Leaflets

Leaflets Global Market Outlook:

• The global leaflet market is expected to grow at a CAGR of 3–5 percent and reach $4.8 billion by 2027, due to the increasing demand of pharmaceutical leaflets and rising adoption rate of smart phones across the globe

• Asia Pacific houses the largest market share of the leaflets market, due to increasing spread of healthcare services, which has led to double-digit market of pharmaceutical industry in Vietnam (16.4 percent), China (15.0 percent), Sri Lanka (12.4 percent), Myanmar (12.2 percent), and Bangladesh (11.5 percent) until 2025. The US ranks first in smart device penetration across the world, making North America the third largest demand driver of leaflets market across the globe. Owing to a global rise in the pharmaceutical industry, the global pharmaceutical market is forecasted to grow at 4–5 percent CAGR until 2025. This, in turn, fuels the demand for pharmaceutical brochures and insert cards

• The demand for leaflet increased further in Q4 2022 from pharmaceutical, food & beverages, consumer electronics and cosmetics with low supply, due to reduced production capacity

Global Leaflet Market Overview

• The global leaflet market is expected to grow at a CAGR of 3–5 percent and reach $4.8 billion by 2027, due to increasing demand of pharmaceutical leaflets

• Asia-Pacific accounts for the largest market share of the leaflets market, due to increasing spread of healthcare services, which has led to a double-digit market of pharmaceutical industry in Vietnam (16.4 percent), China (15.0 percent), Sri Lanka (12.4 percent), Myanmar (12.2 percent), and Bangladesh (11.5 percent) until 2025. The US ranks first in smart device penetration across the world, making North America the third largest demand driver of leaflets market across globe owing to the rising demand from the pharmaceutical industry

Global Leaflet Market Drivers & Trends

• End Use Demand : Increasing demand from major pharmaceutical clinical trials and OTC drugs, drive the demand for leaflets and booklet labels

• Innovation : Booklet Labels market is highly driven by innovation, which reflects on the market growth. To stay competitive in the market, suppliers are coming up with innovations related to face stock and printing, which will drive the demand for labels in future

• Demographics & Lifestyle: Increase in disposable incomes of middle class people and rise in awareness for medication in emerging regions due to growing urbanization

• Packaging Types : Increase in serialization by Pharma companies has provided an added leverage for the growth of Pharma booklet labels as it can help secure and trace drugs throughout the supply chain providing tamper evidence

Cost Structure Analysis : Leaflet

• Asia does not have a cost competitive feedstock, yet the prices and margins of leaflet are the lowest, given its excess capacity

• Margins for the North American and European leaflet producers are high due to high feedstock prices, which in turn is driven by the regions’ structural capacity deficit

• The recent capacity additions and increase in exports from Asia could increase the level of competition in North America and European regions, which could open up a scope for price negotiation

• Uncoated paper is the key cost driver for leaflet and accounts for 60–70 percent of the total production cost, value adds, such as printing and finish, would determine final conversion costs

• Apart from that, labor and energy costs are the important cost contributors. Ongoing labor shortages are impacting both port and trucking capacity. Labor costs have increased significantly over the last two quarters across every region

• Energy costs have increased substantially in North America, Asia, and Europe, which has impacted the overall production costs