The work aims to enhance the recognition efficiency of intelligent packaging systems applying Radio Frequency Identification (RFID) technology and address the collision problems in large-scale tag application scenarios. A Mapping and Transcoding-based Multi-tag Identification (MTMI) algorithm was designed based on a thorough study of the performance and shortcomings of tag recognition algorithms in relevant Chinese and foreign literature. This algorithm converted the three-bit identification code of the tag ID into a five-bit sequence code through a specific mapping relationship. By summarizing the sequence code collision rules, effective tag recognition was achieved, thus preventing tag collisions. Simulation experiment results indicated that the recognition efficiency of the MTMI algorithm could reach approximately 56%. The MTMI algorithm has excellent performance in reducing query times, decreasing collision time slots, and improving identification efficiency. When processing tag IDs of different lengths, the MTMI algorithm still shows good stability and reliability. In the scenario of large-scale application of RFID tags in intelligent packaging systems, MTMI algorithm has shown good application potential.