Steve Katz, Contributing Editor09.01.22
Labels get a lot of attention for how they look. However, oftentimes they’re more than just a pretty face. When labels and packaging provide functionality – or incorporate an exchange of data – they are considered “smart.”
Used as an umbrella term for packaging that uses technology to transcend product identification and decoration, smart labels include those that utilize RFID, NFC, QR codes or other applications that can transmit information. End-uses for smart labels run the gamut, and, to name just a few, brand owners are finding success in improving food and pharmaceutical safety, logistics accuracy, and enhancing a brand’s story.
Smart labels are a growing segment of the industry. In 2020, the global smart labels market size was $8085.8 million, and it is expected to reach $22,850 million by the end of 2027, with a CAGR of 16.0% from 2021-to 2027, according to Valuates Reports, a market research firm.
Factors driving the growth of the smart labels market include benefits such as the need to reduce food wastage through tracking the quantity of each product, enhanced food safety by tracking movement throughout the supply chain, and the need to prevent counterfeit foods. All are expected to continue to drive the growth of the smart labels market, the firm reports.
With regard to reducing food waste and improving food safety, these labels can trace the freshness of the product and then make this information visible to customers and suppliers. As a result, steps can be taken throughout the supply chain to prevent wastage.
Smart labels are also playing a vital role in the marketing and advertising of consumer products. This, in turn, is expected to further fuel market growth, Valuates Reports says. These labels add a functional element to packaging by providing a unique digital identity for everyday products that can be used to connect supply chains, optimize inventory, and create a unique consumer experience.
“The use of smart labels on food packaging is becoming increasingly popular among manufacturers,” according to Valuates Reports. “A growing market trend is customers’ growing interest in the ethical credentials and health benefits of food and beverages. With the increased information capacity of smart labels, more data about the health and ethics of food and beverages can be presented.”
Valuates Reports shares additional information regarding smart label market projections: Based on type, the RFID segment is expected to be the most lucrative, while based on application, the retail segment is expected to be the most lucrative. The retail industry uses RFID technology, and it now accounts for the highest number of smart label and tag volume.
Based on region, Asia Pacific is expected to be the most profitable, due to an increase in potential startups, an increase in disposable income, an increase in urbanization and industrialization, and overall growth in the retail and health and pharmaceutical industries.
L&NW: What makes a label “smart,” and what are the benefits of smart labels?
Scott Conrad (SC): To me, smart labels are any label that offers functionality to the packaging outside of normal branding or informational labeling. This could be anything from a label displaying a QR code, a tamper-evident security label, to peel-reseal functionality. Benefits of smart labeling will vary based on which type of smart label you encounter. For example, a QR code could be used to provide a link to additional nutritional or sustainability information regarding a food product to the consumer. An intact tamper-evident label would let that same customer know that no one has tampered with their food item between the production facility and their table. Both of these functions – in their own way – lead to higher brand impact and customer satisfaction.
L&NW: Are there any notable trends in the smart labeling space? What types of smart labels are experiencing growth?
SC: A big growth area of smart labeling is with food safety and sustainability. In light of the Covid-19 pandemic, consumers are more aware than ever of the impact food safety plays in the health and well-being of their family. Consumers want to know the food they are consuming has not been tampered with from the time it left the restaurant or packaging facility until it reaches their table.
Something as simple as a tamper-evident closure seal on food packaging goes a long way to making customers satisfied in these cases. Consumers are also becoming more and more concerned with sustainability. QR codes linked to sustainable sourcing and food production information are increasingly popular with brands. QR codes are a great way for companies to document carbon footprint data of their packaging and product. This information is becoming important to a new generation of consumers.
L&NW: What are some end-use markets that are a good fit for smart labels? Are there certain smart label end-use applications gaining popularity?
SC: Food packaging is one of the largest end-use segments for smart labels within the UPM Raflatac portfolio. QR codes on various labels are becoming more and more common.
L&NW: What does the future hold for smart labels?
SC: I believe we will continue to see the adoption of smart labeling throughout the packaging industry, and most notably, the food industry. The biggest area for growth will be in the tamper-evident and security space.
