Artificial intelligence and automation are not the only futuristic technologies to impact the label and package printing industry. While smart labels – labels featuring advanced technologies like RFID or NFC that store and transmit data wirelessly without line of sight – are not a new phenomenon, they are certainly more prevalent and relevant than in years past.

Adoption rate has often been slow due to cost constraints. The prices have become more affordable in recent years, though. Plus, the rapid rate of technological innovation has made the technology
more attractive.

In fact, consumers benefit from smart labeling far more often than they realize. According to Andrew Palmer, director of sales, labels and forms, RR Donnelley, a recent NielsenIQ survey showed approximately 72% of shoppers find transparency to be important or extremely important, and 64% of shoppers say they would switch brands if provided in-depth information beyond what’s on the label.

“When discerning shoppers use QR codes at the point of purchase to learn more about a product’s ingredients or a brand’s responsible sourcing practices, they have smart labels to thank,” notes Palmer. “When consumers check online to see if items are in-stock at the retail location near them, it’s likely RFID labels affording them the convenience. Where traditional labels convey simple product information, smart labels help consumers connect with the brand, authenticate it, and even provide a purchasing incentive at times. It is therefore important to educate consumers on the benefits of smart labels and incorporate them across more industries.”

Avery Dennison uses the term “intelligent label” to refer to this market. The impact of data-driven insights for businesses, as well as new opportunities to drive consumer engagement, has never been so prevalent. atma.io by Avery Dennison offers a platform that unlocks the power of connected products by assigning unique digital IDs to everyday items. This ensures end-to-end transparency by tracking, storing, and managing all the events associated with each individual product – from source to consumer and beyond to enable circularity.

Fedrigoni, which acquired Acucote in 2021 and Tageos in 2022, supplies unsupported and supported transfer tapes for RFID applications, as well as premium material options offered by Fedrigoni Paper.

“RFID is one key technology to make labels smart, and it is surely the technology that offers the most options, varieties and security levels, and represents the widest range of performance,” explains Karin Fabri, chief marketing officer, Tageos. “As a result, RFID inlays and tags are at the very heart of many, if not most, ambitious smart label offerings. At Tageos, we are even more specific and define smart labels as labels that can provide a digital identity to virtually any item. Ultimately, we define smart labels as labels that enable RFID-based product digitization.”

According to Schreiner MediPharm, there are several key features of RFID technology. “UHF (Ultra-High Frequency) RFID tags are ideal for bulk identification of a large number of items at unit level, and can be read with handheld readers or fixed system/hardware solutions,” states Arne Rehm, senior product manager of RFID/NFC solutions, Schreiner MediPharm.

The possibilities for smart labeling are endless, too. They can fight counterfeiting and product diversion, provide track-and-trace capabilities, deliver consumer engagement and drive brand awareness.

“I think it’s a great tool for consumer engagement and for consumers to confirm the product they are purchasing is not counterfeit,” notes Michael Brice, vice president of sales and business development for INX International Ink Co. “The brand owner benefits from smart label technology that employs a security feature such as a taggant. Brand owners are losing billions of dollars to counterfeiting and diversion. This would put a dent in it while ensuring consumer safety.”

Press and converting equipment manufacturers have worked tirelessly to promote the adoption of this technology, too. Mark Andy has worked closely with Tamarack on RFID applications since the early 2000s. Mary Andy supplies the press, web handling and mounting platform. Tamarack then supplies the inlay unwind, converting and application. Tamarack also supplies the hot-melt system to apply adhesive to the inlay.

“Mark Andy and Tamarack have an excellent working relationship,” remarks Greg Reiter, senior applications engineer, Mark Andy. “We work closely as advances in technology change. The advances include press technology improvement. We started with the mechanical 2200 press and have advanced to the current P7E servo platform. Tamarack has added multiple streams and quick changeovers throughout the years. Inlay reading has advanced significantly through the years.”

Beyond the equipment and inlays involved, inks play a major role in the smart labeling process, as well. “INX’s various ink formulations enable the printer/converter the ability to deliver to their clients a truly smart label solution,” adds Brice. “Our inks can contain a taggant, which will serve to verify the product is authentic and prevents diversion of products. These solutions can be in both a static (flexo, offset, metal deco and coatings) or variable format (NW UV/LED inkjet inks and CIJ inks).”

