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The smart labels market witnessed remarkable growth in 2022, reaching a valuation of approximately US$ 9.5 Billion and recording a noteworthy year-on-year growth of 9.6%. Projections indicate a robust CAGR of 11.2%, propelling sales to a staggering US$ 24.8 Billion by the year 2030.
The growing prevalence of Internet of Things (IoT) integration has opened up avenues for the widespread acceptance of cloud platforms and rapid networking technologies, expanding the potential for smart labels. The increased accessibility of devices like smartphones and laptops has spurred the evolution of innovative labeling solutions.
In the United States, the rapid expansion of the smart labels market is fueled by the increasing prevalence of retail establishments and supermarkets, driven in part by stricter regulations mandating enhanced product information transparency. Simultaneously, American businesses are strategically investing in technologies such as blockchain and smart labels to bolster transparency and traceability within their distribution networks.
Meanwhile, India’s smart labels market is experiencing robust growth, buoyed by the flourishing e-commerce and organized retail sectors. The surge in the organized retail industry has created lucrative opportunities for RFID label manufacturers to capitalize on this burgeoning market. India’s appeal as a smart label production hub is further accentuated by lower labor costs compared to many other nations. The escalating demand for perishable goods, coupled with a concerted effort to minimize food wastage and advancements in the pharmaceutical sector, is driving the escalating demand for RFID labels in India.
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The Major Key Players Are:
• Honeywell International Inc.
• Avery Denison Corporation
• CCL Industries Inc.
• Zebra Technologies Corporation
• SATO Holdings Corporation
• Checkpoint Systems Inc.
• Thin Film Electronics ASA
• others
Competitive Landscape
Market players are focusing on expanding their global outreach through diversification of product portfolios, collaborations, product launches, and doling out customized labeling solutions for various industries.
For instance,
• In September 2020, Avery Dennison Corporation introduced a completely biodegradable tag fastener for the apparel industry. The tag is highly eco-friendly, being able to decompose upon exposure to soil microbes and leaving behind no microplastics or other harmful substances.
• In November 2020, CCL Industries Inc., a leading player in the smart labels industry, announced the acquisition of Super Enterprises Printing (Malaysia) Sdn, a leading supplier of decorative panels, liquid crystal & touch screen display covers, and in-mold decorated components for the consumer electronics and automotive sectors across Asia.
The Benefits of Embracing Smart Labels
Embracing the Smart Labels Market offers a plethora of benefits that extend beyond traditional labeling methods. Some of the notable advantages include:
• Enhanced Transparency: Smart Labels provide real-time information about the product’s journey, origin, and handling, fostering transparency and trust among consumers.
• Improved Inventory Management: Businesses can optimize inventory levels, reduce stockouts, and streamline reordering processes with accurate real-time data.
• Efficient Recall Management: In case of product recalls, Smart Labels enable targeted recall efforts, minimizing the impact on consumers and reducing waste.
• Counterfeit Prevention: Smart Labels incorporate anti-counterfeiting measures, safeguarding brands and consumers from fraudulent products.
High Cost of Devices in Smart Label Printing Likely to Restrict Market Growth
Investments in smart label printing are an expensive task, consuming a significant portion of industry funds. Therefore, its application is largely restricted to premium products and high revenue-generating domains, thereby limiting market penetration.
Due to its expensive nature, small & medium organizations cannot afford smart label printing solutions, preferring to rely on conventional barcodes. This factor is proving to be a major hindrance in the predicted growth trajectory of the smart labels market for the decade.
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Key Segments Of Smart Labels Industry Survey
By Labelling Technology :
• RFID
• NFC Tags
• EAS
• Sensing Labels
• Electronics Shelf Labels
By Printing Technology :
• Flexographic Smart Labels
• Digital Smart Labels
• Gravure Smart Labels
• Screen Smart Labels
By End Use :
• Smart Labels for Healthcare
• Smart Labels for Automotive
• Smart Labels for FMCG
• Smart Labels for Logistics
• Smart Labels for Retail
• Others
By Region :
• North America
• Latin America
• Europe
• East Asia
• South Asia & Pacific
• Middle East & Africa (MEA)
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Projected to exhibit a compound annual growth rate (CAGR) of 4.5% from 2023 to 2033, the kegs market is anticipated to surpass US$ 1.5 billion in revenue by 2033, marking a significant increase from the estimated market revenue of US$ 939 million in 2023.
The USA kegs market is poised to lead the way with a projected market valuation of US$ 325.7 million by 2033. This estimated growth comes with a steady Compound Annual Growth Rate (CAGR) of 5.2%, representing an increase from the 4% CAGR observed in the historical period. The market’s robust growth is driven by the country’s extensive network of suppliers and a substantial number of keg-based firms, contributing to its expansion. Moreover, increased funding for Research and Development activities is set to drive the widespread application of kegs in the chemical industry, further fueling market growth.
Innovative keg releases designed for the Food and Beverage (F& industry are expected to boost keg demand, aligning with the upward trend in F&B industry growth. For example, the introduction of the Easy Go Keg system by KeyKeg and Sonneveld in the North American market caters to professional bakers and addresses kitchen hygiene, a significant post-pandemic concern.
