From online-purchased packaged goods to the growth of the cannabis industry, label printers provide the office technology dealer channel a wealth of market opportunities.
Changes in buying habits have proven to be a boon for the demand for barcode and label printers. In the U.S., convenience trumps inflation for many busy consumers. Despite steeper food and grocery prices, which inflated nearly 6% in 2023, hungry citizens loosened their household budget belts. They paid premium mark-ups on menu prices—from 25% to 48%—to have third-party providers deliver food orders to their homes. Takeout delivery volumes skyrocketed during COVID-19 lockdowns and, even last year, increased 54% compared to 2022, according to statistics compiled by Mad Mobile. The $218 billion spent on online food orders represents 40% of total 2023 restaurant sales.
“We’ve seen an uptick across the board for our thermal, monochrome [one-color] devices,” reported Brady Killion, senior enterprise account executive for Toshiba America Business Solutions (TABS). “After they’re packed, all those bags of food need to be sealed with labels before delivery.” Accuracy, safety, and security are paramount, and speed helps, too, especially in the fast-food marketplace. The ability to use a label printer on the go can enhance the overall end-user experience.
Whether it’s delivered meals or Christmas gifts purchased online, there is a direct correlation between the consumption of transited goods and the number of labels being printed, said Mark Middendorf, product manager for Epson America’s ColorWorks line of on-demand label printers. “Online buying definitely is fueling our business,” Middendorf observed, adding that there are no signs of slowdown.
Over the past decade, the number of digital buyers worldwide has doubled to more than 2.64 billion, reports market research firm Insider Intelligence. E-commerce market size is expected to grow to some $8.1 trillion by 2026 (from $5.7 trillion in 2022), according to the Statista global data and business intelligence platform.
U.S. e-sales reached $271.7 billion in Q3 2023 (not including the year-end holiday season), according to the U.S. Department of Commerce. Then, from November 1 through December 31, 2023, American consumers spent a record $222.1 billion online, up 4.9% year-over-year based on data from Adobe Analytics.
Labels, once relatively simple, have evolved to become more complex, and the sheer number of them required per product also is up. Chain-of-custody documentation extends to labeling as companies track the movement of materials through each step in the supply chain. “The track-and-trace component of a label frequently consists of such dynamic data as lot codes, manufacture dates, expiration dates, and even governmental compliance information,” said Middendorf.
Different Buying Habits Trending for Label Printers
For retailers, the popular trend of “Buy Online, Pick Up in Store” (BOPIS) is driving in-store foot traffic while connecting offline and online experiences for customers. Among the top 500 retail chains, BOPIS reached nearly 83% penetration in 2023, reports Digital Commerce 360, up by more than 6% over 2022. Because of such buying changes, the demand for barcode and label printers is up substantially. Epson America reported double-digit sales increases year over year, according to Middendorf. “Ink sales are crazy high, which is proof of the output being driven to our printers,” he said.
Post-pandemic, as Toshiba’s Killion explained, “many retail stores reopened and adapted to customer needs with curbside pick-up options, which changed some of their receipt-printing requirements. Portability is important.” Having Bluetooth- or Wi-Fi-enabled wireless devices on their hips allows store employees and warehouse workers to be more productive and label items quickly and on the fly, when necessary.
“The labeling keys are speed and reliability, which have gotten better as technology has improved,” observed Killion. He cited longer battery life and better internet connectivity as two tech-development examples that help to facilitate accurate, streamlined labeling applications. Especially in a challenging economy, businesses seek to achieve better process efficiency and reduce waste from their operations.
According to market research/consulting firm Knowledge Sourcing Intelligence, North America’s print labels market is estimated to grow to more than $13 billion by 2027 from $10 billion in 2020 (CAGR of 3.86%). Global market value is twice that size ($26.8 billion) and is estimated to increase by another $11.3 billion during the next four years (with a compound annual growth rate (CAGR) of 4.58%), according to estimates from market research firm TechNavio.
TechNavio adds that the growing demand from the organized retail sector for label printers is driving market growth as well. According to its report, the pressure-sensitive segment will account for a significant share of market growth during the forecast period.
Distribution, logistics, and manufacturing facilities also use myriad labels and barcodes. “Quality control and traceability are critical features on today’s automation lines,” said Killion. In addition to retailers, the health care field requires a lot of labels. OEMs advise dealers to look to their existing customers for opportunities for barcode and label printers. “Find out who to talk to—is it the IT, procurement, or logistics department?” he recommended. “What are they currently using, and what are their pain points?”
Toshiba rang in 2024 by rolling out its BV400T thermal-transfer label printer. The compact four-inch label printer tackles industrial-level labeling and receipts for logistics, health care, and retail workforces. It reportedly blends intuitive functionality with seven-inch-per-second speed to produce shipping and shelving labels, radio frequency identification (RFID) asset management tags, and patient wristbands at 300-dpi (dots-per-inch) resolution. Capable of producing approximately 1,000 labels a day, the desktop label printer updates users on job status as well as on such tasks as replacing printheads or refilling media.
Feeling the Pressure Sensitive
For Gateway Business Communications, labels have been the core focus for 30 years. “Pressure-sensitive labels account for 50% of our revenue,” reported Don Fitman, vice president of sales and business development at the Epson ColorWorks dealer based in Middletown, Connecticut. The company has enjoyed double-digit percentage growth over the past three years. Spurred by pandemic problems, the dealership has seen a surge in print on demand, which has grown by more than 40%. It serves customers in the specialty foods, retail, chemical, warehouse, distribution, manufacturing, and cannabis markets with label printers.
