games NetEase Nexon Nintendo Jam City (Ludia)
Square Enix Resolution Games OliveX (Six to Start)
Walt Disney Netflix Sony Amazon (MGM)
Films Comcast ViacomCBS
AT&T (WarnerMedia)

Source: GlobalData

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Packaging Challenges
The table below highlights the key challenges facing the packaging sector.

Challenge What’s happening?

ESG ESG is an issue faced by businesses in all sectors. All stakeholders, including investors,
governments, employees, and customers, have the same goal: to become more
sustainable. Businesses that prioritize sustainability will enjoy financial rewards, including
higher share prices and improved customer and partner loyalty. Those that don't will be
swept away by the green transition. Packaging companies are under increasing pressure
to use sustainably sourced packaging materials, reduce plastic packaging, and tackle their
C0₂ emissions. Government legislation, such as the UK’s Circular Economic Package, sets
the sustainability agenda for packaging companies in favor of recycling and the circular
economy. However, sustainability is much broader than just environmental
considerations. Companies also have a moral duty to look after their customers and
employees and ensure adequate corporate governance structures.
COVID-19 COVID-19 imposed widespread restrictions on the public’s ability to work, coexist, and
purchase items. Packaging companies are rethinking their designs with hygiene and
sustainability in mind, following concerns surrounding consumer health and safety. The
pandemic increased the desire for single-use, hygienic packaging as COVID-19 particles
can survive on a package's surface for up to 72 hours. This poses the challenge of
maintaining sustainability while providing consumers with convenient single-use
packaging.
Digitalization Like all industries, the packaging industry is being disrupted by technology. There are
many technologies that businesses can integrate across the value chain to automate
processes and gain deeper insights into customer behavior. Navigating these technologies
and understanding how they can be of benefit is a significant challenge for players in the
packaging industry who feel the pressure to keep up with the pace of technology change.
Quality control The primary function of packaging is to protect products from damage and contamination.
Quality control is essential for packaging companies. Not only does faulty packaging cost
businesses both financially and reputationally, but considerable amounts of wasted
packaging materials have environmental consequences.
The rise of ecommerce COVID-19 has given ecommerce a significant boost. As global lockdowns and restrictions
continue, consumers are staying at home and ordering goods online. According to
GlobalData forecasts, the global ecommerce market grew from $399 billion in 2010 to
$2.2 trillion in 2020. Packaging companies need to keep pace with these changes to
service their customers effectively. As consumer spending shifts online, the brand
experience shifts from stores to websites and packaging.

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The Impact of Augmented Reality on Packaging

The matrix below details the areas in AR where packaging companies should be focusing their time and resources. We
suggest that packaging companies invest in technologies that are shaded in green, explore the prospect of investing in
technologies shaded in yellow, and ignore areas shaded in red.

Thematic impact assessment

Packaging companies should place emphasis on investing in AR platforms and apps & content

Raw materials

Packaging materials
production

Packaging converters

Filing & packaging

Wholesale, distribution, &

logistics

Retailers

Consumers

Invest Explore Ignore

Source: GlobalData

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Augmented Reality in Packaging | April 6, 2022

▪ Semiconductors and components: Packaging companies do not need to invest in semiconductors and components
as AR presents itself on packaging through printed web-based or app-based QR codes.
▪ Devices: With AR-enabled hardware, including smartphones, AR smart glasses, and AR headsets, becoming more
widely used, they permeate all levels of the packaging value chain. Packaging companies should use devices to aid
automation within factories and increase engagement among end-users.
▪ Platforms: Platforms are used to demonstrate the insights and interactive experiences AR has to offer. This is less
important in raw materials and packaging converters as AR is often used as a customer-facing tool to drive
engagement.
▪ Apps and content: This is where the benefit of AR is displayed through triggers and prompts that are often found
on packaging, encouraging users to interact.
Despite the benefits of AR, packaging companies still face barriers to implementing it. We are unlikely to see pervasive
AR without effective training on using AR devices. AR technology and content creation are also expensive, so smaller
businesses should think carefully before adopting them.

How AR helps resolve the challenge of ESG

Herbal Essences has integrated AR into its packaging to promote
environmental sustainability. The brand's aim was to raise
Herbal Essences’ AR-enabled packaging aims to
awareness and encourage customers to make eco-friendly
increase ESG awareness
choices. When customers hovered their smartphones over the The brand's interactive packaging showcases plastic waste
in the ocean.
bottle, a digital AR experience appeared via an invisible QR code
printed on the bottle. It included a short video clip explaining
the environmental crisis, followed by an interactive game that
required users to clean plastic waste from the ocean.

Unilever also launched AR-connected packaging to promote its

new environmentally friendly spray bottles. The bottle's
packaging featured a QR code, which told users how to reuse
their bottles with an eco-refill - a small bottle of concentrated
solution that users dilute in water. The unlocked content also
explained to users how to recycle its packaging.

According to a survey by packaging company UPM-Kymmene,

almost every third Finnish family recycled more following the
launch of its AR game for kids in February 2020. UPM and Arla
Finland designed the Kierratyskamut (Recycling Buddies) app to
encourage recycling efforts. The game encouraged completing
daily recycling tasks or environmentally friendly habits (e.g.,
"turn off unnecessary lights in the house") and then returning to
the app to collect rewards, which unlocked treasures within the
game.
Source: AppAdvice
In February 2018, packaging specialist Stora Enso developed an
AR mobile app to launch its carbon-neutral office paper, Multicopy Zero. Multicopy Zero paper is made from renewable
raw materials and is 100% recyclable. The Multicopy Zero app lets users learn more about the product and its origins by
taking them on a journey through a forest. The user walks through the forest as an elk and receives information about
Multicopy Zero's environmental credentials. For each unique user that scanned the QR trigger within the first month of
the app's launch, Stora Enso donated to offset the volume of carbon dioxide.

Sustainability is at the center of Stora Enso’s corporate strategy, and the company is using AR to help achieve this. Stora
Enso has long been collecting data from production lines to streamline operations. However, 5G and AR have allowed
Stora Enso to collate and share logistics and manufacturing processes that would not typically be possible due to
geographical distance. In September 2018, Stora Enso began a project to install models of machines to provide real-time
data regarding information points where the operational reliability of the mills can be increased. For example, the data

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Augmented Reality in Packaging | April 6, 2022

gives production personnel a complete overview of valves' open vs. closed status and their location in the mill’s piping
system. In the future, Stora Enso plans to scale the solution to other company mills and is working on other 5G and AR
applications to track the location and condition of equipment within its mills.

AR in packaging can promote ESG by raising awareness through customer engagement. Packaging with QR codes that
connect customers to digital experiences and information is beneficial for both end-users and the brand. Updating
information systems in real-time is easier than updating overall packaging with its information. The integration of
technology is also more likely to draw users in and raise awareness of the global ESG crisis, as opposed to traditional
labels that are less engaging.

How AR helps resolve the challenge of digitalization

DS Smith is ahead of the curve in using AR to aid digitalization.
Amcor uses AR for remote support
The company launched an AR app in November 2017 to
Engineers use AR to overlay their hands onto the
communicate information to its global suppliers. In 2021,
customer's screen when providing remote assistance.
following the launch of new AR technology, DS Smith displayed
animations showing how to assemble personalized packaging.
Customers can access such AR features by downloading the DS
Smith app and pointing their smartphone device at the
packaging. They can access animated instructions on
assembling packaging and safely loading and securing the
contents.

Amcor launched the original pilot for Amcor Eyes in early 2019.
Amcor Eyes is an app that allows engineers and customers to
communicate via video. The engineer can see what the
customer sees to help them set up machines, troubleshoot, or
discuss material trials. When a customer points their device's
Source: Amcor
camera at machinery or materials, engineers use AR to show
customers a resolution. The engineers’ hands will appear on the customer's screen to guide them on what to do by
pointing, drawing on the screen, and adopting virtual tools (e.g., a virtual screwdriver). Despite global travel restrictions,
Amcor Eyes has enabled ease of communication following the COVID-19 outbreak. The company was able to stay ahead
of its competitors by providing consistent customer support.

In June 2021, Avery Dennison adopted AR strategies to aid remote assistance from its experts because of the pandemic.
The company's digital innovation center of excellence (DICE) team tested this concept before implementation. One of
its factories used wearable tech and AR so that workers could see instructions, take and upload images to the company's
enterprise resource planning (ERP) system, and get help from remote experts. Avery Dennison has since rolled out this
tech across the company.

Several retailers have adopted AR in packaging as digitalization of packaging labels for consumer goods aids customer
retention and loyalty. Where consumer-facing packaging is concerned, marker-less AR is usually adopted rather than a
QR code so products can maintain their aesthetic appeal. Retailers that have adopted AR in their packaging include:

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Augmented Reality in Packaging | April 6, 2022

• 19 Crimes Wine: Use AR to tell consumers the brand’s Bombay Sapphire has adopted AR packaging
story.
Consumers can access recipes for cocktail mixes.
• Bombay Sapphire: Consumers can access exclusive
cocktail recipes upon scanning the bottle.
• Fanta: Using a marker-based QR code, customers
could go on a quest as a detective and find out what
their mystery flavor was.
• Francesco Rinaldi: Uses AR to provide more
information about the pasta sauce line.
• Fruit Bliss: Provides news, information, newsletter
invites, and social media links upon scanning its
products.
• Jack Daniels: Consumers can go through a virtual
experience of the JD distillery with access to stories
and its products.
• Ribena: The “Doodle your world” app allows
consumers to scan their limited-edition bottles, create Source: The Dots
doodles, then share their creations.

