Smart Label Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 15.67 Billion |
| Market Size (2029) | USD 33.40 Billion |
| CAGR (2024 - 2029) | 16.34 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Smart Label Market Analysis
The Smart Label Market size is estimated at USD 15.67 billion in 2024, and is expected to reach USD 33.40 billion by 2029, growing at a CAGR of 16.34% during the forecast period (2024-2029).
Smart labels are becoming one of the most popular technologies across the retail, healthcare, and logistics sectors and are viewed as an ideal means to achieve greater efficiencies and profitability while providing the authenticity of an item and its traceability from the warehouse to the distribution center throughout the supply chain.
- The changing consumer behavior and lifestyle have brought a higher interest in safe and traceable food on e-commerce platforms and raised public consciousness of health and safety in general. According to an IBM study, 71% of consumers are ready to pay an additional average premium of 37% for companies providing full transparency and traceability. While the food supply chain is one of the most complex and fragmented supply chains, 70% of firms have "visibility gaps" between the initial supplier and internal clients' systems.
- In April 2023, CCL Industries Inc. announced its acquisition of eAgile Inc., a provider of hardware and software solutions tailored for the healthcare sector. This acquisition also includes eAgile's expertise in RFID inlays integrated into labels and the intellectual property of Alert Systems ApS. The integration of eAgile is expected to bolster CCL Label's Healthcare & Specialty division, enhancing its RFID capabilities across the organization. In addition, Alert Systems ApS, a privately held company based in Denmark, specializes in anti-theft solutions for European retailers, complementing Checkpoint's merchandise availability solutions (MAS) product lines.
- These labels are used as a tool to enable smart supply chains. They play a vital role in the marketing and advertising of consumer products. This can be achieved through the provision of product information, as well as the analysis of consumer buying patterns that can be accessed from the data collected by these labels. Cost-cutting over the supply chain by manufacturers to be closer to the nearest level of efficiency has been a critical factor that has augmented the demand and prompted the proactive adoption of these solutions to gain the first-mover advantage in the individual end-user industry.
- Moreover, increasing 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 and tracing. To benefit the most from this scenario, smart label manufacturers are launching advanced label solutions, particularly for the e-commerce sector.
- The ability of a smart label to withstand harsh climatic conditions during shipping and exposure to sunlight plays an important role due to the dissolving nature of solvents used during printing. The labels should have the ability to face tough conditions during shipping, storage, or point-of-use, as many labels are subject to damage when exposed to sunlight, chemicals, and dirty or wet environments.
Smart Label Market Trends
Retail End User Industry to Hold Significant Market Share
- In the retail industry, smart labels are becoming increasingly popular for tracking and identifying merchandise. RFID (radio-frequency identification) or other technologies are used in these labels to track products throughout the supply chain and in-store. Smart labels have the potential to assist merchants in managing inventories more efficiently by delivering real-time information on stock levels and locations. Merchants can easily update product information on labels, which also enables more accurate pricing and marketing.
- According to the International Trade Administration, between 2023 and 2027, India is poised to boast a projected compound annual growth rate (CAGR) of 14.1% in its retail e-commerce sector. Not far behind, Argentina and Brazil are also making significant strides in the retail e-commerce industry.
- By incorporating RFID technology into e-commerce, firms can avoid mistakes like the available stock not matching the actual one, which results in a loss of sales and customer confidence, problems with customer shipments, and issues with a stock that does not integrate online shopping with the actual store or warehouse, which results in more complex management.
- NFC (near field communication) labels can be utilized in a variety of ways in the retail business to improve the customer shopping experience and increase efficiency. One application for NFC labels is electronic shelf labeling systems (ESL). Retailers can change product pricing and information in real time using a mobile device or PC with NFC technology embedded into these digital price tags. This saves time and resources while also lowering the chance of price errors.
- The players in the market are developing new solutions to cater to customers. For instance, in February 2023, Danavation Technologies Corp., a North American-founded and based technology provider of tiny e-paper displays, announced that the company received new contracts for four further installations of new digital smart labels. The firm mentioned installing digital smart labels in ten recent retail locations in Canada and the United States since the start of 2023.
- Overall, the future of the smart label market looks promising, with the potential to revolutionize the retail sector by offering real-time inventory tracking, improving customer engagement, and promoting sustainability. As retailers continue to adopt advanced technologies and seek innovative solutions to improve operational efficiency, the demand for smart label products is projected to grow in the coming years.