Can you NF(C) me now?

Historically, brands have been reticent to implement smart labeling. For luxury brands, such as a high-end liquor bottle from Diageo, price is not a factor. However, most brands did not find the technology cost feasible.

Despite the perceived economic hurdles, there are numerous benefits to weaponizing smart labels. “Like with any new technology, brands may have been reluctant to invest in RFID labels due to the upfront investment it would take to switch over to RFID labels and hardware, in addition to training workers on how to use them,” explains RRD’s Palmer. “However, the investment in RFID labels can deliver a worthwhile return with savings gained on process and labor efficiencies. Additionally, RRD’s team aims for a seamless transition by helping its customers adopt RFID labels within their existing infrastructure, mapping incremental improvements further down the road, and assessing return on investment.”

Plus, cost is not as much of a deterrent as it once was. And the technology provides assistance with supply chain logistics, which are top-of-mind, perhaps more now than ever before. While price has been a barrier to entry, more converters and brands than ever before are deftly navigating that journey.

“In general, smart labels must compete with traditional – and usually cheaper – labels and therefore, must prove their economic viability,” states Tageos’ Fabri. “However, experiences show that our partners and customers consistently, extensively, and very successfully meet this challenge and return on invest.”

The technology helps overcome numerous challenges, too. “During the early days, users were worried about information security – an understandable reaction to any new, powerful technology,” says Avery Dennison. “The RFID industry has worked together to prepare standards to ensure information security. Product capability continues to improve. New developments and innovations have driven robustness and enabled stable performance even in the harshest conditions.”

According to RRD’s Palmer, the most prevalent consumer-facing application is the use of QR codes to provide access to product information that can’t fit on the label alone, delivering more information to empower educated purchasing decisions. Meanwhile, the most common business-facing application is the use of RFID labels to track and manage inventory throughout the supply chain and at the point of sale.

“Scanning an RFID label will tell you about the product origin, movement, and destination,” says Palmer. “By scanning RFID labels at different touchpoints, from production to the point of sale, businesses can identify inefficiencies in their supply chain, improve inventory forecasting, and mitigate supply chain challenges. With a number of major retailers now mandating RFID label usage, in order to improve their inventory management and security, RFID labels are becoming utilized more and more.”

NFC (Near Field Communication) tags enable data exchange with any NFC-capable smartphone to launch mobile applications or websites, automatically providing additional data and authentication features. Since RFID/NFC inlays are very thin and flexible, they can be integrated into pharma labels without impairing existing label designs.

For NFC technology specifically, typical use cases include smartphone-based digital product authentication and first-opening indication of medicine containers and injection devices, interactive patient and medication adherence support, as well as communication between a consumable and medical device per the lock-and-key principle.

“We are seeing strong recent growth for these applications,” says Schreiner MediPharm’s Rehm. “This is primarily due to the fact that the support of the mobile devices (iOS and Android) has only been implemented comprehensively for a few years.”

Schreiner MediPharm’s NFC-Label solutions offer several benefits in the growing market for self-injection and home care. Equipping pens or autoinjectors with an NFC-Label transforms them into smart devices enhancing product and drug administration safety. “Via their smartphones, patients can get digital product information and instructions for use per video, keep digital diaries for medication adherence monitoring, or check the authenticity of a drug,” comments Rehm. “In addition, digital first opening indication is possible to ensure product integrity until the point of use.”

Label converters have not been shy about investing into the smart labeling arena. Much of the interest has centered around the feasibility of getting into this once challenging market.

“With the proliferation of smartphones, there is no barrier for a consumer to access smart label information or data,” says INX’s Brice. “There are some who are concerned with cyber security and sharing personal data. The cost of the devices needed by label printing companies has been a hurdle, but as the smart label industry grows – and is expected to do so significantly – the cost of the devices will come down. If the projected growth of the smart label industry is any indication, the barriers and hurdles are diminishing.”

“Tageos’ customers and market partners are highly committed in smart labeling,” adds Fabri. “New, commercially viable solutions are being developed virtually every day and spark the high demand for our RFID inlays and tags.

“The attitude toward smart labeling products and solutions continues to be very positive,” she continues. “Hence, it’s no surprise that the global RFID and smart labeling market is experiencing vast growth rates for years and will continue to do so.”

