The global labeling software market is expected to reach the valuation of USD 554.4 million in 2024. According to the analysis, the industry is projected to grow at a CAGR of 5.8% from 2024 to 2034 with global adoption of digital solutions. The industry is foreseen to surpass USD 975.0 million, which shows the growth in the industry through 2034.
Labeling software is gaining high significance in various industry verticals due to its feature of maintaining and sustaining the product delivery process, increasing service efficiency for customers, as well as enhancement of product tracking capabilities that includes when it was purchased and where it came from.
The labeling software market is anticipated to grow rapidly owing to technological innovations provided by the labeling solution vendors, which assist enterprises in label designing and printing. These solutions play an important role in manufacturing, retail and logistics industries where labelling of products & goods play a crucial part in informational, branding and marketing reasons.
With stringent regulations on industries related to food & beverages and pharmaceuticals including a large number of labelled information policies have aided the growth opportunities of labeling software market.
Global Labeling Software Market Assessment
| Attributes | Description |
|---|---|
| Historical Size, 2023 | USD 527.6 million |
| Estimated Size, 2024 | USD 554.4 million |
| Projected Size, 2034 | USD 975.0 million |
| Value-based CAGR (2024 to 2034) | 5.8% CAGR |
Advancements in technology have been multiplying performance of labeling solutions through improving data integration along with label design, and printing. Over time regulatory requirements for information related to products as well as safety have grown tougher thus enhancing the need for accuracy in labels leading to increased sales opportunities.
In addition to this, various initiatives pertaining to automation and digital transformations are going on at a global level that indirectly impact the growth of the market.
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This below table presents the expected CAGR for the Global labeling software market over several semi-annual periods spanning from 2023 to 2033. In the first half (H1) of the year from 2023 to 2033, the industry is predicted to surge at a CAGR of 5.6%, followed by a slightly lower growth rate of 5.7% in the second half (H2) of the same year.
| Particular | Value CAGR |
|---|---|
| H1, 2023 | 5.6% (2023 to 2033) |
| H2, 2023 | 5.7% (2023 to 2033) |
| H1, 2024 | 5.9% (2024 to 2034) |
| H2, 2024 | 5.2% (2024 to 2034) |
Moving into the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to hold at 5.9% in the first half from 2024-2034 and considerably decrease at 5.2% in the second half 2024-2034. In the first half (H1) 2024-2034 the market witnessed an increase of 20 BPS while in the second half (H2) 2024-2034 the market witnessed a decrease of 30 BPS.
Growth in E-commerce and Retail Sector
The e-commerce and retail sectors' expansion has driven up the need for labeling solutions. This is increased due to the necessity to efficient inventory management, accurate product identification, and enhanced customer experience.
The growth in e-commerce during pandemic made it essential to have advanced labeling systems to handle the huge amount of products moving through supply chains. Take Amazon, for example. As a top player in e-commerce, it depends on complex barcode and RFID labeling. These tools help Amazon track inventory, ensure on-time deliveries, and keep supply chain transparent.
Retailers are demanding customized and personalized labels, like variable data printing (VDP), to make their products unique and improve customer engagement. Take Avery Dennison, for instance. They've come up with new ways to label things that fit these needs.
In 2021, they rolled out a new line of labels with RFID technology. These labels help keep track of inventory better and speed up online order processing, which supports the growth in online shopping.
Government regulation impacted the growth of the labeling market. The EU's FIC regulation ensures that there are detailed labels on food products, including information about allergens and nutrition. This regulation has caused a rise in demand for labels that follow these guidelines in retail food sector.
High Demand of Unique Labeling Systems to Recognize Counterfeits
Brand protection has a big impact on the labeling market as counterfeit goods keep causing major problems for businesses and customers. As counterfeiters get better at branding, companies have to spend more on cutting-edge labeling tech to prove their products are real and protect their brands.
Take 2019, for instance. The European Union brought in new rules under the EU Directive 2019/2170. These rules said pharma products had to use secure labels with unique IDs. This law aims to fight the growing problem of counterfeit drugs by making sure each product can be tracked through the supply chain checking it's genuine, before it gets to the customer.
In response to such regulations, Avery Dennison has come up with advanced labeling answers that include tamper-proof features, holograms, and unique number systems. For example, Avery Dennison's labels with RFID tech allow tracking and checking in real time making it complex for counterfeiters to copy real products.
These labels not help protect brands but also give buyers a way to check if a product is real, building more trust and keeping customers loyal.
The need for these top-notch labeling solutions goes beyond just healthcare. High-end designer goods, gadgets, and even regular stuff we buy are starting to use secure labels to fight counterfeit products. Back in 2020, the big-name luxury brand Burberry kicked off a plan to protect their brand.
