AWA discusses global release liner industry

Alexander Watson Associates (AWA) organized a one-day seminar on the label release liner industry on September 28 in Brussels, the day before Labelexpo Europe started.

Corey Reardon, president and chief executive officer at AWA, kicked off the seminar with a presentation sharing figures from the global release liner market. . The total global labelstock market is pegged at 21.5 billion sqm and grew at 5.2 percent in 2014.

While the Asian market represents 37 percent of the total, it is the least homogeneous with significant difference in growth in different regions. The overall regional market is growing at eight to nine percent. India and China, however, are growing the fastest at 12 percent but at a decelerating rate. Japan, meanwhile, is growing at one to two percent. Though the average global growth for label market is 3.2 percent, it is slowing down as the Asia Pacific market matures.

Europe represents 29 percent of the total labelstock market and is estimated to be growing at 3.2 percent; North America represents 25 percent of the global market with growth rate of 2.5 percent.

Comparing the growth by substrate, Reardon said there is an increase in the global film release liner market. As per the report, it stood at 17 percent in 2014, a two percent increase from 2008. ‘Film is continuing to reduce the reputation of paper labelstock but we don’t see film replacing paper in the foreseeable future. Clear-on-clear labels are a big growth area especially in the beverage segment,’ said Reardon.

Further dividing the market, he said that four segments including labelstock, tapes, hygiene and industrial make up 81 percent of the total market with focus on the label industry. Labelstock forms 49 percent of the global release market followed by tapes which comprise 13 percent of the market share. ‘Main growth areas in specialty tapes include electronics, aerospace applications, white goods and automotives,’ he said.

He further added that though 48 percent of all labeling technology used is pressure-sensitive, it has come under pressure from alternative labeling technologies such as shrink sleeves and in-mold labeling.