How AR helps resolve the challenge of the rise of ecommerce

AR has proven to be helpful with the rise of ecommerce. eBay introduced an AR solution that enables sellers to select
the correct sized packaging box for shipments. The AR technology also provides real-time shipping costs for the
customized packaging boxes. The AR solution is built on Google's ARCore platform. Sellers can virtually check if the
products being shipped accurately fit inside the USPS - Flat Rate boxes before dispatching them. This helps sellers save
time, eliminating the need to measure and find accurate box sizes. The solution uses motion-tracking technology and
the surrounding environment to calculate the right fit.

How AR helps resolve the challenge of COVID-19

In response to the COVID-19 pandemic, Nestle adopted AR to help support its factory staff. Nestle used AR to provide
remote support across R&D, production, and suppliers. Nestle integrated AR by using 360 degrees cameras, 3D
software, remote desktop, and smart glasses so specialists could provide support remotely. The company said the
remote transition helped them tackle working during the pandemic and helped reduce CO2 emissions.

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Case Studies
In the following section, we present selected case studies highlighting the use of AR within packaging.

Blippar with Kellogg’s and 14 Hands

Blippar has implemented AR across a host of packaged goods for clients such as Kellogg’s and 14 Hands Winery.

Kellogg’s Coco Pops

Blippar integrated AR into Coco Pops' outer packaging and provided an educational experience on ESG. On scanning the
QR code, consumers entered a tropical island with access to different worlds, games, and characters and the potential
to unlock more content. Blippar adopted web-based AR instead of app-based AR by using a hidden QR code on the
packaging. One of the challenges the company anticipated was ensuring that its consumers understood the packaging.
However, they found almost every box purchased was activated over a month, and the average time users spent
exploring the experience was approximately seven minutes. The cereal box acts as a gateway to the content, and once
opened, the experience moves with the user if they keep the tab open on their browser. Blippar found this feature
worked particularly well amongst its target audience, Generation Z children, where a controlled web browser was used
to ensure online safety.

14 Hands Winery
Blippar's AR campaign for 14 Hands' Unicorn Rose transported users to a holiday pool party and allowed friends and
family from all over the globe to join.

The pool party can be brought to life in two ways; users can scan a physical Unicorn Rose can or bottle or share a link
directly and across social media. AR experiences typically allow only one user to interact with scenarios at a time, but
now, in an AR first for Blippar, the 14 Hands’ Unicorn Rose campaign supports multi-player games.

14 Hands' partnership with the Seattle Kraken ice hockey team was celebrated with an AR-enabled campaign. Special
edition Kraken 14 Hands' wine cans were brought to life through image recognition of the labels themselves. This gave
consumers access to AR co-branded filters, discount vouchers, information on the brand's other products, and where to
buy.

Living Wine Labels and 19 Crimes

19 Crimes Wine is a brand of Treasury Wine Estates, an Australian winemaker and
19 Crimes
distributor (formerly the wine division of international brewers Foster’s Group). The
Use AR to depict real offenses that
brand was developed to stand out because of its unorthodox name, labeling, and
have taken place
associated narrative. The name 19 Crimes refers to offenses from the late-18th
century onwards that were punishable in England by transportation to the growing
colony of Australia. These eclectic crimes included stealing letters, bigamy,
clandestine marriage, and even impersonating an Egyptian. The convicts were able to
begin new lives in Australia should they survive the journey. Each of the 19 crimes is
represented in the range by a wine variety, and each label pictures an actual individual
convicted of said offense.

Consumers can access this information by downloading the free Living Wine Labels
iOS and Android app, created by AR vendor, Tactic. By holding a smartphone device
up to the label, the image animates, and the pictured convict gets to tell their
individual story (from John O’Reilly on the Red Blend bottle, who found love in
Australia, to thief Jane Castings on the white variety). 19 Crimes became one of Source: Living Wine Labels
Treasury Wine Estates’ fastest-growing products, with volume sales growing at a year-
on-year rate of 60%. The Living Wine Labels app also created a significant buzz. The app has since been extended across

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Augmented Reality in Packaging | April 6, 2022

five wine ranges owned by Treasury Wine Estates to enhance the brand experience on established ranges, including
Beringer Brothers, The Walking Dead, Chateau St Jean, and Gentleman’s Collection.

Zappar’s Fanta Takeover and the Fanta mystery

Fanta has used AR in its product packaging several times. The case study below What the Fanta
specifically refers to Fanta’s Takeover and What the Fanta mystery. Mysterious new flavors use AR to solve
them
Fanta Takeover
AR vendor Zappar implemented the Fanta Takeover. The campaign was delivered
via the Shazam app, where consumers could scan the AR codes on Fanta bottles.
When the QR code was scanned, it launched AR filters and prize draws. According
to Zappar, the code was scanned over 93,000 times in 2019, and users engaged
with it for approximately a minute.

What the Fanta

After a pilot campaign saw a five-fold increase in sales, Fanta launched the What
the Fanta campaign. The blue-colored Fanta flavor was packaged in a bottle with
no description of the flavor. Instead, consumers had to scan the QR code on the
product's label to unlock the flavor mystery. Upon scanning the QR code, users
were given a series of mini clips to watch that would help them solve the mystery
of the ambiguous new flavor. Following its success, Fanta has launched another
Source: Talking Retail
What the Fanta campaign, but this time with a pink-colored liquid.

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Augmented Reality in Packaging | April 6, 2022

Data Analysis
AR is now a serious investment theme for tech companies. The number of emerging use cases reflects AR’s growing
maturity and, as such, AR smart glasses could potentially replace smartphones in the long run. AR will also play an
essential role in the metaverse.

Market size and growth forecasts

Worth nearly $7 billion in 2020, the global AR market will reach $152 billion by 2030, growing at a CAGR of 36% over the
10-year period, according to GlobalData forecasts.

AR will generate $152 billion in revenue by 2030

It was worth $7 billion in 2020

Global AR revenue by end user, 2020 to 2030

160
140
120
Revenue ($B)

100
80
Enterprise AR
60
Consumer AR
40
20
0
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Source: GlobalData

In terms of end-users, the consumer AR segment accounted for 88% of total AR revenue in 2020. However, by 2030 the
enterprise segment will be dominant, accounting for nearly two-thirds of total revenue.

Enterprise AR will be more lucrative than the consumer market over the next decade
Consumer AR accounted for 88% of AR revenue in 2020 Enterprise AR will contribute 65% of revenue in 2030

Global AR revenue share in 2020, by Global AR revenue share in 2030, by

end user end user
Enterprise,
12%
Consumer,
35%

Enterprise,
Consumer, 65%
88%

Source: GlobalData

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Augmented Reality in Packaging | April 6, 2022

AR software accounted for more than 90% of the total global AR market in 2020, with the remainder coming from the
sale of hardware such as smart glasses and headsets. AR software will continue to dominate the market as novel,
immersive content and use cases are developed for smartphones, AR smart glasses, and AR headsets. However, the
launch of new AR smart glasses and headsets during the forecast period will increase AR hardware’s revenue share to
34% by 2030, up from 7% in 2020.

AR software will dominate the market over the forecast period

AR software made up 93% of the market in 2020 It will account for 66% of the market by 2030

Global AR revenue share in 2020, by Global AR revenue share in 2030, by

platform platform
AR hardware,
7% AR hardware,
34%

AR software,
AR software,
93%
66%

Source: GlobalData

AR software
The AR software market was worth $6 billion in 2020 and will surpass $100 billion by 2030, growing at a CAGR of 32%
over the 10-year period. Most of the software revenue in 2020 was derived from smartphone-based AR games. However,
the increasing adoption of other consumer AR apps for activities such as fitness, navigation, and education will see this
segment overhaul AR games in the long run. While we expect most consumer apps to be free to use, paid access to
premium features and in-app advertisements will be key monetization strategies in this segment.

Steady investments by enterprises into task-specific solutions (e.g., remote collaboration, training, maintenance, and
consumer support) will drive the growth of the enterprise AR software market. The benefits, including increased
employee productivity and reduction in service resolution time, will boost the adoption of AR software. GlobalData
forecasts that enterprise AR software revenue will overtake the consumer AR software segments by 2028 and that it will
generate revenues of $61 billion in 2030, up from $340 million in 2020.

