Global Smart Food and Beverage Label Market

The global food and beverage label market was valued at USD 12.1 Million in 2021, and it is expected to reach USD 50.1 Million in 2028, with a CAGR of 17.8% during the forecast period 2022-2028. The growth in smart food and beverage labeling improves with more and more payment on packaged food. Food authenticity evaluation has been needed rapidly in the food and beverage industry. The evaluation provides the uniqueness and safety of any food and beverage product that comes into the market. This evaluation is accomplished by using specific progressive methods and techniques.

What is Smart Food and Beverage Label?

Smart food and beverage labels encourage consumers to learn about a packaged food product by scanning a bar code or online searching. Additionally, several other food and beverage labels also use sensing technology by a label that can vary its color, allowing the consumer to know if the food is fit to eat. The change in the color of smart food labels appears whenever the chemicals present in these labels detect any form of microorganisms growing inside the food packet.

Growth Drivers

Increasing Consumer Awareness for Hygienic Packaged Foods and beverages

The spike in demand for packaged and perishable food and beverages products has grown massively in current times, not just in the advanced or developing countries but also in many low and middle-income regions worldwide, owing to the panic-stricken acquisition due to the ongoing disease COVID-19. As such, customers are widely conscious of the different norms declared by the World Health Organization to manage packaged foods hygienically packed and safe to consume. Packaged foods and beverages travel through different supply chain operations before reaching the retail outlet shelves. There is possible contamination of the food packets and beverages packs during the process. Smart labels can easily display the condition of food packets and beverage packs, supporting the consumer’s shopping experience program.

Opportunities

Increasing Adoption of NFC Technology

The cost of smart food and beverages labels has been an important factor, mainly when the market is at its beginning stage. According to a statement published by Thinfilm Electronics, the adoption of smart food and beverage labels is growing steadily and using a smartphone to operate the NFC tags and interact with the product. Further, NFC technology is evolving increasingly unrestricted in this market, which can propel the adoption rate of these labels. For example, in addition to the android smartphones, Apple extended its NFC functionalities beyond Apple Pay with iOS 11. iPhone 7 and the new android models display the credentials to read the NFC tags.

Restraints

Low mechanical susceptibility

The accurate functioning of smart labels is highly reliant on metal, liquid, and foil-based materials. Low mechanical susceptibility influences the functioning, further restraining the market growth of smart food and beverage labels. The connectivity between the antenna and the chips is disrupted during the transformation processes, which cannot read RFID. Also, the smart labels for the electronic machine markets must be highly customized. The smart labels needed for electronic machines must be resistant to metals. These customizations majorly influence smart labels’ market growth due to production restrictions.

High Cost of Production

The decline in market penetration has influenced the smart food and beverage labels’ market value. Smart labels are majorly used in premium products, which restricts the market growth. Also, market penetration is bounded due to the high production costs of smart labels. As small and medium-sized industries prefer using barcodes as they are cost-effective. Since technological evolution is not developed, many regions lack awareness about smart labels. The underdeveloped regions lack infrastructure, which impacts implementation technologies. Due to this, the smart label market value is reduced.

Pre Covid-19 Impact on Global Smart Food and Beverages Label Market

Before the covid-19 period, the smart food and beverage label market increased because customer spending patterns and rapid internet penetration directly affected the expansion of e-commerce. Thus, compatible demand for smart food and beverage labels is likely to be generated by e-commerce for product tracking and tracing. Leading smart label manufacturers are launching progressive label solutions, especially for the e-commerce sector, to satisfy the most from this scenario.

Covid-19 Impact on Global Smart Food and Beverages Label Market

The Covid-19 outbreak has affected all industries except healthcare and pharmaceuticals. In addition to this, smart food and beverage labels are in the developmental phase for many industries. Since the lockdowns, many offices have moved their operations from remote areas; hence work from home has expanded. However, working from home lacks an environment for invention and critical thought, which has influenced advancements in smart food and beverage labels, impacting growth. Also, the prevalence of the production units is working on fewer capacities due to low demand, supply chain disorders, and investment problems. Hence, the large production of smart food and beverage labels has been reduced, thus influencing the growth of smart food and beverage labels. In addition to this, the pandemic has developed a favorable influence on healthcare and specific FMCG products. As assessed national and international lockdowns, consumers started collecting the products due to panic, enhancing sales. Besides, several healthcare products have noticed growth as a larger population has become health conscious.

