As converters explore new ways to boost business, RFID labeling has emerged as a profitable option. The technology has overcome issues regarding acceptance and affordability, and an increasing number of brands are requesting that these smart technologies be implemented into their operations.

“Speaking strictly from a UHF RFID (RAIN) perspective, the technology has finally evolved into a real solution with demonstratable ROI,” states Ryan Zins, product manager, RFID, Diversified Labeling Solutions. “Gone are the days of sub 80% yields, unreliable reads, unique inlay placement printer guidelines, exorbitant pricing, and so forth that stunted adoption. 

“In addition,” he adds, “A better understanding of encoding standards allowing for information to be shared throughout the supply chain allows for more entities to leverage RFID for their own business. As for growth, the numbers speak for themselves, and I’m sure the industry will exceed expectation again this year.”

While merely a concept for many years, RFID has moved into the acceptance phase. Currently, there are numerous real-world uses of the technology. “A few years ago, RFID was still the ‘next big thing’,” explains Dave Grenwis, marketing manager, Delta ModTech. “Now, it’s everywhere, from hang-tags to auto parts. Inlay cost has decreased significantly, antenna designs are paper-thin, and today’s readers have fantastic accuracy. Converters must keep up, and we’re seeing web speeds past 100 m/m while tying scanning systems and PLCs together, so every chip is encoded, verified, and logged before the label ever sees a box.”

RFID serves multiple purposes, too. “It enables real-time inventory monitoring, improves demand forecasting, and enhances supply chain transparency – all while helping to reduce waste and minimize cost overruns,” states Gino Olivato, managing director, Beontag USA. “The integration of RFID with other IoT technologies has expanded its reach, offering broader visibility across logistics networks. Combined with predictive analytics, it allows businesses to model trade scenarios and adapt strategies, making RFID both a shield and a strategic asset in a volatile global trade landscape.”

Due to greater acceptance, major brands are investing in RFID like never before. “Broad increases in RFID use cases have opened the range of form factors suitable for integrating of RFID into multiple products and packages,” states Kevin Frydryk, VP, Markets & Products, Resource Label Group. “Cloud-based platforms now support relatively seamless integration of data across multiple systems, improving real-time visibility and powering related analytics. Leading packaging providers have assigned more resources to RFID, focused on developing a range of solutions that have enabled the use of RFID in many product applications.”

These product applications are numerous. Major brands have led the drive for the technology, as they recognize the inherent value and future potential. “The RFID industry has been growing rapidly in the last five plus years due to many large retailers/big box stores adopting RFID technology for the products they sell,” explains Mark Davenport, RFID business unit manager, Abbott Label. He adds, “Not only are large retailers using this technology, there are also some big-name fast food chains that are adopting RFID to help better manage their incoming supplies. Plus, major airlines and airports around the globe are contributing to RFID’s growth. RFID is the fastest growing sector in the label business today.”

“We have seen strong growth among traditional pressure sensitive label converters serving retail, pharmaceutical, and auto markets, who now need RFID capability to keep major brand contracts,” states Grenwis. “We start each engagement with a technical discussion, matching inlay format, placement tolerance and read/write verification to the customer’s product mix. Then, we can provide a modular path to upgrade existing equipment or scale up to a dedicated RFID converting system. Our training programs, ModTech Connect production analytics, and global services help customers climb the learning curve with minimal waste and downtime.”

The strong growth has led Tageos, part of the Fedrigoni Group, to partake in numerous initiatives. Tageos has continued investing in the development of ARC-certified (by the RFID Lab of Auburn University) inlays for major retailers to tag a broad range of goods. These include apparel, footwear, home and sporting goods, jewelry and accessories, and grocery items. Beyond retail, the company is supporting a growing base of label converters globally with standard and custom inlay products for a wide range of industries and use cases.  

Tageos has also partnered with the leading chip suppliers to enable rapid innovation based on the latest advancements in RFID ICs. In addition, the company has expanded its manufacturing footprint in the US, Europe, and Asia to an annual production capacity of 11 billion units by the end of this year.

Now that we live in a digital world, RFID’s prevalence will only grow. The technology’s capabilities will serve as a boon for brands all over the world, which presents a significant opportunity to
label companies.

“Clients prioritize solutions that safeguard data privacy and uphold rigorous security standards while also aligning with environmental sustainability goals,” notes Olivato. “To help customers navigate this journey, Beontag provides end-to-end support from designing cutting-edge RFID solutions tailored to these expectations, to ensuring smooth implementation and regulatory compliance empowering businesses to meet modern demands and maintain a competitive edge.”

Major brands have precipitated industry growth. Walmart, for example, has garnered headlines for unveiling tagging mandates to simplify the retail process. “Walmart has had a profound impact on the RFID industry, acting as a catalyst for widespread adoption, technological advancement, and standardization,” comments Geoffrey Riggs, global communications manager, Tageos, part of the
Fedrigoni Group. 

