Labels Industry Report by Regional Category Spend, Price Analysis, Key Demand, and Price Indicators, and Best Buying Practices

The global labels market reached a value of about 55.7 billion sq. m in 2021. The industry is projected to grow at a CAGR of around 4% in the forecast period of 2022-2027 to reach a value of about 70.47 billion Sq. m by 2027.

The global Labels industry report gives a comprehensive analysis of the industry, including key segments, trends, drivers, restraints, the competitive landscape, and other essential market aspects. The market is primarily driven by the rising demand for packaging from various end-user industries. In the industry report, the key demand indicator is the highest category spender by region—Asia Pacific.

Industry Definition and Segmentation

A label is a piece of paper, plastic film, or different material affixed to an object. It serves as a source of information or symbols regarding the product or item written or printed. Labelling can also refer to the information published directly on a container or object. The Labels industry report comprises segments by type (Pressure Sensitive, Glue Applied, Stretch and Shrink Sleeve, In-Mold, Others) and region (North America, Europe, Asia Pacific, the Middle East, and Africa, and South America).

The Asia Pacific Region is Driving the Growth of the Industry

The Asia Pacific holds the largest share in the industry, driven by the rising spectrum of stretch & shrink sleeve labels applications in the food & beverage, healthcare, and beauty & personal care industries. During the forecast period, demand for stretch & shrink sleeve labels is likely to be driven by industrialisation, rising middle-class population, rising disposable income, changing lifestyles, and increased consumption of packaged items. The brands have become more prevalent in the area because of their low cost, easy availability of raw materials, and demand for product labelling from densely populated nations like India and China. In addition, self-adhesive labels are anticipated to indicate an increasing preference for and acceptance of permanent brands in the food business.

The market is being driven by the increased need for labels from major end-use industries such as food and beverages. The pharmaceutical business is projected to bolster demand for labels. In-mould labels are also desired in the pharmaceutical business, particularly for goods like vaccinations, antibiotics, and others sensitive to temperature changes. Cryo pharmaceutical items with in-mould labels have better durability, better product characteristics, and better adhesion to the container. Labels find application in food and consumer goods packaging through their functional qualities, including product identification, ingredient information, warning notices, cautionary alerts, etc. Labels are also significant contributors to brand promotion because of their visual aspect. With the rise of e-commerce, there is a greater demand for more environmentally friendly and effective packaging. This encourages customers to seek more environmentally friendly and appealing options, such as recyclable adhesives, liner-free labels, and clear film labels on transparent substrates. As a result, the rise of e-commerce has necessitated the development of more effective and environmentally friendly packaging, thus resulting in increased demand.

Best Procurement Practices

The global labels industry report by Procurement Resource gives an in-depth analysis of the best buying practices followed by major international labels regions, such as engagement models, contract terms, and buyer and supplier negotiation levers.

Category Management Studies

There are various types of labels available for different applications. Heat-activated adhesives can be used on blow-molded containers and use heat-activated adhesives. Light pressure applies pressure-sensitive sealants, which do not require activation or heat. Release liners are commonly used on PSA labels to preserve the bond and aid label handling. Information plates are attached to industrial equipment with rivets. Shrinkwrap is used to cover packages with printed shrinkable labels that are then heated to shrink them. Fabrics for apparel, tents, beds, and industrial sacks are sewn—wet glue (starch, dextrin, PVA, gummed adhesive). Swing tags are commonly made of yarn, twine, or plastic ties. Static cling has a static charge that allows it to adhere to surfaces such as glass without glue.

Developments in the Product, Further Driving the Procurement of Labels

The various developments in the product are propelling the industry. Plastic materials are becoming more popular due to their technological and financial benefits and improved aesthetic performance. Beverage bottles now include labels with unique designs and NFC technology to enhance client reception and loyalty. Due to the FDA's expanding requirements mandating more label information, companies use innovative technologies to merge greater facts on labels with appealing packaging. RFID and barcode labels are becoming more popular in the logistics and retail industries. Inflating middle-class disposable income would lead to increased expenditure in the retail and FMCG industries, which will indirectly help to increase demand for brands. To fulfil the changing expectations of customers, businesses are relying on high-quality labelling and packaging. Furthermore, a growing share of the pressure-sensitive label market is using polymer film materials such as PE, PP, PET, and PVC to provide added functionality to the label, such as strength, moisture impermeability, colour, surface smoothness, transparency, high gloss, durability, and mechanical resistance.

The regional markets for the industry can be divided into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific.

Key Industry Players Mentioned in the Labels Industry Report

• CCL Industries Inc.
• WestRock Company
• Multi-Colour Corporation
• Avery Dennison Corporation
• Lintec Corporation

Market Landscape

The Pressure Labels Competitive Environment Due to many small and medium-sized businesses, the market is highly fragmented. As a result, the market is exceedingly competitive. To expand their market status, these corporations have executed a range of development strategies. Expansion, new product development, mergers and acquisitions, and cooperation are the primary growth methods these companies use to improve their product range and geographical presence to address the rising demand for stretch sleeve and shrink sleeve labels in emerging nations.

Key Initiatives by Companies

• Avery Dennison has received USDA BioPreferred Certification for a new hot-melt adhesive, the business said in October 2021. By substituting petroleum-derived chemicals with renewable agricultural resources, the certified bond provides companies with additional opportunities to promote sustainable packaging to their customers.
• Dow Packaging and Specialty Plastics announced the debut of bio-based AFFINITY RE to complement its high-performance AFFINITY GA polyolefin elastomers (POE). Thanks to this solution, Dow customer Henkel's Technomelt SUPRA ECO line has achieved another milestone in both organisations' environmental goals.