In the UK, the kegs market is forecasted to reach a net worth of US$ 81.5 million by 2033, with a projected growth rate of 4.9% CAGR over the forecast period. The increasing demand for beverages and the shift towards circularity, particularly through the adoption of steel kegs with long lifespans, are key drivers of keg market growth. Stainless steel kegs, known for their reusability and extended lifespan, epitomize circularity and contribute to sustainable practices in the beverage industry. The emergence and expansion of the Steel Keg Association in the UK and Western Europe in 2022 signify the pivotal role of steel kegs in the industry’s evolution.
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Key Takeaways from the Kegs Industry:
• The United States kegs market is projected to attain market value of US$ 325.7 Million by 2033, growing at a CAGR of 5.2% in the coming years. Increasing automation in the industry, thanks to technologies like smart sensors, APIs, software, and cloud databases, is propelling market growth in the country.
• China market is estimated to grow at the fastest growth rate of 6% CAGR, to arrive at US$ 167.7 Million by 2033. The growing application of kegs in beverages and pharmaceutical sectors is leading the market expansion.
• The United Kingdom kegs market is expected to achieve a market valuation of US$ 81.5 Million by 2033 end, exhibiting a CAGR of 4.9% in the coming years. Increasing efforts by the keg manufacturers to release new products with breakthrough technology and authorized by formal regulatory bodies.
• The market is observing increasing preference for kegs having a capacity of 20L to 40L. Large breweries, bars, and restaurants are making use of kegs with this much capacity to preserve beverages, alcoholic or non-alcoholic. The ever-increasing growth of beverage sector is predicted to keep up the demand for kegs.
Market Drivers-
1. Craft Beer Renaissance: The surge in craft breweries and microbreweries has led to an increased demand for kegs. Kegs are the preferred choice for serving and distributing craft beer due to their convenience and recyclability.
2. Sustainability and Environmental Concerns: Kegs are eco-friendly packaging solutions as they are reusable and recyclable. This aligns with the growing environmental consciousness of consumers and businesses alike.
3. Product Quality and Freshness: Kegs protect beverages from light and oxygen, ensuring the freshness and quality of the contents. This is particularly important for beer, wine, and other beverages.
4. Cost-Efficiency: For businesses, kegs can be a cost-effective option for packaging and distributing beverages compared to single-use containers. They eliminate the need for packaging and labeling, reducing associated expenses.
5. Customization and Branding: Kegs can be customized with branding and design, offering a unique opportunity for breweries and beverage producers to promote their products and enhance brand recognition.
6. Diverse Applications: Kegs are not limited to beer; they are used for various beverages, including wine, cider, soft drinks, and cold-brew coffee. Their versatility appeals to a broad range of producers.
7. Consumer Preferences: Many consumers enjoy the experience of draught beer and other beverages, which is facilitated by kegs. This preference drives demand for kegged products in bars, restaurants, and homes.
The Key Players Are:
• Ardagh Group S.A
• Petainer UK Holdings Ltd.
• Blefa GmbH
• Schaefer Container Systems
• The Metal Drum Company
• Julius Kleemann GmbH & Co KG
• THIELMANN – The Container Company
• American Keg Company
• NDL Keg Inc.
• Shinhan Industrial Co, Ltd.
• Ningbo BestFriends Beverage Containers Co. Ltd.
• Maisonneuve Group
New Developments Shaping up the Kegs Market:
• In June 2022, Ara Partners (“Ara”) unveiled that it has acquired Petainer Ltd., a global producer of sustainable beverage packaging solutions based in the UK. Ara collaborated with Next Wave Partners LLP affiliates and Petainer Management to make this acquisition.
• In May 2022, BLEFA got together with other major companies dealing in keg supply chain to introduce new Steel Keg Association (SKA) to provide the advantages of steel kegs to beverage companies and breweries, as well as restaurants and bars.
• In May 2021, Lumiere Technologies turned into a new Indian partner of BLEFA. The company is based in Bangalore, and is a subsidiary of the SpectraA Group. The latter is a famous company in the Indian brewery industry as it offers breweries with one-stop platform for all solutions. Likewise, the firm offers a comprehensive solution to soft drink plants, food & beverage establishments, distilleries, and other businesses.
• In January 2020, Blefa Kegs and American Keg revealed technological investment and considerable equity by Blefa in the future growth of American Keg. With this agreement, American Keg is forecast to witness robust growth in employment and production over time.
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Given Below are the Kegs Market Segments
Capacity:
• Upto 20 L
• 20 L to 40 L
• 40 L to 60 L
• Above 60 L
• Material:
• Plastic
• Tin
• Stainless Steel
End Use:
• Alcoholic Beverages
• Beer
• Wine
• Spirits
• Cider
• Non-Alcoholic Beverages
• Soft-Drinks
• RTD Beverages
• Juices
• Others
• Cooking Oil
• Chemicals
• Others
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