North America to Hold Major Share in the Market
- North America is one of the largest markets for smart labels across the world, with the United States accounting for a significant share of the region. The country's huge demand can be attributed to the vast presence of retail stores, both small and large. Retail goliaths like Walmart and other businesses are in charge in the United States, driving the uptick in activity and significantly boosting the country's growth in the smart label market. Walmart has been putting electronic identification tags on men's clothing, like jeans, as the retailer tries to gain more control over its inventory.
- In January 2023, Avery Dennison inked a deal to acquire Thermopatch, a specialist in labeling, embellishments, and transfers for the sports, workwear, and hospitality sectors. Following the acquisition, Thermopatch was set to integrate into Avery Dennison's Retail Branding and Information Solutions (RBIS) Apparel Solutions division. This strategic move positions Avery Dennison to leverage its collective industry expertise, emphasizing its quality service to propel growth in external embellishments.
- Food companies are using smart labels to connect with consumers by offering additional nutritional and ingredient information and helping to reduce food waste in the country. The USDA and FDA (Food and Drug Administration) announced a framework agreement to label cell-based meats and potentially other food products. These developments are expected to augment the size of the market studied in the country. Moreover, vendors in the country invest in technologies that drive greater traceability throughout their supply chains, with blockchain being increasingly used along with smart labels.
- The United States is also witnessing increasing employee theft and shoplifting, including organized retail crime. To address the alarming rise in retail crimes, stakeholders are developing smart labels based on RFID to track textiles and garments.
- The effects of new advancements in digital technologies have influenced the Canadian printing industry, making it more competitive and encouraging firms to invest in this domain. The adoption of new technologies, such as digital printing, integrated systems, customer interface software, and post-process automation, has enhanced operating efficiency and significantly improved the quality of products delivered to end users.
- Food and Consumer Products of Canada (FCPC) launched an innovative smart label that gives consumers instant and easy access to information that cannot be printed on product labels. This is a part of the Healthy Eating Strategy that the members of FCPC have undertaken by ushering in higher levels of transparency in the products that they offer to consumers. Many major companies in Canada have also committed to using smart labels to enhance the culture of transparency.
Smart Label Industry Overview
The global smart label market is fragmented, with the presence of major players like Avery Dennison Corporation, CCL Industries Inc., William Frick & Company, Honeywell International Inc., and Invengo Information Technology Co. Ltd. Players in the market are adopting strategies such as partnerships, agreements, and acquisitions to enhance their product offerings and gain a sustainable competitive advantage. For instance,
- In May 2024, Roambee debuted the logistics industry's pioneering 'peel-and-ship' smart label, powered by true 5G GPS technology. This 4-inch x 6-inch label redefines user interaction with its 'barcode-like' interface, harnessing 5G, GPS, and NIST-calibrated sensors for temperature, humidity, shock, and light. Tailored for one-time use, its disposable design grants enterprises unparalleled real-time oversight of secondary distribution channels, customer-direct shipments, and comprehensive product flow data, areas where conventional reusable trackers often lag.
- In June 2024, Ynvisible Interactive Inc., a provider of printed low-power e-paper display products, unveiled a strategic partnership with Hive-Zox, a Switzerland-based firm specializing in digital solutions for supply chain visibility. The collaboration aims to embed Ynvisible's e-paper displays into a compact, intelligent label tailored for monitoring pharmaceutical and healthcare shipments. Hive-Zox is poised to ramp up production, targeting an annual output exceeding 1 million units. Concurrently, Hive-Zox introduced its latest offering, the ConnectedLabel, a cost-effective, automated monitoring solution tailored for the pharmaceutical and healthcare sectors.
Smart Label Market Leaders
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Avery Dennison Corporation
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CCL Industries Inc.
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William Frick & Company
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Honeywell International Inc.
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Invengo Information Technology Co. Ltd
*Disclaimer: Major Players sorted in no particular order
Smart Label Market News
- February 2024: Sensos, a trailblazer in smart labels, concluded a USD 20 million Series A funding round. The funding aims to propel the development and commercialization of its iSIM-based cellular IoT smart label solution, tailored for asset tracking in the logistics sector. The funding was spearheaded by Magenta Venture Partners, with backing from JAL Ventures and participation from Israel Cargo Logistics and Sumitomo Corporation, further underlining the industry's interest.
