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Rising Need for Quick Freshness Assessment is Expected to Propel Demand for Smart Labels.
The global spoil detection-based smart label market was valued at US$ 1.5 billion in 2023. According to Persistence Market Research, sales of spoil detection-based smart labels are expected to reach US$ 4.8 billion by 2033, expanding at a CAGR of 12% from 2023 to 2033.
The growing inclination of customers toward hygienic food products and the need for swift freshness assessment is projected to be key factors fueling the demand for spoil detection-based smart labels in the market throughout the forecast period.
In recent years, the increased number of food and pharmaceutical recalls has sparked global awareness regarding the critical challenges involved in maintaining safe temperature ranges for the production, handling, and distribution of specific cold chain goods. For example,
According to the IOF2020 newsletter, an estimated 1.3 billion tons of food is wasted annually. These labels have the potential to reduce food waste by enabling the tracking of product freshness and providing customers and suppliers with transparent information. This visibility empowers stakeholders to take proactive measures to prevent food wastage.
The adoption of smart labels in food packaging by manufacturers is experiencing widespread growth. There is an increasing consumer interest in the ethical aspects and health benefits of food and beverages, which is a notable market trend.
Smart labels can provide enhanced information, allowing for the inclusion of extensive data concerning the health and ethical attributes of food and drinks. For instance, smart labels can incorporate details about the product's origin, trace every step of the food production process from farm to fork, provide recipes, and monitor food freshness. These features significantly add value for customers. Additionally, intelligent labeling can serve as security tags, assisting supermarkets and other stores in reducing theft.
| Report Attributes | Details |
|---|---|
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Spoil Detection-based Smart Label Market Size (2023) |
US$ 1.5 billion |
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Projected Market Value (2033) |
US$ 4.8 billion |
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CAGR (2023 to 2033) |
12% |
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China Market Growth Rate (2023 to 2033) |
13.1% CAGR |
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The United Kingdom Market Growth Rate (2023 to 2033) |
11.2% CAGR |
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As per Persistence Market Research (PMR), the global spoil detection-based smart label industry is expected to witness a CAGR of 12% from 2023 to 2033. The market registered a CAGR of 15.5% in the historical period from 2018 to 2022.
The global market for spoil detection-based smart labels is experiencing notable growth and is expected to continue growing significantly throughout the forecast period. These labels accurately detect product freshness and enable real-time monitoring of spoilage. They also monitor key factors such as temperature, pH, moisture, and microbial growth, which greatly contribute to the market's overall growth.
A smart label serves as a compliance tool for the United States federal law on disclosing genetically modified organisms (GMOs). This law requires brands to provide product information through text, symbols, or digital links such as smart labels. Digital disclosures offer customers detailed information compared to text or symbols.
The growing adoption of digital services, driven by the demand for reliable anti-theft devices and product identification, is a significant driver for the global market. Additionally, increasing business mergers and acquisitions, along with advancements in intelligent products, are expected to further propel market growth.
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The demand for spoil detection-based smart labels is expected to be driven by the increasing use of hygienic food materials, particularly in the vegetable, fruit, meat, and fish sectors, according to an analysis by PMR. The market is anticipated to gain traction in the packaged food products sector due to the growing adoption of smart packaging and consumer preference for hygienic food products.
Strict regulations in some developed nations to minimize food wastage are contributing to the demand for spoil detection-based smart labels for effective tracking of food spoilage. Other than the food and beverage industry, the market is being boosted by the increasing adoption of smart labels in the pharmaceuticals, medical and healthcare, chemical, and logistics sectors. Collaborative efforts from private and government entities are playing a significant role in enhancing product quality and efficiency, thereby supporting market growth.
Favorable government regulations and policies, along with the increasing number of food safety monitoring agencies worldwide, are a few more important factors driving the widespread adoption of smart labels in the spoil detection-based market.
Why is there a High Demand for Spoil Detection-based Smart Label in the United States?
The United States Driving Market Growth with a Significant CAGR
North America is expected to dominate the market by commanding over 40% market share by the end of the forecast period. It is driven by the increasing preference for hygienic food and supportive regulations by the FDA and USDA to reduce food wastage due to contamination during distribution.
The United States, with retail giants like Walmart leading the way, contributes significantly to the region's revenue and market expansion. The market in this region is expected to accumulate US$ 1.5 billion by 2033 while creating an absolute dollar opportunity of US$ 936.4 million. The demand for smart labels in the region is projected to expand with a CAGR of 10.8% during the forecast period.
The country faces a significant food waste issue, with estimates showing that it accounts for 30-40% of the annual food supply, leading to food insecurity for millions of people. To address this, measures are being taken to prevent food spoilage, driving the market growth. Moreover, innovative spoil detection-based smart labels are being offered by vendors to minimize food wastage in retail outlets.
The adoption of RFID technology is expected to fuel the market in the healthcare and medical industries, given the rising healthcare costs. This increased spending creates opportunities for smart label deployment that relies on spoil detection.
