Over the years, emphasis on labeling products has significantly increased across healthcare institutions to reduce the errors caused by a lack of perfect labeling. Although their usage is often overlooked in the medical field, labels play a crucial role in maintaining patient safety across hospitals, laboratories, and pharmaceutical industries, among others.
Labels carry details of the product or medical sample, such as its batch number, date of manufacturing, and date of expiry, etc. serving as a reliable source of information to the patient and medical professional. In the pharmaceutical industry, each drug holds different properties such as dosage form and drug delivery methods, thus necessitating the customization of the label's design to fit requirements.
In addition to mandatory information, labels are expected to add value by offering user-friendliness and product safety. Furthermore, as the revenue loss ascribed to prescription and medical errors continues to rise year-on-year, medical institutions and pharmaceutical manufacturers are stressing on maintaining accurate labels. On the back of these factors, the global healthcare and laboratory labels market is forecasted to witness healthy growth during the forecast period.
The Need for Reliable Labeling Solutions
According to the US National Library of Medicine, nearly 25% of all medication errors are linked to the misapprehension of the drug's name and over 33% of errors are attributed to confusion pertaining to packaging and labeling. Considering that a plethora of drugs share similar names due to their formulations, medical professionals have cited a lack of differentiation and labeling as the primary cause of the error.
As per a study titled 'Preventing Medication Errors' conducted by the Institute of Medicine of the National Academies, more than 1.5 million preventable negative drug events occur each year. These errors subsequently transmute into an enormous revenue loss, which is entirely preventable with proper labeling. Moreover, labeling has been attributed to 30% of deaths due to medication errors.
With written labels being the primary cause of medical errors, they account for revenue loss between US$ 5.8 Bn and US$ 27.3 Bn, according to the World Alliance for Patient Safety 2010. Also, the same study estimated that the consumption of inappropriate drugs leads to more than 7,000 deaths annually in the US alone. The surging number of preventable errors and deaths is propelling the demand for accurate labeling of drugs and medical specimens across healthcare institutions and laboratories, thereby driving the growth of the market.
Broader Push for Adoption
Effective labeling has emerged as the ideal solution to curb the incidence of laboratory errors and is gaining remarkable traction on this premise. For instance, handwritten labels on lab samples are highly prominent owing to their simplicity of marking a product. However, they are highly prone to unreadability and cause confusion in understanding sample details which, in turn, can lead to severe flaws in studies and data trials. The risk has necessitated the practice of printed labels that carry easily readable information of the samples.
Another advantage of printed labels over hand-written labels is the durability of the ink. Unlike hand-written labels, where the ink fades away upon exposure of extreme conditions, the printed text can persist for prolonged periods of storage. Furthermore, the durability of the label's adhesives is also a major deciding factor, ensuring that the labels stay attached to the sample container under harsh conditions ranging from low-temperature freezing in liquid nitrogen to autoclaving at 121ºC.
On this premise, market players are using the right material and compatible ink type to assure that the labels stay intact through harsh storage conditions. On these lines, Brandy Corporation developed self-laminating labels for vials, tubes, and slides that combine a white label with an over-laminate strip that serves as a protection to the label, while also enabling clear visibility of the imprinted text.
In addition, the implementation of stringent guidelines under the Good Laboratory Practice (GLP) program by the Organisation for Economic Co-operation and Development is asserting laboratory practitioners to opt for safe labeling solutions. Leveraging this facet, manufacturers are focusing on developing solutions that meet the GLP guidelines such as sample identification and traceability.
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Stringent Guidelines Exhibit Dual Impact and Hamper Growth
Although the implementation of labeling regulations is bolstering the adoption, it is also exhibiting a negative impact on the growth of the market. Language requirement regulations imposed by government bodies to ease and improve authority surveillance has become a severe difficulty for manufacturers and healthcare institutions. Mandation of imprinting details in national and regional languages across the world has complicated the process for manufacturers.
Pharmaceutical manufacturers located in regions where diverse languages are spoken, such as European and Asian countries, are facing practical and legal difficulties due to the regulations. As the size of the labels restricts accommodation of large information, manufacturers are being pushed to customize solutions to fit varying sizes and styles of language fonts, leading to higher operational expenses.
