Smart Food Label Market Trends

Growth Drivers

• Growing Consumer Awareness for Hygienic Packaged Foods: The spike in the demand for packaged and perishable food products has grown massively in the recent times not just in the developed or developing countries, but also in many low and middle-income nations worldwide owing to the panic-stricken purchase due to the ongoing disease COVID-19. As such, consumers are widely aware about the various norms stated by the World Health Organization for collecting packaged foods that are not just hygienically packed but are also safe to consume. Packaged foods travel through various supply chain procedures before they reach the shelves of the retail outlet. During the process, there are chances of contamination of the food packets. Smart labels can easily display the condition of food packet, helping the consumer in their shopping experience program.
  
  Moreover, smart food labels also facilitate food manufacturers by helping them enhance their supply chain efficiency by the distinction of different type of food products and how they need to be stored and processed. Additionally, smart food labels also help consumers by providing them relevant information on the packaged food product, which include expiry date, ingredient information and details of the quality of the food. Such factors are thereby anticipated to drive the growth of the global smart food label market.
• Increasing Demand for Smart Packaging by End User Industries: There is a rising demand for smart packaging from end user industries, such as pharmaceutical, FMCG and others as smart food labels plays a pivotal role in providing tracking information of the products throughout the entire supply chain. Smart food labels also possess RFID tags where information is fed before the products are processed for further supply chain processes. Supply chain operators of the end user industries can easily identify the products with the help of near field communication (NFC) tags and RFID tags and help the operator in the supply chain mechanism to enhance the efficiency of the supply line to the shelf of retailers. Such factors are anticipated to drive the growth of the global smart food label market.

Challenges

• Smart food labels are often priced comparatively higher than conventional bar code labels. Moreover, lack of proper infrastructure in several nations to handle such advance supply chain mechanisms are some of the factors anticipated to impact negatively towards the growth of the global smart food labels market.