While Asia continues to drive growth in label volumes, South America (with around 6% of the world’s population) is unique in exhibiting high growth rates across all label formats – wet glue, pressure sensitive, sleeving and in-mold – albeit from a low starting point. Estimated regional volume growth for 2011, at 11.5%-12%, conceals significant variations by country, from a high of 12.5-13% in the leading regional economy, Brazil, to a low of around 7.5%-8% for Chile. Label usage is very much focused on prime label applications – particularly and unsurprisingly in the beverage and food sector.
As the study shows, in terms of preferred label format, it is the glue-applied technologies – cold glue and wraparound hot melt glue-applied – that currently take the largest market share across the region. Pressure sensitive labels enjoy only half the volumes of the glue-applied formats, but the market is continuing to invest in narrow web flexo/UV flexo and in digital label print -- confirming the growth potential for this format. Opportunities in pressure-sensitive labels also exist in particular in the area of added functionalities – especially security labels using anti-counterfeiting devices, and clear-on-clear film labels for beverages.
Sleeving technologies have so far achieved only 3% market penetration, but are growing rapidly. In-mold labeling is still in its relative infancy but, following strong investment in 2011, is forecast to grow considerably in the medium term.
"Labeling Markets: South American Market Study & Sourcebook 2012" concludes with a regional supplier directory covering press manufacturers, pressure sensitive laminators, paper and film suppliers, and printers. It is an in-depth reference source for all considering investment in this dynamic economic region’s label value chain, and for all companies already active there – labelstock producers, material suppliers, technology providers, and converters. The study is available to order online via AWA Alexander Watson Associates’ website, www.awa-bv.com, where details of all currently available market research studies, and the company’s related events, are also listed.