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Augmented Reality in Packaging | April 6, 2022

The AR software market will generate over $100 billion by 2030

It was worth $6 billion in 2020

Global AR software revenue by type, 2020 - 2030

120

100
Revenue ($B)

80

60
Enterprise AR software
40
Other consumer AR apps
20
AR games
0
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Source: GlobalData

AR hardware
The AR hardware segment generated revenue of $498 million in 2020 and will be worth $52 billion by 2030. There was
little to choose between AR smart glasses and AR headsets when it came to revenues in 2020, but AR headsets will
generate far greater revenue, equivalent to 60% of the AR hardware market, by 2030. This is attributable to the high
price of AR headsets, especially those targeted at enterprises, compared to AR smart glasses. The AR headsets segment
will be worth $31 billion by 2030, up from $251 million in 2020, while AR smart glasses will grow to $21 billion in 2030
from $246 million in 2020.

The AR hardware market will be worth $52 billion by 2030

It was worth $498 million in 2020

Global AR hardware revenue by type, 2020 - 2030

60

50
Revenue ($B)

40

30
AR headsets
20
AR smart glasses

10

0
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Source: GlobalData

AR is a key technology in the future of work and, as such, will be a focus area for enterprises in the coming years. which
will drive demand for AR hardware. The enterprise AR smart glasses market is estimated to generate revenue of $12

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Augmented Reality in Packaging | April 6, 2022

billion by 2030, up from $228 million in 2020. Revenue from enterprise AR headsets will grow from $238 million in 2020
to $27 billion by 2030.

The consumer AR hardware market is likely to gain pace following the expected launch of Apple and Facebook’s AR smart
glasses in either 2022 or 2023. Consumer AR smart glasses sales will grow from $18 million in 2020 to $9 billion in 2030.
Consumer AR headsets are the smallest segment in the AR hardware category, expanding from $13 million in 2020 to $4
billion by 2030. Apple’s AR headsets, expected to launch in 2022, could appeal to consumers interested in indoor AR
experiences.

Enterprises will drive the AR hardware market

Enterprise AR headsets will be the largest AR hardware segment by 2030

Global AR hardware revenue by end user, 2020 to 2030

30

20
Revenue ($B)

10

0
Consumer AR smart glasses Consumer AR headsets Enterprise AR smart glasses Enterprise AR headsets

2020 2021 2024 2027 2030

Source: GlobalData

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Mergers and acquisitions

M&A activity in the AR market is intensifying, with access to technology being the principal rationale for most deals.
Providers of 3D visualization, collaboration solutions, and hardware makers are prime acquisition targets as the industry
pursues more engaging and immersive experiences. While most acquirers targeted AR software providers over the past
two years, big players like Snap, Google, Meta, and Apple have also bought hardware vendors to develop new devices.

The key M&A deals associated with the AR theme since March 2020 are listed in the table below.

Date Acquirer Target Value ($M) Target company description

announced
Mar 2022 Niantic 8th Wall Not disclosed WebAR services provider

Feb 2022 PTC RE’FLEKT Not disclosed Enterprise AR software provider

Dec 2021 Meta ImagineOptix Not disclosed AR optics technology provider

Sep 2021 Qualcomm Wikitude Not disclosed AR software provider, expert in SLAM

Aug 2021 Byju’s Whodat Not disclosed Consumer AR software provider

Jul 2021 Snap Vertebrae Not disclosed AR shopping software provider

Jun 2021 Discord Ubiquity6 Not disclosed Consumer AR software provider

May 2021 Snap WaveOptics 500 AR smart glasses display maker

May 2021 NexTech AR [Link] 10 AI 3D modeling solutions provider

May 2021 TeamViewer Viscopic Not disclosed AR and 3D visualization provider

Apr 2021 Dev Clever Holdings Veative Labs 75 AR and VR learning solutions provider

Mar 2021 Snap Fit Analytics 124 AR garment sizing solution provider

Mar 2021 TeamViewer Upskill Not disclosed Enterprise AR software provider

Mar 2021 Unity Technologies Visual Live 3D Not disclosed Enterprise AR software provider

Feb 2021 Match Group Hyperconnect 1,730 AR solutions provider for social media

Feb 2021 The Gores Group* Matterport 640 AR and digital twins solution provider

Jan 2021 Snap Aeriel AI Not disclosed AI 3D modeling solutions provider

Jan 2021 Xerox CareAR Not disclosed Enterprise AR software provider

Sep 2020 Meta Lemnis Not disclosed MR software and hardware provider

Sep 2020 Surgalign Holdings Holo Surgical 125 AR-based spine surgery tool provider

Aug 2020 Apple Camerai Not disclosed AI and AR software provider

Aug 2020 Apple Spaces Not disclosed AR expert for location-based experience

Jul 2020 TeamViewer Ubimax Not disclosed Wearables and AR solutions provider

Jun 2020 Google North 180 Consumer AR smart glasses maker

Mar 2020 Niantic [Link] Not disclosed Consumer AR software provider

Source: GlobalData
*Part of a special purpose acquisition (SPAC) deal that led Matterport to merge with Gores Holdings VI, an affiliate of The Gores
Group, and go public on Nasdaq.

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Partnerships in packaging
The partnerships related to AR in the packaging industry focus on gauging user interest by enhancing user experience.
Packaging companies are more likely to partner with AR vendors than to acquire them. The key partnerships associated
with the AR theme in the packaging sector dating back to 2011 are listed in the table below.

Date Packaging AR vendor Description

company
Dec 2021 Tetra Pak Vinasoy Launched AR in soymilk cartons to enhance user
experience.
Oct 2021 Tetra Pak Emmi Launched smart packaging to encourage healthy living.

Jun 2021 PullPac AR Packaging The partnership aimed to increase the commercialization
of sustainable fiber products.
Dec 2019 Elopak Molokija Molokija’s ‘Goodnight Milk’ for children has integrated AR
into its packaging to create an interactive feature that
reads a nighttime story and lullaby.
Feb 2019 Fanta Zappar Integrated Shazam codes into product labels to access
prize draws and AR filters.
Feb 2018 Bombay Sapphire Zappar AR in the product’s label provides consumers with cocktail
recipes.
Jan 2018 Treasury Wine Living Wine The label provides a story of the product's history by
Estates Labe presenting the consumer with a hologram of an animated
character.
Dec 2011 Starbucks Blast Radius Starbucks launched the Cup Magic app to improve
customer experience.
Nov 2011 Nivea Blast Radius Nivea integrated AR into its packaging to present
consumers with the celebrity Rihanna popping out of the
tub and singing a song.
Source: GlobalData

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Augmented reality timeline

The first head-mounted display (HMD) system, The Sword of Damocles, was invented in 1968 by computer scientist Ivan
Sutherland and his student Bob Sproull. The term “augmented reality” was initially coined by Thomas P. Caudell in the
1990s. By the end of that decade, the National Aeronautics and Space Administration (NASA) was using AR for field
navigation.

The development of contemporary AR was boosted by the arrival of Microsoft Kinect (in 2010) and Google Glass (2013),
but Pokémon Go (2016) brought AR to the attention of the general public. Apple’s introduction of the ARKit SDK, followed
by Facebook’s release of the Camera Effects (now Spark AR) platform in 2017, marked the emergence of mobile AR.
Google’s ARCore (a competitor to ARKit) arrived in 2018. The Magic Leap One headset went on sale in the same year,
with Microsoft launching its HoloLens 2 headsets in 2019. Adoption of AR increased in 2020 as virtual try-on solutions in
online shopping became popular with consumers and enterprises shifted to remote collaborations amid the pandemic.

The use of AR will increase in the coming years, fueled by the emergence of new use cases, greater availability of 5G
networks, and new hardware.

The major milestones in the journey of the AR theme are set out in the timeline below.

The AR story
How did this theme get here, and where is it going?

1968 The first HMD, The Sword of Damocles, was created.

1975 Myron Krueger established an artificial reality lab called the Videoplace.
1990 Former Boeing researcher Thomas P. Caudell coined the term "augmented reality".
1992 The US Air Force's Research Lab developed a fully immersive AR system.
1994 Julie Martin presents the first AR theater production, Dancing in Cyberspace.
1998 NASA's X-38 spacecraft used AR in practical field navigation.
2000 Outdoor mobile AR game ARQuake was created.
2005 Nokia introduced the AR-based two-player game AR Tennis.
2008 BMW ran AR-based print advertisements.
2009 ARToolkit (a web-based design tool) was made available in Adobe Flash.
2010 Microsoft introduced the Kinect motion-sensing input devices.
2013 Automotive company VW launched MARTA, an AR service support system.
2013 Google started selling a prototype of Google Glass.
2014 Google launched Tango, an AR computing platform.
2015 Microsoft announced its HoloLens headset, which went on sale the following year.
2016 Niantic and Nintendo launched Pokémon Go.
2017 Apple introduced the ARKit SDK for iOS devices.
2017 Facebook launched the Camera Effects platform, later renamed Spark AR.
2018 Google introduced the ARCore SDK for Android devices.
2018 Magic Leap's Magic Leap One became available to buy.
2019 Microsoft introduced the HoloLens 2 headset.
2022 Apple will launch its own AR headsets, followed by AR smart glasses.
2025 The use of AR applications in enterprises will increase, supported by 5G networks.
2030 AR will be a $152 billion market, according to GlobalData forecasts.
Source: GlobalData

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Companies
In this section, GlobalData highlights companies making their mark within the AR theme.

