Variable Data Printing Labels Market Size, Share & Trends Analysis Report By Component (Hardware, Software, Services), By Label (Release Liner Labels And Linerless Labels), By Printing Method, By End Use, By Region, And Segment Forecasts, 2024 - 2030

Variable Data Printing Labels Market Trends

The global variable data printing labels market size was estimated at USD 16.64 billion in 2023 and is projected to grow at a CAGR of 13.6% from 2024 to 2030. The rapid growth of e-commerce and changes in retail packaging requirements are boosting the demand for variable data printing labels. Moreover, an increasing demand for customized and personalized labels is contributing to the market’s growth.

Variable data printing (VDP) labels are labels that can be customized with variable information during the printing process. Unlike traditional printing methods, which produce identical labels in bulk, VDP allows for unique and personalized data to be printed on each label. Digital printing technologies and specialized software enable this capability.

VDP of labels offers a wide range of benefits, including flexibility, customization options, and efficiency. Each label can contain different information, such as names, addresses, barcodes, QR codes, serial numbers, and promotional messages. Moreover, VDP can handle a wide range of variable elements, making it suitable for diverse applications across different industries. It aids in maintaining high print quality even with varying data, ensuring consistency and clarity.

Brands are leveraging VDP for innovative marketing strategies, such as personalized promotions and interactive packaging. This helps in brand differentiation and enhance customer engagement. There is an increasing demand for customized and personalized labels, especially in industries such as food and beverages, pharmaceuticals, and consumer goods. VDP allows for the creation of unique labels with individualized information, which is appealing for marketing and compliance purposes.

Technological advancements in digital printing have made VDP more accessible and cost-effective. Improvements in print quality, speed, and the ability to handle complex designs have significantly contributed to the adoption of VDP. Automation and artificial intelligence (AI) are transforming the commercial printing industry by optimizing production workflows, enhancing operational efficiency, and reducing costs. As automation and AI adoption increases, commercial printers can process large volumes of orders with minimal human involvement, leading to faster turnaround times and greater productivity. This is likely to drive significant advancements in the VDP technology.

The growth of e-commerce and retail is driving the demand for VDP by necessitating personalized, efficient, and compliant labeling solutions that enhance customer satisfaction and operational efficiency. Each online order typically requires unique shipping labels, packing slips, and promotional inserts. VDP allows for the efficient production of these customized materials.

Component Insights

In terms of component, the market is classified into services, hardware, and software. The hardware segment dominated the market in 2023 and accounted for more than 44.0% share of global revenue. The segment’s growth is attributed to the technological advancements in variable data printing hardware. Innovations in high-speed printers allow for quicker production rates, catering to the growing need for rapid turnaround in various industries. In October 2022, FUJIFILM Integrated Inkjet Solutions, a division of Japan-based FUJIFILM Corporation, announced the launch of the FUJIFILM 12K Printbar System, a compact and high-speed variable data print solution for packaging and commercial printing markets. This drop-on-demand system integrates seamlessly with existing production equipment, offering 4-color process printing, fast startup, and speeds up to 1,000 feet per minute, addressing space constraints while enhancing productivity and print quality.

The software segment is projected to witness the fastest CAGR of 14.2% from 2024 to 2030. The segment’s growth can be attributed to the enhanced personalization capabilities of VDP software. Advanced software allows for real-time customization and generation of dynamic content on labels, catering to specific customer preferences and improving engagement. The incorporation of artificial intelligence (AI) in VDP software enhances personalization by analyzing consumer behavior and tailoring labels accordingly. Moreover, enhanced user interfaces and design tools make it easier for users to create complex and customized label designs without needing extensive technical expertise.

