In an era where household and marketing budgets are under significant pressure due to the ongoing cost of living crisis, brands and consumers alike are scrutinizing their spending habits. Consumers are increasingly focused on value for money, while brands are streamlining costs to maximize revenue and return on investment (ROI). Amidst this challenging environment, a surprising trend has emerged: connected packaging. According to a recent report by performance marketing company Merkle, UK consumers are actively engaging with brands through connected technologies like QR codes, visual search, augmented reality, and NFC (near-field communication) tags, most of which are accessed via product packaging.
Contrary to expectations that consumers would be solely focused on the contents of packaging rather than the packaging itself, Merkle’s research reveals that 84% of the UK population has interacted with at least one form of connected technology in the past month. Nearly a third (32%) have engaged with these technologies four or more times during the same period. The 2025 Connected Experiences Research Report highlights that connected experiences are becoming increasingly important and popular, with 37% of consumers more likely to purchase a product if it’s tied to such an experience. Moreover, 29% of consumers are willing to pay more for products that offer these connected experiences.
Ruth Bucknell, Merkle’s VP of Experience Design, emphasizes that brands must move beyond fragmented campaigns to create seamless, integrated journeys across every touchpoint. Connected experiences, whether through smart packaging, in-store interactions, digital displays, or out-of-home activations, offer powerful opportunities to deepen consumer engagement.
The Appeal of Connected Packaging
Connected packaging allows brands to bridge the gap between physical purchasing moments and digital environments. For instance, Kellogg’s recently launched ‘Kellogg’s Town,’ an interactive online experience accessible via QR codes on cereal boxes. This virtual town, made up of Kellogg’s cereal boxes, features games like ‘Shelf Shuffle’ and ‘Crafting with Coco,’ which teaches families how to repurpose cereal boxes into items like birdhouses and seed starters. Available across 23 European markets, this initiative aims to boost customer loyalty by offering engaging, shareable experiences, competitions, and discounts.
By using QR codes on packaging, brands can connect customers to online environments, opening avenues for further engagement through social media and email. For consumers, this not only provides added value but also creates memorable experiences that can be shared with others. Bucknell notes that to drive real behavior change, brands must offer compelling reasons for engagement, whether through rewards, convenience, or added value. When brands effectively communicate the benefits of these experiences, they can transform passive curiosity into meaningful, sustained interaction.
Why Connected Packaging Matters
The growing popularity of connected packaging underscores a shift in consumer expectations. In a world where digital and physical experiences increasingly overlap, consumers are drawn to brands that offer innovative, interactive, and value-added experiences. Connected packaging serves as a bridge between these two worlds, enabling brands to foster deeper relationships with their customers.
For brands, the benefits are clear. Connected packaging can drive sales, enhance customer loyalty, and differentiate products in a competitive market. For consumers, it offers an opportunity to engage with brands in new and exciting ways, whether through games, educational content, or exclusive offers.
The Future of Connected Experiences
As technology continues to evolve, the potential for connected packaging and experiences is vast. Brands that embrace these technologies and integrate them into their marketing strategies stand to gain a significant advantage. By creating seamless, engaging, and value-driven experiences, brands can not only meet but exceed consumer expectations in an increasingly digital world.
To delve deeper into the insights and trends shaping the future of connected experiences, Merkle’s 2025 Connected Experiences Research Report is available for download here.
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In conclusion, connected packaging represents a unique opportunity for brands to enhance consumer engagement, drive loyalty, and differentiate themselves in a competitive market. By leveraging technologies like QR codes and NFC tags, brands can create memorable, value-added experiences that resonate with consumers and foster long-term relationships. As the cost of living crisis continues to impact spending habits, connected packaging offers a way for brands to deliver meaningful value to their customers while achieving their business objectives.
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