Forecast: From 2019 to 2027, the global label market will have a higher growth trajectory
··According to Transparency Market Research (TMR) estimates, companies in the global label market will increase their production of bottomless paper labels, thereby enhancing the company’s revenue potential in the label market.
··Radio Frequency Identification (RFID, Radio Frequency Identification) is gradually becoming the only magic weapon in the label industry.
··Polystyrene (PS, Polystyrene) tags will provide stakeholders in the food industry with solutions for tag intelligence-built-in RFID Inlay.
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At present, the global label market has gained more room for development, which may push the label market to a higher growth trajectory from 2019 to 2027. Technology plays an important role in promoting the growth rate of the label market and determining the market penetration rate of participants in this field. As pressure-sensitive labels have the advantages of low cost, better flexibility, and higher effectiveness, the market demand for pressure-sensitive labels may increase. These characteristics are the result of participants' aggressive research and application of RFID technology. This RFID technology may play a key role in the development of the global label market in the next few years.
Radio frequency identification is an advanced technology. Due to its ability to identify, track, and monitor items, RFID technology has become one of the key differences in the industry. As part of the smart label solution, RFID technology is mounted on the label, which can then verify identity or identify, track and monitor items. At the same time, bottomless paper labels are laying the foundation for significant growth in the retail and logistics industries. In addition, under the influence of the material economy, companies that focus on income diversification are investing heavily in these labels. During the forecast period, these factors such as technology and capital are expected to promote the growth of the label market.
According to a research report recently released by Transparent Market Research (TMR), the label market has made significant progress to some extent, including global industry trends, growth, share, scale, analysis and forecasts from 2019 to 2027. At the same time, due to technological breakthroughs in the retail and e-commerce industries, the global label market is expected to grow at a compound annual growth rate of 5% during the forecast period from 2019 to 2027.
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The main findings of the TMR market report
1. [Economic pricing and flexibility may increase the popularity of pressure-sensitive labels]
Pressure sensitive label (PSL, Pressure sensitive label) is becoming more and more popular due to its economical price and versatility. According to TMR analysis, due to high printing quality, good moisture resistance, and low maintenance requirements, pressure-sensitive labels are expected to occupy 75% of the market by the end of 2027. The easy-to-use advantages of pressure-sensitive labels in the food industry include gentle use pressure, without any solvents, water, heat, and water. Therefore, in the global label market, sales of pressure-sensitive labels are expected to accelerate growth. In addition, manufacturers are expected to increase the utility of using recycled materials to manufacture pressure-sensitive labels, thereby enhancing the market reputation of pressure-sensitive labels.
RFID (Radio Frequency Identification) is quickly becoming a turning point in the label industry. Polystyrene labels provide smart label solutions for stakeholders in the food industry, including RFID Inlay. Therefore, the food market is constantly changing, which provides label manufacturers with as many opportunities as possible. On the other hand, RFID technology is used for product authentication, tracking and anti-counterfeiting.
2. [High demand in logistics and retail industries has expanded the scope of the label market]
By increasing the manufacturing capacity of bottomless paper strip labels, companies in the label industry are expanding their revenue potential. For example, Mitsubishi Hitec Paper Europe, a leading manufacturer of high-end coated specialty papers, has won international acclaim for its environmentally friendly and adaptable bottomless paper labels. In the logistics and retail sectors, bottomless paper labels are becoming more and more popular. These innovative labels can be printed on mobile devices or on industrial printers. The development of these technologies provides more possibilities for promoting the expansion of the label market.
Participants in the retail and logistics industries benefit from the benefits of bottomless paper labels due to the savings in manufacturing materials. A large number of labels per roll helps reduce label transportation and storage costs. As a result, stakeholders in the retail and logistics sectors will be able to achieve their goal of high productivity, because the greater the number of labels per roll, the lower the frequency of label replacement per roll.
3. [High consumption in the Asia-Pacific region accompanied by extraordinary growth provides better opportunities for the label market]
Due to the rapid expansion of the food and beverage industry in the Asia-Pacific region, the label market will grow exponentially during the forecast period. In addition, countries such as China, India and Japan are in a leading position in the development of supermarkets, hypermarkets and the retail industry. The market size is quite large, which will promote the huge demand for labels in these regions. Since then, Europe is expected to account for nearly a quarter of the global label market.
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Growth momentum of the global label market
Manufacturers in the global label market focus on high-performance cast-coated label paper. Wet glue labels increasingly use this unique paper. Stakeholders are increasingly concerned about high-quality processing and finishing, first-class printability and high gloss.
With the introduction of digital inkjet printing, the global label market is changing. Therefore, digital printing is expected to generate most of the revenue in printing technology and is expected to grow rapidly in the next few years. Because digital inkjet printing does not require cylinders or printing plates, it has become a budget option for small batch printing.
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The main trend of the global label market: innovation and acquisition
Labels ultimately bring many benefits to users. As customers' demands for design-level innovation and data security continue to increase, manufacturers are more inclined to develop label products.
Examples include RFID, QR codes, barcodes and several other technologies. For example: Coveris Holdings S.A. recently launched a new COMPAC multi-layer format label, which enhances the ability of the label to provide more information across two layers. The new label also has three printable surfaces, which can print a lot of additional information related to promotions, cooking instructions and recipes on the surface of the label.
In addition, the major players in the label market also focus on mergers, acquisitions and cooperation to spread their development footprints all over the world.
For example: In 2020, Avery Dennison acquired Smartac's transponder business for 225 million euros. This acquisition reflects the continuation of the company's investment strategy, including organic investment and M&A investment. In 2020, CCL Industries Inc. acquired Reinfelden Americas LLC, Ibertex Etiquetaje Industrial S.L.U. and Eti Textil Maroc S.a.r.L.AU ("Eti Textil"), Avery and Flexpol Sp.Z.o.o.