Label Insights

In terms of label, the market is classified into release liner labels and linerless labels. The release liner labels segment dominated the market in 2023 and accounted for more than 58.0% share of global revenue. The segment's growth is attributed to the easy application and protective backing provided by release liner labels. The release liner provides a protective backing for the adhesive side of the label, preventing it from sticking prematurely. The liner is designed to be easily removed, allowing for quick and precise application of the label to various surfaces. Moreover, advances in liner materials have improved the performance of release liner labels, making them more durable, versatile, and suitable for a variety of applications.

The linerless labels segment is projected to grow at the fastest CAGR of 13.9% from 2024 to 2030. The segment’s growth is attributed to growing sustainability and environmental concerns. Linerless labels eliminate the need for a release liner, reducing waste and supporting sustainability goals. This aligns with increasing environmental regulations and corporate sustainability initiatives. The absence of a liner minimizes the use of raw materials, contributing to a lower environmental footprint and reduced waste. Moreover, Linerless labels remove the need for peeling labels from a liner and disposing of the liner, resulting in quicker processing.

Printing Method Insights

In terms of printing method, the market is classified into thermal transfer printing, direct thermal printing, inkjet printing, electrophotography, flexographic printing, and others. The inkjet printing segment dominated the market in 2023 and accounted for more than 24.0% share of global revenue. The segment's growth is attributed to its cost-effectiveness and suitability for printing variable data. Inkjet printing systems often have lower setup costs compared to traditional printing technologies, making them cost-effective for short runs and frequent changes in designs. Moreover, they excel in printing variable data, such as personalized messages, barcodes, and QR codes, catering to the growing demand for customized and personalized labels.

The electrophotography segment is projected to grow at a considerable CAGR of 13.9% from 2024 to 2030. The segment’s growth is attributed to the high-quality print output provided by the electrophotography printing method. Electrophotography, or toner-based printing, is known for producing sharp, high-resolution prints with fine detail and accurate color reproduction, which is essential for high-quality variable data labels. The method provides consistent print quality and reliability, making it ideal for applications that require precise and uniform label output. Moreover, electrophotography can print on a wide range of substrates, including various types of label materials, which adds flexibility to the printing process.

End Use Insights

In terms of end use, the market is classified into healthcare, retail and e-commerce, food and beverages, logistics and transportation, and others. The food and beverages segment dominated the market in 2023 and accounted for more than 31.0% share of global revenue. The need to ensure regulatory compliance drives the segment’s growth. Stringent regulations regarding food labeling, such as nutritional information, ingredient lists, and allergen warnings, drive the need for accurate and up-to-date variable data on labels. Enhanced traceability requirements necessitate the use of variable data printing for batch codes, expiration dates, and other critical information to ensure product safety and compliance. Moreover, customizable labels help food & beverage brands stand out in a competitive market by offering unique and distinctive packaging that appeals to consumers, driving the segment’s growth.

The retail & e-commerce segment is projected to witness the fastest CAGR of 14.3% from 2024 to 2030. The segment’s growth is attributed to the need for easy updates of pricing on labels and enhanced marketing and branding among retail & e-commerce businesses. VDP enables dynamic pricing strategies and the promotion of time-sensitive offers. Retail and e-commerce companies can easily update pricing information and promotional content on labels, which is essential for managing sales and discounts efficiently. Labels with variable data can be used for targeted marketing campaigns, promotions, and brand differentiation. Retailers use these labels to create eye-catching designs and incorporate specific promotional offers that appeal to different customer segments.

Regional Insights

North Americadominated the global variable data printing labels market and accounted for a revenue share of over 31.0% in 2023. The market’s growth in the region is attributed to the technological advancements in the region. The region has seen significant advancements in digital printing technologies, which have made VDP more efficient, cost-effective, and versatile. Improved printing technologies allow for high-quality, high-speed production of variable data labels. Moreover, stringent regulations in North America regarding product labeling, safety, and traceability push businesses to adopt VDP.

