Global demand for labels to reach 57.7bn sq m

The report states that the Asia-Pacific region will be the fastest growing regional market, due to the continued rapid expansion of the already large Chinese and Indian label markets. Although gains will decelerate as seen in recent years, China’s enormous market for labels will account for almost one third of new label demand worldwide through 2018. 

The Indian label market trails China’s in terms of size and market penetration, but is projected to post even faster growth over the forecast period.

Freedonia said the continued acceleration of global economic expansion in the aftermath of the recent economic downturn will fuel advances in consumer spending on packaged goods. This is particularly true in many of the world’s developing regions, where consumer spending levels are growing most rapidly.

In the US, Western Europe, and other more developed label markets, gains will be much more subdued. However, the anticipated growth in these markets will represent an improvement over that of the 2008-2013 period, which included the recent recession. Some countries experienced declines in label demand during that period, and even the better performing markets recorded only modest gains. However, renewed growth in manufacturing activity – especially in such key label markets as food processing – will lead to a reinvigoration of the label market. 

Freedonia Group analyst Mike Richardson said: ‘Renewed vigor in global manufacturing output will be the primary factor driving growth.’

By material, paper facestocks will continue to account for most label demand, while plastic and other materials will register faster growth through the forecast period.  Some of the decline in market share for paper labels can be attributed to other trends in the industry also, such as the fast-growing sleeve segment that relies mainly on plastic materials and declining market for glue-applied labels that are disproportionately paper.