“As the scope of the Walmart mandate has increased, it has driven many things, including comfort with the technology and overall demand for RFID,” adds Frydryk. “There are many packaging providers now supplying RFID that have not previously been active in the technology. Brands have also become more comfortable with it, and some are leveraging RFID into better item level visibility in their own operations.”

One of the major benefits of RFID labeling and tagging revolves around inventory. This can significantly improve the consumer experience, especially from an e-commerce perspective.

“Retailer driven use of RFID continues to increase, driven by a desire for improved inventory accuracy in support of omni-channel fulfillment,” remarks Frydryk. “Brands are responding to these retailer programs, implementing item level RFID by source tagging in their own operations and through co-manufacturers. Resource Label Group leverages our RFID engineering team to develop customized and creative RFID solutions that meet RFID standards and simplify integration of RFID into brand operations.”

“Apparel showed a 95% jump in inventory accuracy; home goods, toys and electronics followed, and suppliers without tagged SKUs faced chargebacks or lost shelf space,” adds Grenwis. “That deadline pressure is why converters are seeking out faster inlay insertion, precision placement, built-in verification and data integration, right in Delta ModTech’s sweet spot.”

Walmart’s expanded RFID mandate has significantly accelerated RFID adoption across the US retail sector, due to the size and influence of the brand on other segments and sectors. “The mandate has also promoted faster technological advancements in tag cost and performance, to further support broader industry integration,” adds Olivato. “By including categories like home goods, electronics, toys, and more, Walmart’s move has compelled suppliers to upgrade their inventory systems, improving accuracy and supply chain visibility.”

Types of RFID

Before getting started, it’s important to know various aspects of RFID labeling. There are three main types of inlay delivery formats: dry, wet, and label/sticker. A converter’s equipment capabilities and long-term goals in the RFID market will influence the one to be selected.

A dry inlay is a continuous web of inlays without adhesive or face material. True dry inlays include a paper interleaf to protect the chip, while Dry+ (or Dry RIF, for reinforced) inlays feature a protective PET overlaminate to safeguard the chip during conversion. These inlays require diecutting from the web, and adhesive, such as transfer tape or hot melt, must be added separately.

Meanwhile, wet inlays are characterized as such because of their adhesive backing, enabling attachment to surfaces like packaging or products. Here, no additional processing is required.

“We primarily produce wet inlays, with a standard gap of 3-4mm between each inlay,” states Gary Stegall, RFID technical sales specialist for Avery Dennison. 

Stegall continues, “Converters adjust the pitch of our inlays to meet the specific requirements of prime labels or paper face labels. Most converting and inserting equipment can easily re-pitch inlays using a peel plate method to remove the wet inlay from the liner.”

Finally, the label/sticker features a pre-diecut inlay with a typical gap of 3-4 mm, pre-defined adhesive, and a pre-defined paper or PET face material. Most label inlays are used in RFID printers, however, they can be applied to products/packaging and then encoded on a production line.

Key Considerations

From an equipment standpoint, there are several considerations. RFID capabilities can be integrated into an existing label conversion process with the addition of an insertion module. Depending on quality control and throughput demands, a more extensive equipment upgrade may be required.  An insertion module can be added to many printing presses, or standalone insertion equipment can be used. If the inlays need to be encoded by the converter, there are a few options. A high-speed, reel-to-reel encoder can be used. If the inlays need to be printed and encoded, then most converters will utilize a bank of RFID printers. If a faster approach is required, a converter could print on the inlays as one step and encode on a high-speed encoder as a second step.

The RFID marketplace includes established suppliers that provide a range of RFID inlays supporting many applications. “Sourcing the inlay is really the easy part, and on the surface makes it seem simple to get involved as an RFID supplier,” notes RLG’s Frydryk. “In practice, RFID is a significantly different technology to be integrated into packaging and label decoration. Companies that have experience in this category have notable advantages in understanding the technology and how to build an RFID solution. General equipment required can be as simple as purchasing thermal transfer printers with RFID encoding capability. Building more seamless solutions at the brand level can include higher speed RFID insertion equipment, RFID inspection equipment, and high-speed RFID encoding technology.”

“We recommend using RFID testers before and after insertion to ensure the inlays are not being damaged during insertion,” adds Stegall. “We also recommend purchasing a handheld RFID reader to spot check their encoding to ensure the inlays were encoded properly.”

Abbott Label has opened a facility in Tennessee dedicated solely to RFID converting. The new RFID plant has expanded the company’s capabilities to now offer all of its customers a vast array of RFID labels and tags. These solutions were not previously available to customers.

“We are very blessed here at Abbot Label Tennessee to have a long-tenured RFID manufacturing team with years of experience converting a multitude of specialized RFID tags and labels,” says Davenport.

Meanwhile, Beontag has established an Ohio facility with a strong focus on RFID. With local production capabilities, the company has the ability to reduce lead times, improve supply chain resilience, and offer greater flexibility to its customers.