On-demand label printing has been a growing trend for which COVID-19 acted as a catalyst. “All the pandemic supply chain issues—long lead times, materials shortages, layoffs—had a [negative] impact on the label industry,” observed Fitman. “People wanted to take more control of the process.” The ability to print on demand, onsite, and in color allows them to respond quicker while providing a competitive advantage.
Chemicals, drug prescriptions, medical devices, prepared foods, furniture, horticultural products, home-improvement hardware, and shoe boxes all require massive amounts of labeling. “One of the biggest use cases we’re seeing is in the visitor-management sector,” said Epson’s Middendorf. “Over the past 18 months, our ColorWorks C4000 [label printer] has become the de facto standard for guest badges at many major tradeshows.”
The Legal Weed Wave
At Gateway, in addition to providing labels and packaging solutions, the other half of the firm’s revenue comes from print management and promotional products. “Providing printers and managed services and support helps us to deliver total solutions for our customers,” explained Fitman. “Promo merchandise and branded apparel are a growing area for us.” Several of Gateway’s cannabis label clients, both the growers and the dispensaries, also sell merch.
The legalization of marijuana—in 24 states and the District of Columbia—has spiked demand for package labels. The addition of color helps related products to fly faster off shelves and into website carts,” said Fitman. “It’s all about brand recognition in the cannabis industry.”
Cannabis sales are booming across the United States and Canada. Legal U.S. sales could reach $43 billion in 2027, according to BDSA, which provides market guidance. Overall, BDSA forecasts a CAGR of nearly 11% over the next four years. “From state to state, regulations change all the time, which renders labels obsolete,” said Fitman. Hence, the flexibility of printing on demand becomes even more attractive.
Beyond cannabis product labeling, the use of color can be a process improver in other medical/health care arenas, too, especially in areas of patient identification and pharmaceutical labels. Printing wristband IDs in color at hospitals and clinics generally requires two steps, but color inkjet label printers simplify the workflow. Monochrome-only identification can lead to potential medication mix-ups, cautioned Epson Product Manager Andy Scherz. ColorWorks technology prints clear images of patient faces and/or the actual pills they’re supposed to be taking. On prescription drug bottles, information about risks, allergens, dosages, and frequency can be color-coded and highlighted for maximum visibility.
This month, Epson is launching Label Boost software that enables businesses to add full-color marketing messaging to shipping labels. Compatible with ColorWorks CW-C4000, CW-C6000, and CW-C6500 series printers, Label Boost can help elevate brands and increase customer engagement by adding colorful coupons, targeted ads, and dynamic content to shipping labels. Companies can automatically choose the message they want to attach based on a customer’s location, delivery date, or other key variables. To promote accuracy and timeliness of delivery, the new software can highlight critical information such as parcel count or expedited shipping.
“Retailers and direct-to-consumer manufacturers are always looking for creative and affordable ways to grow revenue and build customer loyalty,” said Tessa Kohl, Epson’s product manager of DX Solutions. Label Boost can also be employed to apply secondary (such as regulatory or shipping-and-handling) labels and integrate with zebra programming language (ZPL)-driven software used by many national couriers and other proprietary labeling solutions such as BarTender and Loftware.
Trends for 2024 and Beyond
On the radar for decades now, RFID label printing technology is finally becoming more cost-effective. “There have been changes to the types and quality of RFID labels out there,” noted Killion, again citing wireless improvements in Wi-Fi capabilities and Bluetooth connections. Able to integrate within even the most complex IT environments, RFID bolsters Toshiba’s functionality while enabling its systems to fulfill applications usually reserved for industrial printers. Recessed ports, an optional built-in AC adapter, and quick boot times simplify labeling operations.
One of Gateway’s label customers has integrated RFID into pharma labels to speed up order validation and inventory control processes. Using ColorWorks inkjet, the customer got creative and went from preprinting blank labels to printing color labels on demand with RFID.
The prevention of product loss is important to the retail, manufacturing, and logistics sectors. Any technology is a positive tool if it can remove human error from the tracking equation, said TABS’s Killion. “By using RFID labels, within seconds, a single employee can point and scan an entire cart filled with groceries or a whole pallet of SKUs [stock-keeping units] grouped together,” he noted, pointing out the labor savings to be had, too.
At the MODEX supply chain tradeshow, March 11–14, 2024, in Atlanta, Toshiba expects to see these three features exhibited:
- For relabeling purposes, cameras using artificial intelligence (AI) can identify bad labels that contain misinformation (perhaps a listed weight is incorrect) and “kick” them off the conveyor belt.
- Robotics and other automation technologies are employed to streamline scanning and sorting workflows.
- Sustainable products that minimize waste such as recycled labels and liner-less offerings like Toshiba’s DL1024 double-sided, thermal printer. Launched last September at PackExpo, it streamlines distribution/fulfillment by automatically applying a shipping label and a packing list in a single application.
Looking ahead, Killion said imaging dealers can watch for more preemptive serviceability from Toshiba. “Our engineers have developed software that tracks printhead life in the MFP space,” he reported. “We strive to extend similar technology to our label and barcode printers.”
At Epson, Middendorf sees unique applications of two-dimensional barcodes as a macro-trend. Leveraging its ColorWorks print engine’s 1200×1200-dpi resolutions, the OEM has demonstrated a tiny, quick-response (QR) code on a 2.6-inch tube of lip balm. “The high-def output is readable at less than ½-x-½ -inch,” he revealed.
Fitman at Epson partner Gateway added that there’s only so much room on a label, which is why he sees the popularity of smaller QR codes increasing. “Getting a good scan rate depends on matching the right printer with the right media,” he said.
