The global labeling and artwork management application market is expected to grow at a CAGR of approximately 6.45% during the forecasted period 2020–2027. Over the last few decades, businesses have faced a multitude of questions about the increasing supply chain and the content of go-to-market packaging. Business leaders typically rely on strategies to attract new buyers to boost profits and to optimize revenues. This strategy is connected to three activities: resource management, performance enhancement, and cost reduction. Labeling and artwork management (LAM) is one of the main techniques for handling all three variables simultaneously.
LAM is a discipline and software architecture that regulates the data on material quality to create compatible markings displayed on traditional product packaging, digitally, or through the supply chain.
With the transition from the North American Free Trade Treaty to the Canada-United States-Mexico Arrangement (The CUSMA), supply chains throughout North America began to shift on 1 July 2020. The supply chain in the North American region is projected to change following the inclusion of a range of steps, such as the Fair Packaging and Labeling Act (FPLA) and the Uniform Packaging and Labeling Act (UPLR).
Labeling is becoming more widely recognized in the pharmaceutical industry as a mission-critical tool that aims to fulfill the company's strategic goals. Pharmaceutical businesses must incorporate good practice practices into their labeling and artwork operations to minimize error deviations and mitigate product recall as life sciences regulatory oversight rises. Labeling failures blame for about 40% of pharmaceutical medication recalls; such mistakes can harm the company's reputation and result in significant damages.
The global demand for medical devices, PPE bags, sanitizers, drugs, and vaccines are expected to intensify in the coming years as a result of the COVID-19 pandemic.
Labels must be developed in the appropriate FDA format for the material, based on labeling (OTC medications, oral contraceptives, mixed products) as per the FDA guidelines; all medication labels must be configured to remain in place in several environments during distribution, supply, and storage, as per the FDA guidelines.
According to the NiceLabel report, 78% of pharma and biopharma organizations do not have an existing automatic labeling solution in operation, and 83% are looking for a new approach that can reduce manual intervention and improve precision.
For instance, if a pharma industry has a centralized ERP structure, it will most certainly use a centralized label management system. If it has a decentralized MES, it can use a similar mechanism to decentralize label management but still profit from such centralization components.
The growing popularity of cloud-based applications fuels demands artwork and labeling management applications, as cloud-based applications allow businesses to monitor strict usability, performance, validation, scalability, and security requirements from anywhere at any time. Kallik, a global labeling and artwork management solutions company, released the sixth update for its Veraciti cloud-based labeling and artwork service in June 2019, which includes a derived platform for print and electronic labeling from a single integrated device and is capable of meeting customer demand for customized products.
Pharmaceutical organizations delivering cloud-based labeling and artwork management are continuously concentrating on expanding their customer base. Owing to the increased global focus on serialization and evolving market principles, such as ISO IDMP, a modern approach to content management is required to allow for robust traceability across the manufacturer, retailer, consumer, and regulatory domains, as current document-based approaches are no longer feasible for the pharmaceutical industry.
Johnson & Johnson announced in May 2019 that the integration of labeling and artwork management into its supply chain saved more than USD 1 million in the 2018 fiscal year.
Businesses have been struggling for several years to cope with the challenges of their production chains and go-to-market packaging items, and applications for marking and artwork management have improved versatility and decreased costs for businesses grappling with consumer, commodity, regulatory and geographical complexities. Marking and artwork control regulations are evolving rapidly, and enforcement is increasingly important in industries where labeling and recognition of pieces and packages are key to public protection. The need for regulatory enforcement is motivated by the implementation of cloud-based labeling and artwork management systems that include simple supply chain management control.
Many firms centralize bar code branding across locations and geographies to increase continuity and streamline procedures across supply chains, as well as to reduce IT costs associated with the processing of various labeling schemes. Labeling and artwork management systems automate and streamline certification with proven workflows and acceptance procedures for the label and artwork measurement and handling, reducing label and artwork delivery times for consumers from months to weeks.
Another main driver of demand is the implementation of strict supply chain regulations such as ePedigree, DQSA, GS1, and UDI. Technological advancements are encouraging innovations in labeling and artwork management services, with the transformative effects of a range of new technologies that are driving growth.
