Smart Labels Market Expected to Reach $39.2 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Smart Labels Market," The Smart Labels Market was valued at $9 billion in 2021, and is estimated to reach $39.2 billion by 2031, growing at a CAGR of 15.8% from 2022 to 2031. 

In 2021, Asia-Pacific dominated the global smart labels market, in terms of revenue and LAMEA is expected to grow at a highest CAGR during the forecast period. Smart label, also called smart tag, is an extremely flat configured transponder under a conventional print-coded label, which includes chip, antenna, and bonding wires as a so-called inlay. 

The global smart labels market growth is driven by its ability to provide customers with detailed information about products using digital technology and smart devices. In addition, the increase in demand for smart labels is driven by its ability to provide real-time visibility of the product. Moreover, the rise in demand for effective anti-theft devices, owing to security concerns contributes to the significant rise in the demand for market.

Moreover, the prominent rise in consolidated industries and technological advancements proliferations associated with their significant use in applications, such as healthcare, & pharmaceuticals, logistics, retail inventory, food & beverages, and others, have further boosted the growth of the market. Thus, the various features of smart labels including real-time location tracing, re-programmability, and simultaneous identification & detailed information are expected to fuel the demand of the global market in various industries during the smart labels market forecast period.  

In addition, rapid surge in population and rapid urbanization have led to the growth of various industries such as retail, food & beverage, healthcare & pharmaceuticals, and others to meet the consumers’ increasing demands. These industries have various applications of smart labels, such as packaging, printing, and labels, which thereby fuels the growth and is expected to offer lucrative opportunities for the market. Furthermore, the rise in consumer access toward smartphones is growing the adoption of the market. The significant growth seen for the consolidated industries along with the technological advancements associated with the use of smart labels in various industries such as food & beverage, retail, logistics, healthcare, and pharmaceuticals contributes in expanding smart labels market size.

However, the outbreak of COVID-19 has led to a halt in construction and manufacturing activities across the globe. Halt in logistics services has led to a halt in the packaging industry, which, in turn, hindered growth of the smart labels market for a very small period. However, industries are gradually back on track and vaccine discovery has led to recovery of the market by mid-2021.  

On the contrary, smart labels enable real-time tracking of products throughout the supply chain. This allows businesses to have better visibility of their inventory, leading to more efficient logistics and reduced losses due to theft or misplacement. In addition, several players having significant smart labels market share are expanding their business worldwide, owing to augmented customer base, improved effective operations, expanded geographical reach, and developed product portfolio. This is predicted to lead to development of the industry. In addition, many major players in the global smart labels industry are designing their products considering convenience factors to increase their sales.

All such factors are expected to offer lucrative opportunities for the market. In addion, the smart labels come along with various features such as re-programmability, real time location tracing and simultaneous identification along with further advancements in technology along with the rise in e-commerce sales offers lucrative growth opportunities for the market.  The adoption of different smart label systems such as sensing labels is growing for food & beverage industry as it is effective in sensing the temperature and shelf life of the food items which in turn is growing the adoption of smart labels in the food & beverage industry which in turn is expected to offer lucrative smart labels market opportunities.

Key Findings of The Study 

• The report provides an extensive smart labels market analysis along with the current and emerging global smart labels market trends and dynamics.  

• Depending on product type, the RFID segment was the largest revenue generator in 2021. 

• By Application, the retail inventory segment generated the highest revenue in 2021. 

• On the basis of end user, the retail segment dominated the market in 2021.  

• Region wise, Asia-Pacific is anticipated to dominate the global smart labels market throughout the study period.