In the beverage industry, the ability of smart labels to ensure traceability has made them a popular beverage packaging solution. Some experts point out that research shows that consumers tend to spend more on products that label the origin of ingredients.
A Mordor Intelligence report titled “Smart Labels Market – Growth, Trends, COVID-19 Impact and Forecast (2023-2028)” notes the growing interest of e-commerce platforms in safe and traceable food. The report cites an IBM study that found that 71 percent of consumers are willing to “pay an additional average premium of 37 percent for companies that offer full transparency and traceability.”
Additionally, the report states that RFID smart labels are able to withstand harsh climatic conditions during transport, storage and use.
QR codes on labels can offer beverage manufacturers a range of opportunities. Experts note that their ease of use and versatility resonates with consumers.
“When combined with Product Cloud, they can help beverage manufacturers track, manage and store all events related to an individual product during its lifecycle. This end-to-end connection can help brands tell the story of their product’s provenance or carbon footprint impact stories, thereby enriching the customer experience.”
Product security measures for smart labels are also boosting the demand from beverage manufacturers. Experts believe that brand protection “is a key driver”, especially when the product is a consumer product.
“The focus on product authentication is directly linked to much-needed safeguards for the overall well-being of consumers. Embedding NFC tags behind tags opens up opportunities for seamless interactions. This creates a higher level of brand protection and increases consumer loyalty to the brand.” lifetime value.”
And, when each drink has a unique digital identifier, it’s easier to track if a product is recalled.
Augmented reality (AR) and virtual reality (VR) can also be used with smart tags, which experts say is “exciting” for brands and consumers alike.
“In addition to marketing and sales opportunities, the convergence of these technologies can provide interactive product information, help customers make informed choices, help brands improve their loyalty programs, and ultimately improve customer retention. The fusion of smart labels and AR/VR Ultimately it will deliver a richer customer experience and change the way we experience beverages.”
According to a Mordor Intelligence report, smart labels “play a vital role in the marketing and advertising of consumer products.” Mordor Intelligence notes that these labels can provide product information and also analyze consumer buying patterns.
“Cost-cutting by manufacturers in the supply chain to move closer to recent efficiency levels is a key factor increasing demand and driving the aggressive adoption of these solutions, gaining a first-mover advantage in individual end-user industries,” the report states. ”
Experts point to near-field communication (NFC) as another technology that could be used in conjunction with smart tags. “Taking smartphones as an example, NFC is the first choice for brands that want to allow consumers to interact one-on-one with their products. Now that almost all smartphones support this technology, consumers are increasingly using it for non- Contact payment.”
As for radio frequency identification (RFID), experts say that because it is a one-to-many form of technology, retailers and brands can use it to “quickly capture hundreds of items in seconds”. This improves inventory visibility, which can be digitized and used to optimize omnichannel shopping.
“This can help brands and retailers achieve 99 percent inventory accuracy, reduce labor, minimize stock-outs, and boost sales,” the experts explained.
Looking ahead to what’s next for RFID smart label technology in the beverage market, experts noted that the technology is increasingly being used “as a means of pre-sale consumer interaction, click-to-pay technology and post-sale collaboration”. Aftermarket services may include coaching, future rewards or coupons, customer loyalty programs, and certified brand protection.
The future of RFID smart label technology is exciting and it now opens the door to limitless applications. The beverage market is heading towards an exciting time where consumers are making sustainability a priority and providing them with products best suited to support these initiatives, delivering a circular economy – which in turn will accelerate greater adoption of technologies such as NFC .
Post time: Jun-02-2023