Leading augmented reality adopters in packaging

The table below lists some packaging companies currently deploying augmented reality and summarizes their
competitive position.

Company Country Competitive position in the augmented reality theme

Amcor Switzerland Amcor launched its Amor Eyes application in 2019 as a pilot application. The app allows
remote engineers to interact with its clients via video chat. During calls using Amcor
Eyes, the engineer can see what the customer sees and help them set up machines,
troubleshoot, or discuss material trials. The engineers’ hands will appear on the
customer's screen to guide them on what to do by pointing, drawing on the screen, and
adopting virtual tools (e.g., a virtual screwdriver).
Avery US Avery Dennison has used AR to support remote assistance from its customer service
Dennison team. The company tested out this concept before implementation by having one of its
factories use wearable tech and AR so that workers could see instructions, take and
upload images to the company's ERP system, and get help from remote experts. Avery
Dennison has since rolled out this tech across the company.
However, this was not Avery Dennison’s first attempt at integrating AR. In September
2019, the company used AR in its Store of the Future stall at Labelexpo Europe to
showcase radio frequency identification (RFID) and near-field communication (NFC)
intelligent labels. The main aim of this was to show Labelexpo visitors how efficient and
accurate RFID labels are, where they were able to see the ease of autonomous
checkouts.
DS Smith UK DS Smith developed an AR application in 2017 for automotive companies to provide
support with assembling bespoke packaging. The app requires users to point their
device at the marker-less packaging via the app, which then displays animations and
instructions on how to assemble and pack the goods.
Elopak Norway Elopak integrated AR into Molokija’s ‘Goodnight Milk’ carton packaging. The AR-
enabled packaging aims to communicate the "magic of drinking milk before sleep, for
growing kids" via AR, launching lullabies and bedtime stories. Goodnight Milk was
Ukraine’s first AR campaign on milk cartons. Elopak’s partnership with Molokija is the
only notable use of AR to date.
Encirc UK In 2017, glass containers manufacturer Encirc developed a service that allowed
customers to bring glass packaging to life using AR technology. The AR service helped
clients interact with the glass packaging designs in the real world and modify them. A
computer-generated design for glass bottles was created and then superimposed onto
the user’s point of view through an app on a smartphone
Mondi UK Mondi adopted AR during its stall at the Packaging Innovations in Amsterdam in 2016.
Mondi used AR to create a fun and interactive experience for visitors while providing
an educational experience about packaging formats and their application as well as
benefits.

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Augmented Reality in Packaging | April 6, 2022

Company Country Competitive position in the augmented reality theme

Stora Enso Finland Stora Enso launched an AR app following the launch of its carbon-neutral office paper,
Multicopy Zero. The Multicopy Zero app enables the user to learn more about the
product, where it comes from, and its environmental credentials by taking them on a
journey through the forest. For each unique user that scanned the QR trigger within the
first month of the app's launch, Stora Enso donated to offset the volume of carbon
dioxide.
In September 2018, Stora Enso began a project to install models of machines to provide
real-time data regarding information points where the operational reliability of the
mills can be increased. The data gives production personnel a complete overview of the
open vs. closed status of the valves and their location in the mill’s piping system. Stora
Enso plans to scale the solution to other company mills and is working on further 5G
and AR applications to track the location and condition of equipment within its mills.
Tetra Pak Switzerland Tetra Pak partnered with Vietnamese brand Vinasoy to create an AR-integrated soya
milk carton. To access the AR features, customers downloaded the PackStory app on
their devices and scanned a QR code on the carton. This then launched an AR world
that provided information about soybeans and instructions on storing and recycling the
carton. Tetra Pak has also adopted Microsoft's HoloLens headsets for its engineers
working remotely. Engineers can guide on-site workers by using mixed reality. The
company also partnered with ROAR Augmented Reality in January 2020 to create in-
store AR experiences by scanning product packaging. This brought store shelves to life,
bolstering the appeal of both products and the in-store experience.
Verallia France Verallia collaborated with a Spanish technology company to develop its Virtual Glass
app. The Virtual Glass app uses AR to design and create a virtual prototype graphic
image of glass-based packaging (e.g., bottles and jars). The app generates an accurate
to-scale 3D model that can be examined and rotated and allows users to compare
different models.
Source: GlobalData

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Augmented Reality in Packaging | April 6, 2022

Leading augmented reality vendors

The table below lists some of the leading players within the augmented reality theme and summarizes their competitive
position.

Company Country Competitive position in the augmented reality theme

Alibaba China In 2018, Alibaba, the Chinese ecommerce giant, launched Taobao Buy, an app that
makes online shopping interactive. The app, accessible via Microsoft’s HoloLens
headsets, allows users to browse and interact, using hand gestures, with 3D
holograms of a select range of products from Alibaba’s online store. In 2019, Alibaba
partnered with Perfect Corp to bring AR beauty solutions to its shopping apps, Tmall
and Taobao.
To enhance its AR capabilities, Alibaba acquired Infinity AR, an Israel-based AR and
computer vision start-up, in 2019. It has also invested in AR companies like WayRay
(developer of AR-enabled in-car navigation systems) and Magic Leap. In August
2020, Alibaba’s AutoNavi, a Chinese web mapping, navigation, and location-based
services provider, integrated AR into its Gaode Map app for vehicle distance
monitoring and precision navigation. The feature also alerts drivers of potential
collisions, traffic lights, and pedestrians. With this, Alibaba outdid Google and Apple,
which, at the time, only offered AR features for pedestrians in their maps.
Alphabet US Google is well-positioned to benefit from AR in the long run, thanks largely to its
(parent ARCore (also called Google Play Services for AR), which had an installed base of 633
company of million devices in 2020, up from 250 million in 2018 (according to ARtillery
Google) Intelligence). Its other AR services include Chrome AR (its WebAR platform), Cloud
Anchors (its AR cloud platform), and Scene Viewer (a tool that allows users to view
3D models of products on websites). Its AR navigation feature for Google Maps, Live
View, became available on Pixel phones in May 2019 before being rolled out to all
smartphones supporting AR. In July 2021, the company announced the addition of
AR masks and filters to its Meet video calling service. It offers the Google Cloud
platform to AR developers for storing and streaming AR content on demand.
Google is strong in the AR smart glasses market, thanks to Android, which offers
many in-built AI and AR tools to develop apps and features. Google Glass Enterprise
Edition 2, launched in 2019, supports enterprises with computer vision,
conversational platforms, and machine learning applications. Google acquired
North (maker of Focals smart glasses) in 2020, suggesting that it will once again
target the consumer smart glasses market following the failure of the original
Google Glass in 2015.
Amazon US Amazon positions itself in the AR market as a service provider rather than a device
maker. In 2017, Amazon Web Services (AWS) launched Sumerian, a managed service
that aims to help developers create AR, VR, and 3D apps and games. The service is
integrated with other AWS services, including Lex (the technology behind the Alexa
virtual assistant), Polly (which turns text into speech), and serverless computing
platform Lambda. Alexa is also available on smart glasses like the Vuzix Blade.
On the retail side, the AR View feature on Amazon’s mobile app allows users to
visualize how products such as chairs, tables, and sofas would look in their homes.
In 2018, Amazon patented an AR mirror that dresses users in virtual clothing. In
2020, it launched the Amazon Augmented Reality app, which allows users to scan
QR codes on Amazon packaging and view fun AR images. Amazon is reportedly
working on AR cloud development to compete against Microsoft, Google, Apple,
and Meta.

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Augmented Reality in Packaging | April 6, 2022

