Security Labels Market Size Worth USD 32,767.7 Million by

New York, USA, May 31, 2022 (GLOBE NEWSWIRE) — Security Label Market Overview

According to a comprehensive research report from Market Research Future (MRFR), “Security Label Market Information by Identification Method, Vertical and Region – Forecast until 2027”, the market is estimated to grow at a CAGR of 4.9% to reach USD 32,767.7 million in 2027.

Market Overview

Product counterfeiting is one of the main reasons for concern among brand owners and brand marketers, with nearly 8-9% of all global trade affected by counterfeiting and tampering. As a result, for major brands, counterfeit and fraud mitigation is now not only optional, but extremely essential to maintaining brand image and also protecting their customers.

Pharmaceuticals, food and beverages, high-end cosmetics and consumer electronics are some of the sectors that generate considerable demand for security labels.

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Scope of the report:

report attribute Details
Market size 2027 USD 32,767.7 million
CAGR 4.9% (2021-2027)
base year 2020
forecast period 2021-2027
Historic information 2019
Forecast Units Value (millions of USD)
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors and Trends
Covered segments Identification method, vertical and region
Covered Geographies North America, Europe, Asia-Pacific and Rest of the World (RoW)
Key Market Drivers Growing concern about the availability of counterfeit medicines
Increasing focus on reducing operating costs in healthcare

Competitive landscape of the market:

Important companies in the market for security labels are

  • 3M Company (USA)
  • Avery Dennison Corporation (USA)
  • CCL Industries (Canada)
  • UPM (Europe)
  • Honeywell International Inc (USA)
  • Tesa SE Group (Germany)
  • Data label (Europe)
  • (USA)
  • Star Labeled Products (US)
  • Watson Label Products (US)
  • All4Labels Global Packaging Group (Germany)
  • Multicolor Corporation (USA)

Covered USP market:

Market indicators:

An increasing number of gamers use security labels to manufacture their products as they are aesthetically pleasing, while holographic labels reinforce the functionality of product packaging. Security labels also offer protection against product counterfeiting. Additionally, the variety of embossed designs on the label helps buyers understand the authenticity of the product.

Consumers prefer to be aware of the type of product they buy and do not want to be misled by incorrect information. This, in addition to the rapid growth of the packaging industry, has fueled the rate of expansion of the security label market. Accelerating demand for these labels in the retail and food and beverage sectors will also be favorable for the global market in the coming period. The e-commerce industry has gained significant importance throughout the world, which has induced the demand for security labels. Some other key application areas for security labels are logistics, consumer durables and electronics, which will result in considerable business growth in the coming years.

Market restrictions:

Today’s consumers are extremely aware of the environmental impact of the different goods they buy and are highly focused on making sustainable purchasing decisions. Vinyl, polypropylene, polystyrene and foam film papers are some of the key raw materials used to develop labels. But these products leave significant carbon footprints and are not biodegradable. In addition to this, the manufacturing process produces considerable amounts of greenhouse gases. All these factors could act against the world market in the coming years.

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COVID-19 Analysis

The security label market has been significantly affected by the COVID-19 outbreak. Given the scenario of the pandemic, numerous countries had to undergo a lockdown to control the increase in cases. Due to this, the demand and supply chain has been interrupted, which has affected the world market. Infrastructure projects, manufacturing units, industries and various operations had to be suspended due to the pandemic situation.

The volatile costs of raw materials that are used to develop security labels coupled with the COVID-19 pandemic have restrained the growth rate of the market. On the positive side, the situation is returning to normal, which means that the market in the future will see better growth.

Market segmentation

By identification method

Covered identification methods include RFID, barcode, holographic, and others. In 2016, the barcode segment saw the highest growth as barcodes are primarily deployed across various industries, including consumer goods, pharmaceuticals, transportation and logistics, and retail, keeping track of all your products and detecting outgoing shipments along with the equipment. Barcodes are reliable, cost effective and are considered the best technique to collect the necessary data. However, in the coming years, the RFID segment may achieve the fastest growth rate, due to its significant demand in supply chains.

By product form

With regard to product shape, the main segments may be coils coupled with sheets. The sheet segment has been in the lead since 2016.

per application

Security labels have applications in food and beverages, pharmaceuticals, consumer goods, and others. The main segment in the market is the food and beverage application, thanks to the widespread use of advanced security labels in the sector in line with the growing importance of products labeled with the necessary information on the label. The food and beverage packaging industry is highly regulated along with a significant number of government regulations and policies and therefore barcodes and labeling are extremely important to both retailers and consumers. The pharmaceutical sector is also a thriving segment, due to growing concerns about counterfeit medicines and substantial operating costs in the healthcare industry, combined with an alarming rise in medical device thefts.

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regional perspectives

APAC is currently the highest revenue generating market for the security label market given the thriving retail industry. India, Japan, China and Indonesia are the most attractive markets in Asia Pacific, with China ranking first. China is doing extremely well due to booming consumer goods sectors as well as food and beverages. The expansion of the APAC market can also be credited to the increased stringency of regulations and policies that define the field of food packaging. Seeing the opportunities, a growing number of players are adopting advanced techniques to create tamper-proof products. This has encouraged the use of security labels in the food and beverage industry.

As the second leading market, North America is benefiting from growing demand for security labels in the food and beverage and pharmaceutical industries, with applications in snack foods, ready-to-eat meals, frozen meals and more. The thriving pharmaceutical industry also encourages business growth. The US market is extremely lucrative, given the growing demand for smart labels over conventional barcode data.

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