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    Breaking News

    New report analyzes security label sector

    Future Market Insights details the latest trends propelling this market.

    Related CONTENT
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    L&NW07.17.20
    A new report projects over 3% annual growth in the global security labels market, which will propel the total market size to over $45 billion by 2030. Expansion of the retail sector, evolving capabilities and changing consumer consciousness have collectively stimulated the growth of allied industries too.

    Demand to make retail more organized with improved and efficient inventory management is expected to increase demand for security labels. The study from Future Market Insights predicts that the ever-expanding food and beverage and pharmaceutical markets will propel the demand for advanced security labels that come to RFID and NFC technologies.

    Growing e-commerce and bulk buying have created a need for correct labeling to ensure proper asset tracking, tracking of warehouse locations, and safe storing of the product until it reaches the buyer. The need to differentiate products on shelves has compelled security label manufacturers to offer high-quality labels that satisfy the packaging and labeling objectives of their clients operating in retail and food markets.

    Use of security labels reduces the chances of package tampering, which ensures right delivery of products to consumers. Security labels also allow fast and reliable authentication of genuine products, which is essential for safeguarding customer’s interest.

    Identification of authentic products, compared to the counterfeit item, has been noted as the key market driver as it maintains product integrity. Analysts have assessed each of these factors in detail to ascertain them as market forces responsible for growth.

    "One of the challenges that brand owners face is maintaining and developing a positive brand image. Companies strive to achieve positive impression by improving product performance, reliability, and creating value. However, counterfeit products can tarnish the positive brand image and gray market of the products can result in margin shrinkage. To overcome the challenge, security labels are anticipated to play a vital role in authentication of products. This is likely to boost the demand for security labels in the years to come,” says an analyst.

    Key takeaways of the study:
    • Food and beverage industry is estimated to account for more than 2/5th of the security labels demand by 2030
    • Barcode labels will have an incremental opportunity of $5 billion by 2030
    • Plastic, as a raw material, estimated to account for 45% of the global market by value and is expected to reach slightly over $20 billion by 2030
    • VOID pattern type is estimated to account for more than 60% by value of the market share by 2030
    • Boxes and cartons estimated to account for half of the market share by 2030 owing to ease of application due to flat surface of boxes and cartons
    • East Asia is estimated to have an incremental opportunity of $6 billion by 2030 with presence of large number of packaging products manufacturers.
    • Unique Identification Technology and IoT to boost the demand for security labels
    RFID technology, which offers unique identification and real-time information, is expected to give security labels a much-needed overhaul. While it does increase the price of security labels, RFID enables accurate tracking of products. From date of manufacturing to expiry, asset tracking, and inventory management, the modern security labels are expected to simplify many issues for end users.

    This technology, coupled with Internet of Things and cloud computing technologies, can be used across verticals to enhance security labeling as the best solution for ironing out the creases in logistics and supply chain. Easy access to information about products, information about warehousing, storing, and final dispatch can be easily managed with such labels.

    RFID security labels are also expected to make lab work error-free as they largely remove the element of human interaction for reading, sorting, shelving. Such benefits are expected to favor market growth in the coming years.

    The short term impact of the COVID-19 pandemic can be felt through the shortage of raw material and disturbed supply chains in the security labels market. The pandemic has highlighted the need for it security in the pharmaceutical, healthcare, and R&D industry.

    The growing clinical trials and increasing diagnostics have created a need for security labels across labs and research and development centres. Increasing pressure to find a vaccine for COVID-19 will need accurate labeling of samples, thus generating demand for security labels. Investment by governments in these clinical trials across the globe is also expected to up the demand for security labels in indirect ways, too.
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    • Europe | North America
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    • Arrow Systems and Sihl form flexible packaging partnership

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    Breaking News
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