The Covid-19 pandemic saw a huge growth in utilization of third-party restaurant delivery services. While restaurants are back open, delivery services continue to see a much higher utilization rate than they did before the pandemic. More and more consumers are starting to see pressure sensitive labels on the outside of the bag, box or container of delivered food. These closure tabs add dual functionality that benefits the restaurants, delivery drivers, and most importantly the consumers. The labels not only seal the bag but also offer a sense of security to the consumer knowing their food has not been touched since it left the restaurant.
Brand security is also a very bright spot for the future of smart labeling. More than ever, we are seeing the consumer goods market flooded with knock-offs and replicas. A label containing a hologram or other security features is a great way for brands to protect their goods and give customers a sense of security knowing they purchased a genuine product.
Compliance with prescribed medications is crucial for the success of a therapy – especially in the case of clinical trials. Digital tools, such as Medication Adherence Monitoring, allow pharmaceutical manufacturers to track compliance of their trial participants automatically. With its original 32-cavity Smart Blister Wallet, Schreiner MediPharm provided innovative digital support. Now, the series has been enhanced to include a 64-cavity version whose doses, like its predecessor, can be individually tracked.
The Smart Blister Wallet can be implemented for all blister designs, as well as for two- or multiple-fold blisters. This prolongs the period of time during which the wallet can be used, and enables extended integration of several dosage strengths. Schreiner MediPharm supplies the cardboard box, including the integrated conductive tracks and printed circuit board, to the pharmaceutical manufacturer or contract manufacturing organization (CMO), which can process the smart packaging as it would a typical blister package.
For patients and healthcare professionals, the extendable version of the Smart Blister Wallet is as convenient to use as its 32-cavity counterpart, affording easy push-through removal of tablets and simple NFC-based data reading at a single point on the wallet, regardless of the number of blister cards it contains.
The benefits for clinical research are obvious. For instance, the digital Smart Blister Wallet delivers enhanced and more reliable data quality, reduces trial failure rates due to non-adherence, helps reduce trial periods and costs, and accelerates approval and time to market for new drugs. The smart wallets also enable more efficient processes by eliminating manual tasks such as by-hand documentation and pill counting.
According to Covectra, StellaGuard is the only security device in the market that enables the consumer direct access to confirm authenticity of a product, either at the point of purchase or prior to purchase.
“StellaGuard is a game-changer for brands looking for a highly secure anti-counterfeiting technology to serialize products,” explains Ron Ducharme, vice president at Covectra. “Unlike current technologies, StellaGuard is singular in nature – each security labeling device is uniquely protected. Counterfeiters count on static images that continuously repeat, which are easy to reproduce. Each StellaGuard label has a non-reproducible film that combines both a covert feature of holographic “stars” that create a random, non-repeatable, three-dimensional pattern, as well as an overt feature of a randomly serialized QR code. A simple scanning of the QR code by the consumer using the StellaGuard mobile app can immediately authenticate the product.”
The new AD Slim DF EM4425 tag is designed for logistics, medical and industrial use cases while also offering customer engagement features. Based on Avery Dennison’s successful Dual Frequency product line, the inlay combines excellent performance with a unique dual-frequency capability. Operating in both HF and UHF RFID frequency ranges, it delivers significant cost advantages compared to using two separate, single-frequency inlays.
Dual-frequency provides shared memory functionality, which allows both UHF and HF protocols to update product information in real time. This enables all-in-one solutions for inventory management and product authentication, allowing for a consistent customer experience regardless of channel.
Customers can use the inlay’s RAIN RFID technology to establish a cost-effective inventory and supply chain management system. The extended read ranges of UHF enable opportunities in warehouse management, tracking valuable goods and returnable transport item use cases. In tandem, the NFC technology, powered by atma.io from Avery Dennison’s connected product cloud, can be utilized for further product information, inspection, validation, or providing end user-facing information such as user manuals, assembly instructions, CO2 footprint details, Return Merchandise Authorization (RMA) instructions, and more.
