Inventory Tags Market to Grow at a CAGR of 5.0% to reach US$ 7,264.42 million from 2020 to 2028

The inventory tags market was valued at US$ 4,995.36 million in 2020 and is projected to reach US$ 7,264.42 million by 2028; it is expected to grow at a CAGR of 5.0% during 2021–2028.  

The radio-frequency identification (RFID) technology is a commonly used technology in retail operations and warehouse management, as RFID tag-based operations consume less time. Therefore, the retail industry has witnessed rapid growth in the last few years. The inventory tags market is growing at a substantial pace due to the growth in the retail sector. Growing concerns about forgery, rising demand for inventory tags in various verticals, and increasing per capita disposable income in numerous developing countries are the key factors driving the growth of the global inventory tags market.   

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Inventory Tags Market: Strategic Insights

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Impact of COVID-19 Pandemic on Inventory Tags Market

The US is one of the prominent markets for inventory tags due to the growing retail and e-commerce, and healthcare sectors. An increase in the number of confirmed cases and rising reported deaths has affected above-mentioned industries. The factory and business shutdowns across the US, Canada, and Mexico impacted the adoption of the inventory tags. The retail sector has faced considerable shifts, consumer spending on groceries continue to increase. However, spending on apparel and other accessories decreased substantially in 2020.

Moreover, in the Mid-2020, the retail and e-commerce sales have increased gradually, leading to a slight growth in the inventory tags market in North America. Moreover, RFID technology is highly used in the healthcare industry to track their assets. To combat the COVID-19, the region has started shipping vaccines and PPE kits within the region where RFID technology has made a comeback to track and authenticate test kits, PPE, and vaccines, which, in turn has promoted the market growth.  

COVID-19 has had a severe impact on transportation and automotive, and trade activity. North America is home to a large number of manufacturing and technology companies. Thus, the impact of COVID-19 outbreak was quite severe in 2020 and is likely to continue in 2021. However, the impact of COVID-19 is short-term, and is likely to decrease in the coming years.   

Market Insights–Inventory Tags Market

Rising Popularity of RFID Technology

The increasing disposable incomes in several emerging countries are augmenting the demand for retail products. The retail industry is fueled by a mounting set of suppliers selling various products online and changing buying behavior of consumers. The retail sector in India is one of the fastest-growing markets in the world due to economic growth. As per the Indian Brand Equity Foundation, the retail sector in the country has raised US$ 672 billion in 2017 and it is estimated to reach US$ 1,200 billion by the end of 2021. E-commerce is the fastest-growing segment of the retail industry in North America and Europe. As per the Centre for Retail Research Limited, in 2019, the combined e-commerce sales in the UK, France, France, the Netherlands, Italy, and Spain were US$ 313.53 billion. Besides, as per the Census Bureau of the Department of Commerce, the retail e-commerce sales in the US were US$ 160.3 billion in the first quarter of 2020, with an increase of 2.4% from the fourth quarter of 2019.

RFID tags are heavily adopted by the retail industry, especially for apparels. The apparel suppliers are increasingly leveraging big data analytics and digitalization with the help of RFID technology, which helps identify objects based on the caught data or track the location of the same.

RFID is also installed to increase visibility in inventory, which allows for much higher stock accuracy levels. Giants, such as H&M, Nike, and Zara, in the retail sector use this technology for inventory management to generate an effective supply chain, combat counterfeit items, and prevent out-of-stock situations. RFID deployments code and read products in their warehouses. When shipments reach store locations, RFID identifies which sizes and models to restock.

Inditex Group, the owner of retail brands such as Pull and Bear, Bershka, Massimo Dutti, Zara, Stradivarius, and Oysho, has given Tyco Retail Solutions a contract for RFID-based inventory intelligence. The Tyco solution has been installed in 700 Zara stores in 22 countries. Thus, the increasing deployment of RFID tags among major retailers is fueling the market growth.

