Tags market will grow by 5.2% CAGR between 2022 and 2032, steered by increasing focus on printing tags for elevating brand image, a research by Future Market Insights (FMI) has found.
“Usage of tags has been increased in brand promotions of products through printing technology,” the ESOMAR-certified market research and consulting firm stated. “Custom printing of barcodes help consumers to track products as per the information in accordance with their needs. The quality of printing on tags provides a more aesthetic look to attract customers towards the product.”
The research found that loop, RFID tags on food and beverage, electronics and electrical, and clothing and apparel provide an edge towards brand promotion. Moreover, easy accessibility of printing technology is said to provide impressive opportunities for design and manufacture of tags over the forecast period.
The research forecasts that the demand and sales of tags will be definite and increase with time. Factors such as increase in middle class family income, millennial generation’s eCommerce expenses, convenience factor, and advanced tracking processes will increase the tags sales globally.
According to the research, by material type, the plastic segment accounts for 43% in the global tags market. On the basis of tag type, RFID tags are said to be preferred due to its durability and ease in inventory and asset management. The segment is said to increase 1.8 times during the next 10 years.
In terms of end use, the clothing & apparel segment will create an incremental opportunity of USD 2,444.1 million because of the rise in disposable income of middle class families in emerging economies.
Moreover, South Asia and East Asia collectively are expected to register a maximum growth rate of 7.2% and 6.5%, respectively by 2032.
“The usage of RFID tags is increasing rapidly across the globe. Their application especially in consumer electronics has created abundant opportunities for tags manufacturers. Increasing emphasis on ease in logistical and inventory management is anticipated to redefine the tags market growth” an FMI analyst said.
In the last decade, usage of RFID tags increased in the consumer electronics segment, which has been proven useful and handy when it comes to logistical management.
RFID tags are a type of tracking system, which uses radio frequency to track, search, and communicate with items or people. RFID tags are known as smart labels, as they easily store a tonne of varied range of information such as a short description, serial numbers or even pages of data.
Due to usage of low, high and ultra-high radio frequencies to identify shoplifters and other risks to different merchandise, revenue generation is uplifted, the research stated.
Nowadays, usage of RFID tags has seen an increase in end use industries such as clothing and apparel, and cosmetics. “This trend will exponentially increase the demand for RFID tags, which helps in asset management. This will result in an increase in the demand of RFID tags over the forecast period,” it concluded.