Global Labels Industry Outlook

  • The global labels market was valued at ~52 billion sq. m in 2016 and is set to grow at 4–5 percent, reaching 61 billion sq. m by 2019 
  • Increasing per capita income, growing demand from major end-use sectors, such as pharmaceutical, FMCG, food and beverages, and the trend toward new innovative packaging are escalating the growth in demand for labels 
  • Paper-based labels contribute 67 percent of the global labels market, while the remaining 33 percent is constituted by plastic labels. The trend is shifting toward plastic materials, owing to its increased aesthetic performance, technical and cost advantages of plastics 
  • Regions such as North America and Europe have high market maturity, due to technological advancements and innovations in labeling technologies, like liner-less labels, digital printing, and sustainable labeling solutions 

 

labels-and-printed-components-market-size

  • Market Growth: The global labels market is expected to reach ~63 billion Sq. m by 2020, growing at a CAGR of 4–5 percent 
  • Growth Drivers: Increasing per capita income, the growing demand from major end-use sectors, like food and beverage, pharmaceutical, and trend toward new innovative packaging are escalating the demand growth for labels 
  • Developed Markets:In North America and Europe, the market is matured, due to the presence of well-established players using technological advancements and innovations in labeling technologies, like multi-layer labels and sustainable labeling solutions, and growth is witnessed in the IML segment 
  • Major End-use sectors:Food and beverage is the largest market, contributing to ~30 percent of the laminated labels market, followed by the consumer durables market, which contributes to ~20 percent. The pharmaceutical industry currently occupies ~18 percent of the global labels market (~7 percent of the global pharma packaging market) 
  • Material:In the developed markets, like North America and Europe, around 70 percent of the labels market constituted of paper labels in 2012. In Asia, the use of paper-based labels is estimated to drop by around 3–4 percent by 2016 
  • PSL is the largest segment expected to globally grow at around 5–6 percent from 2016 to 2020. It is expected to remain the largest label segment across the globe in the near future, owing to its ease of use, versatility in designing and graphical options, in addition to its superior performance characteristic, which makes it a popular choice for the CPG industry
  • Glue-applied labels are the second most preferred type of labels, driven by the growth in food and beverage 
  • In-mold labeling is performed directly on the mold of the container, thereby removing the need for a physical label structure. It is expected to have the highest growth in mature regions, due to its affordability, durability, capabilities of 3D decoration, and recycling. Other labeling technologies aimed at sustainability include liner-less labels, which are still in adoption stages in the developing markets 

Global Labels Industry –Drivers

End-use Demand

  • Increasing demand from major end-use segments, such as food and beverages, is forecasted to grow ~3–4 percent annually and the pharmaceutical market is forecasted to grow at ~4–5 percent, which are set to fuel the demand for labels Innovation 
  • The labels market is highly driven by innovation, which reflects the market growth. To stay competitive in the market, suppliers are coming up with innovations in facestock and printing, which will drive the demand for labels in the future 
  • The retail and logistics industries are increasingly focused on using barcode labels and RFID labels, respectively. This resulted in high demand for such labels, especially across developed markets Demographics and Lifestyle 
  • Increase in disposable income of the middle class people will lead to high spending on FMCG and retail sectors, which will indirectly boost the demand for labels Brand owners and FMCG 
  • Today, CPG and FMCG companies are utilizing a high range of labeling and packaging formats in order to meet the customers’ changing needs and enhance the brand image Packaging Types 
  • Increase in serialization by pharmaceutical companies has provided an added leverage for the growth of labels in the pharmaceutical industry, as it can help secure and trace drugs throughout the supply chain, making it tamper proof Sustainability 
  • The rising e-commerce activity has led to the need for more effective and sustainable packaging. This has prompted the consumers to look toward attractive and sustainable options, like liner-less labels, recyclable adhesives, and clear film labels on clear substrates