Labels Market Intelligence

Industry Outlook & Drivers

Global Labels Industry Outlook

• The global labels market was valued at about 58 billion sq. m in 2019 and is set to grow at 3-4 percent, reaching 66 billion sq. m by 2025
• 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 to 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

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