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US Direct Thermal Labels Market

ID: MRFR/PCM/18673-HCR
111 Pages
Snehal Singh
February 2026

US Direct Thermal Labels Market Research Report By Face Stock Material (Paper, Plastic) and By Application (Food & Beverages, Pharmaceuticals, Personal Care, Retail, Others) - Forecast to 2035

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US Direct Thermal Labels Market Summary

As per Market Research Future analysis, the US direct thermal-labels market Size was estimated at 650.0 USD Million in 2024. The US direct thermal-labels market is projected to grow from 672.81 USD Million in 2025 to 950.0 USD Million by 2035, exhibiting a compound annual growth rate (CAGR) of 3.5% during the forecast period 2025 - 2035

Key Market Trends & Highlights

The US direct thermal-labels market is experiencing robust growth driven by technological advancements and sustainability initiatives.

  • Technological advancements are enhancing the efficiency and quality of direct thermal-labels production.
  • Sustainability initiatives are increasingly influencing consumer preferences and driving demand for eco-friendly labeling solutions.
  • The e-commerce sector is the fastest-growing segment, significantly contributing to the overall market expansion.
  • Rising demand in the retail sector and growth in logistics and supply chain are key drivers propelling the market forward.

Market Size & Forecast

2024 Market Size 650.0 (USD Million)
2035 Market Size 950.0 (USD Million)
CAGR (2025 - 2035) 3.51%

Major Players

Zebra Technologies (US), Brother Industries (JP), Dymo (US), SATO Holdings (JP), TSC Auto ID Technology (TW), Avery Dennison (US), Intermec (US), Printronix (US)

Our Impact
Enabled $4.3B Revenue Impact for Fortune 500 and Leading Multinationals
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US Direct Thermal Labels Market Trends

The direct thermal-labels market is currently experiencing notable growth, driven by advancements in printing technology and increasing demand across various sectors. This market segment is characterized by its ability to produce high-quality labels without the need for ink, which not only reduces operational costs but also enhances efficiency. Industries such as retail, logistics, and healthcare are increasingly adopting direct thermal-labels due to their convenience and reliability. The shift towards automation and digital solutions further propels the adoption of these labels, as businesses seek to streamline their operations and improve customer experiences. Moreover, sustainability concerns are influencing purchasing decisions, with many companies opting for eco-friendly materials in their labeling solutions. The direct thermal-labels market appears to be aligning with these environmental goals, as manufacturers innovate to create products that minimize waste and energy consumption. As businesses continue to prioritize sustainability, the demand for direct thermal-labels is likely to rise, reflecting a broader trend towards responsible consumption. Overall, the market is poised for continued expansion, driven by technological advancements and changing consumer preferences.

Technological Advancements

Recent innovations in printing technology are enhancing the capabilities of direct thermal-labels. These advancements allow for faster printing speeds and improved label quality, making them more appealing to various industries. As technology evolves, the market is likely to see increased adoption of these labels, particularly in sectors that require high-volume labeling.

Sustainability Initiatives

There is a growing emphasis on sustainability within the direct thermal-labels market. Companies are increasingly seeking eco-friendly materials and processes to reduce their environmental impact. This trend suggests that manufacturers may focus on developing sustainable labeling solutions, which could attract environmentally conscious consumers.

E-commerce Growth

The rise of e-commerce is significantly impacting the direct thermal-labels market. As online shopping continues to expand, the demand for efficient labeling solutions for shipping and packaging is increasing. This trend indicates that businesses are likely to invest more in direct thermal-labels to enhance their logistics and fulfillment processes.

US Direct Thermal Labels Market Drivers

Rising Demand in Retail Sector

The retail sector's increasing reliance on efficient labeling solutions is a primary driver for the direct thermal-labels market. As retailers seek to enhance operational efficiency and improve customer experience, the demand for high-quality labels has surged. In 2025, the retail industry in the US is projected to reach approximately $5 trillion, with a significant portion allocated to labeling solutions. Direct thermal labels are favored for their cost-effectiveness and ease of use, making them ideal for price tags, shipping labels, and inventory management. This trend indicates a robust growth trajectory for the direct thermal-labels market, as retailers prioritize solutions that streamline operations and reduce costs.

