by Digitalization has transformed the retail industry in recent years with the help of technological innovations like electronic shelf labels. These smart labels help retailers manage pricing and product information digitally across stores in real time. Electronic shelf labels (ESLs) eliminate the need for printing and manually placing price tags, reducing labor costs and price tag waste. ESLs display product prices, descriptions and additional marketing contents. They are connected wirelessly to the main server of retailers and can be updated simultaneously on all shelves with the push of a single button. This eases pricing changes, promotions, discounts and other offers without the need for physical intervention at stores.
The global Electronic Shelf Labels Market is estimated to be valued at US$ 97.92 Mn in 2023 and is expected to exhibit a CAGR of 8.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends
The growing digitalization trend in the retail sector has been a major driver for electronic shelf labels adoption. ESLs allow retailers to automate pricing and keep shelf prices consistent across multiple stores and branches. They eliminate manual price tag errors and ensure everyday low pricing. Dynamic and real-time pricing capabilities of ESLs also help retailers launch timely promotions and offers. Advanced ESLs now support multiple pricing methods including everyday pricing, dynamic pricing, bundle pricing and mobile coupons/offers. Their connectivity with retailers’ main servers and capability to update prices from a central location has streamlined retail operations significantly. ESLs enhance the overall shopping experience for customers and brand compliance for manufacturers.
SWOT Analysis
Strength: Electronic shelf labels allow for easy updating of prices from a central control system, reducing labor costs. They also enable retailers to change pricing strategies more quickly in response to competitors or market conditions
Weakness: High upfront costs for purchasing the ESL system and replacing paper shelf labels. Additional cost of modifying existing shelving for ESL compatibility. Also prone to technical issues like network outages disrupting price updates.
Opportunity: Opportunity to automate pricing and improve pricing accuracy. ESLs also allow for dynamic pricing based on time of day, product demand or sales targets. Targeted promotions can be displayed digitally.
Threats: Technological issues could disrupt operations if the ESL network or control software malfunctions. Competitive pressures from retailers not adopting ESLs yet.
Key Takeaways
The global Electronic Shelf Labels Market Growth is expected to witness high growth. The market size for 2023 is US$ 97.92 Mn and is forecast to reach US$ 208.72 Mn by 2030, growing at a CAGR of 8.0% during the forecast period.
Regional analysis: The North American region dominates the Electronic Shelf Labels market currently, due to early adoption by major U.S. retailers. The Asia Pacific region is expected to witness the fastest growth, especially in countries like China and India. Growing retail automation demands from supermarkets and hypermarkets will drive ESL adoption in these emerging economies.
Key players: Key players operating in the Electronic Shelf Labels market are DuPont Nutrition (International Flavors & Fragrances Inc.), BIOPROX, Biena Inc., Chr. Hansen Holding A/S, Nebraska Cultures, Meteoric Biopharmaceuticals Pvt. Ltd., Nestlé, Lallemand Inc., and Fido Pharma Pvt. Ltd. These players are focusing on developing innovative ESL solutions to expand their market share. Partnerships with retailers are also a key strategy to drive further deployment of ESL systems globally.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
