Demand for pressure-sensitive adhesive (PSA), or self-adhesive, labels is expected to rise 3.5 percent a year to reach 15.1 billion USD in 2021, according to a new report from industry research firm Freedonia.
The 12th edition of its Labels Market in the US report sees demand for pressure-sensitive products, which accounted for 76 percent of total label demand in 2016, benefiting from greater demand for value-added types and smart labels. The almost exclusive use of PSAs in fast-growing markets such as the secondary, mailing and shipping segments will also drive growth.
While paper-based labels represent the vast majority of demand – 74 percent of the total reported in 2016 – plastic pressure-sensitive labels are expected to grow more rapidly. The report cites durability, a wide range of customizable resin options and aesthetic advantages, such as achieving a ‘no-label look’, as advantages of plastic.
The entire US labels market is forecast to grow 3.4 percent annually to 19.8 billion USD in 2021, accelerating from the 2011-2016 pace. Gains will be driven by increased focus on labels as sophisticated marketing, and track and trace tools, leading to growth for value-added label types.
Freedonia analyst Ellen Kriz said: ‘Ongoing improvements in converting techniques and printing technologies will lower costs and increase penetration of these higher value labels.’
Pressure-sensitive growth, and that of stretch sleeve products, is expected to be ‘average’, while heat-shrink and IML is anticipated to show above average growth to 2021. The outlook for glue-applied and heat transfer to 2021 is for growth ‘below average’.