Growth in Logistics and Supply Chain

The logistics and supply chain sectors are experiencing substantial growth, which is positively impacting the direct thermal-labels market. With the US logistics market expected to exceed $1.6 trillion in 2025, the need for efficient labeling solutions is paramount. Direct thermal labels are essential for tracking shipments, managing inventory, and ensuring compliance with shipping regulations. Their ability to withstand various environmental conditions makes them suitable for diverse applications within the supply chain. As companies increasingly adopt automation and technology in logistics, the demand for reliable labeling solutions is likely to rise, further propelling the direct thermal-labels market.

Increased Focus on Inventory Management

Effective inventory management is crucial for businesses across various sectors, driving the demand for direct thermal-labels. Companies are increasingly adopting advanced inventory management systems to optimize stock levels and reduce waste. The direct thermal-labels market benefits from this trend, as these labels provide quick and accurate identification of products. In 2025, the inventory management software market in the US is projected to grow by over 10%, indicating a parallel increase in the need for efficient labeling solutions. This focus on inventory accuracy and efficiency suggests a promising outlook for the direct thermal-labels market, as businesses seek to enhance their operational capabilities.

Regulatory Compliance and Safety Standards

Regulatory compliance and safety standards are increasingly influencing the direct thermal-labels market. Industries such as food and pharmaceuticals are subject to stringent labeling requirements to ensure consumer safety and product traceability. As regulations evolve, companies must adapt their labeling practices to meet compliance standards. The direct thermal-labels market stands to benefit from this trend, as these labels can be produced quickly and efficiently, allowing businesses to respond to regulatory changes promptly. In 2025, the US market for compliance-related labeling solutions is anticipated to grow, highlighting the importance of direct thermal labels in maintaining industry standards and ensuring consumer safety.

Technological Integration in Manufacturing

The integration of advanced technologies in manufacturing processes is a significant driver for the direct thermal-labels market. As manufacturers adopt automation and smart technologies, the need for efficient labeling solutions becomes more pronounced. Direct thermal labels are compatible with various printing technologies, allowing for seamless integration into production lines. In 2025, the US manufacturing sector is expected to grow by approximately 4%, which may lead to increased demand for labeling solutions that enhance productivity. This technological evolution within manufacturing indicates a favorable environment for the direct thermal-labels market, as companies seek to streamline operations and improve product traceability.

Market Segment Insights

By Face Stock Material: Paper (Largest) vs. Plastic (Fastest-Growing)

In the US direct thermal-labels market, the face stock material segment is characterized by a distinct division between paper and plastic alternatives. Paper currently holds the largest share due to its established presence and cost-effectiveness, making it the preferred choice among various industries. Conversely, plastic is gaining traction and is emerging as a viable alternative, appealing to sectors looking for durability and moisture resistance. The growth trends in the face stock material segment are being driven by increasing demand for labels in diverse applications, including shipping, retail, and manufacturing. The rise in e-commerce is particularly contributing to the demand for efficient labeling solutions. Additionally, advancements in plastic materials and printing technologies are enhancing the appeal of plastic labels, positioning them for faster growth in the coming years.

Paper (Dominant) vs. Plastic (Emerging)

In the face stock material segment, paper remains the dominant choice due to its affordability and versatility across various applications. It is widely utilized in shipping and retail, where cost efficiency and ease of printing are paramount. On the other hand, plastic labels are becoming an emerging option, favored for their durability and resistance to environmental factors. This material caters to niche markets that require long-lasting labels, such as pharmaceuticals and chemicals. While paper labels provide a traditional solution, the growing awareness and need for sustainable and resilient labeling options are propelling plastic's market share upward. As technology enhances plastic production, it is set to carve out a significant presence in the segment.

