The global labels market size is set to reach a valuation of US$ 41.75 billion in 2023 and accelerate at a CAGR of 4.9% from 2023 to 2033. The market is projected to reach US$ 67.36 billion by the end of 2033. Sales of labels are anticipated to augment, with the top 5 players holding 10-15% of the global labels market share in 2023.
Based on product type, the pressure-sensitive labels (PSL) segment is projected to hold a major portion of the global labels industry during the forecast period. These labels can withstand and maintain their integrity in different environmental conditions and are easy to apply. The segment is thus anticipated to hold around 3/4th of the market by the end of the forecast period.
According to FMI, the labels industry totaled US$ 39.8 billion in 2022. Sales of labels may propel, with the top 3 countries estimated to hold 25-30% of the global labels market by the end of 2023. The market is estimated to witness a positive growth outlook by the end of 2023.
The need for better safety and authenticity among end-use industries is anticipated to bolster the demand for Smart labels, creating new growth opportunities in the global market. The labels market is projected to grow 1.7 times the current value between 2023 and 2033.
The North American and European regions are anticipated to showcase high demand for labels due to the implementation of strict regulations by government bodies associated with the packaging and labeling of various end-use products. The rapid expansion of these regions’ food & beverage and pharmaceutical industries can fuel growth.
Label Market Dynamics: The Dual Trends Propelling Sales Growth
· RFID Tracing the Path of a Transcontinental Technology
The RFID technology is gaining traction among label manufacturers as it reduces employment costs and eliminates human errors. It works without human intervention and can read a long range of information. Moreover, acceptance of this technology is increasing owing to its ability to identify, which is crucial in the retail sector. RFID labels are less sensitive to adverse conditions, which would further propel their usage in the labels market.
These labels assist in synchronizing the process of repairing and inventory control for enterprises & maintaining the true authenticity of products. The emergence of newer technologies, such as NFC and sensing labels, also provides end users a unique experience. These advanced labels offer direct package-to-smartphone communication, paving the way for more capable and streamlined self-adhesive labeling and packaging use.
· Self-Adhesive Labels with a Low Environmental Footprint
Rising demand for sustainable products and various government & non-government initiatives revolving around the use of sustainable products would create new growth opportunities for the sustainable labels market. Key labels manufacturers operating in the market are offering sustainable labels to cater to the growing demand.
For instance, Avery Dennison Corporation offers a label made from recycled PP. The company’s recycled PP is produced from 30% pre-consumer waste. Also, it provides a multicycle label that is an ultra-permanent self-adhesive label for beverage packaging that withstand the power of up to 30 product life cycles. Besides, the company has partnered with Romei Replastic to convert labeling waste into new raw materials to help customers find the right label recycling solution.
The growing focus on sustainability is rapidly shifting the packaging and labeling industry. The availability of compostable self-adhesive materials would drive the target market. HERMA offers compostable self-adhesive raw materials for biodegradable labels. Overall, key players are projected to adopt the sustainability trend and offer sustainable self-adhesive labels to strengthen their positions in the market.
Challenges in the Labels Market
The labels market faces several difficulties, such as changing regulatory demands for precise product and sustainability information, forcing producers to alter labeling procedures periodically. The complexity of the global supply chain makes flexible labeling solutions necessary.
Innovative design methods are required because of the consumer demand for customized and aesthetically pleasing labels, resulting in a spike in design complexity. Strong security precautions are necessary because counterfeiting is still an ongoing issue.
Physical and digital labels must work together seamlessly to avoid compatibility problems brought on by digital transformation, which is necessary for a successful omnichannel experience. Overcoming these hurdles requires balancing compliance, creativity, security, and technological integration.
Regional Outlook
Envisioned Efforts to Skyrocket Label Sales in the United States
United States is anticipated to hold 85% of total sales in North America by the end of the forecast period and is anticipated to expand at an impressive CAGR of 4.2%. According to the United States Food and Drug Administration, labeling for food under the Federal Food, Drug, and Cosmetic Act is required as the demand for food hygiene, nutrition, and healthcare has grown rapidly. The boom in the e-commerce sector across the United States is mainly driven by rapid technological innovation and ongoing digitalization in the packaging & labeling industries.
Changing lifestyles and demographics are leading to the growing consumption of ready-to-eat and packaged processed food items. Besides, snacking in place of meals would foster the need for small, single-use pouches, augmenting the demand for labels in the country. Growing demand for sustainable packaging and labeling solutions is another key factor anticipated to facilitate the high demand for eco-friendly labels in the United States market.
Label Industry’s Future: India’s Commanding Demand Projection
The Indian labels market is anticipated to boost at an 8.9% CAGR over the forecast period. According to the Food Safety and Standards Authority of India (FSSAI), there is a high demand for packaged food and a plan to present front-of-package (FoP) labeling on packaged foods in India. This may help consumers to choose healthier food.
Advancing demand for perishable frozen packaged products such as meat, poultry, and seafood is anticipated to augment labels’ sales due to the shifting consumer preference for packed & convenient food consumption. India is a fast-emerging economy with surging demand for organized retail outlets, supermarkets, and convenience stores that may bolster growth in the labels market. The emergence of numerous quick-service restaurants and food delivery services can foster growth in India.
