Finat has published its latest Radar report, with the association’s managing director, Jules Lejeune, reporting that the industry as a whole continues to enjoy ‘buoyant growth’.
The Finat Radar reports are published every six months and provide industry trends and analysis covering the European narrow web market. This edition is the fifth Finat Radar report published so far.
Speaking at the Finat European Label Forum in June, Lejeune said that the industry as a whole continues to enjoy ‘buoyant growth’ at around five percent – well above European GDP – with label converting companies increasing their sales revenues on average by over eight percent in 2015.
At the same time, run lengths are contracting. In response to a changing profile in end user/brand owner demand, average run lengths have reduced significantly. With multi-versioning, multi-language and multi-location labeling operations, plus a current requirement for ‘fast to market’ product introductions and special editions/personalization, end user companies now often specify just in time label deliveries.
This is true for both conventional analog and digital label printing. Analog print runs have reduced by an average 22 percent, and digital print runs by 12 percent, with the beverage, health and beauty, and consumer durables segments showing the sharpest declines.
‘In the complex mix of traditional, hybrid, and digital print technologies which now characterise our industry,’ said Lejeune. ‘Current research shows that nearly one third of survey participants intend to invest in digital label presses in the next six months – for the first time overtaking printers’ commitment to buying conventional presses. But that is not all. Many Finat member companies are now additionally investing in alternative product decoration technologies, such as shrink and stretch sleeves, in-mold labels and even flexible pouches. This is great evidence of the forward-looking, innovative thinking that characterises our industry that’s creating a new arena of all-round, multi-service suppliers for brand owners.’
Geographically, while Europe’s ‘top 10’ label markets continue to account for 75 percent of total label consumption, markets in East Europe markets, particularly Poland, Turkey and Russia, are visibly increasing their share.
In terms of end-use markets, pharmaceuticals, health and beauty care, and food labeling were the strongest performers in 2015.
Finat president Thomas Hagmaier commented: ‘The outcomes of the current Finat Radar indicate that our industry’s fundamentals are healthy and that the European label industry is well positioned to face current challenges, like the proposed exit of the UK from the European community.’
Watch here a 10-minute management summary by analysts Jennifer Dochstader and David Walsh from LPC on key trends in the European label market.