Label is one of the most important features that products and packages should have. It is especially crucial in the food and beverage as well as the pharmaceutical industry. Aside from product labeling, labels are widely used for bulk mailing, shipping and other applications that require systematic organization.


Understanding Labels: What is a Label?

In simple terms, a label is anything that contains information about the item being labeled for easy identification. It can be an informative, descriptive, or pictorial label like a tag, mark, or brand that is attached to a product or any item. It provides detailed and relevant information about the product so that it can be easily recognized or distinguished by customers.

Big companies and manufacturers have pre-made labels which are attached automatically to their products. But for e-commerce, offices and small businesses, they start making their own custom labels on Microsoft Word. Labels include barcodes, nutrition facts labels, mailing labels and others.

There are four major types of labels that companies and small businesses are using for their products and operations: brand labels, informative labels, descriptive labels, and grade labels.

Types of Labels:


Brand Labels

Labels that only contain the brand name of the product are called brand labels. They provide details about the product brand and can either be removable or not. Examples are clothing labels and soap labels like those on Lux, Dove, Olay, and others.

Custom labels for the clothing industry and soap manufacturing companies reinforce the brand and help communicate a specific message to their customers.



Informative Labels

These labels provide product information like the manufacturer’s name, manufacture and expiry dates, intermediaries, and additional instructions on the product’s usage. Compared to descriptive labels, informative labels are more detailed.



Descriptive Labels

Descriptive labels mostly contain information about how to use the product such as features, handling, security, storage, and others. In addition, these are used for products with grades that cannot be differentiated.

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Grade Labels

The last types are grade labels which describe the product’s features and aspect. Some products have these and some don’t. It shows the product’s grade or quality in figures, letters, or words. Examples of grades are the following:

  • A, B, C, or D
  • 1, 2, 3, or 4
  • Good, Better, or Best

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What are the Benefits of Labels?

Labels provide a lot of benefits, especially if you are starting a small business and want to make your products stand out. Below is a list of the top benefits of labels both to businesses and consumers:


They Provide Information

Labels provide a simple means of communicating product information to customers. Customers can simply read the label such as the product’s nature, price, quality, and others to understand it before buying it. This makes their buying decision process faster.


They Help Customers Compare Goods Easier

Customers will always choose products with better qualities and these can be seen through their labels. They use product labels as primary means to differentiate between product brands to make better purchasing decisions. Since labels provide detailed information, customers can easily compare the properties of different products.


They Help Consumers Choose Healthier Options

In relation to product comparison, the Nutrition Facts table on food and beverages are a great help to customers who want to buy healthier options. Customers with health complications will most likely check the nutrient content of products before buying. Details such as vitamin, mineral, calorie, carbohydrate, calcium, iron, protein, and fat quantities are important in these cases.



Organized Product Categorization

Grade labels are helpful in categorizing large product varieties for different customers. By specifying the product’s standard or quality, customers can choose the right products that are appropriate to their needs. For instance, they can choose either a toned, full cream, or half cream milk as specified in the label.


They Ensure the Accuracy and Efficiency of the Supply Chain

Accurate labels can help in the efficiency of the whole supply chain by preventing shipping errors and counterfeit products from entering the chain. This results in higher revenues and lower operating costs for your business.

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What is Labeling and Its Importance?

Labeling is simply putting labels on products for identification purposes. They are used for the following:


For Marketing Purposes

A good product label can help in boosting your sales by promoting your products easily especially if you are dealing with tight competition. They can help attract potential buyers given that you are successful in creating eye-catching labels. Most of the time, the decision of consumers whether to buy a product or not is greatly influenced by how attractive the product packaging is.



The law requires some products to include specific warnings. Among these are those included in cigarette packaging like ‘Smoking is injurious to health’. Not only that, but the law also requires other important information that should be included in product labels which we will discuss in the next section.


To Provide Identification

Labels provide your products their identity. They are what give your products their uniqueness. For instance, when buying in a supermarket, the shelves will be filled with different products and brands and this can be overwhelming. Labels help product identification easier and faster and they prevent confusion among your customers.

stunning packaging can impact buying decisions


To Prevent Allergic Reactions

Aside from food, pharmaceutical and cosmetic products are among the top products that cause allergic reactions. Labels provide details about the product’s composition so that customers will know whether it contains ingredients that they are allergic to. Also, when it comes to medicinal products, labels provide information for their safe use to avoid complications.

Aside from allergic reactions, labels also help warn customers about harmful chemical content which can be dangerous to children.


To Distinguish Fake Products

You can help your customers recognize fake products by putting accurate labels on your products. A poorly-labeled product will most likely not be chosen compared to a professionally labeled one. So make sure that you have good product packaging as well as clear and easy-to-read labels.


To Provide Instructions

Labels provide crucial instructions on the usage, disposal, and recycling process of products. This is important especially for chemical products to avoid any problem such as poisoning.


What are the Requirements for Labeling?

There are a lot of labeling requirements that you need to follow whether you are in the U.S. or are planning to sell products to the region. Among the laws you need to follow are the Fair Packaging and Labeling Act (FPLA) and Federal Food, Drug, and Cosmetic Act (FDC Act).

These requirements depend on the type of product you are selling but below are among the most important details you need to include for food, beverage, and cosmetic products:

  • Product name
  • Name and location of the manufacturer, packer, or distributor
  • Ingredients
  • Nutrition Facts
  • Food allergens
  • Food additives/chemicals used
  • Net contents in both metric and U.S. Customary System terms
  • English labels

If you want a more detailed description of the requirements, you can go to the official website of the U.S. Food and Drug Administration (FDA). You can also read our other blogs below:

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