The global smart labels market is projected to record a CAGR of ~13% during the forecast period 2019-2029, according to a study released by Future Market Insights, Valley Cottage, N.Y.
Gains remain driven by the growing need for superior inventory and logistics management solutions. Adoption of smart labels 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.
Key takeaways of the study:
- Significant growth of the e-commerce sector coupled with increasing use of communicative and connected packaging bolsters 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.
- Demand for RFID and EAS labels is expected to grow at a CAGR of ~14% and ~13%, respectively, during the pre-defined timeframe. This growth can be attributed to the rising application in inventory management, asset tracking, goods distribution and record tracking.
- Modern consumers demand more engaging features on the packaging, which gives 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 compared to EAS and electronic shelf labels.
“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,” says a report analyst.