By Application: Food & Beverages (Largest) vs. Pharmaceuticals (Fastest-Growing)

In the US direct thermal-labels market, the Food & Beverages segment maintains the largest market share, reflecting the high demand for labeling solutions in the food industry. Pharmaceuticals also present a significant portion of the market, driven by regulatory requirements and the need for accurate product information. Other segments like Personal Care and Retail, while notable, have not yet achieved the same level of prominence as these two key players. Growth trends indicate a robust increase in the Pharmaceuticals segment, fueled by innovations in healthcare and an increasing focus on traceability. Additionally, the growing need for eco-friendly labeling options is pushing forward advancements in the Food & Beverages sector. Overall, the dynamic nature of consumer preferences and legislative changes are shaping the future of applications in the US direct thermal-labels market.

Food & Beverages: Dominant vs. Pharmaceuticals: Emerging

The Food & Beverages segment is characterized by its substantial dominance in the US direct thermal-labels market, driven by the necessity for compliance and brand differentiation in packaging. This segment benefits from high-volume production and consistent consumer demand, leading to innovations in label design and functionality. In contrast, the Pharmaceuticals segment is emerging rapidly, propelled by the increased focus on healthcare and safety. It faces challenges in meeting rigorous regulatory standards but is innovating with smart labeling technologies and serialization to enhance traceability. Both segments exhibit unique characteristics that cater to their respective industry needs, emphasizing compliance and consumer engagement.

Get more detailed insights about US Direct Thermal Labels Market

Key Players and Competitive Insights

The direct thermal-labels market in the US is characterized by a competitive landscape that is both dynamic and multifaceted. Key growth drivers include the increasing demand for efficient labeling solutions across various sectors such as retail, logistics, and healthcare. Major players like Zebra Technologies (US), Brother Industries (JP), and Avery Dennison (US) are strategically positioned to leverage innovation and technological advancements. Zebra Technologies (US) focuses on enhancing its product offerings through continuous innovation, while Brother Industries (JP) emphasizes regional expansion and partnerships to strengthen its market presence. Avery Dennison (US) is actively pursuing sustainability initiatives, which not only align with consumer preferences but also enhance its competitive edge. Collectively, these strategies contribute to a competitive environment that is increasingly focused on technological differentiation and customer-centric solutions.In terms of business tactics, companies are increasingly localizing manufacturing and optimizing supply chains to enhance operational efficiency. The market structure appears moderately fragmented, with several key players exerting influence over their respective segments. This fragmentation allows for a diverse range of products and services, catering to various customer needs. However, the collective influence of major players like Zebra Technologies (US) and Avery Dennison (US) suggests a trend towards consolidation, as companies seek to enhance their market share and operational capabilities.

In October Zebra Technologies (US) announced a strategic partnership with a leading logistics firm to develop advanced labeling solutions tailored for the e-commerce sector. This collaboration is expected to enhance Zebra's product portfolio and provide innovative solutions that address the growing demands of online retailers. The strategic importance of this partnership lies in its potential to position Zebra as a leader in the rapidly evolving e-commerce landscape, where efficient labeling is critical for operational success.

In September Avery Dennison (US) launched a new line of eco-friendly thermal labels, which are designed to meet the increasing consumer demand for sustainable products. This initiative not only reinforces Avery Dennison's commitment to sustainability but also aligns with broader market trends favoring environmentally responsible solutions. The introduction of these labels is likely to attract a new customer base that prioritizes sustainability, thereby enhancing the company's competitive positioning.

In August Brother Industries (JP) expanded its manufacturing capabilities in the US by investing in a new facility dedicated to producing thermal-labeling solutions. This move is indicative of Brother's commitment to meeting local demand and reducing lead times for customers. The strategic importance of this investment lies in its potential to enhance Brother's operational efficiency and responsiveness to market changes, thereby strengthening its competitive stance in the US market.

As of November current competitive trends in the direct thermal-labels market are heavily influenced by digitalization, sustainability, and the integration of AI technologies. Companies are increasingly forming strategic alliances to enhance their technological capabilities and market reach. The shift from price-based competition to a focus on innovation and supply chain reliability is becoming more pronounced. As the market evolves, differentiation will likely hinge on the ability to deliver innovative solutions that meet the changing needs of consumers and businesses alike.

Key Companies in the US Direct Thermal Labels Market include

Industry Developments

The US Direct Thermal Labels Market has seen significant developments in recent months, with companies like Avery Dennison and Zebra Technologies driving innovation in labeling solutions. In September 2023, Avery Dennison announced the expansion of its product portfolio focused on sustainable labeling solutions, aligning with the growing demand for eco-friendly products.