The combination of the AD Slim DF inlay with atma.io can help customers combat product counterfeits and protect brand equity by enabling different stakeholders in the supply chain to authenticate products along the journey. Additionally, end users can easily and securely authenticate products post-purchase to support returns and re-commerce by simply tapping their NFC enabled smartphones on the product with the AD Slim DF inlay.
“AD Slim meets the needs for a wide range of medical and industrial item-level use cases. Our latest dual frequency inlays are highly cost-efficient, unlocking RFID value for inventory management applications while enabling brands to combat counterfeits and deliver specific consumer experiences. Powered by atma.io, companies can benefit from complete visibility of their items from source to consumer and beyond,” says Max Winograd, VP connected products at Avery Dennison Smartrac.
The AD Slim DF EM4425 tag has a compact form factor (2.921" x 0.421"), which can be easily converted into end-application usage, and is available in wet delivery format.
This inlay comes with EM Microelectronic’s echo-V IC, which is equipped with 2,048 bits of fully shared user memory, accessible via both UHF RFID and HF frequencies, enabling the use of widely available readers (NFC-enabled smartphones) as supplements to dedicated UHF RFID or HF reader infrastructures.
“The AD Slim DF is an ideal option for deploying the unique benefits of our em|echo-V combined RAIN RFID – NFC chips, enabling a complete integration of the end-user experience with the supply chain,” states Pierre Muller, RFID BU leader at EM Microelectronic. “We are excited about the cooperation with Avery Dennison, building on our decades-long partnership to drive market innovation.” The majority of Avery Dennison Smartrac inlays are compliant with ISO 9001:2015 Quality Management and ISO 14001:2015 Environmental Management, which ensure a reliable and RFID product.
Used as an umbrella term for packaging that uses technology to transcend product identification and decoration, smart labels include those that utilize RFID, NFC, QR codes or other applications that can transmit information. End-uses for smart labels run the gamut, and, to name just a few, brand owners are finding success in improving food and pharmaceutical safety, logistics accuracy, and enhancing a brand’s story.
Smart labels are a growing segment of the industry. In 2020, the global smart labels market size was $8085.8 million, and it is expected to reach $22,850 million by the end of 2027, with a CAGR of 16.0% from 2021-to 2027, according to Valuates Reports, a market research firm.
Factors driving the growth of the smart labels market include benefits such as the need to reduce food wastage through tracking the quantity of each product, enhanced food safety by tracking movement throughout the supply chain, and the need to prevent counterfeit foods. All are expected to continue to drive the growth of the smart labels market, the firm reports.
With regard to reducing food waste and improving food safety, these labels can trace the freshness of the product and then make this information visible to customers and suppliers. As a result, steps can be taken throughout the supply chain to prevent wastage.
Smart labels are also playing a vital role in the marketing and advertising of consumer products. This, in turn, is expected to further fuel market growth, Valuates Reports says. These labels add a functional element to packaging by providing a unique digital identity for everyday products that can be used to connect supply chains, optimize inventory, and create a unique consumer experience.
“The use of smart labels on food packaging is becoming increasingly popular among manufacturers,” according to Valuates Reports. “A growing market trend is customers’ growing interest in the ethical credentials and health benefits of food and beverages. With the increased information capacity of smart labels, more data about the health and ethics of food and beverages can be presented.”
Valuates Reports shares additional information regarding smart label market projections: Based on type, the RFID segment is expected to be the most lucrative, while based on application, the retail segment is expected to be the most lucrative. The retail industry uses RFID technology, and it now accounts for the highest number of smart label and tag volume.
Based on region, Asia Pacific is expected to be the most profitable, due to an increase in potential startups, an increase in disposable income, an increase in urbanization and industrialization, and overall growth in the retail and health and pharmaceutical industries.
Getting smart with UPM Raflatac
L&NW caught up with Scott Conrad, senior product manager, UPM Raflatac, Americas, to discuss smart labels, their role in the narrow web market, and their outlook for the future.L&NW: What makes a label “smart,” and what are the benefits of smart labels?
