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Digitized health and protective labeling: Empowering the consumer

Smart labels can shift the power to consumers, who can have better-informed choices of the products they support.

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Quantumrun Foresight
November 16, 2023

Insight summary

The adoption of smart labels across various industries is revolutionizing transparency, tracking, and consumer education. Forecasted to contribute over $21 billion in global revenue by 2028, these digital labels offer real-time analytics, authentication, and certification. Companies like HB Antwerp and Carrefour are early adopters, with the latter leveraging blockchain for enhanced product transparency. These labels empower consumers to make informed decisions, streamline supply chain efficiencies, and offer a competitive edge through value-added services. Moreover, they prompt stricter government regulations and stimulate innovation in technologies like IoT and blockchain. This multifaceted impact suggests a shift toward greater accountability and informed consumerism.

Digitized health and protective labeling context

The supply chain and logistics sector is moving towards a comprehensive, closed-loop system for product tracking and tracing via smart labels. By 2028, the global smart label market will contribute over USD $21 billion in revenue, according to SkyQuest Technology Consulting. Many large brands are gearing up to invest in real-time analytics of product data gathered through these intelligent labels. These labels not only offer tracking capabilities but can also act as tools for authentication and certification.

For example, HB Antwerp, a prominent diamond buyer and retailer, pioneered the HB capsule, designed to trace their diamonds' entire history and journey, right from the mine to the retail shop. In addition, the Carbon Trust has established the Product Carbon Footprint Label, which quantifies whether a product's carbon footprint is lower than that of its competitors or if the product is carbon neutral. This move signifies an industry-wide shift towards improved transparency and accountability.

In April 2022, Carrefour, a French retail company, became the first retailer to use blockchain technology for a range of its proprietary organic products. The move is a response to increasing consumer demand for greater clarity concerning their goods' origin and production methodologies. Blockchain, known for its secure and inviolable data storage capabilities, allows consumers to trace the entire lifecycle of the products, from the time and place of production to their transportation to the stores.

Disruptive impact

Digitized health and protective labeling can provide more transparency and information, catering to an increasing number of ethical consumers. For example, consumers can access information about the nutritional value of food, its origin, whether it's organic or genetically modified, and the carbon footprint of its production and shipment. This greater level of transparency empowers informed choices about what people consume, potentially leading to healthier dietary habits and a greater push toward sustainable products.

Moreover, digitized health and protective labels can also significantly affect public health and safety. For instance, in case of a product recall, these labels could make it easier to track affected products quickly. Smart labels can also provide crucial information on the proper usage or handling of certain products, reducing the risk of accidents or misuse. For industries like pharmaceuticals, where the authenticity and integrity of products are crucial, digitized labels can ensure the traceability of drugs, helping combat counterfeit products and ensuring patient safety.

Lastly, by streamlining supply chain processes, these labels can lead to cost savings for businesses. They can also open up new avenues for value-added services, as companies can use these labels to provide additional information or recycling service, differentiating themselves in the market. Moreover, government regulations are also becoming stricter when it comes to carbon emissions and other environmental, social, and governance (ESG) policies, allowing businesses that use smart labels to demonstrate compliance.

Implications of digitized health and protective labeling

Wider implications of digitized health and protective labeling may include:

Increased awareness and education about health risks and safety precautions among the general population. It can empower individuals to make informed decisions about their well-being, improving overall public health.
Streamlined manufacturing processes, reducing administrative costs and improving efficiency.
Governments developing policies to regulate digitized health and protective labeling. These laws may include establishing data privacy and security regulations, ensuring equitable access, and addressing potential biases.
Innovation in the healthcare and food manufacturing sectors leading to advancements in blockchain, the Internet of Things (IoT), sensors, and wearables.
New job opportunities in data management, cybersecurity, digital health consulting, and smart packaging.
Reduced paper waste and energy consumption associated with traditional manufacturing and packaging practices.
Sharing of manufacturing tracking across borders facilitating international collaborations in research, epidemiology, and disease surveillance, leading to faster response and containment of global health crises.
Consumers demanding more retailers and manufacturers to switch to smart labels or risk losing markets and demographic groups.