Market Size of Smart Label Industry
| 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 |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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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 behavioral changes that have arisen due to COVID-19 have brought a higher interest for 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.
- These labels are used as a tool to enable smart supply chains and are also playing 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, to be closer to the nearest level of efficiency, by manufacturers, 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 out of this scenario, leading 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, dirty, or wet environments.