- March 2024: Canon announced its dedication to solidifying its position as a key ally in the Digitally Printed Labels and Packaging sector. To underscore this commitment, Canon will unveil a new digital press and innovative product concepts, showcasing its strides toward this objective. Recognizing the pivotal role of labels and packaging in its growth strategy, Canon's exhibition stand will host a specialized zone, spotlighting live productions of labels and corrugated and folding carton applications.
Smart Label Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers/Consumers
4.2.3 Threat of New Entrants
4.2.4 Intensity of Competitive Rivalry
4.2.5 Threat of Substitutes
4.3 Industry Value Chain Analysis
4.4 Impact of COVID-19 on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increased Demand for Security and Tracking Solutions
5.2 Market Restraints
5.2.1 Lack of Ubiquitous Standards, Safety Concerns, and Inability to withstand Harsh Climatic Conditions
6. MARKET SEGMENTATION
6.1 By Technology
6.1.1 Electronic Article Surveillance (EAS)
6.1.2 RFID
6.1.3 Sensing Label
6.1.4 NFC
6.1.5 Electronic Shelf Label (ESL)
6.2 By End-user Industry
6.2.1 Retail
6.2.2 Healthcare and Pharmaceutical
6.2.3 Logistics
6.2.4 Manufacturing
6.2.5 Other End-user Industries
6.3 By Geography
6.3.1 North America
6.3.1.1 United States
6.3.1.2 Canada
6.3.2 Europe
6.3.2.1 United Kingdom
6.3.2.2 Germany
6.3.2.3 France
6.3.2.4 Rest of Europe
6.3.3 Asia-Pacific
6.3.3.1 China
6.3.3.2 India
6.3.3.3 Japan
6.3.3.4 South Korea
6.3.3.5 Rest of Asia-Pacific
6.3.4 Latin America
6.3.5 Middle East and Africa
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Avery Dennison Corporation
7.1.2 CCL Industries Inc.
7.1.3 William Frick & Company
7.1.4 Honeywell International Inc.
7.1.5 Invengo Information Technology Co. Ltd
7.1.6 Scanbuy Inc.
7.1.7 Sato Holdings Corp.
7.1.8 Alien Technology
7.1.9 Zebra Technologies Corp.
7.1.10 Roambee Corporation
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
Smart Label Industry Segmentation
The smart label market defines the revenues generated from technology such as electronic article surveillance (EAS), RFID, sensing labels, NFC, and electronic shelf labels (ESL) that are being used in various end-user industries globally. The study includes qualitative coverage of the most adopted strategies and an analysis of the key base indicators in emerging markets.
The smart label market is segmented by technology (electronic article surveillance [EAS], RFID, sensing labels, NFC, and electronic shelf labels [ESL]), end-user industry (retail, healthcare, pharmaceutical, logistics, and manufacturing), and geography (North America [United States and Canada], Europe [United Kingdom, Germany, France, and Rest of Europe], Asia-Pacific [China, India, Japan, South Korea, and Rest of Asia-Pacific], Latin America, and the Middle East, and Africa). The market sizes and forecasts are provided in terms of value in USD for all the segments.
| By Technology | |
| Electronic Article Surveillance (EAS) | |
| RFID | |
| Sensing Label | |
| NFC | |
| Electronic Shelf Label (ESL) |
| By End-user Industry | |
| Retail | |
| Healthcare and Pharmaceutical | |
| Logistics | |
| Manufacturing | |
| Other End-user Industries |
| By Geography | |||||||
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| Latin America | |||||||
| Middle East and Africa |
Smart Label Market Research FAQs
How big is the Smart Label Market?
The Smart Label Market size is expected to reach USD 15.67 billion in 2024 and grow at a CAGR of 16.34% to reach USD 33.40 billion by 2029.
What is the current Smart Label Market size?
In 2024, the Smart Label Market size is expected to reach USD 15.67 billion.
Who are the key players in Smart Label Market?
Avery Dennison Corporation, CCL Industries Inc., William Frick & Company, Honeywell International Inc. and Invengo Information Technology Co. Ltd are the major companies operating in the Smart Label Market.
Which is the fastest growing region in Smart Label Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Smart Label Market?
In 2024, the North America accounts for the largest market share in Smart Label Market.
What years does this Smart Label Market cover, and what was the market size in 2023?
In 2023, the Smart Label Market size was estimated at USD 13.11 billion. The report covers the Smart Label Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Smart Label Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Smart Label Industry Report
Statistics for the 2024 Smart Label market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Smart Label analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Smart Label Market Report Snapshots
