Global Labels and Release Liners to reach $43.4 billion by 2017

The global market for labels and label release liners is forecast to reach $43.4 billion by 2017.

Valued at $34.3 billion in 2012, Smithers Pira forecasts it will grow at a compound annual growth rate of 4% to 2017. Labels market growth is being driven by several factors, ranging from socio-economic, demographic and lifestyle changes to the development of new materials, improvements in labeling technologies, innovations in existing materials and emerging trends within end-use segments.

The Future of Global Labels and Release Liner Markets to 2017 analyzes market drivers based on economic, social, and demographic influences as well as cutting edge technological developments within the industry. The liner markets are broken down by printing process, end-use applications, and geographic region. Market trends are further discussed as they apply to all pertinent industries such as pharmaceuticals, cosmetic and toiletries, cleaning products, industrial, and smart labels. With over 80 detailed quantitative tables and figures, this report is essential market intelligence for industry experts looking to gain and edge.

Demand for labels is influenced by the economic cycle. However, consumer demand for staple products such as food, beverages and healthcare products tends not to decline quite as much as demand for discretionary items such as consumer durable products, manufacturing or service industries when real income falls. Labels market growth in developed geographic regions with mature labeling technologies will not generally exceed gross domestic product (GDP) growth overall, while in developing or emerging geographic markets growth is expected to be at GDP levels or greater.

Sustainable packaging and labeling is growing in popularity because of the increasing focus by end users on carbon footprint and lifecycle impact analysis. Retail chains and brand owners are reacting to growing interest from consumers concerned about the depletion of fossil resources and climate change, and they are taking steps to evaluate the packaging and labels used by their suppliers in terms of source reduction, eco-friendliness and cost reduction.

Brand owners are adopting a number of different strategies to reduce their environmental impact, including sustainable packaging based on biodegradable materials, bio-based packaging based on renewable materials, recycled plastics and film down gauging. Technological advancements are also playing a vital role in supporting label industry development. New and improved label technologies are not only driving down costs and improving label production efficiency, they are also opening up additional markets for label producers.

While digital still has a relatively small market share of label print processes in 2012, Smithers Pira estimates the share of digital label printing to grow from 3.0% in 2012 to 7.2% over the five year period to 2017. Flexography is also forecast to grow share over the same period, while gravure, offset litho, letterpress and screen printing will lose share.

Figure 5.1 Global label print processes by print type, 2007, 2012 and 2017 (percentage share of market volume by area)

Global label print processes by print type

source: Smithers Pira

Western Europe is currently the largest regional market for labels, followed by Asia and North America. Asia is the fastest-growing regional market, with China and India leading market growth, along with the Middle East and Africa, South and Central America and central and Eastern Europe. North America, Western Europe and Japan are relatively mature markets and are forecast to show below-average growth in demand for labels during the forecast period.

Label market volumes are forecast to grow during the period 2012-17 at a CAGR of 4.0% to 49,668 million m2. Asia is forecast to overtake Western Europe to become the world's largest labels market by area during the forecast period.

The Future of Global Labels and Release Liner Markets to 2017 is available as bound copy, electronic version, and global usage license. It is available for immediate download for £3950 /$6300.

For more information, please contact:

Bill Allen (EU + Asia) T: 44 (0) 1372 802086 E: ballen@smithers.com