The global smart labels market is expected to grow at a compound annual growth rate of 10.03% over the forecast period to reach a market size of US$10.742 billion in 2026 from US$5.501 billion in 2019.
A smart label is an identification slip, other than a barcode, installed on the products’ package that incorporates advanced features like QR Codes, electronic article surveillance, among others, to provide product-related information to the customers. These labels act as a responsive electronic device, which is embedded in the object body as an identification slip. They are configured with a chip, antenna, and bonding wires which further help in the real-time tracking of assets and goods. The materials used to make these labels are mostly plastics, paper, and fibers. Smart labels come with advantageous features such as prevention against theft or counterfeiting of products, enabling real-time tracking of the products from the warehouse to the distribution center, automated reading, quick identification, re-programmability, high tolerance, and reduced errors. Hence, the retailer can manage inventory levels at a low cost. They also improve operational efficiency and aid in better marketing of the products by analyzing consumer buying behavior. Smart labels are thus being preferred over conventional bar code systems in growing industries such as retail, FMCG, and logistics. For instance, Alien Technology, LLC, has been producing RFID inlays to cater to the increasing demand for smart labels in the market.
The usage of smart labels is limitless. For instance, in healthcare, smart labels help in tracking inventory. Whereas, in pharmaceuticals, it helps in strategies to prevent criminals from breaking into drug stores to access prescription drugs and in proper waste disposal. In the FMCG industry, RFID tags help to transport perishable commodities. The technological advancements in the smart labels market have been a major driving force in the increasing use of smart labels across industries. For instance, PragmatIC, a specialist in flexible electronics, has been given a £1.3million contract from the United Kingdom Government’s Sustainable Innovation Fund for a state-of-the-art recycling scheme based on its ultra-low-cost NFC technology. Also, recent economic growth, rapid urbanization, and increasing per capita income of the people in developing countries have propelled the demand in the recent past. Many developed countries such as the United States are expected to show tremendous growth in the smart labels market as the increasing demand for improvements in inventory management, asset tracking, and consumer goods distribution system are on the rise.
The Global Smart Labels Market is segmented based on Technology, End-User Industry, and Geography.
Technological upgrades such as Big Data, the Internet of Things, and digital printing innovations are leading the growth of the smart print labels market. Due to the introduction of the Internet of Things (IoT), the scope for smart labels is expanding aggressively. Furthermore, increasing sales of electronic goods and growing awareness regarding consumer rights is a major reason for the success of the smart labels market. Many E-Commerce giants use smart label technology to manage their supply chain and logistics. For instance, E-commerce giants such as Amazon, and retail stores like Walmart, use smart labels to manage their supply chains and logistics. The key players in the market are adopting various strategies such as mergers and acquisitions, collaborations, etc. in order to maintain their position in the market. For instance, in 2019, Avery Dennison Corporation acquired an RFID division of Smartrac Technology to supplement its smart tags or label product portfolio.
The strict regulations imposed by the governments of developing countries concerning the product information to be labeled on the product itself are expected to fuel the demand for smart labels, globally. For instance, In India, as per the regulations of the Ministry of Commerce, in November 2000, the label of any product must have information such as the name and address of the importer, generic or common name of the commodity, the net quantity in terms of weights and measurement, month and year of packaging, the Maximum Retail Sales Price (MRP), etc.
The cost associated with the installation of the smart labels tracking systems is most likely to hinder the market growth in developing economies, as the costs incurred would make adopting this system an expensive investment. The lack of uniformity in the standardization system is further expected to halt the market growth over the forecast period.
Impact of COVID – 19 Pandemic
The COVID – 19 pandemic has had a positive impact on the global smart labels market as during the pandemic the sale of FMCG products has been on a rise as due to the nationwide lockdown people indulged in panic buying and stocking of essential commodities. In addition, the demand for Healthcare industry products has also noted a significant increase, as people across the globe were more conscious about their health owing to the pandemic. Since the demand for these products was on a rise this, in turn, increased the demand for smart labels.
Prominent/major key market players in the Global Smart Labels Market include Avery Dennison Corporation, CCL Industries Inc., Zebra Technologies Corporation, Smartrac N.V., Alien Technology, LLC, SATO Holdings Corporation, Muehlbauer Holding AG, Invengo Information Technology, Co., Ltd. and, Thin Film Electronics ASA.
The players in the Global Smart Labels Market are implementing various growth strategies to gain a competitive advantage over their competitors in this market. Major market players in the market have been covered along with their relative competitive strategies and the report also mentions recent deals and investments of different market players over the last few years. The company profiles section details the business overview, financial performance (public companies) for the past few years, key products and services being offered along with the recent deals and investments of these important players in the Global Smart Labels Market.
|The market size value in 2019||US$5.501 billion|
|The market size value in 2026||US$10.742 billion|
|Growth Rate||CAGR of 10.03% from 2019 to 2026|
|Forecast Unit (Value)||USD Billion|
|Segments covered||Technology, End-user Industry, And Geography|
|Regions covered||North America, South America, Europe, Middle East, and Africa, MEA, Asia Pacific|
|Companies covered||Avery Dennison Corporation, CCL Industries Inc., Zebra Technologies Corporation, Smartrac N.V., Alien Technology, SATO Holdings Co., Ltd., Muehlbauer Holding AG, Invengo Information Technology, Thin Film Electronics, Checkpoints Systems Inc.|
|Customization scope||Free report customization with purchase|
Frequently Asked Questions (FAQs)
Q1. What is the size of global smart labels market?
A1. Smart Labels market was valued at US$5.501 billion in the year 2019.
Q2. What will be the global smart labels market size by 2026?
A2. The global smart labels market is expected to reach a market size of US$10.742 billion by 2026.
Q3. What are the growth prospects for the global smart labels market?
A3. The smart labels market is expected to grow at a CAGR of 10.03% over the forecast period.
Q4. Who are the major players in the smart labels market?
A4. Prominent/major key market players in the global smart labels market include Avery Dennison Corporation, CCL Industries Inc., Zebra Technologies Corporation, Smartrac N.V., Alien Technology, among others.
Q5. What factors are anticipated to drive the smart labels market growth?
A5. The technological advancements in the smart labels market have been a major driving force in the increasing use of smart labels across industries.