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The labels market size is estimated to grow by USD 12.28 billion at a CAGR of 5.87% between 2022 and 2027. The growth of the market depends on several factors, such as an increase in demand for sleeve labels, the growing demand from the organized retail sector, and a rise in demand for colored labeling
It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The rise in demand for colored labeling is the key driver for the growth of the market. Due to the use of color printing on products consumers' response to marketing and promotional activities has increased, which is further growing the demand for color inkjet printing in labeling. With color tag, more than 75% of the visual information on the label is related to color, making the label informative and attractive to customers, and allowing companies to effectively market their brands to their customers. The need to support color label printing is growing across all industries to meet the evolving needs of corporate brands and customers. Vendors are involved in introducing devices that enable high-quality printing and system integration for the industries.
Moreover, color tag can also solve problems associated with transporting dangerous goods. Hence, this is expected to increase the demand for color labels and drive the growth of the global label market during the forecast period.
Increased implementation of barcode technology is the primary trend in the global market. Barcodes are an important method of product identification and primary tracking technology. They are important for supply chain management as they document and protect a variety of information, including information about product manufacturing dates, locations, lot numbers, and expiry dates. The demand for barcode tags is increasing in the global food and beverage industry, where pressure-sensitive tags with 2D and 3D barcode technology are the preferred industry choice.
Moreover, 2D barcode tags can be identified and read using mobile phones through quick response (QR) code. The ability to read 2D barcodes on tags with mobile phones to retrieve information about products is slowly reducing the demand for dedicated readers across the logistics industry. Release liner-based adhesive tags can easily incorporate this technology. Therefore, the implementation of 2D and 3D barcodes has become a major trend in the global label market.
An increase in the prices of raw materials is the major challenge that affects the growth of the global market. Raw prices such as paper, plastic resin, adhesive, additives, pulp, etc. have increased. The rise in this price increases pressure on both the label supplier and the buyer. Therefore, the raw material price increases the production cost of the label. In addition, market players cannot increase the price of tags in the market, which leads to reduced profit margins for them.
In addition, the price of additives is also expected to rise, further impacting product label prices. Therefore, vendors in the global label market are raising the prices of their tags in order to maintain their profit margins. This leads consumers to feel that the tags are too expensive, leading to lower sales volumes. Hence, fluctuations in raw material costs and price wars due to the availability of alternative tags will impede the growth of the global label market during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
3M Co.: The company offers 3M Thermal Transfer Label Material.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The consumer goods segment is estimated to witness significant growth during the forecast period. In the consumer goods segment, labels are used on food packaging, wine bottles, clothing, toiletries, and kitchenware, as well as health information and distribution labeling. Consumers need to know the ingredients of a product. As a result, companies across all product categories in the consumer goods industry are looking for new approaches to developing innovative labels.
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The consumer goods segment was the largest segment and was valued at USD 15.73 billion in 2017. Labeling also helps differentiate products from other similar products. In the fast-moving consumer goods industry, labels are regularly changed in response to changes in customer buying behaviour. Additionally, governments such as China and Brazil set their own labeling guidelines for each product. Therefore, the growing consumption of groceries, personal care products, food, and beverages is expected to boost the demand for private labels during the forecast period.
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APAC is estimated to contribute 49% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The market is expected to grow fastest in various developing countries in the APAC region including India and China. Changes in lifestyle and demographics, especially among the middle class in developing countries, are increasing the demand for packaged food and beverages. This will increase the demand for packaged food and beverage labels.
Moreover, increased exports from various ASEAN (Association of Southeast Asian Nations) countries have further raised the market demand for labels. In addition, increasing demand for packaged personal care products is expected to boost the demand for labels as well. Therefore, the growth of the APAC label market is expected to continue at a rapid growth during the forecast period.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the market growth and trends opportunities from 2017 to 2027.
The Market is crucial for providing product information on food and consumer goods, highlighting their functional qualities and ingredient information. Labels also serve as warning signs, displaying cautionary alerts for consumers.
Beyond functional aspects, labels play a significant role in brand promotion and enhancing the aesthetic aspect of products, particularly in the e-commerce space. With a growing emphasis on sustainability, environmentally friendly packaging solutions like recyclable adhesives, liner-free labels, and clear film labels on clear substrates are gaining traction.
In the pharmaceutical business, labels are essential for conveying crucial information about products, especially in the context of supply chain disruptions. They also add aesthetic value and play a critical role in indicating shelf life and providing information required by law, such as the food label, ingredient list, nutrition information panel, allergy warning, and allergen declaration.
Market Scope |
|
Report Coverage |
Details |
Page number |
173 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.87% |
Market growth 2023-2027 |
USD 12.28 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.25 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 49% |
Key countries |
US, China, Japan, Germany, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
3M Co., Allcan Label, Amcor Plc, Avery Dennison Corp., Berry Global Inc., CCL Industries Inc., Cenveo Worldwide Ltd., Classic Label Inc., Edwards Label Inc., Huhtamaki Oyj, Intertape Polymer Group Inc., LINTEC Corp., Mativ Holdings Inc., Mondi Plc, Pdc International Corp., Progressive Label Inc., Smyth Companies LLC, WestRock Co., CMC Group Inc., and Multi Color Corp. |
Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the market forecast period. |
Customization purview |
If our report has not included the data you are looking for, you can reach out to our analysts and get customized segments. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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