They began using labels with blockchain tech to check if their products were real. This move shows how the label business is changing bringing in the latest tech to keep brands safe and genuine.
Impact on Capital Expenditure Hinders Business Growth
The effect on capital spending acts as a big market barrier in the labeling industry when new regulations or tech breakthroughs force companies to invest money into newer equipment. Take the EU's Falsified Medicines Directive (FMD) from 2019, for instance.
It required serialization and tamper-proof labeling on drug products. This regulation made many drug companies upgrade their labeling systems to meet the new standards leading to huge capital costs. Firms had to invest in new printing tech checking systems, and software to follow the tough labeling rules.
Zebra Technologies, a big company in the labeling business, shows how this works in industry. When new rules regulations the FMD kicked in, many companies using Zebra's older label machines had to switch to newer models.
These new machines could handle the complex parts of serialization and tamper-proof features. This switch often meant spending a lot of money on new hardware, software, and integration. Many businesses found this tough including smaller and medium-sized ones.
The investments needed to follow these regulations can slow down smaller companies trying to enter the market, as they might struggle to afford these costs. This limit can also affect existing businesses by cutting into their budget options making it harder to invest in other areas like new ideas or growing their market.
The need for big upfront investments in high-tech labeling equipment not only makes it tough to get into the market but also puts monetized pressure on companies slowing down overall market growth. Because of this, while regulations like the FMD aim to make things safer and easier to track, they create money barriers that hold back the labeling market's growth and ability to come up with new ideas.
Sustainability and Eco-friendly Practices Opens up Opportunities for Market Vendors
Single-Use Plastic Directive show that the government and authorities are focusing on sustainability and eco-friendly practices. Regulations like this boost the demand for green labeling options. A good example is Avery Dennison, a global leader in labeling and packaging materials.
They launched their CleanFlake technology. This new idea aims to make recycling easier. This is done by making sure labels can come off PET plastic bottles during recycling helping to create a closed-loop recycling system.
Avery Dennison's emphasis on eco-friendly products matches the growing customer need for green practices giving brands a chance to boost their green image. CleanFlake labels meet the EU's tough rules and attract green-minded shoppers who are pushing markets toward sustainable packaging.
This has also helped Avery Dennison develop a leader in the maintainable labeling market and gain market share, because the company’s products can help customers to meet their legal obligations as well as their own environmental targets.
The size of the sustainable packaging market is focused on international regulations and initiatives and it is designed for reducing plastic consumption and increase recycling rates. The governments realize that new environmental laws are needed the more people will be searching for eco-friendly alternatives.
But while other labels suppliers have yet to address these trends and many others have already seen sustainability issues coming on their radar and vendor such as Avery Dennison are creating industry benchmark and they are not just gaining popularity an additional market by adapting themselves to current trends of laws.
Principal Consultant
The labeling software market initially caused a decline in demand due to global restrictions and paused operations across various sectors in the historical period. The industry was valued at a valuation of USD 433.2 million in 2019 to reach USD 527.6 million in 2023 with a CAGR of 5.1% from 2019 to 2023. However, from 2021 onwards, as industries resumed normal operations, the demand for labeling software surged.
Looking ahead, the industry is projected to continue its strong growth between 2024 and 2034. The market is predictable to expand from USD 554.4 million in 2024 to USD 975.0 million by 2034, with a CAGR of 5.8%. The rising density of regulatory requirements and the need for effective labeling solutions will drove this growth, with vendors leveraging emerging technologies to enhance their offerings.
Tier 1 vendors are the leading players with substantial market share and global reach around the world. Tier 1 vendors are dominating the market due to strong brand reputation, advanced technology and broad product portfolios.
Tier 1 vendors caters around 70% to 75% of the total market. The major Tier 1 vendors such as NiceLabel, Loftware and BarTender (Seagull Scientific) and others offering high-performance labeling software used for cutting-edge industries.
Tier 2 vendors is well-established vendors with a considerable presence in market but slightly less share as compared to Tier 1. Tier 2 vendors caters around 10% to 15% of the market. Tier 2 vendors such as Teklynx International, LABELVIEW (by TEKLYNX), and Codesoft (by TEKLYNX). Tier 2 vendors offer competitive products and catering to specific niches market and focused on mid-range applications and regions.
Tier 3 vendors consist of smaller or emerging companies that caters around 25-30% of the market share. Tier 3 vendors focused on specialized or regional markets and provide niche products. Tier 3 vendors such as Primera Technology, Tharo Systems, and Label Matrix (by TEKLYNX) and other providers that serve specialized applications or offer lower-cost alternatives.
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The below country-wise market analysis of the labeling software explains the recent developments and different government approaches in the market. The analysis also gives an idea of the country’s expected progress in the market landscape.
