Label Summit Latin America survey reveals regional optimism

A major new survey of converters conducted in Latin America reveals the optimism in the label market across the region.

A key finding of the survey reveals a high concentration of label production amongst converters in over 20 countries in Latin America, with some 30 per cent of respondents highlighting labels as their main product offering. This finding shows the strong presence of the label industry in the region. Within label production, self-adhesive labels represent the largest category with 47 per cent of companies producing these. Other high performing categories include pre-cut labels with 22 per cent of respondents manufacturing these followed by sleeve type labels with 11 per cent of respondents involved in this type of production.

A small proportion of the label companies questioned (3 per cent), confirmed they were developing state-of-the-art intelligent labels with Radio Frequency Identification technology (RFID). Although this is currently a small percentage, this result shows that a significant number of companies across the region are already taking on this highly innovative and rapidly growing technology.

The results from the survey mirror global trends in label production. The market is experiencing strong growth, particularly in alternative and intelligent labels. Sophisticated labels are forecast to have a significant impact on the food and drinks industry and the retail sector over the next few years. Expansion is also predicted for leaflet label production, currently a niche market. This development is partly due to the growing consumer pressure on end-users to provide more accurate information on their product labels. Examples of information required include, age of product and composition. This development will influence and shape the future of the medical, chemical, pharmaceutical and cosmetic industries.

The results of the Label Summit survey also highlight flexography as the most popular printing process for Latin American converters with over 31 per cent of respondents using this method.  The second most popular printing process – primarily used for wet-glue labels – is sheet offset printing with 18.5 per cent of responses.

On the other hand, digital printing is also shown in the survey to be an important business area for Latin American converters. Other types of printing methods used across the region include letterpress and rotogravure with 7 per cent of responses respectively.

It is however important to view the survey’s findings from different perspectives. Although flexography is a popular printing method amongst 31 per cent of converters, if we combine other processes, they represent a greater share of the purchasing intention with 68 per cent of responses. These statistics highlight the real potential for growth in the Latin American market for varied types of sheet-fed, wide-web and narrow-web printing processes for the production of wet-glue, self-adhesive, sleeve and other forms of labels.

The survey questioned Latin American converters about the types of machinery or equipment they were looking to purchase. The findings confirm the commitment by converters to continue to invest in equipment over the next one to two years. The highest number of responses came in the Flexographic presses category with 20 per cent of respondents anticipating to buy this type of machinery. The second most popular category was cutting and rewinding systems with 17 per cent of respondents wanting to buy these. Digital workflow administration and pre-printing systems came third with 13 per cent of responses.

Of all the companies questioned about their intention to purchase sheet-fed label presses and equipment, 21 per cent cited their interest in investing in offset technology.  Of this 21 per cent, the highest percentage of responses selected sheet feed offset presses with a 35 x 50 cm format. The survey findings also reveal a clear emphasis and interest amongst sheet label converters to purchase offset presses with a 50 x 70 cm format. These machines tend to be ideal for printing medium volumes with high productivity levels.

Latin American converters show significant levels of interest in digital printing. Twelve per cent of companies questioned in the survey, showed strong intentions to buy digital presses. In general, most companies are interested in digital printing because of the flexibility it offers for both commercial and industrial use.

In summary, the Latin American market is fast becoming a bigger player in the global label market. This expansion is taking place against a backdrop of strong regional growth forecast by the United Nations’ Economic Commission. Investment in the label industry is predicted to continue with technological developments driving the market growth.

The survey clearly demonstrates the strong performance of the Latin American label market with 74 per cent of companies claiming to be investing further in printing and converting equipment. The region is forecast to continue its commitment to flexography with recent technological developments driving this area of label production. Latin America is set to take on the industry’s new technological developments and increase its capacity to compete on a global scale.

Roger Pellow, Labelexpo managing director, commented: ‘The findings of the survey are a true reflection of the buoyancy in the Latin American label market. Estimates show that by 2007, the region’s label market will grow by 12per cent to 16per cent so it is important for converters to be exposed now to the new technologies driving the industry globally and locally.’

The survey results will be revealed in full at Label Summit Latin America on 23-24 May 2006 in Mexico City. This two-day conference and table-top exhibition provides an ideal platform for information sharing and networking for label converters, end users and industry suppliers.

The conference program will bring together key industry speakers who will both inform and educate. Hot topics at the summit include: film, RFID, digital printing, UV Flexo and much more.