For instance, players developing solutions for In Vitro Diagnostics (IVD) such as blood and tissues are considering the usage of separate labels for the US and non-US. The decision arises on the back of the fact that the U.S. labels contain no symbols while non-U.S. labels don’t.
Adding to the burden are the ever-evolving user requirements pertaining to materials, dimension, ink type, etc. continue to pose challenges to the medical device labels. Besides, errors in the printing of variable data and text font formats lead to penalties for non-compliance with regulations and severely tarnish the brand image.
North America Healthcare and Laboratory Labels Market
North America, led by the US, is expected to prevail as the largest regional market for healthcare and laboratory labels through the forecast period. Backed by the presence of a stringent regulatory framework by the Food and Drugs Administration (FDA), the region is projected to hold a quarter of global market value through the assessment period.
Medical errors are the third largest cause of death in the US, and more than 33% of errors are caused by packaging and labeling confusion. As a result, the demand for accurate and reliable healthcare labels is towering across laboratories, hospitals, and pharmaceutical industries. Currently, there are over 6,000 hospitals in the US and the number continues to increase year-on-year, subsequently driving the demand for healthcare labels.
Furthermore, high spending on improving medical infrastructure in the region is enabling end-users to adopt advanced, smart labels. Smart labels rely on radio frequency identification (RFID) technology and enable tracking and tracing of the samples, and this feature is giving a major boost to the market.
Asia Pacific Healthcare and Laboratory Labels Market
East Asia, South Asia, and Oceania are cumulatively projected to account for nearly half of the global market value, primarily attributed to the presence of strong healthcare and pharmaceutical sectors that continually create demand for labeling. A study conducted by Harvard University found that medical errors cause over 5 Mn deaths in India. To reduce these preventable deaths, regulatory bodies are mandating strict rules across the healthcare sector, including labeling.
For instance, the Central Drugs Standard Control Organization, the body that regulates the medical devices industry in India has mandated 5 details - including the product description, number of units of contents, and date of manufacture & expiry, among others - under the GHTF guidelines and Rule 96 of the Drugs and Cosmetic Act.
Moreover, the ever-increasing number of hospitals and laboratories in the region will continue to fuel the demand for labeling for the years to come.
Europe Healthcare and Laboratory Labels Market
Europe will remain a prominent region for the healthcare and laboratory labels market through the forecast period backed by strong regulation in place across the region. For instance, the UK government has mandated printing the unique national reimbursement number in the form of a 2D data matrix code, specifying that the information should be readable by the naked human eye.
Similar guidelines exist in Germany and France, which will continue to bestow lucrative revenue opportunities to market players.
Paper-based Labels Remain Sought-After
Paper-based labels are projected to remain the most sought out through the forecast period, accounting for a share little below 2/3rds of global market value. The high popularity of the material is attributed to wide availability, low cost, and lightweight which makes it ideal for compact containers. Furthermore, recyclability of papers and ease in procuring availability due to their eco-friendly nature makes it highly popular among manufacturers and end-users alike.
On the other hand, polyolefin-based labels are projected to rise in value at a brisk pace owing to their good adhesive power and excellent resistance to staining that makes them ideal for labeling specimens that will be stored in extreme conditions.
Pharmaceuticals & Nutraceuticals will Reign Supreme
Pharmaceuticals and nutraceuticals sectors will collectively account for nearly half of the global market. The concentration of revenue flow in these sectors is attributed to the growing importance of durable labeling that clearly communicates the details of the drugs and other products, thus preventing prescription errors. Besides, increasing stringency of labeling regulations by IMDRF (International Medical Device Regulator Forum), the US Food and Drug Administration (FDA), and the European Commission will continue to drive the growth of the market in these regions.
Similarly, healthcare and laboratory segments are anticipated to cumulatively hold a share little below one quarter on the back of continual demand to label samples for diagnostics.
