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United States Functional Labels Market Size Expands from US$48.1 Billion in 2023 to US$71.1 Billion by 2031 Amid Rising Demand for Traceability & Safety | Top Companies are CCL Industries Inc., Avery Dennison Corporation, Label and Narrow web

09-15-2025 08:55 AM CET | Consumer Goods & Retail

Press release from: DataM Intelligence 4market Research LLP

Functional Labels Market

Functional Labels Market

Functional Labels Market reached US$ 48.1 billion in 2023 and is expected to reach US$ 71.1 billion by 2031, growing with a CAGR of 5.0% during the forecast period 2024-2031.

Functional labels are advanced labeling solutions that go beyond simple product identification or branding. They incorporate additional features such as tamper evidence, resealing ability, temperature or freshness indicators, interactive elements (QR codes, RFID, NFC), or enhanced protective materials. These labels serve utility roles in supply chain traceability, consumer engagement, regulatory compliance, or product safety. They are used across industries like food & beverage, pharmaceuticals, cosmetics, consumer durables, and logistics to provide both information and added functionality.

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☛ Functional Labels Market Dynamics and Drivers

Regulatory and compliance pressure: Industries such as pharmaceuticals, food & beverages, and consumer products are facing increasing requirements for traceability, safety (tamper evidence), proper disclosure (e.g. expiration, storage conditions), anti-counterfeiting, and certification. Labels with functional features help address these needs.

Demand for supply chain visibility: As supply chains become more global and complex, there's a need to monitor goods in transit (temperature, handling), ensure integrity, prevent counterfeiting, and respond to recalls efficiently. Functional labels with sensors or smart tracking (RFID, NFC) are growing in importance.

Consumer engagement and brand differentiation: Labels that provide more utility - interactive features like QR codes, resealable or peel-away components, freshness indicators - give brands ways to stand out on shelves and reinforce trust or premium perception. Also as consumers more often expect transparency, these labels help meet that demand.

☛ Functional Labels Industry News:

United States: Recent Industry Developments

✅ In July 2025, Avery Dennison launched a new portfolio of smart functional labels embedded with NFC and RFID technology. These solutions are designed for supply chain transparency, product authentication, and sustainability tracking. The launch enhances Avery's leadership in intelligent packaging innovations.

✅ In June 2025, 3M announced a $150 million investment to expand its functional labeling production facility in Minnesota. The expansion focuses on high-durability labels for healthcare, automotive, and electronics applications. Operations are expected to begin in early 2026.

✅ In May 2025, CCL Industries introduced eco-functional labels made from 100% recyclable materials. The product line supports growing demand for sustainable packaging across food, beverages, and personal care sectors. It marks a major step toward circular economy labeling solutions.

Japan: Recent Industry Developments

✅ In July 2025, LINTEC Corporation unveiled functional adhesive labels with anti-counterfeit features for the pharmaceutical industry. These labels integrate micro-text and tamper-evident properties to safeguard drug authenticity. Initial deployment is targeted for domestic pharma companies.

✅ In June 2025, Seiko Epson launched an advanced printable functional label system combining IoT sensors and QR codes. The system enables real-time data tracking for logistics, cold chain, and retail. Pilot projects are underway with major Japanese retailers.

✅ In May 2025, Sato Holdings Corporation invested in a new R&D center in Tokyo dedicated to smart and sustainable functional labels. The facility will focus on biodegradable materials and intelligent tracking labels. The investment aligns with Japan's push for green packaging innovation.

☛ Functional Labels Market Competitive Landscape:

CCL Industries Inc., Avery Dennison Corporation, Label and Narrow web, Henkel AG & Company, 3M Company, Cenveo Inc., Fuji Seal International Inc., H.B. Fuller Co., Herma Labels and Flexcon Company, Inc.

Research Methodology

We employ a hybrid approach, integrating qualitative insights with robust quantitative analysis to deliver comprehensive and reliable market intelligence. The process starts with extensive secondary research, leveraging trusted industry publications, proprietary databases, and credible market sources. This foundation is then strengthened through targeted primary research, including structured surveys and in-depth interviews with industry leaders, subject matter experts, and key market participants.

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☛ Segment Covered in the Functional Labels Market:

By Type (Peel-away, Bundling, Pressure-sensitive, Booklet, Collectable stickers, Resealable, Others)

By Material (Paper, Plastic, Metal, Others)

By End-User (Consumer Durables, Chemicals, Pharmaceuticals, Food & Beverage, Others)

☛ This Report Covers:

✔ Comprehensive go-to-market strategy insights.

✔ An unbiased evaluation of market performance.

✔ In-depth analysis of development trends, competitive landscape, supply and demand dynamics, year-on-year growth, competitive benchmarking, vendor mapping, market access, and overall development status.

✔ Customized regional and country-level reports available on request, including detailed localized analysis.

✔ Identification of potential and niche segments/regions showcasing strong growth opportunities.

✔ Application of both top-down and bottom-up approaches for accurate regional market analysis.



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☛ Regional Analysis for Functional Labels Market:

⇥ North America (U.S., Canada, Mexico)

⇥ Europe (U.K., Italy, Germany, Russia, France, Spain, The Netherlands and Rest of Europe)

⇥ Asia-Pacific (India, Japan, China, South Korea, Australia, Indonesia Rest of Asia Pacific)

⇥ South America (Colombia, Brazil, Argentina, Rest of South America)

⇥ Middle East & Africa (Saudi Arabia, U.A.E., South Africa, Rest of Middle East & Africa)

☛ Frequently asked questions:

➠ What is the global sales, production, consumption, import, and export value of the Functional Labels Market?
➠ Who are the key global manufacturers, and what is their operational performance?
➠ What are the major opportunities and threats in the global Functional Labels Market?
➠ Which product types or end-users show the most growth potential and market share?
➠ What challenges and constraints are impacting the Functional Labels Market?
➠ What sales, marketing, and distribution channels are used globally?

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Contact Person: Sai Kiran
Email: Sai.k@datamintelligence.com
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About Us -

DataM Intelligence is a Market Research and Consulting firm that provides end-to-end business solutions to organizations from Research to Consulting. We, at DataM Intelligence, leverage our top trademark trends, insights and developments to emancipate swift and astute solutions to clients like you. We encompass a multitude of syndicate reports and customized reports with a robust methodology.

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