How should a converter get started? The process begins with huddling with a sales rep, according to Mark Andy.

“A consultation with your sales rep can help you understand where to start,” says Reiter. “The sales reps work closely with Tamarack to help you with the correct questions to ask, so you can develop a plan. An understanding of typical label questions regarding web material, how many colors, volume, and press speeds need to be understood. The RFID questions you will need to answer are wet versus dry inlay, inlay size, label repeat, and how many inlays across the web.”

Smart markets

There are numerous end-use applications that are ideally suited for smart labeling. For example, the pharmaceutical and nutraceutical markets are ripe for this technology.

“UHF RFID offers the ability to track RFID-equipped containers and other medical products at unit level in hospitals, enabling automated inventory and supply chain management in real time,” explains Schreiner MediPharm’s Rehm. “As this provides so many benefits – it reduces errors, enables automated replenishment of the hospital pharmacy, helps manage potential product recalls and ultimately also saves money – this application shows strong growth in many hospitals.”

Schreiner MediPharm has developed a host of products for the pharmaceutical market, specifically. “We have developed a unique portfolio of label designs and features to optimally support the special requirements and use cases of the pharmaceutical and medical industry,” says Rehm. “For example, our RFID-Labels for prefilled syringes offer diverse opportunities in hospital environments by optimizing processes, enhancing product safety and helping avoid medication errors. Each syringe gets a unique digital identity, which facilitates automatic tracking and enhances transparency.”

However, smart labeling represents an opportunity in a wide range of other markets, including retail, food and agriculture, automotive, life sciences, manufacturing, warehousing and logistics, and more. Many brands are starting to mandate the use of this technology, too.

“Applied to sectors such as retail, manufacturing, logistics, pharma and healthcare, and many other industries, there is a broad variety of relevant use cases that it’s hard to select the best ones,” explains Tageos’ Fabri. “Today, the retail segment has yet the highest adoptation rate, but we also see other segments adapting and growing very fast. Hence, in highly developed societies, almost everyone is already involved in smart labels and RFID, but yet not everyone is aware of it.”

Avery Dennison has also targeted food, wine and spirits, albeit for different reasons. Not only is engagement crucial, but RFID can help curb waste. According to Avery Dennison, over 1.3 billion metric tons of food is wasted annually. “Intelligent labels can help to significantly reduce this amount, saving money while enhancing safety,” the company says. “They are also used to increase supply chain transparency and help stores monitor expiration dates and returns. Intelligent labels offer consumers protection from dangerous counterfeits – a serious challenge for the wine and spirits sector.”

Growth is extending to numerous places beyond the obvious sectors. “Smart labels are finding their way into every aspect of the supply chain,” notes INX’s Brice. “Pharmaceuticals, nutraceuticals, cannabis and beverage – especially alcohol brands – are all embracing them, but are also leaning toward implementing security features in the label or package to ensure that their products are safe and make it to their intended outlet.”

In the future, more and more markets will also get on board. “In the future, the demand for RFID is expected to continue growing as more industries recognize its benefits,” comments Trisha Smith, marketing and business development manager, Mark Andy. “The aviation and automotive industries are already starting to adopt RFID, and the rise of the IoT will likely drive further demand. Overall, RFID technology is expected to remain a key player in optimizing business operations and supply chain management.

“Overall, any industry that requires efficient inventory management, asset tracking, or supply chain optimization can benefit from RFID technology,” adds Smith. “Its ability to provide real-time data, increase visibility, and streamline operations makes it a valuable tool for businesses looking to improve their bottom line.”

RR Donnelley has been developing and manufacturing RFID labels that comply with mandates from large retailers. “As this technology becomes increasingly critical to streamline inventory management, more consumer packaged goods (CPG) brands across a wide range of product categories will need to invest in item-level RFID labels,” states RRD’s Palmer. “These factors contributed to RRD’s expanded RFID label offerings, which offer expertise in helping companies integrate RFID labels seamlessly into their existing infrastructures.”

“The bottom line is that a smart label must deliver real added value to the user,” adds Rehm. “The label is only one part of a holistic solution – if it is done right, users are usually quickly convinced of its usefulness. For example, hospital staff saving time that can be used for other important tasks.”