Global Labels Market Outlook

Levying of import tariffs by the US on Canadian paper in January 2018 has constrained exports to the US. It is expected to cause supply surplus in Canada guaranteeing sufficient domestic feedstock supply for paper labels in the coming years.Labels market in Canada is fairly mature with increasing focus on innovation by CCL Industries, Jones Packaging, etc., which are continuously involved in development in printing, smart technologies, label design, etc., for beverage segment.

  • North America and Western Europe are fairly mature markets and expected to witness a slow rise in demand in the coming years with focus on recyclability. This, in turn, is expected to constrain demand for labels in these regions
  • Eastern Europe, which is slowly witnessing increasing manufacturing activity, is expected to drive the labels demand in Europe in the coming years
  • Key growth regions: APAC and South America are expected to be key growth regions in the next few years, due to rising demand from food and beverage sector, owing to increasing per capita income.

With reducing preference and contracting supply base for wet glue labels in Canada, it is expected that wet glue labelling would witness a substantial decline in the coming years. Increased substitution by PSL is expected to constrain growth of wet glue labelling technology in the coming years. Beverage segment is also slowly migrating to PSL variants, due to their increased flexibility to various printing and other value-add technologies.

  • The wet glue labels market has remained constrained, due to substitution by PSL across industries. However, their low cost in long runs continues to sustain their market share
  • Key Growth Regions: APAC is the largest demand region contributing to 43 percent of global wet glue demand with China alone, holding 60 percent of this market share. MEA which currently contributes to 7 percent of global demand is expected to witness the fastest growth of 4–5 percent until 2021
  • Major End-use: Food and Beverage market is the largest market contributing to more than ~80 percent of the wet glue labels market

Canadian Wet Glue Labels Market Outlook

Impending alcohol liberalization and need for premium branding in Canada are expected to drive adoption of PSL variants, which are more flexible than wet glue labels to various printing technologies and label substrates.Supply of glue labels in Canada are expected to see a gradual decline in the coming years, owing to shifting of many label printers, such as CCL, A&A Labels, from wet glue technology to PSL technology.

  • North America is the second largest glue labels market contributing to 18 percent of the global demand
  • Wet glue labels market in Canada is expected to witness a slow growth in the next few years, owing to several developments in PSL making them an efficient alternative
  • Canadian manufacturing locations of CCL labels, A&A labels, etc., have migrated away from glue applied labels to PSL variants, owing to reducing demand.