The industrial labels market was valued at USD 49.25 billion in 2019 and is expected to reach USD 69.8 billion by 2025, at a CAGR of 6% over the forecast period 2020 - 2025.
- According to a report by PayPal by May 2018, 27% of the citizen in the United States had accessed domestic and cross-border e-commerce in the past 12 months. As e-commerce and m-commerce continue to grow globally, both locally and across borders, there would be a need for high-quality labels to put on the items that have to be shipped around can make it easier to read and track. This would help to prevent items from getting lost or delayed during the transport, thereby contributing the market growth.
- With the growth in industries such as the construction, food and beverages and automotive industry, warning/security labels are also expected to increase owing to the supportive regulations by the government.
- However, increasing cost of raw material is one of the major factor which is hindering the market growth.
Scope of the Report
The industrial labels market report gives a detailed analysis of the basic raw material, mechanism, printing technology and end-use industry, and geography. Different identification technology such as Radio-frequency identification (RFID) and Barcode are also considered in the scope of this market.
Key Market Trends
Food & Beverages is Expected to Register a Significant Growth
- According to a survey by the International Food Information Council, in 2018, 59% of respondents said that they always read labels on packaged food before buying it for the first time and among those, the nutrition facts panel (69%) and the ingredient list (67%) are the two places where the most consumers look for information about food healthfulness. Thus, a healthy symbol on a food package would have a strong influence on a consumer’s purchase decision thereby contributing to the market growth.
- Moreover, with the strict regulations from the governing bodies such as the Food and Drug Administration (FDA), the UK’s Department of Health and Health Canada are imposing the manufacturers to put a label of nutritional statement along with a voluntary statement regarding ‘supplementary’ nutrients. Such initiatives possess a great potential for the industrial label market
- Additionally, Accenture predicted that by 2050, 66% of the world's population will be staying in the urban area and thus in return it will help in the growing packaged food industry.
- Therefore, the above factors are expected to help in the flourishing of the industrial labels market in the packaged food industry.
Asia- Pacific to Witness Fastest Growth
- Asia-Pacific is expected to witness the fastest growth because of the presence of two highly populated countries i.e. China and India. These countries are expected to witness the steady growth of consumer goods packaging with the rising e-commerce industry, and growing industrialization in the region is expected to drive the demand for the Flexographic labels in the region, thereby supporting the industrial labels
- Moreover, the availability of cheap labor costs and cheap raw materials in regions such as Chian, Thailand, Korea, etc is expected to increase the production of industrial labels in the market.
- According to the India Brand Equity Foundation, the FMCG sector in India is expected to grow at a CAGR of 27.86 % to reach Rs 7,24,759.3 crore (USD 103.7 billion) by 2020 from Rs 3,68,669.75 crore (USD 52.75 billion) in 2018. Growing awareness, easier access, and changing lifestyles are the key growth drivers for the consumer market which is leading to a rise in the demand for products, such as branding labels, reseal labels etc in the region.
- Therefore, all the above factors are expected to drive the industrial labels market in the region.
The industrial labels market is fragmented in nature because of the presence of the major players globally. Factors such as the increasing demand for food and beverages, electronics goods and penetration of e-commerce will provide considerable growth opportunities to the industrial label market and therefore many companies are seeing this market as an emerging market. Some of the major players are Avery Dennison Corporation, 3M Company, Brady Corporation, and Ccl Industries Inc. amongst others. Some of the recent developments are:
- August 2019 - 3M Company launched a Versatile Print Label Materials, which is a proprietary topcoat technology that performs across multiple print platforms such as UV digital inkjet, water-based and UV flexographic, screen, toner-based or thermal transfer. It utilizes water-based technology, but it can be used with many water-based ink systems which help converters to eliminate solvent-based manufacturing process steps like priming. This helped in increasing the company's efficiency and rationalizing their inventory.
- November 2018 - CCL Industries Inc announced the acquisition of Unilogo( Poland), Hinsitsu Screen (Vietnam) Company Limited (“Hinsitsu”) and Olympic Holding B.V. and its related subsidiaries (Netherlands). All these three acquisitions had strengthened the CCL Industries Inc' label product portfolio and enhanced the geographic presence of the company.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- Report customization as per the client's requirements
- 3 months of analyst support