Smart Labels Market Analysis by Technology (Electronic Article Surveillance (EAS) Security, RFID, Sensing Labels, Near Field Communication Tag, and QR Code/2D Barcode); and by End-User (Retail, Healthcare & Pharmaceuticals, Food & Beverages, Consumer Electronics, Supply Chain & Logistics, and Transportation) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2035
Buy Now Report ID: 4836 | Published Date: Apr 17, 2023
The global smart labels market size is estimated to reach ~USD 121.77 Billion by the end of 2035 by growing at a CAGR of ~20.65% over the forecast period, i.e., 2023 – 2035. In addition to this, in the year 2022, the market size of smart labels was ~USD 12.8 Billion. The growth of the market can be attributed to growing adoption of cloud by organizations. About 93% of US businesses were employing cloud services in 2022. In contrast, approximately 66% of business infrastructure was hosted in the cloud. Hence, the demand for smart labels is estimated to increase with the growing adoption of cloud, since a smart label solution makes use of the cloud's capabilities to make the packaging and the content accessible online.
The QR code is one of the smart labels that is most frequently used. The number of smartphone users that scanned a QR code on their mobile devices increased by about 25% from 2020 to 2022 in the United States, where there were about 88 million smartphone users. By 2025, there are expected to be over 99 million Americans using mobile QR code scanners, with usage expected to continue to increase. One could quickly add this unobtrusive square to the product labels so that buyers may scan them with their mobile devices. The QR code could point someone in any direction after being scanned, including to a digital voucher, business website, or an invitation to download any app.
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~20.65% |
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Base Year Market Size (2022) |
~ USD 12.8 Billion |
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Forecast Year Market Size (2035) |
~ USD 121.77 Billion |
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Regional Scope |
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Growth Drivers
Growing Waste of Food & Beverages - Each year, more than 29% of food is lost or squandered, globally. Food and beverage companies are able to communicate with their customers directly owing to QR codes. These could be used to provide facts about where food comes from, how it is transported, and even in-depth nutritional information that wouldn't fit on a typical label. Moreover, several businesses utilize other smart labels in addition to QR codes. A further choice is the Time Temperature Indicator (TTI), which use color-changing technology to show how long a product has been in transit, whether it has been stored at the proper temperatures, and how much longer it has to go before expiring. Hence, this reduces the wastage of food & beverages.
Protect Against Counterfeiters - Counterfeiters have an impact on almost every industry to some extent. The CDC believes that up to 41% of pharmaceuticals sold in low- and middle-income nations are fake drugs. Consumer goods are also at risk; every year, U.S. Immigration and Customs Enforcement intercepts counterfeit goods worth millions of dollars. These fake goods present a significant risk to public health and safety in both situations.
Surge in Adoption of IoT - Almost 14 billion IoT devices are currently online worldwide. By 2030, the number of active IoT devices is anticipated to double.
Growth in Adoption of Smartphones - By 2023, there are projected to be about 5 billion smartphone users worldwide, which would also mean that approximately 85 percent of people would be smartphone owners. With the help of smartphones, reading barcode has become very easy. Hence, large number of people are able to scan the barcode efficiently. Therefore, this factor is estimated to boost the growth of the market over the forecast period.
Upsurge in Company Initiatives - In July 2022, Oli-Tec created a brand-new smart label technology for goods that mimics the packaged good's decomposition cycle and is appropriate for time- and temperature-sensitive goods with a shelf life of five to fifteen days. Any product that is impacted by temperature and time deterioration may utilize the label; this includes goods from the food, pharmaceutical, and cosmetics industries.
Challenges
The global smart labels market is segmented and analyzed for demand and supply by end-user into retail, healthcare & pharmaceuticals, food & beverages, consumer electronics, supply chain & logistics, and transportation. Out of which, the retail segment is anticipated to garner the highest revenue by the end of 2035. The growth of the segment can be attributed to growing demand for e-commerce among people. Almost 3 billion people were anticipated to make online purchases in 2022. The world population is projected to be about 7 billion as of January 2023. That indicates that at least 27% of people worldwide make purchases online to meet their needs. The e-commerce and also m-commerce industries' breakthroughs and convergence are causing retailers to reevaluate their ideas and products, which is causing the global retail environment to change every day. Since a few years ago, the retail industry has changed to make use of RFID technology, which accounts for the majority of labels and tags produced to this day. Retailers could now better communicate with customers, apply anti-counterfeiting measures, and integrate customer experience into the Omni channel environment owing to this label technology. These elements fuel the retail sector's demand for intelligent labelling.