U.S. Variable Data Printing Labels Market Trends

The variable data printing labels market in the U.S. is expected to grow at a CAGR of 12.7% from 2024 to 2030. The market’s growth in the country is attributed to rising customization and personalization trends. U.S. consumers prefer personalized products and experiences. VDP allows businesses to cater to these preferences by creating customized labels that enhance customer engagement and satisfaction.

Asia Pacific Variable Data Printing Labels Market Trends

The variable data printing labels market in Asia Pacific is expected to grow at the highest CAGR of 14.5% from 2024 to 2030. Asia Pacific is experiencing a significant boom in e-commerce, with a growing number of online shoppers. This expansion increases the demand for VDP labels for personalized packaging, dynamic pricing, and targeted marketing. The expanding middle class in Asia Pacific countries has greater purchasing power and demand for high-quality, personalized products. This demographic shift drives the need for VDP labels to cater to their preferences.

The variable data printing labels market in Europe is expected to grow at a significant CAGR of 13.5% from 2024 to 2030. The market's growth can be attributed to the health and pharmaceutical sector's growth in the region. The health and pharmaceutical sectors in Europe are growing, with an increased focus on accurate and detailed labeling for safety and regulatory compliance. VDP enables the production of labels that meet these stringent requirements.

Key Variable Data Printing Labels Company Insights

Some of the key companies operating in the market include HP Development Company, L.P Xerox Corporation, Seiko Epson Corporation, and Konica Minolta, Inc., among others.

• Seiko Epson Corporation, a Japan-based company, operates in the Electronics and Printing Solutions industry. The company offers a range of products, including printers, projectors, and industrial automation equipment. Seiko Epson Corporation is a significant player in the Variable Data Printing (VDP) market, leveraging its advanced inkjet technology to offer high-quality, customizable printing solutions.

Memjet and Colordyne Technologies are some of the emerging companies in the target market.

• Colordyne Technologies is a U.S.-based company offering digital printing solutions. Its offerings include inkjet engines and benchtop printers. Its inkjet engines, such as the UV-LED Inkjet Engine, support hybrid label production. The company has a presence in over 35 countries. Since beginning operations in 2010, Colordyne has expanded its reach with over 600 installations of benchtop systems and inkjet engines.

Recent Developments

• In May 2024, Seiko Epson Corporation announced the launch of the ColorWorks CW-C8000, a label printer designed for mid to high-volume batch runs. This printer enhances print quality and performance, building on the ColorWorks C7500's success, with features like PrecisionCore Heat-Free technology, high-speed printing up to 12 inches per second, advanced connectivity, and durable UltraChrome DL pigment inks.

• In October 2023, Canon Inc. unveiled the Canon LabelStream LS2000, a 40m/min inkjet label press. This new press, Canon Inc.'s first to use water-based ink, combines innovative and proven technologies to print CMYK plus white on various self-adhesive substrates, including those meeting food safety standards, and is aimed at expanding the company's digital label press offerings to a wider range of industries.

Variable Data Printing Labels Market Report Scope

Global Variable Data Printing Labels Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global variable data printing labels market report based on component, label, printing method, end use, and region.

• Component Outlook (Revenue, USD Million, 2017 - 2030)

  • Hardware

  • Software

  • Services

• Label Outlook (Revenue, USD Million, 2017 - 2030)

  • Release Liner Labels

  • Linerless Labels

• Printing Method Outlook (Revenue, USD Million, 2017 - 2030)

  • Thermal Transfer Printing

  • Direct Thermal Printing

  • Inkjet Printing

  • Electrophotography

  • Flexographic Printing

  • Others

• End Use Outlook (Revenue, USD Million, 2017 - 2030)

  • Healthcare

  • Retail and E-commerce

  • Food and Beverages

  • Logistics and Transportation

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • UK

    • Germany

    • France

  • Asia Pacific

    • India

    • China

    • Japan

    • South Korea

    • Australia

  • Latin America

    • Brazil

  • Middle East and Africa (MEA)

    • Kingdom of Saudi Arabia (KSA)

    • UAE

    • South Africa