Smart label is defined as the identification slip other than barcode that is installed on the package of the products which have advanced features such as QR codes, electronic article surveillance to provide product-related information to the users. Smart labels are popularly preferred over the conventional bar code system in growing industries such as logistics, retail, and FMCG. In the FMCG industry, RFID tags help to transport the perishable commodities. UPM Raflatac launched the RafMore label in 2019 that alter the conventional packaging into the connected packaging with the traceable feature.
Global Smart Labels Market on the basis of Technology can be segmented into Electronic Article Surveillance (EAS), RFID, Sensing Label, NFC, and Electronic Shelf Label (ESF).
While on the basis of the End-User Industry, the global smart labels market can be segmented into Healthcare, FMCG, Transport and Logistics, Retail, and Others.
Some of the players of the Smart Labels Market are 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
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.
Electronic Article Surveillance Be the Major Driver
The rise in the adoption of the Electronic Article Surveillance (EAS) is expected to drive the market growth of Smart Labels during the forecasted period. Major problems faced by several countries include shoplifting and robberies. Electronic Article Surveillance (EAS) is the leading surveillance solution against retail theft, removal of property from the office building or theft of library books. High-efficiency Electronic Article Surveillance (EAS) tags are majorly adopted by the clothing, footwear, cosmetics industry, and libraries that provide a better shopping experience with enhanced security. The application of this technology reduces the requirement for extensive surveillance in each area thus, saving a large amount of investment. The system under Electronic Article Surveillance (EAS) technology consists of three components: The deactivator or separator, electronic antenna, and an electronic tag. Printed electronic solutions is expected to play an important role as simple means of providing the surface with electronic functions while facilitating data transmission. In addition, the smart tags based on Electronic Article Surveillance (EAS) are being developed.
However, the cost associated with the installation of a smart label tracking system is proving to be a challenge that is hindering the market growth of Smart Labels during the forecasted period.
North America to Hold the Major Share
The Global Smart Labels Market on the basis of region is segmented into North America, South America, Europe, Middle East, and Africa, and the Asia Pacific.
North America dominates the smart labels markets majorly due to the presence of the small and big retail stores. The region dominates the market on the basis of revenue generation. United States is expected to show tremendous ground during the forecasted period as the rise in the demand for the improvement in the inventory management, consumer goods distribution system, and the asset tracking.
While Asia Pacific region is expected to witness fastest CAGR growth during forecasted period due to rapidly increasing manufacturing facilities and rise in the penetration of the Internet of Things (IoT) which is creating lucrative growth prospects for Smart Label Market in the region.
The outbreak of the Covid-19 pandemic and its subsequent lockdown and severe rules and regulations mandated by the government globally have impacted every industry and have severely disrupted the distribution channel. The Covid-19 pandemic had a positive impact on the Global Smart Labels Market as the FMCG products were being highly demanded. During the Pandemic the consumers were indulging in panic buying and stocking the essential commodities. In addition, e-commerce witness an increased in interest in the safe and traceable food. The supply chain of food is one of the fragmented and complex supply chains but there is ‘visibility gaps’ between the internal customer system and the initial supplier. Further, the increase in awareness on health and safety is expected to augment the market growth of the smart labels during the forecasted period. The demand for the healthcare industry also witnessed during the pandemic as the consumers were more conscious regarding their health and wanted to enhance their immunity to fight against the covid-19. Since the demand for these products was on a rise this, in turn, increased the demand for smart labels.