“This investment also enables us to better support high-volume programs across logistics, retail, automotive, and tolling segments – delivering scalable, high-quality RFID products with the responsiveness and service levels expected by US customers,” says Beontag’s Olivato. “The Ohio facility positions Beontag as a reliable, domestic partner in an increasingly dynamic and fast-paced market.”

As in other market segments, sustainability will drive innovation in RFID labeling. The global push for plastic waste avoidance and carbon footprint reduction has led Tageos, part of the Fedrigoni Group, to develop and manufacture plastic-free inlays, as seen in the EOS Zero product family. The company is also planning for and implementing a carbon footprint reduction plan to reduce its carbon footprint per inlay produced by 58% from 2021 to 2032 and to 0% by 2050.  

“Tageos views RFID labeling technology as having evolved over recent years from a niche tracking tool to a critical enabler of sustainable, intelligent, and transparent global supply chains,” explains Riggs. “Its growth is driven by innovation, sustainability, and the ongoing shift toward a more comprehensive digital transformation across industries.”

Potential Challenges

Converters should be cognizant of several potential obstacles in their RFID journey. Setup will require time and patience, especially for label printers running multiple lanes. Each lane needs to be adjusted independently for proper insertion and proper tension. Additionally, converters will need to maintain proper tension to avoid causing stress to the inlay. Too much tension can cause the inlay to curl when it is removed from the liner. Maintaining proper nip pressure to avoid crushing the chip during conversion is also a key to success. 

“Inlay availability and/or stocking levels are always challenges, too,” says Zins. “RFID insertion adds a couple of layers of degree of difficulty to production and ensuring quality is a challenge on every job. Service bureau challenges center on data integrity. Generally, RFID production is a step or two beyond most of DLS’s standard label production.”

“Finished, converted RFID labels are very robust,” adds Tageos’ Riggs. “As for the RFID inlay itself, for example in dry delivery format, the very small and thin silicon chip is sensitive to mechanical bending and pressure as silicon is a brittle material. There’s also the electrical connection ‘bond’ between the chip and the antenna, which is susceptible to mechanical stress. Thus, the converting process needs to be set up in a way that keeps mechanical stress to the inlay low.”

Precision is also the name of the game when it comes to RFID labeling. “Producing RFID labels demands micron-level web control to place inlays inside artwork windows, adhesive management to avoid detuning antennas, and continuous EPC verification to catch dead chips,” explains Delta ModTech’s Grenwis. “Converters must minimize waste from failed reads while maintaining diecut accuracy and over-printing integrity, all at the higher tensions that inlay liners require.”

In the retail category, many products have not been engineered or designed to include RFID in the product or the package. Leveraging creativity to seamlessly integrate RFID into a product, avoiding unwanted interference with brand image, is often a key challenge. “The ability to manage item level data and ensure products are correctly identified through RFID technology is another key requirement,” explains RLG’s Frydryk. “Expertise in ensuring accurate and correct encoding of RFID requires an understanding of both GS1 and encoding technology, coupled with quality systems that validate RFID inlay performance and encoding accuracy.”

There is an educational component to the RFID process, as well. Companies must understand that the packaging of labels with RFID requires training the proper personnel on how to handle the finished rolls and how to protect them during transit.  

“You need very knowledgeable suppliers on both the material and the equipment side of this industry,” says Davenport. “Make sure you’re working with suppliers that have years of experience, as there are many new players entering this arena.”

A ‘Smart’ Future

In the future, it’s expected that growth in RFID will continue to be robust. Increased competition will also play a role in this market. “Growth may start to flatten somewhat, but that’s inevitable given the trajectory over the last couple of years,” explains Zins. “But I expect growth to continue to be very good as more adoption takes place. Competition in our space, label converting, is also inevitable as more converters bring capabilities on line to meet the demand.  It’s a very exciting time to be in the RFID converting world.”

The technology has evolved to better serve the needs of the industry in the future. According to Tageos, part of the Fedrigoni Group, next-generation RFID chips have enabled more efficient, compact, and cost-effective RFID inlays, allowing Tageos to develop smaller form factor inlays that fit into a wider variety of labels for products and packaging types. Plus, high-performance inlays suitable for dense tag environments in retail and logistics are more readily available. Inlays with an improved read range and reliability, even with more sustainable inlay materials and production processes like paper antenna substrates and laser/diecutting of antennas, will be hallmarks of the future of RFID.

From an equipment standpoint, Delta ModTech has engineered new machinery to assist converters in this space for years to come. The company has launched its Ultra-High-Speed RFID Label Converter, which debuted at Labelexpo Americas 2024. The unit is already topping 120 m/m. 

“At the upcoming Labelexpo Europe 2025 in Barcelona, we’re teaming up with CISC to add live read/write and placement capability with sub mm accuracy,” remarks Delta ModTech’s Grenwis, adding, “It’s built on the flexible Crusader platform. It’s a plug-and-play workhorse that allows quick SKU changeover and adaptability that’s second to none.”