Company Country Competitive position in the augmented reality theme

Apple US Apple is a strong endorser of AR. Its AR game plan is heavily dependent on its AR
SDKs, such as the ARKit (launched in 2017), which operates on all iOS devices, and
the RealityKit (accessible on iOS and Mac devices). The company also offers AR
creation tools such as Reality Composer (a library of AR content for developers) and
AR Quick Look (that positions 3D objects in the real world). The RealityKit and AR
creation tools work in conjunction with the ARKit. Apple has added LiDAR sensors
to its flagship iPhones and iPads for precise 3D mapping, boosting the SLAM
capabilities of ARKit and enabling developers to create realistic AR content. ARKit is
also integrated with the Safari browser for WebAR experiences.
Apple’s long-awaited AR headset and smart glasses are in development and will
reportedly debut in 2022 at the latest. Apple is expected to lead the charge in
consumer AR smart glasses, thanks to its experience in designing compelling
wearables and ability to build ecosystems around those devices. It will also benefit
from its massive dedicated user base and consumer perception of it as more privacy-
friendly than many of its peers.
ByteDance China ByteDance, the developer of TikTok, is expanding its foothold in the AR market with
its AR Effects platform. This is integrated into TikTok, allowing users to add AR filters
to their videos. In May 2020, ByteDance launched AR Brand Effect as a service,
allowing brands to build interactive ads in TikTok. Subsequently, in June 2020, it
launched TikTok for Business to help marketers make AR ads that mirror user
content. Using the Branded Scan option in the new platform, brands can develop
AR versions of their products, which TikTok users can then place in their videos for
wider promotion. Big brands like Spotify and Estée Lauder-owned MAC have
launched AR-based ad campaigns on ByteDance’s social media platform. ByteDance
is competing with the likes of Snap and Meta for a share of the social media-based
AR entertainment and ads markets.
Magic Leap US Magic Leap is one of the best-known AR start-ups, having raised about $3bn in
funding between 2014 and 2020, backed by the likes of Google, Qualcomm, and
Alibaba. However, its first MR headset, Magic Leap One (launched in August 2018),
received mixed reviews and disappointing sales. Reports suggested that 2,000 units
were sold in the first week of release, but demand declined sharply after that, with
many consumers put off by the high price (the cheapest version was priced at $2,295
in 2018). The company faced existential challenges amid the pandemic in 2020,
which lead it to reduce its workforce by 50% and shutter its consumer business.
Consequently, the company’s valuation fell from $6.4bn in December 2019 to
$450m in June 2020. At the time of writing, the company is working on its second
headset, Magic Leap Two, targeted at enterprises in the healthcare, manufacturing,
defense, and public sector markets. It is slated for launch in late 2021.
Meta US Meta’s AR drive has been spearheaded by the Spark AR Studio (launched as the
(formerly Camera Effects Platform in 2017). The platform was compatible with 1.6 billion
Facebook) devices in 2020, the highest amongst all mobile AR platforms, according to ARtillery
Intelligence. Meta has nearly 10,000 employees working on AR and VR devices,
according to a March 2021 report published by The Information. It offers AR filters
to users of its Messenger and Instagram platforms and helps companies incorporate
AR-based ads and virtual try-on solutions for consumer products. The company has
partnered with Luxottica to develop AR smart glasses, which are expected to launch
by 2023 at the latest. In 2019, Meta acquired CTRL-Labs for its electromyography
(EMG) technology that could enable impulse-based control of AR smart glasses.
Meta wants to use this technology to change the way people communicate with
smart devices

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Augmented Reality in Packaging | April 6, 2022

Company Country Competitive position in the augmented reality theme

Microsoft US Microsoft’s approach to the AR market focuses mainly on its HoloLens headset, first
introduced in 2016. It has worked with the US Army since 2018 to integrate the
latter’s IVAS tool into HoloLens headsets under a $480m contract. Subsequently, in
April 2021, it won a production contract, potentially worth $22bn over 10 years, to
supply 120,000 IVAS-integrated HoloLens headsets to the US Army. The successor
device, HoloLens 2 (launched in 2019), features a range of hardware and software
upgrades. It comes with cloud services such as Azure Spatial Anchors (for developing
spatially-aware apps) and Azure Remote Rendering (for streaming high-quality
interactive 3D content). The HoloLens 2 headset is designed for enterprises in the
automotive, aerospace, manufacturing, and healthcare industries. It also features a
free preview version of the under-development Microsoft Mesh, an enterprise-
grade metaverse for collaboration.
Niantic US Founded as an internal start-up within Google, Niantic is best known as the
developer of Pokémon Go. According to a report from Sensor Tower, the mobile AR
game has generated $5bn in revenue since its launch in 2016. Other notable mobile
AR games developed by the company include Ingress Prime and Harry Potter:
Wizards Unite (with WB Games San Francisco). Niantic’s AR cloud platform, called
Lightship (previously known as Real World Platform), aims to improve the game
development process by addressing technical barriers like latency. In September
2020, Niantic formed the Planet-Scale AR Alliance, including Deutsche Telekom, EE,
Globe Telecom, Orange, SK Telecom, SoftBank, Telus, and Verizon, focused on
developing consumer AR use cases using the telcos’ 5G networks. The company has
also indicated that it plans to develop AR smart glasses, but details were limited at
the time of writing.
Qualcomm US Qualcomm’s AR activities range from chips, developer reference AR headset kits,
and SDKs to content development. It launched the XR1 chipset in 2018, claiming that
it would improve battery life, enhance audio and video quality, and reduce power
consumption and temperature on AR headsets. It also boasts that its Cloud AI 100
chipsets will fuel the development of cloud-based AR services. It has partnered with
Tobii to explore eye tracking technologies, which are becoming a staple feature of
AR headsets. In June 2021, Qualcomm partnered with PhotonicSENS, a provider of
single-lens 3D depth-perception cameras, to improve the quality of images and
enable AR on smartphones using the Snapdragon 888 5G platform. In addition, the
company works with 15 telecom operators to develop and commercialize XR
viewers for immersive experiences over 5G networks.
Qualcomm acquired AR specialist Wikitude in September 2021. Wikitude has
collaborated with many companies to integrate AR into their packaging, including
global leaders Lime Crime, Jack Daniels, and Jim Beam.

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Augmented Reality in Packaging | April 6, 2022

Company Country Competitive position in the augmented reality theme

Samsung South Korea Samsung Electronics is active in several segments of the AR value chain, ranging
Electronics from semiconductors to devices and apps. It demoed an experimental AR headset
in 2018 and a prototype of AR smart glasses in 2020 but has yet to launch any of
those devices commercially. While videos of Samsung-branded smart glasses,
capable of projecting a virtual screen in the wearer’s FOV and controlled via
smartwatches, were leaked in February 2021, Samsung has yet to confirm the
devices officially.
Meanwhile, several Samsung smartphones are compatible with Google’s ARCore,
making them capable of running AR apps. In April 2021, Samsung released a beta
version of AR Canvas, which allows users to create semi-persistent AR on Galaxy
smartphones. The app was reportedly built using Samsung’s Project Whare, an AR
cloud initiative intended to deliver multi-user experiences, persistent content, and
cross-platform support for ARCore and ARKit. Earlier, in March 2021, Samsung
added a Snapchat Lens feature on its Galaxy A-series smartphones, allowing users
to access Snapchat filters from the devices’ camera apps. While these are moves in
the right direction, Samsung has a long way to go before it can match Apple’s AR
capabilities.
Snap US Snap is best known for the Snapchat platform. With 293 million daily active users at
the end of Q2 2021, Snapchat offers a range of AR features like Lenses (AR filters),
3D Bitmojis (personalized emojis), and Snappables (interactive AR filters) via its Lens
Studio. In December 2020, it claimed that over 1.5 million Snapchat lenses had been
created by users, amassing more than 1 trillion views on the social media platform.
It also gives brands the ability to build AR ads and virtual try-on solutions. AR-based
ecommerce is a prime focus for Snap. It has acquired AR shopping firm Vertebrae
(in July 2021), fashion suggestion app Screenshop (April 2021), and garment sizing
firm Fit Analytics (March 2021) to bolster its capabilities in this market. Beyond
ecommerce, Snap has partnered with dating app Bumble to allow users of the latter
app the ability to use Snapchat’s AR filters while interacting with dating matches. It
has also partnered with Walt Disney to let visitors to Walt Disney World Resort in
Florida interact with AR-based Mickey and Minnie Mouse via Snapchat filters.
It also sells Spectacles smart glasses, which do not support AR but can capture
photos and videos that can be overlaid with AR via the Snapchat app on connected
smartphones. In May 2021, Snap unveiled its first AR-enabled Spectacles smart
glasses. The devices are not yet on general sale but are available by application to
creators (people who develop AR content using Snapchat tools). The company has
also acquired WaveOptics, maker of the Spectacles’ display, for $500m in the same
month. AR is at the heart of Snap’s business, and it is developing both AR software
and hardware capabilities to lead in the theme in the coming years.
Tencent China Tencent, which has over one billion monthly active users on its WeChat platform,
has been a long-term advocate of AR. The company’s involvement in the technology
spans from developing WeChat’s AR framework (QAR) in 2017 to the launch of the
mobile AR game Let’s Hunt Monsters in 2019. It introduced AR on the WeChat mini-
program platform in 2019, allowing users to access AR-based gaming, shopping,
virtual try-ons, and real estate inquiries, and brands to incorporate AR ads. Tencent
has also funded start-ups like Oben (which develops AI-based 3D AR avatars) and
Innovega (a developer of AR smart glasses and contact lenses).

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Augmented Reality in Packaging | April 6, 2022

Company Country Competitive position in the augmented reality theme

Unity US Unity provides the most widely-used AR game development platform. With
expertise in creating games, interactive experiences, virtual avatars, and simulation
platforms, Unity offers many 2D and 3D models, templates, SDKs, and AR tools for
developers through the Unity Asset Store. The company supports the leading AR
devices and serves as an integrated platform for Apple’s ARKit, Google’s ARCore,
and Snap’s AR Lens Studio. It invests in AI to bolster its 3D features and offer flexible,
creative tools for developers to create AR content. In 2020, Unity introduced the
Mixed and Augmented Reality Studio (MARS), a set of tools designed for developers
to build AR experiences in any physical space without requiring extensive coding. In
March 2021, it acquired VisualLive, a company that supports AR visualization and
collaboration in the architecture, engineering, and construction (AEC) industry.
Vuzix US Vuzix offers AR smart glasses and software products to enterprises and consumers.
Backed by Intel (which holds a 30% stake), Vuzix has over 150 patents for smart
glasses. It also partners with companies like Verizon, ProGloves, and TensorMark to
develop new solutions for its devices. Vuzix supported DHL’s Vision Picking program
from 2015 until Google Glass replaced it in 2019, and it develops Toshiba’s business-
focused AR smart glasses. In 2019, Vuzix introduced a variant of the Blade smart
glasses, certified as personal protective equipment in both the US and EU. It also
offers a consumer version of its Blade devices, featuring high-street navigation,
games, and video streaming services.
Source: GlobalData

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Augmented Reality in Packaging | April 6, 2022

Specialist augmented reality vendors in packaging

The table below lists some specialist augmented reality vendors in the packaging sector and summarizes their
competitive position.