The global smart labels market is also segmented and analyzed for demand and supply by technology into electronic article surveillance (EAS) security, RFID, sensing labels, near field communication tag, and QR code/2D barcode. Amongst which, the RFID segment is expected to have the significant growth over the forecast period. Radio frequency is used by RFID tags, a sort of tracking technology, to locate, recognize, follow, and communicate with objects and people. RFID tags could contain a variety of data, including serial numbers, a brief description, and even entire pages of information. Hence, owing to their advantages their preference is high among organizations. Cryptographic security elements are included in some RFID tags to provide a high level of verification and authentication. Low frequency (LF), high frequency (HF), and ultra-high frequency (UHF) radio frequencies are typically used to identify RFID tags (UHF).
Our in-depth analysis of the global smart labels market includes the following segments:
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By Technology |
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By End-User |
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The market share of smart labels in North America, amongst the market in all the other regions, is projected to have the highest growth, backed by growing use of internet along with increasing use of smart labels in asset and product tracking systems. It was predicted that between 2023 and 2028, there would be an additional about 42 million internet users in North America. The total user base is estimated to grow to approximately 497 million users in 2028, marking the fifth year in a row that it has done so. Other reasons that manufacturers and merchants are being compelled to employ smart labels for product labelling include rising labor costs and problems with price integrity. Also, a number of businesses from other sectors have launched initiatives in this region to boost the market for smart labels. In addition, manufacturers and retailers are using smart labels, such as RFID, EAS, and NFC, extensively. They could track shipping goods owing to this, which opens up a number of options for market players in this region to flourish. In addition, the growing adoption of digital technology across numerous industries would support the market expansion for smart labels in the years to come.
The Asia Pacific smart labels market is estimated to be the second largest, to have the highest growth. Since businesses are more concerned about security, there is an increase in demand for effective anti-theft technologies, which has had a big impact on the market for smart labels in this region. Throughout the projected period, characteristics including simultaneous identification, real-time location tracking, re-programmability, and detailed real-time information would considerably aid in the expansion of the smart labels market in Asia Pacific. Moreover, other factors which are estimated to boost the growth of the market in this region are growing disposable income, and rise in use of e-commerce websites in order to purchase goods.
Additionally, the market in Europe region is also estimated to have significant growth over the forecast period. The growth of the market can be attributed to growing technology advancement in this region. A variety of opportunities are presented by developments such as the Internet of Things, industrial data, advanced manufacturing, robots, and artificial intelligence that would allow European industry to strengthen its position as a leader in the developing markets for future goods and services. Moreover, the penetration of mobile phones is also high in this region which has influenced people to purchase more goods online.
A pioneer in specialty label, security, and packaging solutions for large enterprises, governmental organisations, small businesses, and consumers, CCL Industries Inc. ("CCL") recently announced the acquisition of eAgile Inc. ("eAgile") and the intellectual property of Alert Systems ApS.
Portable Technology Solutions, LLC (PTS), a developer of mobile data gathering software and solutions, has revealed that Alien Technology, LLC’s ALR-H460 portable, rugged RFID reader is supported by its TracerPlus mobile software. TracerPlus is enterprise-class mobile and RFID software that works with a variety of home and office gear. With no programming necessary, TracerPlus may be customised to meet the exact demands of any user.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Sadaf Naaz, Mohd Shadab
Ans: The major factors driving the growth of the market are growing waste of food & beverages, protect against counterfeiters, surge in adoption of IoT, and others.
Ans: The market size of smart labels is anticipated to attain a CAGR of ~20.65% over the forecast period, i.e., 2023 – 2035.
Ans: High cost of devices, functional abilities and mechanical susceptibility, and growing cyber risk are estimated to be the growth hindering factors for the market expansion.
Ans: The market in the North American region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Ans: The major players in the market are Avery Dennison Corporation, Advantech Co., Ltd., Checkpoint Systems, Inc., Alien Technology, LLC, and more.
Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by technology, end-user, and by region.
Ans: The retail segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
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