What is the Growth Outlook in China?
China Driving Market Growth with an Impressive CAGR
The spoil detection-based smart labels market in China is experiencing significant growth fueled by urbanization, increasing consumer income levels, and the growing demand for packaged goods. The market in this region is expected to be worth US$ 414.3 million by 2033 while creating an absolute dollar opportunity of US$ 293 million during the forecast period. Further, the demand for spoil detection labels in the region is projected to rise with an impressive CAGR of 13.1% during the forecast period.
According to the China National Light Industry Council (CNLIC), around 80% of light industrial products require packaging and labeling, indicating a high consumption of labeling materials. Logistics labeling is also significantly expanding in China's industrial supply chain.
Retail and Food and Beverage Applications are expected to make substantial contributions to market growth. These smart labels provide consumers with great confidence in the freshness of the poultry and meat products they purchase.
How is Europe Performing in the Market?
The United Kingdom Driving Market Growth with a Significant CAGR
Europe is projected to thrive at a CAGR of 10.6% during the forecast period, whereas the market in the United Kingdom is projected to flourish at a CAGR of 11.2% in the forthcoming years. The United Kingdom market is anticipated to witness an absolute dollar opportunity of US$ 158.3 million while reaching US$ 242.4 million by the end of the forecast period.
The United Kingdom stands out as a significant market for spoil detection-based smart labels, driven by the food and healthcare industries. Additionally, the country's strong presence in e-commerce, ranking as the third-largest global market, presents opportunities for smart label vendors to capitalize on.
Germany's government initiatives, led by the Federal Ministry of Food and Agriculture, aim to address food waste by promoting packaging trends that reduce waste. This commitment aligns with the European Commission's and the German government's dedication. It is to achieve SDG target 12.3 of the United Nations, which aims to reduce food waste throughout the supply chain and cut it in half at the retail and consumer levels by 2030. Further, these efforts are expected to drive the deployment of smart labels with spoil detection capabilities, contributing to market expansion.
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Based on Application, which Segment is Dominating the Market?
Fish Segment Driving Market Growth with a Promising CAGR
The fish segment dominates the market, projected to expand at a CAGR of 11.8% during the forecast period. Intelligent food packaging utilizing smart labels enhances fish food preservation by continuously monitoring their quality throughout the supply chain, reducing food-borne illnesses and waste. Further, RFID and NFC technologies are used to track and trace packaged food products, while temperature- and color-sensitive labels indicate freshness and shelf life.
Companies like Seafood IQ and FishPeople leverage smart labels to provide freshness ratings, traceability, and a unique product story for customers. Rising concerns about food safety drive the significant market share of the food and beverage industry, supporting effective supply chain planning for warehouse and inventory managers.
By Type, Which Segment is Expected to Generate Significant Outcome?
Time-temperature Indicator Driving Market Growth with a Promising CAGR
The time-temperature indicator segment currently dominates the spoil detection-based smart label market and is expected to maintain its leading position throughout the forecast period. This segment is expected to secure a significant CAGR of 11.9% during the forecast period.
Smart labels utilizing time-temperature indicators provide valuable information to end-users about the shelf life of products such as food, beverages, and medical drugs. These indicators change colors when breached, enabling better control in the supply chain.
Given that perishable items and medical products are susceptible to temperature variations during transportation, it is crucial to analyze the likelihood of spoilage. As a result, the adoption of time-temperature indicators has gained popularity across various industries to enhance quality control standards and detect spoilage over time.
The market for spoil detection-based smart labels is highly competitive, with numerous prominent industry players making substantial investments in increasing their manufacturing capabilities. The key industry players working in the market are SATO Holding AG., Zebra Technologies, Invengo Information Technologies Co. Ltd., Avery Dennison Corporation, Muhlbauer Holdings AG & Co., Ensurge Micropower, Evigence Sensors, Insignia Technologies, Innoscentia, and CCL Industries Inc.
Recent Developments in the Spoil Detection-based Smart Label Market
| Attribute | Details |
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Forecast Period |
2023 to 2033 |
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Historical Data Available for |
2018 to 2022 |
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Market Analysis |
US$ billion and million for Value |
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Key Countries Covered |
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Key Market Segments Covered |
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Key Companies Profiled |
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Pricing |
Available upon Request |
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By Application:
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According to estimates, the global market was worth US$ 1.3 billion in 2022.
Spoil detection-based smart labels in 2023 are expected to generate an industry revenue of US$ 1.5 billion.
Globally, the market for spoil detection-based smart labels is expected to reach US$ 4.8 billion by 2033.
The market is anticipated to expand at a compound annual growth rate of 12% during the forecast period.
Spoil detection-based smart labels expanded at a compound annual growth rate of 15.5% between 2018 and 2022, according to the PMR report.
Time temperature indicator is expected to dominate the market by expanding at a CAGR of 11.9% during the forecast period.
The market in China is projected to thrive at an impressive CAGR of 13.1% over the forecast period.
