The increasing concern about drug counterfeiting and safety in the burgeoning pharmaceutical industry is the major application of the security labels. The import value of pharmaceutical products reached $617 billion in 2018, with an annual growth rate of 11% between 2017 and 2018. In the flourishing pharmaceutical industry, security labeling plays a prominent role in determining the safety of the product. The significant purpose of the labeling is to make the identification of the product clear and unambiguous by providing information such as dosage forms, drug delivery methods, batch number, and expiry date. Furthermore, the pharmaceutical industries are on an urge to use security labels to match counterfeiting concerns and regulatory pressures. Hence, the growth in the pharmaceutical industry, which in turn, incite the growth of the security labels market worldwide. Increasing demand for smart labels as compared to the conventional bar code data is the key factor fueling the demand for growth of the security labels market. The smart labels offer real-time tracking with the use of advanced technologies for product identification.
The global Security Labels Market size was valued at $23.38 billion as of 2018 and is expected to grow with a CAGR of 5.01% throughout the forecast period 2019-2025.
Security Labels Applications in tracking, tracing, and inventory management of shipments
Security labels are adhesive tapes with tamper evident features which are widely used in tracking, tracing, and inventory management of shipments, which have always been a big challenge for the manufacturers in the global market. In the conventional method, the tracking of shipments required manual feeding of data into the system. With the introduction of the security labels such as barcodes and QR codes, all the information stored in very less space and these codes could be read later by the software to know the product information. Thus, the usage of security labels has made tracking of the shipments error-free. Nowadays, manufacturers around the globe are deploying these labels for the smooth shipments of their goods to consumers. For instance, UPM Raflatac, an American-based supplier of pressure-sensitive labels, expanded its security labels range in the European market in September 2016. This security labels range includes ultra-destructible (UD) film labels. These film-based security labels are expected to aid the company in meeting the growing demand for security features for pharmaceutical, and food and beverage applications. Rapid growth in the e-commerce industry and the increase in consumption of consumer durable goods elements are positively impacts the growth of the security labels market share in the upcoming years. Industry 4.0 is driving the manufacturing sector, and manufacturers are increasingly focusing on the application of the Internet of Things (IoT) to advance factory automation. In such a scenario, security labels play an important role in counter security breaches improving quality control and productivity.
Rapid industrialization is anticipated to boost the security labels market across the globe. Increasing cases of product theft and counterfeiting is leading to manufacturers opting for security labels for product protection and brand misrepresentation which is expected to contribute significantly to the growth of the security labels market size. Illicit trade is considered to be the main threat to major economies around the world devoid of their technological advancements. The counterfeit and fake goods across the world were estimated to constitute 3.3% of the global trade in 2016. The governments are deploying new laws and regulations to hinder the growing trade of counterfeited products.
North America Holding Major Share of the Security Labels Market
North America generated 47.6% of the security labels market global revenue in 2018. The increasing demand for packaged and beverage food items such as snack foods, ready-to-eat meals, and frozen meals are the influencing factors the growth of the security labels market in this region. The huge market in North America can be attributed to the vast presence of retail giants such as Walmart largely contributing to the growth of the security labels market. Walmart has been employed electronic identification tags on their goods to gain more control over its inventory. With the increasing use of radio-frequency identification (RFID) tags, manufacturers in this region are investing in recovering the loss due to shoplifting. Moreover, the US Department of Defense (DOD) and the Food and Drugs Association (FDA) have encouraged the use of RFID technology for supply chain management and for tracking and tracing products. For instance, Avery Dennison Corporation, an American-based manufacturer and distributor of pressure-sensitive adhesive tamper proof tapes, apparel branding labels, and asset tags and EVRYTHNG, the UK-based an Internet of Things software company have jointly announced the launch of a new blockchain solution for the fashion industry, in partnership with 1017 ALYX 9SM, Matthew Williams’s cutting edge fashion label on May 15, 2019. This label uses distributed ledger technology (DLT) of Avery Dennison’s Janela platform, powered by EVRYTHNG, which allows brands to create clothing. Rising theft issues and growth in the packaging industry in this region are also triggering the growth of the security labels market.
The application segment that will be creating the most lucrative opportunities for the security labels market is the food and beverage sector. This application segment is projected to grow at a CAGR of 3.8% through to 2025. The rise in demand for packaged and branded goods is the key factor in the growth of the security labels in the food and beverage sector. Consumer awareness toward the authenticity of the product is another factor influencing the usage of the security labels. For instance, Covectra, Inc, an American-based packaging line serialization and authentication technologies provider has launched its new security label on March 20, 2017. StellaGUARD security label contains a serialized barcode that is embedded with stars arranged in random patterns and, thus enabling the real-time authentication of the products. Nowadays, beverage manufacturers widely using these labels on bottles owing to the high durability, brand positioning, and aesthetic appeal.
The Major Players in the Security Labels Market:
Prominent players in the security labels market include 3M Company, Avery Dennison Corporation, Brady Corporation, Covectra, Inc., CCL Industries Inc., Honeywell International Inc., Mega Fortris Sdn. Bhd, OpSec Security, Inc., and UPM Raflatac, Inc.
Notable partnerships in the Security Labels Market
Covectra, Inc., an American-based packaging line serialization and authentication technologies provider has announced a strategic partnership with VerifyMe an American-based advanced brand protection solutions provider on May 06, 2019. This agreement enables the integration and cross-selling of both companies’ products with each other in the global market.
Mergers and acquisitions are the other key strategies adopted by the players to stay ahead of their competitors. CCL Industries Inc., Ontario-based specialty label, security, and packaging solutions provider for government institutions, small businesses and consumers, and global corporations has announced its acquisition with Easy2Name Limited, the UK-based packaging products company on Jan 04, 2019. With this acquisition, CCL Industries has enhanced its product portfolio and its place in the global market. Such mergers and acquisitions aid the market players to expand their geographical boundaries and accentuate their footprint into the global security labels market.
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