Scott Conrad (SC): To me, smart labels are any label that offers functionality to the packaging outside of normal branding or informational labeling. This could be anything from a label displaying a QR code, a tamper-evident security label, to peel-reseal functionality. Benefits of smart labeling will vary based on which type of smart label you encounter. For example, a QR code could be used to provide a link to additional nutritional or sustainability information regarding a food product to the consumer. An intact tamper-evident label would let that same customer know that no one has tampered with their food item between the production facility and their table. Both of these functions – in their own way – lead to higher brand impact and customer satisfaction.
L&NW: Are there any notable trends in the smart labeling space? What types of smart labels are experiencing growth?
SC: A big growth area of smart labeling is with food safety and sustainability. In light of the Covid-19 pandemic, consumers are more aware than ever of the impact food safety plays in the health and well-being of their family. Consumers want to know the food they are consuming has not been tampered with from the time it left the restaurant or packaging facility until it reaches their table.
Something as simple as a tamper-evident closure seal on food packaging goes a long way to making customers satisfied in these cases. Consumers are also becoming more and more concerned with sustainability. QR codes linked to sustainable sourcing and food production information are increasingly popular with brands. QR codes are a great way for companies to document carbon footprint data of their packaging and product. This information is becoming important to a new generation of consumers.
L&NW: What are some end-use markets that are a good fit for smart labels? Are there certain smart label end-use applications gaining popularity?
SC: Food packaging is one of the largest end-use segments for smart labels within the UPM Raflatac portfolio. QR codes on various labels are becoming more and more common.
L&NW: What does the future hold for smart labels?
SC: I believe we will continue to see the adoption of smart labeling throughout the packaging industry, and most notably, the food industry. The biggest area for growth will be in the tamper-evident and security space.
The Covid-19 pandemic saw a huge growth in utilization of third-party restaurant delivery services. While restaurants are back open, delivery services continue to see a much higher utilization rate than they did before the pandemic. More and more consumers are starting to see pressure sensitive labels on the outside of the bag, box or container of delivered food. These closure tabs add dual functionality that benefits the restaurants, delivery drivers, and most importantly the consumers. The labels not only seal the bag but also offer a sense of security to the consumer knowing their food has not been touched since it left the restaurant.
Brand security is also a very bright spot for the future of smart labeling. More than ever, we are seeing the consumer goods market flooded with knock-offs and replicas. A label containing a hologram or other security features is a great way for brands to protect their goods and give customers a sense of security knowing they purchased a genuine product.
Schreiner MediPharm’s enhanced Smart Blister Wallet
Schreiner MediPharm, the Germany-based developer of innovative functional labels for the healthcare industry, recently launched an enhanced version of its Smart Blister Wallet, which allows pharmaceutical manufacturers to automatically track clinical trial compliance. The solution is now available with up to 64 cavities – double the previous maximum.Compliance with prescribed medications is crucial for the success of a therapy – especially in the case of clinical trials. Digital tools, such as Medication Adherence Monitoring, allow pharmaceutical manufacturers to track compliance of their trial participants automatically. With its original 32-cavity Smart Blister Wallet, Schreiner MediPharm provided innovative digital support. Now, the series has been enhanced to include a 64-cavity version whose doses, like its predecessor, can be individually tracked.
The Smart Blister Wallet can be implemented for all blister designs, as well as for two- or multiple-fold blisters. This prolongs the period of time during which the wallet can be used, and enables extended integration of several dosage strengths. Schreiner MediPharm supplies the cardboard box, including the integrated conductive tracks and printed circuit board, to the pharmaceutical manufacturer or contract manufacturing organization (CMO), which can process the smart packaging as it would a typical blister package.
For patients and healthcare professionals, the extendable version of the Smart Blister Wallet is as convenient to use as its 32-cavity counterpart, affording easy push-through removal of tablets and simple NFC-based data reading at a single point on the wallet, regardless of the number of blister cards it contains.
The benefits for clinical research are obvious. For instance, the digital Smart Blister Wallet delivers enhanced and more reliable data quality, reduces trial failure rates due to non-adherence, helps reduce trial periods and costs, and accelerates approval and time to market for new drugs. The smart wallets also enable more efficient processes by eliminating manual tasks such as by-hand documentation and pill counting.