The competitive landscape of the healthcare and laboratory labels market represents a fragmented structure with equal ground for both established and emerging players. Having a wide product portfolio has been identified as a major growth strategy among players. For instance, United Ad Label, a US-based payer, has recently expanded its product portfolio and is offering labeling solutions for a diverse set of products, such as blood bags, brand protection labels, and syringes to name a few. Moreover, the organization is focusing on developing intelligent labels.
Moreover, intelligent labels have been identified as the future of labeling solutions and it is having a tremendous influence on shaping long-term growth strategies. In July 2019, the Drug Supply Chain Security Act (DSCSA) announced its aim to have a complete, automated, chain of custody for the industry in place by 2023. As a result, players are focusing on imbibing product tracking and tracing features in their offerings and are adopting UHF and NFC technologies to achieve the same.
On these lines, Schreiner Group partnered with automated medication management service provider, Kit Check, to develop innovative intelligent labeling solutions. Such partnerships will continue to shape the competitive landscape of the healthcare and laboratory labels market.
Healthcare and Laboratory Labels Market Report: Scope
Historical Data Available for
USD Million for value and Sq. M for Volume
Key Regions Covered
North America, Europe, East Asia, Latin America, South Asia, Oceania, and Middle East and Africa (MEA)
Key Countries Covered
US, Canada, Brazil, Mexico, Argentina, Rest of Latin America, Germany, Italy, U.K., Spain, Russia, BENELUX, Rest of Europe, India, China, Thailand, Indonesia, Malaysia, Japan, South Korea, Rest of South Asia, Rest of East Asia, Australia, New Zealand, GCC Countries, Turkey, Northern Africa, South Africa, and Rest of MEA
Key Segments Covered
Material, End User, and Region
Key Companies Profiled
Avery Dennison Corporation, CCL Industries Inc, 3M Company, Multi-Color Corporation, UPM Raflatac Corporation, Brady Corporation, Sato Holdings Corporation, Weber Packaging Solutions, Inc., Schreiner Group GmbH & Co., KG Diagramm, Halbach GmbH & Co., KG The Aenova Group, Shamrock Labels, Medline Industries, Inc., PlatinumCode, United Ad Label, Adampak Pte Ltd., Advance labeling Systems, Limited Majestic Labels, CC QLM Label Makers Pte Ltd., Chicago Tag & Label, Inc.
Market Forecast, brand share analysis, competition intelligence, DROT analysis, Market Dynamics and Challenges, Strategic Growth
Customization & Pricing
Key Questions Answered by the Report
- What is the market size of the healthcare and laboratory labels market?
The global healthcare and laboratory labels market is expected to reach a valuation of US$ 22.7 billion by 2030
- Which is the largest market for healthcare and laboratory labels?
North America currently leads the healthcare and laboratory labels market and is expected to remain dominant through the course of the forecast period
- Which are the top companies in the healthcare and laboratory labels market?
Key player operating in the market include Avery Dennison Corporation, CCL Industries Inc, 3M Company, Multi-Color Corporation, UPM Raflatac Corporation, Brady Corporation, Sato Holdings Corporation, Weber Packaging Solutions, Inc., Schreiner Group GmbH & Co., KG Diagramm, Halbach GmbH & Co., KG The Aenova Group, Shamrock Labels, Medline Industries, Inc., PlatinumCode, United Ad Label, Adampak Pte Ltd., Advance labeling Systems, Limited Majestic Labels, CC QLM Label Makers Pte Ltd., and Chicago Tag & Label, Inc.
- Which industry is expected to channel the majority of revenue to the healthcare and laboratory labels market?
The pharmaceutical industry is expected to channel the majority of revenue to the healthcare and laboratory labels market through the forecast period.
- What is the outlook on the healthcare and laboratory labels market?
The growth of the healthcare and laboratory labels market is majorly driven by rising awareness regarding preventable, medical errors ascribed to labels and the subsequent demand for effective and durable labeling solutions.
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Healthcare and Laboratory Labels Market Segmentation
- Medical Devices
- Blood Bank
- Hospital Services
- North America
- Latin America
- South Asia
- East Asia
- Middle East and Africa