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IoT based Smart Labels: Next Big Thing in Packaging Industry


What are Smart Labels and Why They are Trending Nowadays!!!

An IoT based smart labels refer to an item or product identification slip containing ICT technologies which are not present in conventional bar code data. IoT based Smart Labels enables the consumers to get equipped with additional details of a wide range of beverage, food, household, pet care, and personal care products.

The IoT based smart labels are made by using paper, fabrics or plastics and used as, electronic labels, printed labels, or chip labels. The smart labels enable consumers to gain access to information with their preferred method such as visiting a website and scanning the product codes with the help of a smartphone. The IoT based smart labels help to increase accuracy and productivity along with the enhancement in the product information and inventory management.

Major Market Growth Drivers:

  • Manufacturers and logistics service providers can easily track their products and maintain data for their inventory management
  • Reduced risk from theft and counterfeiting among retailers
  • Reduction in training cost, labour cost, and the time savings

Key Challenges:

  • High cost involved in replacing e-display
  • Compatibility of the smart labels with its interfacing devices

Major Benefits:

  • Automated Reading
  • High Tolerance
  • Re-Programmability
  • Rapid Identification
  • Reduction in Errors

Key Technology Used:

RFID, Electronic Article Surveillance, Electronic Shelf Labels, Near Field Communication Tags, and others. The major application for IoT based smart label is to maintain the entire device over the internet, use of cloud database, and use of sensors for self-controlled temperature.

IoT Component:

  • Sensors
  • Gateway
  • Cloud

Opportunity for Investors:

The IoT based smart label is the next big thing for many sectors, especially for the packaging industry. The unique features make the smart label a huge opportunity for investors and manufacturers. The rise in industry consolidation and growing technological proliferation of IoT based smart label products, coupled with their usage in various applications is a major factor fueling the growth of this industry.

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