Company Country Competitive position in the augmented reality theme

3D Click Spain There has been a recent increase in AR-enabled packaging solutions as AR hardware
has become cheaper. AR-compatible devices are becoming readily available, thus
creating more scope for developers to create specialist AR apps. 3D Click is an AR
company that creates and designs digital packaging models. Goods can be assessed
via its platform. The platform also allows its users to share proposals, and it provides
a to-scale graphic of the final project. This allows packaging companies to reduce
printing costs and is environmentally friendly. In addition, companies can update AR
graphics to adapt to niche goods without starting from scratch, reducing costs and
saving time.
AR Packaging Sweden Graphic Packaging International’s subsidiary, AR Packaging, focuses on developing
AR in packaging. This includes interactive experiences of packaging, NFC tags, and
digital printing.
Blippar UK Blippar is a tech unicorn specializing in AR solutions. It has integrated the tech in
several sectors, including an extensive portfolio of packaging projects. Blippar's
offerings include tailored content creation via web-based and mobile-based AR.
Blippar offer a Blippbuilder platform, which enables users to make AR content
themselves and publish it.
Blix22 Netherlands Blix22 Interactive’s Pyqabu platform creates DIY AR experiences for its users via a
Interactive link that generates messages, animations, and videos. The company has used its
Pyqabu platform for packaging and gift wrapping. With Blix22 Interactive's AR
platform, AR can be added to envelopes or boxes of varying sizes to fit specific client
needs.
Roar AR US US-based start-up Roar AR is a self-service white label AR solution for several
sectors, including packaging. The company integrates interactive AR experiences
into packaging.
Tactic US Tactic is a specialist in developing AR apps and has worked closely with the
packaging sector. Tactic created the Living Wines Labels AR app for Treasury Wine
Estates packaging. Tactic creates platforms for five brands across Treasury Wine
Estates, including 19 Crimes, Chateau St. Jean, Beringer Bros., The Walking Dead,
and Gentleman's Collection. The Living Wines Labels app enabled multi-bottle AR
recognition within its single platform. The app has 4 million downloads, with 25
million shares of its content, to date.
UniteAR India UniteAR is an AR software as a service (SaaS) platform that develops AR apps for
several sectors, including packaging. The engine allows its customers to design and
create personalized and interactive details on packaging.
Source: GlobalData

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Augmented Reality in Packaging | April 6, 2022

Sector Scorecard
At GlobalData, we use a scorecard approach to predict tomorrow’s leading companies within each sector.

For a full explanation of thematic scoring, please refer to the methodology section at the back of this report.

Packaging sector scorecard

Who’s who
Who does what in the packaging space?
Packaging
(21 companies)

MKT
CAP
Company Ticker Sector (US$ M) Country Description
Amcor AMCR Containers & Packaging 17,347 UK Manufacturer of flexible and rigid packaging, specialty cartons and services
Avery Dennison AVY Rigid Metal & Plastics 14,008 USA Manufacturer of pressure-sensitive materials, tags, labels, tickets, and other converted products.
Ball Corp BLL Containers & Packaging 29,037 USA Manufacturer of metal packaging for beverages, foods and household products
Berry Global BERY Rigid Metal & Plastics 8,008 USA Manufacturer of plastic consumer packaging, nonwoven specialty materials and engineered materials.
Crown Holdings CCK Containers & Packaging 15,701 USA Manufacturer of steel and aluminium cans for food, drink, household and other consumer products
DS Smith SMDS Containers & Packaging 6,002 UK Manufacturer of corrugated packaging services
Elopak Unlisted Flexible Packaging Unlisted Norway Manufacturer of carton based packaging solutions for non-carbonated liquid food products.
International Paper IP Paper & Board Packaging 16,620 USA Provider of paper packaging solutions.
Mondi MNDI Paper & Board Packaging 9,659 UK Manufacturer of integrated paper and multi packaging solutions for newsprint and consumer products
Oji Holdings 3861 Paper & Board Packaging 4,862 Japan Manufacturer of corrugated containers, packaging materials, newsprint, and other paper products.
Owens-Illinois OI Glass Packaging 2,046 USA Manufacturer of glass containers for beverage and pharamaceutical products
Packaging Corp of America PKG Containers & Packaging 14,529 USA Manufacturer of containerboard and corrugated packaging products for protecting goods during shipment
Pactiv Evergreen PTVE Rigid Metal & Plastics 1,731 USA Manufacturer of aluminum foil, waste bags, wraps, food storage bags and disposable tableware and cookware.
Silgan SLGN Containers & Packaging 4,950 USA Provider of dispensing and specialty closures and supplier of metal food packaging in North America and Europe
Smurfit Kappa SK3 Containers & Packaging 11,646 Ireland Manufacturer of paper packaging products
Stora Enso STERV Paper & Board Packaging 14,792 Finland Manufacturer of magazine and book papers, newsprint, consumer boards, and industrial packaging.
Tetra Laval Unlisted Flexible Packaging Unlisted Switzerland Provider of technologies and services for the production, packaging and distribution of food.
UPM-Kymmene UPM Paper & Board Packaging 17,811 Finland Manufacturer of renewable and recyclable wood-related products.
Verallia VRLA Glass Packaging 2,968 France Manufacturer of glass packaging for food and beverage products
Veritiv VRTV Paper & Board Packaging 1,791 USA Distributor of packaging, print and publishing products and facility solutions and services
Westrock WRK Paper & Board Packaging 12,460 USA Manufacturer of container board and paperboard products.

Source: GlobalData © GlobalData

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Augmented Reality in Packaging | April 6, 2022

Thematic screen
Our thematic screen ranks companies based on overall leadership in the 10 themes that matter most to their
industry, generating a leading indicator of future performance.
Packaging Thematic Screen
(21 companies) Weighting 10% 15% 5% 17% 5% 18% 10% 5% 10% 5% C 100% Thematic
Online o
MKT CAP Advanced Food Direct-to- Artificial Augmented l Thematic leader
6B

Company (US$ M) Ticker Country Materials COVID-19 Delivery Ecommerce Consumer ESG Robotics Intelligence Geopolitics Reality u Ranking
Tetra Laval Unlisted Unlisted Switzerland 4 4 4 4 3 4 4 5 4 5 1
Crown Holdings 15,424 CCK USA 4 4 4 4 4 4 4 4 4 4 2
Elopak Unlisted Unlisted Norway 4 4 3 4 3 4 4 4 4 4 3
Berry Global 7,761 BERY USA 4 4 4 4 4 4 2 4 4 3 4
Silgan 5,008 SLGN USA 3 3 4 4 4 5 4 3 3 3 5
Oji Holdings 4,883 3861 Japan 4 4 4 4 3 5 3 3 2 3 6
Amcor 17,378 AMCR UK 4 4 3 3 3 4 4 3 4 4 7
Packaging Corp of America 14,438 PKG USA 5 4 2 4 4 4 2 4 3 3 8
Avery Dennison 14,446 AVY USA 3 3 3 4 3 3 4 4 5 5 9
Verallia 2,973 VRLA France 4 4 4 4 4 4 2 4 2 4 10
Ball Corp 28,826 BLL USA 4 3 4 4 4 4 2 2 3 3 11
Smurfit Kappa 11,358 SK3 Ireland 4 3 3 3 3 4 2 4 3 3 12
Westrock 12,308 WRK USA 4 3 3 4 4 3 2 4 2 4 13
Stora Enso 16,199 STERV Finland 3 3 3 3 3 4 3 3 2 5 14
Mondi 9,582 MNDI UK 3 3 3 3 3 4 3 3 1 3 15
Pactiv Evergreen 1,763 PTVE USA 2 3 3 2 3 4 2 3 4 3 16
DS Smith 5,758 SMDS UK 2 3 2 3 3 4 2 2 2 4 17
Owens-Illinois 1,972 OI USA 2 2 2 2 2 3 2 2 3 3 18 Thematic
UPM-Kymmene 18,016 UPM Finland 2 2 2 2 2 3 2 4 1 4 19
International Paper 17,162 IP USA 1 2 3 2 2 3 1 1 3 3 20
laggard
Veritiv 1,994 VRTV USA 2 2 2 2 2 1 2 4 3 3 21

Key: 1 (red) implies this theme will have a negative impact on earnings over the next 12 months; 3 (amber) implies a neutral impact; and 5 (green) a
positive impact. See Appendix for an explanation of our research methodology.
Source: GlobalData © GlobalData

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Augmented Reality in Packaging | April 6, 2022

