Electronic shelf labels (ESLs) are a form of wireless displays that show product pricing and other information directly on retail shelves. These digital displays update pricing and product information remotely in real-time, replacing static paper shelf labels. ESLs help retailers optimize operations by streamlining pricing changes, expediting product recalls, and improving on-shelf availability.

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% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:
The increased adoption of ESLs is attributed to their ability to improve supply chain efficiency. ESLs enable automated price changes across all store locations simultaneously from a centralized control system, eliminating the need for labor-intensive manual shelf label replacements. They allow retailers to better respond to competitive pricing strategies as well as manage pricing and promotions more dynamically. ESLs also help track inventory levels in real-time, and activate automated alerts for restocking requirements. This streamlines replenishment processes and minimizes out-of-stock situations. Overall, ESLs enhance supply chain responsiveness, optimize inventory management, and facilitate better price management, which is expected to drive their increased demand over the forecast period.

SWOT Analysis

Strength: Electronic shelf labels are self-contained price and product labels that can be updated wirelessly, reducing labor costs for retailers. They allow retailers to easily change pricing and product details from a back-end system without needing to physically print new labels or send employees out to change shelf tags. This improves efficiency and reduces costs. Electronic shelf labels also provide real-time inventory tracking that helps reduce out-of-stock situations.

Weakness: The initial investment involved in deploying electronic shelf labels across an entire store is significant. Retailers must purchase the labels, backend systems, and install necessary infrastructure. This requires upfront capital expenditure that smaller retailers may not be able to afford. Battery life is also still a limiting factor, requiring regular replacement or recharging of labels.

Opportunity: Growth of retail automation provides opportunities for electronic shelf label vendors. Major retailers are automating processes to cut costs and improve the customer experience. Electronic shelf labels help achieve these goals. Increasing consumer demand for real-time and personalized shopping also drives the need for dynamic pricing and product information displayed on shelves. Advancements in display technologies and batteries further expand the potential uses of electronic shelf labels.

Threats: Technological obsolescence is a threat as display and wireless technologies rapidly advance. Retailers may be reluctant to invest in a system with a short useful lifespan. Privacy and security concerns around wireless networks and customer data collection could negatively impact adoption rates if not properly addressed. Competition from alternative automation solutions threatens market share of electronic shelf label vendors.

Key Takeaways

The global  Electronic Shelf Labels Market Growth is expected to witness high growth over the forecast period of 2023 to 2030. Technological advancements are expanding the functionalities of electronic shelf labels beyond just product pricing to include applications like instant coupons, consumer engagement, and localized assortments. Major retailers across various industries are implementing electronic shelf labeling systems to improve operational efficiencies and offer a superior shopping experience to customers. 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% over the forecast period 2023 to 2030.

Regional analysis: North America currently dominates the electronic shelf labels market, followed by Europe. However, the Asia Pacific region is expected to grow at the fastest rate due to rising retail automation across countries like China, India and Southeast Asia. Major retailers in the densely populated region are actively deploying electronic shelf labeling solutions in stores to better manage large product assortments and customer volume.

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. These players are focusing on introducing advanced display technologies with longer battery life and developing customized solutions for different retail sectors to strengthen their market position.

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