Post Covid-19 Impact on Global Smart Food and Beverages Label Market

After the covid-19 period, the behavioral changes that have arisen due to the pandemic have increased interest in safe and traceable food on e-commerce media and increased public consciousness of health and safety in public. According to an IBM study, 71% of buyers are ready to pay an extra average premium of 37% for businesses delivering full clarity and traceability.

Types Segmental Analysis

Based on Types segment Analysis, the market is classified into RFID, NFC, Temperature Sensing Labels and others. RFID labels maintained the largest market share in value while estimated active display labels to grow at the highest CAGR. Radiofrequency identification (RFID) is an alternative technology with the prospect of replacing standard Universal Product Code (UPC) barcodes. RFID allows the identification of an object from a distance without requiring a line of sight. The retail & inventory tracking segment accounted for the largest share in this market, in terms of volume and value, among all applications.

Application Segmental Analysis

Based on the application segment, the market is classified into food and Beverages. The food segment has monopolized the market and maintained the largest market share of 52% in 2021. Food segment works concentrate on “on-the-go” food products to compete globally with already established food and beverage label

Regional Segment Analysis

Based on the regional segmental analysis, the market is classified into North America, Europe, Asia-Pacific, South America and The Middle East & Africa. North America region Smart Food and Beverage Label Market is predicted to dominate revenue generation. Smart labels specifically desire to deliver digital access to knowledge in reduced time. As mentioned in a whitepaper printed in 2017 by the consumer goods forum, more than 300 million people in the U.S. have internet access. By 2018, smartphone license is anticipated to reach 80%, and 89% of consumers use tracking engines for purchase conclusions. It indicates an exponential increase in the market in North America. Apple’s updated operating system, iOS 11, offers iPhone cameras a built-in capability to read QR codes.

Competitors Analysis

The company includes Alien Technology LLC., Thin Film Electronics ASA, Honeywell International Inc., Avery Dennison Corporation, Sato Holding Corporation, CCL Industries, Zebra Technologies Corporation, Qliktag Software Inc., Label Insight, Inc., UWI Technology Limited and other prominent players in the global smart food and beverages label market. Key Stakeholders

• Market research and consulting firms
• Smart food and Beverage label Associations
• Regulatory bodies
• Smart food and Beverage label providers
• Suppliers
• Retailers

Recent Developments

• In January 2020- Checkpoint systems established Halo’s IoT software medium, offering task management and Omnichannel functionality. Checkpoint’s RFID solution for retail offers Halo software as a service medium that tracks ordered products of vendors across the retail supply chain by collecting data from RFID readers in allocation centers and stores.
• In August 2019 – Smartrac established Skyline tags and inlays for industrial on-metal applications. The new RAIN RFID (UHF) products offer an enhanced coverage of nearly 6 meters in real-world situations. Smartrac technology group declared that Alibaba Group would fund the company supporting both companies’ adherence to improving brand-protection systems.
• In June 2018 – SATO established LR4NX-FA automatic labeling system in China and the Asia Pacific. The LR4NX-FA topographies a dedicated and open structure with very platen rollers and full thermal heads to meet the requirements of industrial worksites.

Scope of the Report

Report Attribute	Details
Market Size Value in 2021	USD 12.1 Million
The revenue forecast in 2028	USD 50.1 Million
Growth Rate	CAGR of 17.8 % from 2022 to 2028.
Historical data	2018 – 2021
Forecast period	2022 – 2028
Region covered	North America, Europe, Asia-Pacific, South America, and Middle East & Africa
Key companies Profiled	The company includes are Alien Technology LLC., Thin Film Electronics ASA, Honeywell International Inc., Avery Dennison Corporation, Sato Holding Corporation, CCL Industries, Zebra Technologies Corporation, Qliktag Software Inc., Label Insight, Inc. and UWI Technology Limited are the key players in the global smart food and beverages label market.

Market Modelling

By Type

• RFID
• NFC
• Temperature Sensing Labels
• Others

By Applications

• Food
• Beverages

By Country

• US
• Canada
• Mexico

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