Valuation screen
Our valuation screen ranks our universe of companies within a sector based on selected valuation
metrics.
Packaging Valuation Screen
(21 companies) Weighting 25% 20% 15% 20% 20% C 100%
Net Debt o
MKT CAP (Cash)/ Market l Valuation
Company (US$ M) Ticker Country EV/EBITDA EV/Sales Div yield % Value % FCF yield % u Ranking
International Paper 17,162 IP USA 9.8 1.1 4.5 5.9 8.6 1
Verallia 2,972 VRLA France 6.1 1.5 4.2 46.7 13.7 2
Mondi 9,582 MNDI UK 7.2 1.4 3.4 19.5 5.9 3
Westrock 12,307 WRK USA 7.4 1.1 1.9 64.2 11.9 4 Cheap
Owens-Illinois 1,972 OI USA 6.2 1.0 175.3 14.5 5
Stora Enso 16,198 STERV Finland 7.6 1.7 1.6 6.0 5.6 6
Veritiv 1,994 VRTV USA 9.3 0.4 23.4 6.7 7
DS Smith 5,758 SMDS UK 8.2 1.0 40.2 9.6 8
Smurfit Kappa 11,358 SK3 Ireland 8.3 1.3 2.9 27.8 3.6 9
Oji Holdings 4,882 3861 Japan 8.6 0.9 2.3 61.6 5.4 10
UPM-Kymmene 18,016 UPM Finland 8.5 1.8 4.2 -9.4 -1.7 11
Berry Global 7,760 BERY USA 7.6 1.2 107.8 11.6 12
Amcor 17,377 AMCR UK 12.1 1.8 4.3 31.3 5.7 13
Silgan 5,008 SLGN USA 9.9 1.4 1.2 63.1 6.5 14
Packaging Corp of America 14,437 PKG USA 10.1 2.1 2.6 11.9 3.4 15
Avery Dennison 14,445 AVY USA 14.1 2.1 1.5 20.0 5.4 16
Pactiv Evergreen 1,763 PTVE USA 12.6 1.1 4.0 229.9 -1.2 17
7B

Ball Corp 28,825 BLL USA 18.2 2.6 0.8 24.2 0.1 18
Crown Holdings 15,423 CCK USA 87.4 1.9 0.7 36.2 0.6 19
Elopak Unlisted Unlisted Norway 20
Tetra Laval Unlisted Unlisted Switzerland 21 Expensive
Median 8.5 1.3 1.6 27.8 5.6
Mean 12.3 1.3 1.9 46.9 5.5

Key: Green denotes that the company is cheap (15% more attractively priced than the median value for the sector) relative to its global peers; amber
denotes it is within 15% of the sector median value; and red denotes that it is expensive relative to its global peers. Private companies are shown at
the bottom of these rankings by default because they do not have a publicly listed market price. See Appendix for an explanation of our research
methodology.
Source: GlobalData © GlobalData

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Augmented Reality in Packaging | April 6, 2022

Glossary
Term Definition
3D printing Also known as additive manufacturing, it refers to the process of joining materials to
make objects from three-dimensional model data, usually layer upon layer.
5G 5G refers to the fifth generation of cellular technology standards, that will be based on
IMT2020 standards, under development by the 3GPP. The term '5G' does not explicitly
refer to any particular technology or standard and is therefore a loose term that can be
used and interpreted in multiple different ways, typically for marketing purposes.
Accelerometer An instrument used to measure the acceleration of a moving or vibrating body.
AI chips Chips that are designed to perform AI tasks more efficiently, thereby reducing the time
taken to, for example, process the large data sets associated with machine learning.
They are often referred to as AI accelerators and come in a variety of forms, including
graphics processing units (GPUs), field programmable gate arrays (FPGAs), and
application-specific integrated circuits (ASICs).
Application programming A set of defined methods of communication between programs so that information can
interface (API) be exchanged without the need to access the core of either program
Application-specific Silicon chips designed to do a single specific task.
integrated circuits (ASIC)
AR headsets Augmented reality (AR) headsets are head-mounted display (HMD) devices that allow
users to see the real world overlaid with a layer of digital content.
Artificial intelligence (AI) Refers to software-based systems that use data inputs to make decisions on their own.
Augmented reality (AR) Technology that allows the user to see the real world overlaid with a layer of digital
content. This digital content layer can include sensor-based data, sound, video,
graphics, or other datasets.
Autonomous vehicle (AR) Any vehicle that can drive itself without human intervention. There are five
autonomous driving levels, of which the highest (Level 5) describes a vehicle that is fully
autonomous under any conditions. This level is unlikely to be reached in the next 20
years.
Central processing unit The unit which performs most of the processing inside a computer. It carries out all the
(CPU) logical and arithmetical operations.
Cloud computing Computing delivered as an online service. It encompasses the provision of IT
infrastructure, operating software, middleware, and applications hosted within a data
center and accessed by the end user via the internet.
Collaboration platforms Software tools that aim to boost productivity by helping teams work together more
efficiently. They incorporate services like instant messaging, file sharing, and video
conferencing.
Computer vision One of the key AI technologies, this category includes all technology that attempts to
capture and interpret images or videos in a meaningful or useful way. There are four
main categories of computer vision, namely image recognition, object recognition,
video recognition, and machine vision.
Consumer AR Refers to AR technology for consumer use, such as AR games and social media filters.
Content delivery network A geographically distributed network of servers which store cached meta content on
(CDN) edge servers and act as gateways for bi-directional data transfer between the servers
and users, enabling faster access to high-quality data.
Context-aware computing Refers to systems that adapt their behavior according to the physical environment in
which they are operating. Contextual information can include location, orientation,
temperature, light, pressure, and humidity.

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Augmented Reality in Packaging | April 6, 2022

Term Definition
Conversational platforms Tools that employ a variety of technologies – including speech recognition, natural
language processing (NLP), contextual awareness and machine learning – to enable
human-like interaction with computer systems.
Cybersecurity The practice of defending computers, servers, mobile devices, electronic systems,
networks, and data from malicious attacks.
Deep learning A field of machine learning that is built using artificial neural networks which model the
way neurons in the human brain talk to each other.
Direct-to-consumer Services that create new opportunities for consumer goods brands of all sizes, including
the potential to bypass intermediaries when selling products, providing unique
customer service, and more tailored and engaging marketing campaigns.
Ecommerce The buying and selling of goods and services over an electronic network (typically the
internet).
Electromyography (EMG) A diagnostic procedure that detects neuromuscular abnormalities by studying muscles
and the nerve cells that control them.
Enterprise AR Refers to AR technology for business operations such as training and remote
collaboration.
Environmental, Social & The three key factors to consider when measuring the sustainability of a country or
Governance (ESG) company.
Future of work Refers to the changes impacting employment resulting from the increased use of
technology.
Generation Z (or iGen) Generation Z (or iGen) consists of anyone born between 2001 and 2010.
Geopolitics The study of the effects of geography on politics and international relations. It covers
the way a country's size, politics and geographical position influences its relationships
with other countries.
Gig Economy A labor market characterized by the prevalence of short-term contracts or freelance
work as opposed to permanent jobs.
Graphics processing unit A programmable logic chip specialized for display functions. Modern GPUs are able to
(GPU) manipulate computer graphics and provide image processing very efficiently. They are
also able to take large data sets and perform the same operation repeatedly and at high
speed, which has made them fundamental to the development of artificial intelligence
technologies.
Gyroscope A device used for measuring or maintaining orientation and angular velocity.
Human rights Basic rights and freedoms that belong to every person, from birth until death. Human
rights include the right to life and liberty, freedom of opinion and expression, the right
to work, and the right to education.
Machine learning An application of AI that gives computer systems the ability to learn and improve from
data without being explicitly programmed.
Marker-based AR A type of AR technology that utilizes smartphone cameras to recognize visual markers
(such as an image or a QR code) to initiate three-dimensional animated content on the
screen.
Marker-less AR A type of AR technology that utilizes smartphone camera, GPS, compass, gyroscope,
and accelerometer to deliver pre-developed, relevant virtual content on the screen,
based on simultaneous localization and mapping (SLAM) algorithms.
Metaverse A virtual world where users share experiences and interact in real-time within
simulated scenarios.
Micro-electromechanical Miniaturized mechanical and electro-mechanical elements (typically devices and
systems (MEMS) structures) that are made using the techniques of microfabrication.