Technology-Based Insights

Based on technology, the inventory tags market is segmented into RFID, barcode, and other. The RFID segment led the inventory tags market in 2020. The Radio Frequency Identification (RFID) is used in keeping track and visibility of objects that are on the move. The RFID is a portable memory device on a chip that replaces the earlier called Universal Product Code (UPC) as it carries more dynamic information compared to the earlier UPC. This memory chip can be easily embedded in any kind of object that is to be considered for tracking. Radio Frequency Communications is employed between a host computer and an RFID device consisting of the memory chip. An RFID system comprises a tag that contains data, an antenna to communicate with the tag and a controller that is used to manage the communication between the antenna and the host computer. 

Label Type -Based Insights

Based on label type, the inventory tags market is sub-segmented into plastics, paper, metal, and others. The plastics segment led the inventory tags market in 2020. The plastic inventory tags are the most widely used inventory tags, as the plastic tags are cheaper and have a long lifecycle. The market players offer plastic inventory tags in various forms such as rectangular, square, and round, and are also offered in different color combinations. Moreover, owing to capabilities of being lightweight, non-conductive, non-corrosive, and impact-resistant, there is increasing adoption of plastic inventory tags among end users. However, the rising concern over the recyclability of plastics and sustainability is hampering the adoption of plastics inventory tags.

Printing Technology -Based Insights

Based on printing technology, the inventory tags market is sub-segmented into offset printing, digital printing, flexography printing, gravure printing, and others. The offset printing segment led the inventory tags market in 2020. Due to offset printing’s advantages, such as cost effective for larger quantities (lower marginal costs), high quality of print, and capability of using variety of paper and ink types, it is a widely used technology in various industries.  

End-User -Based Insights

Based on end-user, the inventory tags market is sub-segmented into retail, transportation and logistics, industrial, and others. The transportation and logistics segment led the inventory tags market in 2020. Barcodes and RFID technology is the widely used technology for automatic identification and data capture in the transportation and logistics sector. Although, the advantages associated with the RFID tools are anticipated to take over barcodes in the coming years. Most applications involve applying a smart label to the logistics container, which could be a carton, pallet, case, barrel, or tote, to provide shipment information or for long time container tracking. The key benefit of using barcode and RFID system is the ability to read the entire contents of diverse pallets during material shipping and handling operations such as truck loading or unloading.

Inventory Tags Market Regional Insights

The regional trends and factors influencing the Inventory Tags Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Inventory Tags Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Inventory Tags Market Market Report Scope

Market Players Density: Understanding Its Impact on Business Dynamics

The Inventory Tags Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

Major Companies operating in the Inventory Tags Market are:

1. 3M
2. Alien Technology, LLC
3. Brady Worldwide, Inc.
4. Camcode
5. CCL Industries Inc.

Disclaimer: The companies listed above are not ranked in any particular order.

Players operating in the inventory tags market are focusing on the development of advanced and efficient products.

• In 2020, Sato Holdings Corporation announced the launch of ASETRA, RFID Asset Management System for manufacturers and logistics service providers. The package system that utilizes RAIN RFID tags, QR codes and barcodes to streamline management of tools and returnable items.   

The Global Inventory Tags Market Has Been Segmented As Follows:

Inventory Tags Market– by Technology

• RFID
• Barcodes
• Others

Inventory Tags Market– by Label Type

• Plastics
• Papers
• Metals
• Others

Inventory Tags Market– by Printing Technology 

• Offset Printing
• Digital Printing
• Flexography Printing
• Gravure Printing
• Others

Inventory Tags Market– by End-User 

• Retail
• Transportation and Logistics
• Industrial
• Others  

Inventory Tags Market–by Geography

• North America

  • US
  • Canada
  • Mexico

• Europe

  • Germany
  • France
  • Italy
  • UK
  • Russia
  • Rest of Europe

• Asia Pacific (APAC)

  • Australia
  • China
  • India
  • Japan
  • South Korea
  • Rest of APAC

• Middle East and Africa (MEA)

  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of MEA

• South America (SAM)

  • Brazil
  • Argentina
  • Rest of SAM

Inventory Tags Market–Company Profiles

• 3M
• Alien Technology, LLC
• Brady Worldwide, Inc.
• Camcode
• CCL Industries Inc.
• Cenveo
• Honeywell International Inc.
• Johnson Controls, Inc.
• SATO Holdings Corporation
• Zebra Technologies Corporation