The thermochromic labels market is anticipated to flourish at a healthy CAGR of 6.3% between 2023 and 2033. The market is expected to hold a market share of USD 781.14 million by 2033 while the market is likely to be valued at USD 424.03 million in 2023.
The demand for thermochromic labels is anticipated to boost with the top 3 countries and held around 35 to 40% of the market by the end of 2022.
Labels printed with thermochromic ink are expected to ensure the integrity of pharmaceutical and healthcare products. With many manufacturers adopting these labels, the demand for the product is expected to improve with a CAGR of 7.7% in the global market.
The thermochromic labels market is projected to experience a positive growth outlook with the rising need for anti-counterfeit packaging solutions along with active & smart packaging solutions to reduce food wastage.
A new forecast by FMI analysis anticipates that thermochromic label sales might rise from 2023 to 2033 and is projected to create an incremental opportunity of USD 278.7 million.
The top 5 key players held around 20 to 25% of the global thermochromic labels market in 2021. Regionally, Asia’s thermochromic labels market is expected to lead the market growth, exhibiting a growth rate of 8.3% during the forecast period.
Also, emerging local thermochromic ink manufacturers and food and beverage brands in the region are expected to fuel the growth.
The irreversible thermochromic labels market is expected to generate an incremental opportunity of USD 205.8 million by 2030. This label type segment currently holds around 1/4th of the total thermochromic labels market.
| Attributes | Details |
|---|---|
| Thermochromic Labels Market CAGR (2023 to 2033) | 6.3% |
| Thermochromic Labels Market Size (2023) | USD 424.03 million |
| Thermochromic Labels Market Size (2033) | USD 781.14 million |
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The market for thermochromic labels observed an average annual growth rate of 3.4% between 2018 and 2022. This growth was driven by the rising purchasing power of the customer supported by the introduction of thermochromic labels in the pharmaceutical market.
In 2018, the United States Postal Service released postal stamps in the United States that effectively utilized thermochromic ink, which released an image of a moon when the warmth of a hand was applied.
This marked significant recognition for thermochromic ink and brands started adopting this technique. Further, the demand for thermochromic labels witnessed growth, with incremental opportunities of USD 46.7 million from 2018 to 2022.
The overall thermochromic labels market is set to expand at a healthy CAGR of 6.3% during the forecast period from 2023 to 2033 with the growing trend of using thermochromic labels for ensuring the integrity of sensitive products across industries like pharmaceutical, food & beverage, cosmetics & personal care, automotive, etc.
The subsequent market outlook for thermochromic labels is quite efficacious, with the market unfolding almost 1.6x during the forecast period, crossing a valuation of USD 650 million by 2030.
The thermochromic labels market is hugely influenced by advancements in technology and the introduction of smart packaging solutions. Further, the improved range of thermochromic label offerings by manufacturers and demand from niche industries might expand the global thermochromic labels market size in the forthcoming years.
Rising Demand from Beverage Industry Propelling Thermochromic Label Sales in the Market
Innovation is likely to be a critical success factor in the thermochromic labels industry, especially due to the usage of advanced labeling technology in the food and beverage sector.
One of the key factors boosting the growth of the thermochromic labels market is the increasing usage of thermochromic labels in consumer products such as alcoholic and non-alcoholic beverage cans and bottles. These smart labels change color when in contact with the desired set temperature. This is usually used to determine and indicate the appropriate temperature for consumption. For instance,
In June 2022, the beverage company Molson Coors introduced limited-edition drinks that use thermochromic ink to make the graphics on the packaging change color when the drink is cold enough. Furthermore, these labels are also used for promotional and marketing purposes.
The significant expansion of the food and beverage sector along with increasing usage of thermochromic labels for finding the temperature state of the beverages might continue to bolster sales in the market during the forecast period.
Increasing Usage in Pharmaceutical Industry to Spur Market Growth
Thermochromic ink is designed to fade or disappear if exposed to a certain change in temperature. This can also benefit the pharmaceutical and healthcare industries by ensuring the integrity of medicines.
A specific trigger temperature designed to suit the medicine could be used to extend the lifespan of the product by signaling the same through the medium of thermochromic ink labels on the packaging. Also, consumers could easily read expiry or best-before dates through a color change on the packaging. For instance,
Hally Labels based in Australia is offering special nutraceutical and pharmaceutical thermochromic labels with environmentally sustainable materials, which are expected to enhance the labeling experience in the medical space.
Principal Consultant
Growing Food Wastage Concerns Encouraging the Adoption of Thermochromic Labels in Germany
Germany is projected to capture the majority of Europe’s thermochromic labels market during the forecast period. It is estimated to account for around 20% of the share in Europe’s market, owing to the rising need for minimizing food wastage and the growing popularity of thermochromic technology.
According to the Federal Government of Germany, around 11 million tonnes of food is thrown away every year. Furthermore, a study carried out by the European Commission, revealed that almost 10% of the total food waste generated in the European Union is related to data marking on product packaging.
Around USD 8.8 million in food, wastage is due to marking and labeling errors. Manufacturers use thermochromic labels to address this issue.
