Pressure Sensitive Label Western Europe Market Intelligence

Pressure Sensitive Label Western Europe Market Description

The global pressure sensitive labels (PSL) market is expected to grow at a CAGR of 5 -6 percent to reach 37 billion sq. m. by 2020. The market for PSL in Western Europe is growing at a CAGR of 1 - 2 percent to reach 6.20 billion sq. m by 2020. Western Europe contributes to nearly 75 percent of the European labels market making it a major demand region for PSL products. Moreover, PSL products in Western Europe are evolving to advanced smart labels and interactive labels. Western Europe holds a large supply base with an increasing market growth; thus the region will not face supply tightness of supply related price escalation of PSL products. Increasing demand from major end-user segments such as pharmaceuticals drives the demand for pressure sensitive labels.

The report encapsulates Porter’s Five Forces analysis on the Western Europe markets along with the key drivers and constraints in the pressure sensitive labels market. The report covers the key market trends and the cost structure in the PSL industry. Furthermore, a comparative analysis of the traditional method versus second-level buying of PSL gives an insight into the cost-saving methods for best procurement practices.

Beroe gathers intelligence through primary sources that include industry experts, researchers, and consultants, as well as current suppliers, producers and distributors. Secondary sources can include business journals, newsletters, magazines, market research data, company sources, and industry associations. Following data collation, analysis, and strategic review, the Final Research Report is published on Beroe LiVE.

Report Coverage

Supplier Business Model and Engagement Strategy
Competitor Intelligence
Key Innovations in Pressure Sensitive Labels
Key Technical Advancements in Label Printing Solutions
Supply Base Overview

Pressure Sensitive Label Western Europe Market Trend, Analysis & Forecast

Category Intelligence on Pressure Sensitive Label Western Europe covers the following

Information relating to market, supply, cost, and pricing analysis
Hard to find data on cost and TCO models, supplier details, and performance benchmarks
Macroeconomic and regional trends impacting cost, supply, and other market dynamics
Category-specific negotiation and sourcing advice

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Executive Summary

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Market Analysis

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Supply Analysis

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Cost & Pricing Analysis

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Best Practices

Executive Summary
Pressure sensitive Labels Value Chain
PSL - Global Market Outlook
PSL - Western Europe Market Outlook
Drivers and Constrains of PSL
Porter’s Analysis of PSL
PSL Cost Structure
PSL Market Trends
Supplier Business Model and Engagement Strategy
Competitor Intelligence
Key Innovations & Technical Advancements in PSL
Supply base overview
Supply base outlook with supplier Long List

Regional Market Outlook on Pressure Sensitive Label

PSL products in Western Europe are evolving to advanced smart labels and interactive labels. Buyers can engage with some of the leading players like Avery, Inland labels etc. to be an innovation leader in beverage segments.Western Europe PSL market is expected a slower volume growth owing to the mature food and beverage consumption in the market, which dominates PSL end use. However, growing e commerce, product aesthetic requirements are likely to drive value growth by product innovations

analysis-pressure-sensitive-labels

Western Europe Demand Growth of Pressure Sensitive Labels

Major demand region: Western Europe contributes to ~75 percent of the European labels market, making it the major demand region. Germany alone contributes to more than 25 percent of Western European labels demand, of which, more than 55 percent are PSL
Western European countries of Germany, France, the UK, and Italy contribute to more than 50 percent of the retail sales of cosmetic and personal care market, thereby driving the labels market.

Pressure Sensitive Labels Drivers and Constrains

Drivers

Innovation

Smart technologies, such as NFC, are being included in PSL as an anti-tampering mechanism. This trend of continuous innovations is expected to drive the demand for self-adhesive labels in all the industries

Sustainability

The rising e-commerce activity has led to the need for more effective and sustainable packaging. This has prompted consumers to look toward attractive and sustainable options, like liner-less labels, recyclable adhesives, and clear film labels on clear substrates

Downstream Demand

Increasing demand from major end-use segments, such as F&B and Pharma, drive the demand for labels