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Augmented Reality in Packaging | April 6, 2022

Term Definition
Near field communication NFC is a set of communication protocols that enable two electronic devices, one of
(NFC) which is usually a portable device such as a smartphone, to establish communication
by bringing them within 4 centimeters of each other.
Online food delivery Encompasses new trends in ordering food ingredients, or prepared meals, from retail
sites or foodservice providers via the internet.
Photogrammetry The science and technology of obtaining reliable information about physical objects
and the environment through recording, measuring, and interpreting photographic
images.
Radio frequency RFID provides a unique identifier for any object that is easier and quicker to read than
identification (RFID) barcodes. RFID tags can be attached to any object or built into products at the
manufacturing stage, consisting of a chip that can carry up to 2,000 bytes of data as
well as a small antenna.
Robot A machine capable of carrying out a complex series of actions (typically programmed
by a computer) automatically and repeatedly.
Sharing economy The peer-to-peer (P2P)-based activity of acquiring, providing, or sharing access to
goods and services that is often facilitated by a community-based online platform.
Smart glasses Computerized eyewear with internet connections that conveys task specific
information and services in the user's field of view (FOV) or into their ears. The devices
are typically worn as traditional spectacles and perform user-requested, or predefined
automated, tasks using augmented reality and audio technologies.
Smart robot A robot that can learn from its environment to improve its capabilities.
Smartwatches Computerized wristwatches with several smartphone-like features such as touchscreen
interface, cellular connectivity, internet access, health and fitness monitoring, and
interoperability with other connected devices.
Social media Computer-mediated technologies that facilitate the creation and sharing of
information, ideas, career interests, and other forms of expression via virtual
communities and networks.
Social responsibility A company's moral and legal obligation to look after its employees, customers,
suppliers, and local communities. It covers human rights, diversity and inclusion, health
and safety, and community impact.
Software development kit A collection of software used to develop applications for a specific device or operating
(SDK) system.
Superimposition-based AR A type of AR technology that replaces the view of a physical space with a partially or
entirely superimposed view of a virtual object.
Sustainability An approach that focuses on environmental, social, and governance (ESG) factors to
ensure long-term growth of a company or country.
Virtual reality (VR) Technology that aims to immerse the user in an entirely artificial world, which has the
illusion of reality. It uses special equipment such as a headsets or gloves fitted with
sensors to simulate a user's physical presence in a 3D environment.
Vision processing unit VPUs are processing units designed to run machine vision algorithms.
(VPU)
Visual-inertial odometry A computer vision technique used for estimating the 3D position and orientation, and
(VIO) velocity of a moving object.

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Augmented Reality in Packaging | April 6, 2022

Further Reading
GlobalData reports
Publication date Report title
December 2021 Internet of Things in Packaging
November 2021 Virtual Reality
September 2021 Augmented Reality
January 2021 Emerging Technology Sentiment Analysis Q4 2020
Source: GlobalData

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| Our Thematic Research Methodology

Companies that invest in the right themes become success stories. Those that miss the important themes in their industry
end up as failures.

Viewing the world’s data by themes makes it easier to make important decisions
We define a theme as any issue that keeps a CEO awake at night. GlobalData’s thematic research ecosystem is a single,
integrated global research platform that provides an easy-to-use framework for tracking all themes across all companies
in all sectors. It has a proven track record of identifying the important themes early, enabling companies to make the
right investments ahead of the competition, and secure that all-important competitive advantage.

Traditional research does a poor job of picking winners and losers

The difficulty in picking tomorrow’s winners and losers in any industry arises from the sheer number of technology
cycles—and other themes—that are in full swing right now. Companies are impacted by multiple themes that frequently
conflict with one another. What is needed is an effective methodology that reflects, understands, and reconciles these
conflicts.

That is why we developed our “thematic engine”

At GlobalData, we have developed a unique thematic methodology for ranking all major companies in all major sectors
based on their relative strength in the big themes that are impacting their industries.

Our thematic engine tags over 38 million data items across five alternative data sets—patents, jobs, deals, filings, and
news—to themes. The vast datasets within our thematic engine help our analysts to produce sector scorecards that
identify the companies best placed to succeed in a future filled with multiple disruptive threats.

How do we create our sector scorecards?

First, we split each industry into its component sectors, because each sector is driven by a different set of themes. Taking
the TMT (technology, media, and telecom) industry as an example, we split this industry into the sectors shown in the
graphic below.

Our five-step approach for generating a sector scorecard

Here we use the tech, media, and telecom sector as an example sector, for illustration purposes

Sectors Themes Research Thematic screen Sector scorecard

1. Split the global TMT 2. Identify and rank the 3. Identify and score 4. Calculate overall 5. Rank leading companies in
industry into 17 sectors. top 10 themes disrupting leaders and challengers thematic rankings for each sector using our three
each sector. for each theme. all companies in a sector. screens.

Hardware
Semiconductors 1. Artificial
Consumer electronics intelligence
Component makers
IT infrastructure Sector scorecard =
Telecom infrastructure
Industrial automation
Software and Services 2. Cloud Thematic screen
Application software computing
+
Cloud services
Enterprise security Valuation screen
Gaming +
IT services
Internet and Media 3. Blockchain Risk screen
Ecommerce
Social media
Advertising
Music, film, and TV
Publishing
10. Internet
Telecoms
Telecom services of Things

Source: GlobalData

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Augmented Reality in Packaging | April 6, 2022

Second, we identify and rank the top 10 themes for each sector (these can be technology themes, macroeconomic
themes, or industry-specific themes). Third, we publish in-depth research on specific themes, identifying the winners
and losers within each theme. The problem is that companies are exposed to multiple investment themes and the
relative importance of specific themes can fluctuate. So, our fourth step is to create a thematic screen for each sector to
calculate overall thematic leadership rankings after taking account of all themes impacting that sector. Finally, to give a
crystal-clear picture, we combine this thematic screen with our valuation and risk screens to generate a sector scorecard
used to help assess overall winners and losers.

What is in our sector scorecards?

Our sector scorecards help us determine which companies are best positioned for a future filled with disruptive threats.
Each sector scorecard has three screens:

▪ The thematic screen tells us who are the overall leaders in the 10 themes that matter most, based on our
thematic engine.
▪ The valuation screen tells us whether publicly listed players appear cheap or expensive relative to their peers,
based on consensus forecasts from investment analysts.
▪ The risk screen tells us who the riskiest players in each industry are, based on our assessment of four risk
categories: corporate governance risk, accounting risk, technology risk, and political risk.

How do we score companies in our thematic screen?

Our thematic screen ranks companies within a sector based on overall leadership in the 10 themes that matter most to
their industry, generating a leading indicator of future earnings growth.

Thematic scores predict the future, not the past.

Our thematic scores are based on our analysts’ assessment of their competitive position in relation to a theme, on a
scale of 1 to 5:

1 Vulnerable The company’s activity in this theme will be highly detrimental to its future performance.

2 Follower The company’s activity in this theme will be detrimental to its future performance.

The company’s activity in this theme will have a negligible impact on the company’s future
3 Neutral
performance, or this theme is not currently relevant for this company.
The company is a market leader in this theme. The company’s activity in this theme will
4 Leader
improve its future performance.
The company is a dominant player in this theme. The company’s activity in this theme will
5 Dominant
significantly improve its future performance.

How do our research reports fit into our overall thematic research ecosystem?
Our thematic research ecosystem is designed to assess the impact of all major themes on the leading companies in a
sector. To do this, we produce three tiers of thematic reports:

▪ Single Theme: These reports offer in-depth research into a specific theme (e.g., artificial intelligence). They
identify winners and losers based on technology leadership, market position, and other factors.
▪ Multi-Theme: These reports cover all themes impacting a sector and the implications for the key players in that
sector.
▪ Sector Scorecard: These reports identify those companies most likely to succeed in a world filled with disruptive
threats. They incorporate our thematic screen to show how conflicting themes interact with one another, as
well as our valuation and risk screens.

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| About GlobalData
GlobalData is a leading provider of data, analytics, and insights on the world's largest
industries.
In an increasingly fast-moving, complex, and uncertain world, it has never been harder for organizations and decision
makers to predict and navigate the future. This is why GlobalData’s mission is to help our clients to decode the future
and profit from faster, more informed decisions. As a leading information services company, thousands of clients rely on
GlobalData for trusted, timely, and actionable intelligence. Our solutions are designed to provide a daily edge to
professionals within corporations, financial institutions, professional services, and government agencies.

Unique Data

We continuously update and enrich 50+ terabytes of unique data to provide an unbiased, authoritative view of the
sectors, markets, and companies offering growth opportunities across the world's largest industries.

Expert Analysis

We leverage the collective expertise of over 2,000 in-house industry analysts, data scientists, and journalists, as well as
a global community of industry professionals, to provide decision-makers with timely, actionable insight.

Innovative Solutions

We help you work smarter and faster by giving you access to powerful analytics and customizable workflow tools tailored
to your role, alongside direct access to our expert community of analysts.

One Platform

We have a single taxonomy across all of our data assets and integrate our capabilities into a single platform – giving you
easy access to a complete, dynamic, and comparable view of the world’s largest industries.

Disclaimer: All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system or
transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior
permission of the publisher, GlobalData. The facts of this report are believed to be correct at the time of publication but
cannot be guaranteed. Please note that the findings, conclusions and recommendations that GlobalData delivers will be
based on information gathered in good faith from both primary and secondary sources, whose accuracy we are not
always in a position to guarantee. As such, GlobalData can accept no liability whatsoever for actions taken based on any
information that may subsequently prove to be incorrect.

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Augmented Reality in Packaging | April 6, 2022

| Contact Us
If you have any more questions regarding our thematic research services, please get
in touch.

Head of Thematic Research Customer Success Team

Cyrus Mewawalla
0B Understand how to use our Themes product
2B

[Link]@[Link] [Link]@[Link]
3B

+44 (0) 207 936 6522

1B +44 (0) 207 406 6764
4B

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