Smart Security
Covectra, a specialist in track-and-trace solutions, was recently issued US Patent Number 11,295,126 by the United States patent Office (USPTO) for its StellaGuard security labeling device. StellaGuard is both a smart label as well as a security label that offers a dual layer of protection – both overt and covert technology – in a single label.According to Covectra, StellaGuard is the only security device in the market that enables the consumer direct access to confirm authenticity of a product, either at the point of purchase or prior to purchase.
“StellaGuard is a game-changer for brands looking for a highly secure anti-counterfeiting technology to serialize products,” explains Ron Ducharme, vice president at Covectra. “Unlike current technologies, StellaGuard is singular in nature – each security labeling device is uniquely protected. Counterfeiters count on static images that continuously repeat, which are easy to reproduce. Each StellaGuard label has a non-reproducible film that combines both a covert feature of holographic “stars” that create a random, non-repeatable, three-dimensional pattern, as well as an overt feature of a randomly serialized QR code. A simple scanning of the QR code by the consumer using the StellaGuard mobile app can immediately authenticate the product.”
Dual-Frequency RFID Inlay
Avery Dennison has launched another addition to its expanding dual-frequency (DF) range of RFID inlays, which provides combined NFC (HF) and RAIN RFID (UHF) functionality for cost-effective item-level tagging in a slimmed-down form factor.The new AD Slim DF EM4425 tag is designed for logistics, medical and industrial use cases while also offering customer engagement features. Based on Avery Dennison’s successful Dual Frequency product line, the inlay combines excellent performance with a unique dual-frequency capability. Operating in both HF and UHF RFID frequency ranges, it delivers significant cost advantages compared to using two separate, single-frequency inlays.
Dual-frequency provides shared memory functionality, which allows both UHF and HF protocols to update product information in real time. This enables all-in-one solutions for inventory management and product authentication, allowing for a consistent customer experience regardless of channel.
Customers can use the inlay’s RAIN RFID technology to establish a cost-effective inventory and supply chain management system. The extended read ranges of UHF enable opportunities in warehouse management, tracking valuable goods and returnable transport item use cases. In tandem, the NFC technology, powered by atma.io from Avery Dennison’s connected product cloud, can be utilized for further product information, inspection, validation, or providing end user-facing information such as user manuals, assembly instructions, CO2 footprint details, Return Merchandise Authorization (RMA) instructions, and more.
The combination of the AD Slim DF inlay with atma.io can help customers combat product counterfeits and protect brand equity by enabling different stakeholders in the supply chain to authenticate products along the journey. Additionally, end users can easily and securely authenticate products post-purchase to support returns and re-commerce by simply tapping their NFC enabled smartphones on the product with the AD Slim DF inlay.
“AD Slim meets the needs for a wide range of medical and industrial item-level use cases. Our latest dual frequency inlays are highly cost-efficient, unlocking RFID value for inventory management applications while enabling brands to combat counterfeits and deliver specific consumer experiences. Powered by atma.io, companies can benefit from complete visibility of their items from source to consumer and beyond,” says Max Winograd, VP connected products at Avery Dennison Smartrac.
The AD Slim DF EM4425 tag has a compact form factor (2.921" x 0.421"), which can be easily converted into end-application usage, and is available in wet delivery format.
This inlay comes with EM Microelectronic’s echo-V IC, which is equipped with 2,048 bits of fully shared user memory, accessible via both UHF RFID and HF frequencies, enabling the use of widely available readers (NFC-enabled smartphones) as supplements to dedicated UHF RFID or HF reader infrastructures.
“The AD Slim DF is an ideal option for deploying the unique benefits of our em|echo-V combined RAIN RFID – NFC chips, enabling a complete integration of the end-user experience with the supply chain,” states Pierre Muller, RFID BU leader at EM Microelectronic. “We are excited about the cooperation with Avery Dennison, building on our decades-long partnership to drive market innovation.” The majority of Avery Dennison Smartrac inlays are compliant with ISO 9001:2015 Quality Management and ISO 14001:2015 Environmental Management, which ensure a reliable and RFID product.