China: Growth amid challenges

In 2025, China’s label printing industry faced a dynamic environment shaped by increasing geo-economic volatility, global supply chain restructuring, stagnating domestic consumption and challenging industrial policy directives.

According to the Printing and Distribution Bureau of China’s publicity department, the country’s printing industry maintained its global leadership in scale in 2024, with a total output value of 1.5 trillion RMB (214 billion USD), up 3.9 percent year-on-year. The label printing segment has entered a mature and stable phase. Data from the Printing and Printing Equipment Industries Association of China (PEIAC) indicates that the number of label converters in China reached 6,888, driven by the reduced cost of printing equipment and increased automation, which have lowered entry barriers and encouraged new players to enter the market.

“Overcapacity in China’s label market, coupled with improved equipment efficiency, has prompted the industry to expand into overseas markets”

Gonyn.com reports that the output value of China’s label printing market reached approximately 60 billion RMB (8 billion USD) in 2024, making it one of the fastest-growing label markets globally. Industry media data reveals that the total label market volume in China reached 20.8 billion sqm in 2024, with a projected compound annual growth rate (CAGR) of 4 to 5 percent from 2025 to 2030.

Self-adhesive labels, the largest category, had a per capita consumption of only 5 sqm in China in 2024, significantly lower than the 17.5 sqm in the US and other Asian countries, highlighting substantial growth potential.

Structural growth

Donald Liao, deputy general manager of the Consumer Packaged Goods Business Unit at Cymmetrik Group, notes that stable volumes, price pressures and accelerated differentiation characterize the label printing industry in 2025. Overcapacity and intense competition continue to drive structural adjustments within the industry.

In response, industry consolidation is accelerating, with high-performing enterprises leveraging their core competencies to grow. A notable milestone was achieved when Jantan became the first publicly listed company in China’s label printing industry on the Beijing Stock Exchange on December 26, 2025.

To adapt to market changes, converters are optimizing their business structures to enhance competitiveness. Strategies include cutting low-margin, commoditized businesses, focusing on niche markets, and redirecting resources toward high-value-added products and services. For example:

• Shenzhen Shunxinchang integrated conventional and digital printing to offer diversified labels to clients.
• Guangcai reduced its workforce by 30 percent through automation while maintaining stable revenue.
• Boyue expanded into folding cartons and flexible packaging, creating a diversified product portfolio to mitigate market risks.
• Dongguan Sunway targets niches such as printed electronics, batteries and medical devices, and has established a department for fireproof materials, all integrated with its core label business.

Technological advancements

Technological improvements are pivotal to these transformations. Modern flexographic presses enable multi-substrate production of labels, shrink sleeves, flex pack and folding cartons, incorporating integrated in-line processes such as hot stamping and die-cutting. At Labelexpo Asia 2025, advancements in digital printing were prominently showcased. Xeikon introduced the Ecolyne digital press to the Asian market, offering a leasing model to lower the cost of digital investment for clients. Brotech unveiled the FFX530 flexographic press, featuring AI-driven closed-loop control to minimize manual adjustments during setup and operation.

Digitalization of production processes is also gaining traction. Skyline Printing completed the full digital transformation across its factory, increasing production efficiency by at least 30 percent. Another company, designed as a smart factory from its inception, has leveraged digital systems to address core pain points for brand customers, enhancing production transparency. Currently, nearly 3,000 smart printing factories are under construction in China’s printing industry.

Overseas expansion

Overcapacity in China’s label market, coupled with improved equipment efficiency, has prompted the industry to expand into overseas markets. Over 200 Chinese exhibitors participated in Labelexpo Europe 2025, setting a new record. Cymmetrik Group’s Liao highlighted that international brands are deepening their presence in emerging markets such as Southeast Asia, the Middle East and Latin America, supporting Chinese enterprises in accelerating their global expansion. Zhou Xiang, general manager of Weigang, emphasized that regional trade agreements like RCEP are providing broader opportunities for Chinese companies to internationalize.

Growth of smart labels

The adoption of smart labels is another significant trend. Data from AIoT Star Map Research shows that the application volume of UHF RFID tags in China reached 3.8 billion in 2024 and is expected to grow to 4.6 billion in 2025. Macy Huang Meishi of Maxim Group states that RFID tags are critical for achieving item-level visibility, which is driving the digital transformation of China’s retail industry. The growing popularity of NFC-enabled mobile phones in China has cultivated end-user interaction, further expanding the market for smart labels.

In logistics, RFID labels have delivered notable results. For example, Cainiao Hong Kong eHub integrated RFID technology in June 2025, increasing package processing efficiency by approximately 30 percent. In December 2025, Cainiao launched smart RFID express delivery cartons, offering innovative technology for the logistics industry.