Industrial Label Market on the Rise
3 Min Read
Growth fueled by technology requirements and supply chain needs
Today’s industrial label market provides consumers with transparent information about the products they purchase. Manufacturers rely on the industry to design, produce, and distribute a variety of label types, including shrink labels, press-sensitive labels, food-safe labels, RFID trackers, barcodes, and more. Currently estimated at $24.9 billion and expected to reach $32.1 billion by 2029, the industrial label market shows steady expansion, with a compound annual growth rate (CAGR) of 5.19%.1
Driven largely by the e-commerce boom, which ballooned from $572 billion in 2010 to $4.2 trillion in 20202, the industrial label market has experienced growth in demand due to a rapid rise in online shopping and an interest in more efficient, informative labeling solutions.3 This e-commerce expansion has also created concerns about counterfeiting and product safety, largely due to an increasingly complex global supply chain. But, the industry is actively working to address these concerns through advanced coding technologies embedded in labels for a stronger counterfeiting defense.4
Emerging technologies that allow for products to be scanned and tracked in real-time are improving inventory management and efficiency. And as companies adopt these new and improved technologies, demand for upgraded, harder-working labels will only increase.5
Industrials Investor Insights
Sectors Driving Market Growth
- Barcode Printing: The increasing volume and quality of data captured by barcode technology is driving a parallel growth in the demand for printed barcode labels. The global market for barcode label printing was valued at $2.6 billion in 2022 and is estimated to reach $4.3 billion by 2032, exhibiting a CAGR of 5.2% from 2023 to 2032.6
- Demand for RFID: Powerful RFID (radio frequency identification) technology is projected to grow from $15.49 billion in 2024 to $37.71 billion by 2032, a CAGR of 11.8%.7 The technology, which scans more quickly and from farther away, can also be used to combat shoplifting with alarms that read tags at store exits.8 The RFID tags can also enable new purchasing technology, such as that used in Amazon’s Just Walk Out stores.9
- Regulatory Environment: Regulatory compliance is fueling enhanced labeling as companies are required to pack more information onto their products. Regulations require readable details about allergens, country of origin, and more.10 New and increasing government regulations around extended producer responsibility (EPR) require more specific information on how a product and its packaging can be recycled or composted. EPR laws are in effect or going into effect in California, Colorado, Maine, Maryland, and Oregon, with more states expected to follow suit.11
Industry Landscape and Challenges
- Competitive Market: The Industrial Labels Market is led by global conglomerates including Avery Dennison, 3M Company, and CCL Industries, which possess extensive resources, global reach, and diverse product portfolios.12 These companies dominate through innovation, technological advancements, and strategic acquisitions. This model is exemplified by CCL Industries, completing 34 acquisitions, with seven finalized in 2023 alone. Acquisitions included Faubel, a legacy pharmaceutical packaging company, and Creaprint, a manufacturer of in-mold labels.13
- Risks and Restraints: The market opportunities may outweigh the risks for many investment firms, but it’s worth noting that recent trajectories are cooling. The label market is coming off record results, but growth and profit forecasts do not show the same trajectory.14 Inflation, higher cost of capital, and customer cost-cutting have weakened demand.15 Overstocking during the previous peak is reducing current demand, causing material prices to decrease and competition to intensify.16
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1 Mordor Intelligence: Industrial Labels Market Size & Share Analysis – Growth Trends & Forecasts (2024 – 2029)
2 TBlocks: How Ecommerce Has Changed Over The Last 10 Years
3 Credence Research: Shipping Labels Market
4 Mordor Intelligence: Industrial Labels Market Size & Share Analysis – Growth Trends & Forecasts (2024 – 2029)
5 Ibid.
6 PR Newswire: Barcode Label Printer Market Expected to Reach $4.3 Billion, Globally, By 2032 at 5.2% CAGR
7 Fortune Business Insights: RFID Market Size, Share & Industry Analysis
8 Teamwork Commerce: From retailers and brands to quick serve restaurants, the rate of RFID deployments has seen gradual growth
9 Ibid.
10 Credence Research: Shipping Labels Market
11 Columbine Label: Label Industry Trends
12 Tracxn: Acquisitions by CCL Industries
13 Global Label Market Insights and Trends | 2031
14 Labels and Labeling: M&A in the labels and packaging industry: What you need to know now
15 Ibid.
16 Ibid.