These labels change color when exposed to a certain trigger temperature, which could help in the reduction of food wastage in the region including Germany. Thus, the growing usage of thermochromic labels to prevent food wastage might continue to bolster growth in the market across Germany during the forecast period.
Extensive Application in Pharmaceutical Pushing Demand for Thermochromic Labels in India
India’s thermochromic labels market generated a revenue of USD 27.5 million by the end of 2022. India is one of the leading providers of OTC medicines, generic drugs, and low-cost vaccines in the world. According to the Department of Pharmaceuticals, the sector contributes to around 1.7% of the country’s GDP.
Manufacturers are extensively using thermochromic labels to ensure the integrity of these pharmaceutical products. Thus, increasing usage of thermochromic labels in the pharmaceutical industry is a key factor driving the market.
The Tendency of Reversible Labels to be Used Multiple Times Giving Them a Competitive Edge
Irreversible labels held almost 80% of the demand share in 2022. The irreversible labels segment, although with the maximum market share, is expected to lose significant share to reversible labels due to re-usability issues.
Further, this can be attributed to the rising end-user preference for reversible labels due to their ability to change color from normal to altered and back to normal again many times.
As per FMI, the thermochromic reversible labels segment is anticipated to expand at a notable CAGR of 7.8% between 2023 and 2033, generating significant revenues by the end of the forecast period.
Demand to Remain High in Food & Beverages and Pharmaceuticals Sectors
The food & beverages segment followed by the pharmaceutical segment is estimated to remain the leading segment in the market. Both segments are collectively projected to create a growth opportunity of USD 218.2 million from 2022 to 2030. The reason behind the same is the surging demand for anti-counterfeit packaging solutions in these end-use industries.
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Mergers and acquisitions have played a key role in the packaging industry and are continuously affecting the market dynamics. Key packaging players with strong cash flow and low expenditure are acquiring small players and partnering with end-user brands to generate significant revenues.
Some of the Recent Mergers and Acquisitions are:
Similarly, startups like ColorSensing and Priority Label Products Ltd. are entering the market to grab emerging opportunities from end-use industries. These startups are focusing on developing smart labels using color-sensitive technology for detecting food health status.
Siltech Limited, Colour Change, and NanoMatrix International - 3 Thermochromic Labels Companies Revolutionizing Advanced Packaging
Siltech Limited is a United Kingdom-based company that has had a significant presence in the thermochromic labels field since 2010. Many companies are using smart packaging to tell their consumers about product information and history.
Siltech Limited’s label ThermAlert YRD95 changes its color from yellow to red if the temperature exceeds a threshold temperature. This indicates to the end-user about the product history and helps them in making informed choices.
Siltech Limited helps businesses with end-to-end services such as business benefits surveys, project planning, implementation, and scientific design. The company is also focusing on using sustainable products to boost its position in this landscape. For instance,
In August 2021, the company announced the launch of Silmer Sustain-H, a novel silicone elastomer gel that provides improved sustainability.
Color change is another key player in the thermochromic labels category with a history of smart color-changing technology. The company counts many prominent United Kingdom brands as its end-users such as Muse, Age United Kingdom, Magic Wet, and Chill ‘n Reveal.
The color change is the winner of three prestigious DTI ‘Smart Awards’ and is at the forefront of technological innovations in this field. The company focuses on offering end-users a wide range of temperature sensor packaging options such as mailers, game cards, magazine covers, coasters, and collector cards.
The company uses Advanced Chromatic Technology in its products, which creates products that can change their color quickly. The company announced it is collaborating with leading Dutch agency Miles Promocean to boost its marketing strategy through innovative packaging.
NanoMatrix International Limited is one of the leading players in the thermochromic labels field. Headquartered in Hong Kong, the company has been in the anti-counterfeiting business since 2005. In addition to providing innovative products, the company also educates end-users about the benefits of using these labels and other anti-counterfeiting products.
The thermochromic labels market is valued at USD 424.03 million in 2023.
Avery Dennison Corporation, CCL Industries Inc. and Siltech Limited are key thermochromic labels market players.
Reversible labels are likely to remain preferred through 2033.
Players opt for mergers and acquisitions.
India, Japan, and China dominate the Asian market.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Label Type 5.1. Reversible 5.2. Irreversible 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By End Use 6.1. Pharmaceuticals 6.2. Food & Beverages 6.3. Cosmetics & Personal Care 6.4. Media & Entertainment 6.5. Automotive 6.6. Other Manufacturing 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 7.1. North America 7.2. Latin America 7.3. Western Europe 7.4. Eastern Europe 7.5. South Asia and Pacific 7.6. East Asia 7.7. Middle East and Africa 8. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 9. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10. Western Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Eastern Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. South Asia and Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. Key Countries Market Analysis 16. Market Structure Analysis 17. Competition Analysis 17.1. Avery Dennison Corporation 17.2. CCL Industries Inc. 17.3. Siltech Limited 17.4. Chromatic Technologies Inc. (CTI) 17.5. Gravic Group 17.6. LCR Hallcrest LLC 17.7. Electronics 17.8. Multi-Color Corporation (MCC) 17.9. DeltaTrak, Inc. 17.10. E. Textint Corp. 18. Assumptions & Acronyms Used 19. Research Methodology
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Thermochromic Labels Market
