Smart Labels to 2009

Smart label demand to grow almost 18% yearly through 2009

US demand for smart labels is projected to expand nearly 18 percent annually to 12.4 billion units in 2009. Smart labels will continue to penetrate existing applications and the increased ability of smart labels to add value to a labels basic identification function will create new applications.

RFID, EAS labels hold best prospects

By far the strongest gains are expected in the nascent radio frequency identification (RFID) label segment, where the market will grow exponentially off a slender 2004 base. Introduced in the late 1990s, RFID smart labels hold the potential to revolutionize supply chain management and logistics operations across a range of industries and could ultimately replace the ubiquitous bar code on trillions of fast moving consumer goods.

Interactive packaging labels, such as thermochromatic, timetemperature indicator and photochromatic products, will also see strong growth of over 20 percent per annum through 2009, as these interactive label types begin to find broader use.

Despite more rapid growth in both RFID and interactive packaging labels, basic electronic article surveillance (EAS) anti-shoplifting labels will continue to have the largest share of sales through 2009, although demand for these products will be dwarfed by RFID label demand by early in the next decade.

Supply chain management to pace long term applications

Retail and distribution applications will continue to account for the lions share of smart label demand, although as the product mix shifts from EAS to RFID labels, the importance of retail security will decline, while that of supply chain management will increase rapidly. In fact, supply chain management applications are expected to account for more than half of all smart label demand by 2014.

Study coverage

Smart Labels, a new Freedonia industry study , which presents details on these and other key findings. This study provides historical demand data (1994, 1999, 2004) plus forecasts to 2009 and 2014 by type and application. It also considers market environment indicators, evaluates company market shares and profiles 35 leading US industry competitors.