Increasing Transportation and Logistics

Western Europe has witnessed a sharp rise in transportation and logistics. This is expected to drive the tracking, tracing and device authentication PSL demand in the coming years

Constriants

Recycling

Labelstock material can be made from recycled, but the adhesive used on them acts as a constraint during recyclability
New chemical compounds to make 100 percent recyclable adhesives are being gradually introduced to overcome this constraint

Product Substitution

Alternative packaging options, such as sleeves and pouches, are expected to grow at 5 percent and 8 percent until 2019,respectivey, and see increased applications in personal care and food sectors. They minimize packaging cost and also increase the aesthetic value of the product

Western Europe PSL market is considerably fragmented, with the presence of multiple global players and a large pool of domestic suppliers. However, suppliers like Avery, Constantia might have a leverage in certain innovative and customized SKUs

Supplier Power

Though fragmented, the major upstream industries (label stock producers) in western Europe, like Avery Dennison, UPM Raflatac, etc., hold 15 percent of the global market share
Most converters are not backward integrated into label stock production, which limits the supply chain transparency, thereby decreasing their power over facestock suppliers

Barriers to New Entrants

Low capital investment, in terms of printing equipment (flexo machines range from $10,000–25,000), decreases the barrier for new entrants
Digital printing is a rising trend in this region, with an initial investment of $45,000 and enhanced printing speeds. Newer machines with better quality and higher speed are being introduced by companies, such as Gallus.

Intensity of Rivalry

Western Europe labels market is fragmented, thereby increasing the rivalry among suppliers
To increase their market share, major suppliers are involved in M&As
Suppliers are also actively investing in product differentiations through innovations to stay competitive in the market

Threat of Substitutes

In-mold labels, which is witnessing a tremendous growth of around 6–7 percent in Europe and 5–6 percent in North America, is a possible substitute for PSL in plastic containers

Buyer Power

In spite of several M&As, the supply base in Western Europe remains highly fragmented
This directly translates into low switching cost for buyers, thereby enhancing the buyer power further

There is no immediate threat of price increase in PE based plastic PSLs. However, with the expected surge in PP prices, PP based label prices might go up by up to 10 percent

Major cost saving Arena

For large volumes (>20,000 m2), rotogravure would be the economical option. For smaller volumes (<3,000 m2), offset would be economical. However, digital printing is slowly replacing offset printing for short runs
Companies offer auctions or bids to the industry to determine a cost efficient supplier. In case of secondary level buying, companies can leverage the prices offered by the current supplier with another face stock supplier to get a better price quote
Production setup cost per unit can be reduced by printing at least 5000 units of label, in a single production run

Pressure Sensitive Label Market Trends

Sustainability and product interactiveness is expected to be the focus of innovations in PSL in the next 2-3 years. Smart features in packaging across food and beverages segment is likely to penetrate labels, especially around temperature alerts, personalized designs etc

Smart Labels

Smart PSL has gained the market interest of Food and Beverage industry. Interactive labels keeps the customer engaged to the brand and also helps in product reorders
Labels with NFC technology and special designs are being incorporated into beverage bottles to improve customer reception and loyalty

With increasing regulations from FDA requiring more detailing on labels, companies are looking to adopt new technologies to incorporate extra detail, while keeping the packaging attractive.

Sustainability

Recyclable adhesives have been widely adopted by companies to improve the recyclability of the product
They use the same chemical components, hence, the cost remains the same. However, the blend is different compared to normal adhesives, making them recyclable
Polymer based RCA (Recycling Compatible Adhesive) pressure sensitive labels has superior recycling capability, when compared to paper made PSLs

PURE 100 percent compostable PSL, with eco-friendly adhesives, were showcased in Labelexpo Americas 2016. It is the first certified compostable, tree-free label compliant, with food grade regulations.

Digital Printing

For high-quality printing, companies often look for rotogravure, followed by flexographic technology. When the companies are willing to compromise on quality, offset technology is considered to be the cheaper option
Digital technology is being widely adopted for short runs or immediate requirement, due to low investment and high-print speeds

Digital Printing is increasing print-on demand, thereby discouraging long term contracts with labeling converters

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