Similarly, Zebra Technologies introduced advanced direct thermal label printers that enhance printing speed and quality, catering to various industries including retail and logistics.Regarding mergers and acquisitions, in October 2023, DuraFast Label Company acquired Wasp Barcode Technologies to strengthen its position in the market by expanding its product offerings, which has garnered attention across the industry. Moreover, the market has experienced a notable growth shift with increases in e-commerce, logistics, and manufacturing sectors, thereby elevating the demand for direct thermal labels.

This upward trend has been ongoing since 2021, reflecting a robust adaptation to changing market needs, especially amidst heightened regulatory and environmental standards. The collective actions of these companies highlight a dynamic market landscape aimed at fulfilling the evolving requirements of various user segments in the United States.

Future Outlook

US Direct Thermal Labels Market Future Outlook

The direct thermal-labels market is projected to grow at 3.51% CAGR from 2025 to 2035, driven by technological advancements and increasing demand in logistics.

New opportunities lie in:

  • Integration of IoT for real-time tracking solutions.
  • Development of eco-friendly thermal label materials.
  • Expansion into e-commerce packaging solutions.

By 2035, the market is expected to achieve robust growth and enhanced competitive positioning.

Market Segmentation

US Direct Thermal Labels Market Application Outlook

  • Food & Beverages
  • Pharmaceuticals
  • Personal Care
  • Retail
  • Others

US Direct Thermal Labels Market Face Stock Material Outlook

  • Paper
  • Plastic

Report Scope

MARKET SIZE 2024 650.0(USD Million)
MARKET SIZE 2025 672.81(USD Million)
MARKET SIZE 2035 950.0(USD Million)
COMPOUND ANNUAL GROWTH RATE (CAGR) 3.51% (2025 - 2035)
REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR 2024
Market Forecast Period 2025 - 2035
Historical Data 2019 - 2024
Market Forecast Units USD Million
Key Companies Profiled Zebra Technologies (US), Brother Industries (JP), Dymo (US), SATO Holdings (JP), TSC Auto ID Technology (TW), Avery Dennison (US), Intermec (US), Printronix (US)
Segments Covered Face Stock Material, Application
Key Market Opportunities Growing demand for eco-friendly materials in the direct thermal-labels market presents significant opportunities.
Key Market Dynamics Technological advancements drive efficiency and sustainability in the direct thermal-labels market, reshaping competitive dynamics.
Countries Covered US
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FAQs

What is the projected market size of the US Direct Thermal Labels Market in 2024?

The US Direct Thermal Labels Market is projected to be valued at 550.0 million USD in 2024.

What is the expected market size of the US Direct Thermal Labels Market by 2035?

By 2035, the market is expected to grow to a valuation of 790.0 million USD.

What is the expected CAGR for the US Direct Thermal Labels Market from 2025 to 2035?

The estimated CAGR for the market during the period of 2025 to 2035 is 3.347%.

Which segment of the market is projected to have a larger share between Paper and Plastic face stock materials by 2035?

The Paper segment is projected to have a larger share, valued at 510.0 million USD by 2035.

What will be the value of the Plastic face stock material segment in 2035?

The value of the Plastic face stock material segment is anticipated to reach 280.0 million USD by 2035.

Who are the key players in the US Direct Thermal Labels Market?

Major players in the market include DuraFast Label Company, Avery Dennison, and Zebra Technologies among others.

Which application sectors are showing growth opportunities in the US Direct Thermal Labels Market?

Retail, logistics, and healthcare sectors are showing notable growth opportunities within the market.

How has the current economic environment impacted the US Direct Thermal Labels Market?

The current economic environment has led to increased demand for efficient labeling solutions across various sectors.

What challenges does the US Direct Thermal Labels Market face moving forward?

Challenges include competition from alternative labeling technologies and fluctuating raw material prices.

Which region is expected to contribute significantly to the growth of the US Direct Thermal Labels Market?

The North American region, particularly the U.S., is expected to contribute significantly to market growth.

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