Global label demand ‘to reach 51.6 billion sqm by 2015’

World demand for labels is expected to rise by over five percent per year to 51.6 billion square meters in 2015, valued at 110 billion dollars, according to a new study from Cleveland-based industry research firm, The Freedonia Group. ‘World Labels’ presents the following trends: 

Advances will be driven by gains in manufacturing activity, which will increase from a low 2010 base. Pressure sensitive labels will remain the largest product type and continue to take market share from glue-applied products in major packaging applications. Above-average demand growth is also expected in other label segments such as stretch sleeve, heat-shrink and in-mold labels, though gains in these relatively newer label technologies will stem from small bases. 

In 2010, pressure sensitive labels accounted for 52 percent of the global label market – in terms of volume – a share expected to increase even further in the coming years.  Demand for glue-applied labels will see below-average growth but the segment will remain the second largest overall, accounting for more than 30 percent of global label market volume through 2015. Smaller label segments such as stretch sleeve, heat-shrink and in-mold labels will see some of the fastest growth through the forecast period.  

The Asia/Pacific region will see the quickest gains and remain the largest regional market in the world, due to its large manufacturing industries. Central and South America, Eastern Europe, and the Africa/Mideast region will also experience above-average growth.  Overall, the fastest growth will occur in Asia, specifically in India, China and Indonesia.  China alone will account for 31 percent of global label market volume gains between 2010 and 2015. 

In contrast, advances will generally be below average in the more established markets of North America and Western Europe.  The US – which accounted for 18 percent of global sales volume in 2010 – is the largest national label market in the world.  Other large, but generally mature markets include Japan and Germany. Japan will remain one of the largest national markets in the world but it is expected the country will see the slowest growth rate through 2015.  Nonetheless, says the report, there will be good opportunities in developed countries, especially for digitally printed labels that capitalize on trends favoring shorter label runs and mass customization. 

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