The data describes key highlights, growth factors, and CAGRs of these countries.
| Countries | CAGR from 2024 to 2034 |
|---|---|
| India | 7.7% |
| China | 6.2% |
| USA | 5.6% |
| UK | 5.1% |
| Germany | 5.8% |
India’s labeling software market is expected to witness significant growth on account of rising industrialization and increasing stringency in regulations. With the expansion of the country’s manufacturing and logistics industries, the requirement for accurate and efficient labeling solutions becomes severe.
For instance, in April 2019, NiceLabel launched a new version of its label management system designed specifically for Indian organizations. The launch was done keeping in mind their specific regulatory requirements as well as features required for streamlining their labels printing process.
Similarly, in 2023, Teklynx International unveiled new integrations developed specially to support global manufacturers operating in India that are continually looking towards driving digitization & automation in supply chain and reduce causes of errors. Such factors are urging companies operating within the Indian region to increasingly deploy advanced label management systems as per their needs and focus toward adhering with evolving compliance mandates.
Germany’s labeling software market will experience robust growth owing to the presence of a strong manufacturing base coupled with high grade industrial automation. German manufacturers focus on superior productivity and energy efficiency, indicative of proliferating demand for advanced labeling software to comply with product quality standards.
The country’s automotive and pharmaceutical sectors require precise and effective labeling tools in order to guarantee product safety, as well as make products traceable. Major companies, including Loftware and NiceLabel, are experiencing increasing adoption rates in the region due to greater need for automated line integration and specific norms & guidelines prevalent in the pharmaceutical sector.
Deployment of latest features such as RFID,IoT supported mechanism energizes the market with real-time data availability and enhancing labelling processes even further.
Germany being one of the most significant players in terms of industrial revolution globally tends to expand its labeled products category further spurring label software solutions requirement in the country supported by its futuristic approach for technology implementation coupled with an eye towards maintaining operational excellence
The United States is the largest market for labeling software, owing to the country’s advanced technology infrastructure and massive industrial base. Considerable investments in technology make it easier for organizations to implement high-end labeling solutions.
High concentration of various industries such as manufacturing, retail and logistics in the USA have created the demand-supply scenario for effective labeling software used to label and track products more accurately. Moreover, stringent governmental regulations in countries especially the USA, Canada etc. would require businesses to deploy good quality labeling software so as not to violate standards or norms related with product labels.
The below section provides the category wise insights in the market with recent developments and future projections.
The on premise segment is expected to flourish owing to the increasing demand for digital labeling platforms across various spheres of enterprises. On the other hand, the cloud segment is projected to witness significant demand in the coming time.
The growth can be attributed to the growing demand for the digital labeling software market is witnessing a shift towards cloud-based solutions that allow users flexibility. The rapid technological advancement and higher data security offered by cloud deployment are boosting its adoption.
| Segment | On-premises (Deployment Mode) |
|---|---|
| Value Share (2024) | 56.3% |
Large enterprises lead the labeling software market due to their extensive and intricate labeling needs. They require advanced software solutions to manage vast inventories, ensure regulatory compliance, and integrate with other enterprise systems. For example, major retailers and manufacturers often handle thousands of labels daily and need software that supports real-time data integration and automation.
Their significant investment in these advanced technologies drives higher adoption rates and accounts for a substantial market share. These large-scale operations benefit from sophisticated labeling solutions that streamline processes and enhance accuracy, further solidifying their dominance in the market.
| Segment | Large Enterprises (Enterprise Size) |
|---|---|
| Value Share (2024) | 34.5% |
Key players ruling the labeling software market are focusing on making partnerships with content creators. The companies are also expanding their global reach for tapping the market that has yet to be dominated by other vendors.
Recent Market Developments
The industry includes deployment mode, on-premises and cloud-based.
By enterprise size, Small Offices (1-9 employees), Small Enterprises (10-99 employees), Medium-sized Enterprise (100-499 employees), Large Enterprises (500-999 employees) and Very Large Enterprises (1,000+ employees) are segmented in this category.
By Industry, FMCG, retail, healthcare, warehousing and logistics, and others are segmented in this category.
A regional analysis has been carried out in key countries of North America, Latin America, East Asia, South Asia & Pacific Western Europe, Eastern Europe and Middle East and Africa (MEA).
The global industry is set to reach USD 554.4 million in 2024.
Demand is predicted to rise at 5.8% CAGR.
Global sales are estimated to total USD 975.0 million by 2034.
South Asia & Pacific is set to offer lucrative opportunities rising with a CAGR of 8.2%.
NiceLabel, Loftware, BarTender (Seagull Scientific), Teklynx International, LABELVIEW (by TEKLYNX), PRISM (by NiceLabel), Codesoft (by TEKLYNX) among others.
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Labeling Software Market
