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    Breaking News

    Report says e-commerce a key driver for growing smart labels market

    Adoption of smart labels has also witnessed a sharp increase in the food industry.

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    11.05.19
    The global smart labels market is projected to record an impressive CAGR of ~13% during the forecast period (2019-2029), according to a new report from Future Market Insights.  Gains remain majorly driven by growing need for superior inventory and logistics management solutions, especially in the healthcare industry. Adoption of smart labels has also 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. Moreover, smart labels allow them to follow a wide range of products from conception to shelf, which in turn, is projected to boost the demand substantially.

    Key Takeaways of the Smart Labels Market Study
    • Significant growth of the e-commerce sector coupled with increasing use of communicative & connected packaging is bolstering the 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.
    • Study reports that demand for RFID and EAS labels is expected to grow at a CAGR of ~14% and ~13%, respectively during the predefined timeframe. This growth can be attributed to their rising application in inventory management, asset tracking, goods distribution, and record tracking.
    • Modern consumers demand more engaging features on the packaging which give 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 as compared to EAS and electronic shelf labels. RFID labels are highly preferred as they not only aid in ensuring consumer safety but also enhance brand integrity.
    “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 Future Market Insights analyst.

    Smart Labels Market to Benefit from Flourishing E-commerce Sector
    Over the past few years, the e-commerce sector has witnessed remarkable growth in both developed and developing economies. Changing customer spending patterns and rapid internet penetration are directly influencing the expansion of e-commerce. Thus, consistent demand for smart labels is likely to be generated by e-commerce for product tracking & tracing. To benefit the most out of this scenario, leading smart label manufacturers are launching advanced label solutions, particularly for the e-commerce sector. For instance:
    • In April 2019. Avery Dennison launched its On-Metal RFID solution to enable 100% tagging of inventory with quality accreditation from ARC.
    • In February 2019, UPM Raflatac introduced new RafMore label in the market. These smart labels transform traditional product packaging into connected packaging with a unique traceable identity.

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      Comprised of leading healthcare sector players, DoseID was established for the purpose of introducing an industry-wide standard.
      L&NW Staff 12.14.20

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      American Nuts embraces RFID-enabled ERC system

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      Avery Dennison introduces RFID inlay for high density conditions

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