Global Spoil Detection-based Smart Labels Market Grows at a Staggering CAGR of 10.35%

Introduction

A smart label uses sensor technologies to go beyond conventional bar codes and produce a sizeable printed electronics surface. Since they are widely utilized for supermarkets and other food and beverage products worldwide, smart labels with spoil detection feature rule the printed electronics sector. Even though a sizeable section of the world's population regularly consumes packaged food goods, it has been observed that consumers are finding it easy to read the thorough product information stored on a chip using their smartphones, computers, or scanners.

Market Dynamics

Rising Need to Determine the Freshness of Products Drives the Global Market

The enormous rise in consumer preference for convenience goods drives the market for smart labels with spoil detection. The main factors influencing this demand are the trend toward healthier lifestyles and consumers' high purchasing power. Some better examples of convenience meals easily accessible on the market include salad bags, fresh herbs packs, chopped vegetable bags, vegetable trays, and single-serve salad packing. Manufacturers are employing spoil detection labels more frequently to monitor the freshness of their products and determine their expiration dates. Innovative packaging and shrewd labeling reduce food waste.

Food waste is a problem that consumers are becoming more and more aware of. The amount of food in landfills in only the United States is over 40%. (Industrial Packaging Inc.). Modern packaging innovations like time-temperature indicators, freshness indicators, and modified atmosphere packaging (MAP) may significantly cut down on food waste and spoilage while doubling the shelf life of perishable items. Food companies also use smart labels that employ spoil detection to engage customers by giving more nutritional and ingredient information and preventing food waste.

Increasing Demand for Security and Tracking Solutions Creates Tremendous Opportunities 

Every industry must address the issues of security against theft and counterfeiting. As companies throughout the world build more and more direct selling channels everywhere, security precautions against theft and counterfeiting are increasing of the utmost importance. Businesses that use these tools can also combine them with other cutting-edge technology to increase their return on investment. Smart labels can be used as tags or anti-theft tools but also feature embedded smart chips that enable position tracking. Several producers are using smart labels outfitted with the necessary smart sensors to acquire essential data on the use and transportation of their products.

Regarding the flow of existing and incoming raw materials in various sectors, meeting company objectives and ensuring consumer pleasure vary. Leading industry players, including Zebra Technologies, have developed material flow systems that help businesses deliver goods accurately and on time. Additionally, market suppliers offer enhanced security and tracking solutions.

Regional Analysis 

North America is the most significant revenue contributor and is expected to grow at a CAGR of 9.73% during the forecast period. The surge in activity in the United States is driven by retail behemoths like Walmart and others, greatly assisting the country's market expansion under investigation. According to the U.S. Department of Agriculture, between 30 and 40% of the nation's annual food supply is lost to food waste. As a result of food waste, the country currently experiences severe food insecurity. In the country alone, 50 million people will be food insecure in 2022. This astonishing increase in food security is anticipated to spur widespread efforts to prevent food spoilage, driving the market under study's growth. To lessen this alarming food wastage on the shelves of different retail establishments, market vendors are offering cutting-edge smart labels based on spoil detection. The nation's market is anticipated to mature significantly during the projected time.

The impact of recent advancements in digital technology on the printing industry in Canada has increased competition and encouraged businesses to invest in this sector. The Food Waste Reduction Challenge has received an investment of 20 million Canadian dollars. The acquisition is anticipated to reduce loss or wastage, which is thought to account for nearly one-third of the nation's food production. These initiatives should encourage smart labels with spoil detection features, which can reduce unintentional food waste and help the market grow.

Europe is expected to grow at a CAGR of 9.33%during the forecast period. The United Kingdom is one of Europe's most significant marketplaces for smart label goods, which fosters the growth of the spoil detection-based smart label market. The food and healthcare sectors are one of the country's most significant sources of demand. In terms of e-commerce, the country ranks third globally. According to the E-commerce Foundation, the nation made up about 8% of the global B2C e-commerce market. Most non-store formats included internet merchants, market booths, and marketplaces. This means that providers of smart labels with spoil detection capabilities might take advantage of the growing opportunity and spur market growth.

German government initiatives are one of the main factors advancing the market under investigation. Germany's Federal Ministry of Food and Agriculture is worried about food waste, which has led to several initiatives aiming to reduce food waste through changing packaging trends. Furthermore, the European Commission and the German government are committed to attaining the UN’s SDG target 12.3, which calls for reducing food waste along the whole supply chain and halving it at the retail and consumer levels by 2030. These actions are anticipated to aid in deploying smart labels with defect detection capabilities, supporting the industry's growth under consideration.

Key Highlights

• The global spoil detection-based smart labels market size was valued at USD 825.40 million in 2022. It is projected to reach USD 2,002.7 million by 2031, growing at a CAGR of 10.35% during the forecast period (2023-2031). 

• Based on technology, the global spoil detection-based smart labels market is bifurcated into RFID, sensing labels, and NFC. The RFID segment is the highest contributor to the market and is estimated to grow at a CAGR of 10.2% during the forecast period. 

• Based on the end-user industry, the global spoil detection-based smart labels market is bifurcated into pharmaceuticals, food and beverage, and cosmetics. Food and beverage is the highest contributor to the market and is estimated to grow at a CAGR of 9.76% during the forecast period.

• North America is the most significant revenue contributor and is expected to grow at a CAGR of 9.73% during the forecast period.

Competitive Players

Competitive Players

1. SpotSee
2. Evigence Sensors
3. Insignia Technologies Ltd
4. Avery Dennison Corporation
5. Innoscentia
6. Molex LLC
7. American Thermal Instruments Inc
8. OM MAS CO. LTD
9. Timestrip UK Ltd
10. DeltaTrak Inc.
11. sOli-Tec

Recent Developments

Market News

• In April 2022, SpotSee launched a new temperature indicator, FreezeSafe.

Segmentation

Global Spoil Detection-based Smart Labels Market: Segmentation

By Technology

• RFID
• Sensing Label
• NFC

By End-User Industry

• Pharmaceutical
• Food and Beverage
• Cosmetics

By Regions

• North America
• Europe
• Asia-Pacific
• LAMEA