Labeling and artwork control are only helpful if an organization manufactures a consistent set of products; labels are common statements written for each product box, and producing different labels on each product will be inconvenient. On an object, a company usually uses three styles of labels: a market name, a grade mark, and a descriptive sign, each of which contributes to the cost of manufacture and hence to the final price. Because small and medium-sized businesses are mostly start-ups or mid-sized businesses, investing heavily in different printed labels would be extremely difficult for them. Expense is a barrier to business growth.
As a result of the COVID-19 pandemic, many global economies have suffered extreme economic hardship, posing concerns about supply chain consistency and speed around continents. Some also faced a downturn in the industry as a result of supply chain failures in domestic markets and barriers to trade in international markets.
Companies in the healthcare sector, on the other hand, have seen a major increase in demand for individual products and services. To sustain their sales foothold during the pandemic, most labeling and artwork management technology suppliers have concentrated on sectors such as pharmaceuticals, household goods, surgical devices, and food and beverage, which have performed well in these tumultuous times.
Following the COVID-19 crisis, a major portion of the branding and artwork management application developers have joined hands with healthcare facilities and vital service providers to help them establish seamless operations and a stable supply chain infrastructure. For example, Kallik, a well-known label and artwork management service provider, has partnered up with Mary Kay, a pharmaceutical firm, to help them overcome supply chain shortages and sell hand sanitizers throughout the industry. Cardinal Health, Ambu, and Mölnlycke were among the businesses that used the company's facilities because they made face masks and life-saving PPE bags.
The manufacturer will lead to the effective application of the sourcing process by integrating a variety of supply chain approaches, including labeling and art management, which enable businesses to collaborate with the right suppliers. Businesses are willing to eradicate the paper-based industry paradigm and streamline the selection method for suppliers through wide-scale automation and supply chains; an immense technological advancement for global supply chains everywhere can transform large quantities of supplier data into an interconnected digital network.
In particular, the supply chain utilizes a variety of types of automation, including the automation of barcode labeling and the usage of branding technology for business processes such as corporate resource planning (ERP), warehouse management systems (WMS), and supply chain management (SCM). Prospective organizations should utilize labeling and artwork management approaches to streamline artwork production processes and to communicate more efficiently with their internal departments, offices, and suppliers in the supply chain. This software allows these companies to carry out and streamline activities across their different divisions.
From a regional point of view, North America and Europe are two well-established markets with significant value-added shares held by prominent vendors. These companies have a broad geographical presence and facilities that meet all relevant regulatory requirements. Since customers trust process automation, key players are concentrating their efforts in North America and Europe. At the moment, market executives have tailored solutions that help customers deal with supply chain crises.
According to a thorough analysis of the sector, given that regional players already control a large portion of the business, there is still potential for growth owing to the huge influx of customers pursuing labeling and artwork management applications in North America and Europe. In addition, market vendors would target multinational corporations and developed manufacturing clusters across multiple countries.
Due to the growing demand for productive and unbiased labeling and artwork management among small and medium-sized enterprises, Asia-Pacific is projected to expand at the fastest pace in labeling and artwork management applications, with a CAGR of 6.65 percent during the forecast period (2020–27). Given the significant downturn in global trade in 2020 due to the coronavirus pandemic and continuing trade tensions, Asia and the Pacific are expected to perform better than the rest of the world, according to the UN Growth Division.
According to the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP), Asia is emerging as a manufacturing and information technology hub with a large SME market that offers considerable opportunities for the continuous performance improvement industry.
The label and artwork production application market in Asia-Pacific is expected to be led by comprehensive manufacturing and packaging operations in export-driven countries such as China and Japan. Due to the lack of established and foreign industry players in Asia-Pacific, suppliers can enter the region and capture the accessible demand by taking advantage of multiple growth opportunities.
India is one of the leading countries where automation is becoming more common in the manufacturing and packaging industries. Besides, a host of strategic exits from the Chinese market by global manufacturers have broadened India's possibilities for functioning as an Asia-Pacific manufacturing center. As a result, companies who recognize the nation and region's supply chain structures and regulations tend to have a significant competitive advantage. New entrants could partner with players in the pharmaceutical, chemical, and beauty cosmetics industries to create a foothold and raise their market shares in India.
The key player in the global labeling and artwork management application market consists of Seagull Scientific, Inc., Loftware, Inc., Esko-Graphics BV, enLabel Global Services, Kalypso: A Rockwell Automation Company, Kallik Ltd., and Perigord, among others.