12.05.17
Demand for pressure sensitive adhesive (PSA), or self-adhesive labels is expected to rise 3.5% per year to $15.1 billion in 2021. Demand for pressure sensitives, which accounted for 76% of total label demand in 2016, will benefit from greater demand for value-added types and smart labels. The almost exclusive use of PSAs in fast growing markets such as the secondary and mailing and shipping segments will also drive growth. These and other trends are presented in Labels Market in the US, 12th Edition, a new study from The Freedonia Group, a Cleveland-based industry research firm.
While paper-based labels represent the vast majority of demand – 74% of the total in 2016 – plastic or film-based pressure sensitive labels are expected to grow more rapidly. Plastic or filmic offers numerous advantages including:
Key Findings
Pressure sensitive labels will continue to displace glue-applied labels going forward, though at a slower pace than that of the last decade, the report confirms. Emerging opportunities, in addition to the aforementioned anticipated growth in the pastic and film label segment, include specialized labels – such as RFID-enabled varieties and extended content labels.
Heat-shrink labels are expected to grow at an above average rate going forward and will compete with pressure sensitive labels, particularly in food and beverage markets, the report says. "Though these labels are more costly to produce, advancements in digital printing are expected to lower costs and expand heat-shrink labels’ range of applications wherever superior aesthetics are required for product differentiation," Kriz explains.
Digital printing will continue to create new opportunities
Digital printing will continue to grow at the fastest rate of any label printing technique through 2021, the firm notes. Kriz says, "Growth will be driven by a trend toward customized packaging for short-term product promotions and customized marketing, as digital printing is the most cost effective print method for short runs.
"Demand for digitally printed labels will also be supported by increased regulatory activity, particularly in the pharmaceutical market, which sometimes requires frequent changes to information presented on labels. Digital printing’s versatility and minimal prepress preparation times allow adjustments to be made cost-effectively," she adds.
The fastest growing markets
Variable information labels in secondary and mailing and shipping applications are expected to post strong growthm the report reveals. "Gains in secondary labels will be largely driven by value-added track and trace labels in transportation and distribution markets, as well as increased retail activity.
"Mailing and shipping labels will benefit from the continued growth of e-commerce. Address labels for individually packaged items instead of bulk shipping to stores, as well as a trend toward printing return labels, will boost demand," Kriz says.
Study coverage
The new study from The Freedonia Group presents historical demand data (2006, 2011, and 2016) and forecasts for 2021 by application method (pressure sensitive, glue-applied, heat-shrink and stretch sleeve, in-mold, heat transfer), stock material (paper, plastic), market (primary packaging including food, beverages, pharmaceuticals, cosmetics and toiletries; secondary; industrial; mailing and shipping; decorative), and printing technology (flexography, lithography, digital, screen, gravure, letterpress, variable information printing).
The study also evaluates company market share and offers analysis on industry competitors including Avery Dennison, CCL Industries, Fort Dearborn, Green Bay Packaging, LINTEC (MACtac), Multi-Color, RR Donnelley, UPM-Kymmene, and WS Packaging.
Labels Market in the US, 12th Edition (published 11/2017, 191 pages) is available for $5500 from The Freedonia Group. For more information, go to www.freedoniagroup.com
While paper-based labels represent the vast majority of demand – 74% of the total in 2016 – plastic or film-based pressure sensitive labels are expected to grow more rapidly. Plastic or filmic offers numerous advantages including:
- durability
- a wide range of customizable resin options
- aesthetic advantages such as a no-label look
Key Findings
Pressure sensitive labels will continue to displace glue-applied labels going forward, though at a slower pace than that of the last decade, the report confirms. Emerging opportunities, in addition to the aforementioned anticipated growth in the pastic and film label segment, include specialized labels – such as RFID-enabled varieties and extended content labels.
Heat-shrink labels are expected to grow at an above average rate going forward and will compete with pressure sensitive labels, particularly in food and beverage markets, the report says. "Though these labels are more costly to produce, advancements in digital printing are expected to lower costs and expand heat-shrink labels’ range of applications wherever superior aesthetics are required for product differentiation," Kriz explains.
Digital printing will continue to create new opportunities
Digital printing will continue to grow at the fastest rate of any label printing technique through 2021, the firm notes. Kriz says, "Growth will be driven by a trend toward customized packaging for short-term product promotions and customized marketing, as digital printing is the most cost effective print method for short runs.
"Demand for digitally printed labels will also be supported by increased regulatory activity, particularly in the pharmaceutical market, which sometimes requires frequent changes to information presented on labels. Digital printing’s versatility and minimal prepress preparation times allow adjustments to be made cost-effectively," she adds.
The fastest growing markets
Variable information labels in secondary and mailing and shipping applications are expected to post strong growthm the report reveals. "Gains in secondary labels will be largely driven by value-added track and trace labels in transportation and distribution markets, as well as increased retail activity.
"Mailing and shipping labels will benefit from the continued growth of e-commerce. Address labels for individually packaged items instead of bulk shipping to stores, as well as a trend toward printing return labels, will boost demand," Kriz says.
Study coverage
The new study from The Freedonia Group presents historical demand data (2006, 2011, and 2016) and forecasts for 2021 by application method (pressure sensitive, glue-applied, heat-shrink and stretch sleeve, in-mold, heat transfer), stock material (paper, plastic), market (primary packaging including food, beverages, pharmaceuticals, cosmetics and toiletries; secondary; industrial; mailing and shipping; decorative), and printing technology (flexography, lithography, digital, screen, gravure, letterpress, variable information printing).
The study also evaluates company market share and offers analysis on industry competitors including Avery Dennison, CCL Industries, Fort Dearborn, Green Bay Packaging, LINTEC (MACtac), Multi-Color, RR Donnelley, UPM-Kymmene, and WS Packaging.
Labels Market in the US, 12th Edition (published 11/2017, 191 pages) is available for $5500 from The Freedonia Group. For more information, go to www.freedoniagroup.com
