Packaging Intelligence Brief
RFID Trends
Broadening the scope of rfidAn analysis of key trends and technologiesPackaging Intelligence Brief
RFID TRENDS
About the Packaging Intelligence Brief Series Broadening the scope of RFIDAn Analysis of Key Trends and Technologies
Packaging plays a critical role in our PMMI is proud to introduce the Packaging The broadening deployment of Class 1, Gen 2 that has been developed to date. To maxi-global economy and touches the lives Intelligence Brief series which focuses on Electronic Product Code (EPC) radio frequency mize benefits, CPG companies are looking of everyone. For more than 70 years, trends that are shaping the future of the identification (RFID), rising interest in item beyond meeting mandates to utilizing the the Packaging Machinery Manufacturers industry. Over the next year, PMMI will level tagging, and demands for tighter sup- information RFID makes available to improve Institute (PMMI) has been the leading regularly release Packaging Intelligence ply chains to prevent counterfeiting, theft and operational efficiencies and reduce costs. As global resource for packaging manu- Briefs to address various topics that are diversion continue to push RFID technology a result, attention is turning from standalone facturers to learn about industry trends, significantly impacting packaging and forward. Although adoption may not be ex- to integrated RFID tagging operations and obtain training and get involved in outlining how suppliers and manufacturers panding as fast as analysts predicted or ven- source-tagged packaging where the tag is networking events. are responding to market needs. dors hoped, it is growing at a steady rate. inserted in the bottle or corrugated case dur-ing the converting process. According to statistics from IDTechEx Ltd. (Cambridge, UK), 600 million RFID tags were Interest is also growing in item-level tagging, sold in 2005 for all uses. The study, "RFID especially in the apparel and pharmaceuti-Industry: RFID Forecasts, Players and Oppor- cal industries. IDTech Ex Ltd. estimates that tunities 2006-2016," predicts that number will item-level tagging will account for approxi-grow to 1.3 billion in 2006, including 500 mil- mately 200 million RFID tags in 2006, with the lion case and pallet smart labels. By 2016, majority being used for apparel, books and total tag volume is expected to skyrocket to drugs. By 2007, this technology is expected 585 billion with tags for pallet, case, and item to become the world's largest RFID market by identification contributing substantially to the value, comprising a total of over $11 billion. total. During the next 10 years, RFID market value, including hardware, systems and ser- Several major drug and apparel companies vices, will grow ten-fold rising from $2.71 are already shipping some item-level tagged billion in 2006 to $26.23 billion in 2016. product, including Pfizer (New York, NY), Purdue Pharma (Stamford, CT), Glaxo Smith-Interest in Item-Level Kline (Philadelphia, PA), Mallinckrodt Phar-Tagging Rises maceuticals (St. Louis, MO), Levi Strauss and Co. (San Francisco, CA), and Lemmi Fash-For early adopters, the transition to Gen 2 EPC ion (Fritzler, Germany). These companies, technology for case and pallet tagging is com- and others, are recognizing the potential plete or nearly so. Companies just beginning of RFID capabilities to help with marketing to tag to meet mandates from retailers and and sales goals, such as linking promotional the U.S. Department of Defense (Washing- campaigns with real-time sales results and ton, DC) have the advantage of starting with helping retailers better manage inventory Gen 2 and the significant knowledge base and store merchandising efforts. Packaging Intelligence Brief Packaging Intelligence Brief
RFID TRENDS RFID TRENDS
Advances in RFID Inlays for UPM Raflatac is collaborating with Magellan Being able to track and trace product from ate data collection and sharing processes Item-Level Tagging Technology Pty Limited (Sydney, Australia) packaging line to consumer can substan- at each stop in the supply chain, and these and Balogh U.S.A. (Brighton, MI), to provide tially reduce the chance of counterfeiting downstream systems are not yet in place. Declining costs are accounting for much of integrated high fr... [download for more]
