The global smart labels market is projected to record an impressive CAGR of ~13% during the forecast period (2019-2029). Gains remain majorly driven by growing need for superior inventory and logistics management solutions, especially in the healthcare industry. Adoption of smart labels has also witnessed a sharp increase in the food industry, as demand for product authentication and ability to enhance food safety and reduce food waste continues to surge.
Use of connected packaging solutions such as smart labels enables end users to gain access to all traceable information across the supply chain. Moreover, smart labels allow them to follow a wide range of products from conception to shelf, which in turn, is projected to boost the demand substantially.
Key Takeaways of the Smart Labels Market Study
- Significant growth of the e-commerce sector coupled with increasing use of communicative & connected packaging is bolstering the demand for smart labels across the globe .
- Retail industry has been identified as the key end user of smart labels, as the sector generates constant demand to ensure product authenticity.
- FMI reports that demand for RFID and EAS labels is expected to grow at a CAGR of ~14% and ~13%, respectively during the predefined timeframe. This growth can be attributed to their rising application in inventory management, asset tracking, goods distribution, and record tracking.
- Modern consumers demand more engaging features on the packaging which give accurate information on product quality and other relevant information. This in turn is expected to boost the sales of smart labels in the foreseeable future.
- Smart labels based on RFID technology continue to witness higher demand as compared to EAS and electronic shelf labels. RFID labels are highly preferred as they not only aid in ensuring consumer safety but also enhance brand integrity.
“Smart labels and tags act as the first communicators of a brand, and can influence the retail experience in a multitude of ways. As consumers’ demand for connected packaging grows, companies are leveraging smart labels to ensure protection of products from tampering, adulteration, and counterfeiting, in addition to simplifying the process in supply chain. Authenticity, traceability, and security attributes provided by smart labels are expected to bolster the sales in the near future”. – FMI Analyst
For More Detailed Insights on Smart Labels Market
Smart Labels Market to Benefit from Flourishing E-commerce Sector
Over the past few years, the e-commerce sector has witnessed remarkable growth in both developed and developing economies. Changing customer spending patterns and rapid internet penetration are directly influencing the expansion of e-commerce. Thus, consistent demand for smart labels is likely to be generated by e-commerce for product tracking & tracing. To benefit the most out of this scenario, leading smart label manufacturers are launching advanced label solutions, particularly for the e-commerce sector. For instance,
- In April 2019. Avery Dennison Corporation, a key smart labels/tag manufacturer, launched On-Metal RFID solution to enable 100% tagging of inventory with quality accreditation from ARC
- In February 2019, UPM Raflatac, one of the leading smart label manufacturers, introduced new RafMore label in the market. These smart labels transform traditional product packaging into connected packaging with a unique traceable identity
About the Report
Future Market Insights (FMI), in its new offering, offers an unbiased analysis of the global smart labels market, analyzing historical demand from 2014-2018 and forecast statistics for 2019-2029. The study unravels growth projections of the smart labels market on the basis of labelling technology(RFID, NFC tag, EAS, sensing labels and electronics shelf labels), printing technology(flexographic, digital, gravure and screen) and end use(healthcare, automotive, FMCG, logistics, retail and others) across the seven major regions.
About the Packaging Division at Future Market Insights
The packaging division at FMI provides an in-depth historical analysis and granular projections for a ten-year period and covers the competition landscape through a unique dashboard view. Ranging from packaging materials, packaging machinery to packaging designs & formats, Future Market Insights has an exhaustive database for these industry verticals serving clients with our unique research offerings and strategic recommendations. With a repository of 1,000+ reports, the team has analyzed the packaging industry comprehensively in 50+ countries. The team evaluates every node of the value chain and provides end-to-end research and consulting services; reach out to explore how we can help.
Future Market Insights (FMI) is the premier provider of market intelligence and consulting services, serving clients in over 150 countries. FMI is headquartered in London, the global financial capital, and has delivery centres in the U.S. and India. FMI’s research and consulting services help businesses around the globe navigate the challenges in a rapidly evolving marketplace, with confidence and clarity. Our customized and syndicated market research reports deliver actionable insights that drive sustainable growth. We continuously track emerging trends and events in a broad range of end industries to ensure that our clients prepare for the evolving needs of their consumers.