The global pressure sensitive labels market size will reach USD 37 billion in terms of revenue and 31 billion sq.mt. in terms of volume by 2025. The pressure sensitive labels market is expected to observe significant growth on account of convenience and effective functionalities they offer. The PSL labels market is in the strong growth stage as the demand from the food and beverage industry is significantly high. The performance of this industry has been encouraging across the world. The increase in disposable incomes and the growth in the population have been driving the food and beverage industry. The pressure sensitive labels application includes the F&B sector, which occupies more than 40%, and is expected to hold the dominant position during the forecast period. The rise in the consumption of packaged food has led to high demand for packaging products that are easy to use and have an easy printing surface to enable product differentiation on shelves. Alcoholic beverages are mainly packed in glass bottles and require primary premium pressure sensitive labels and have been a steady volume generator for the market. The rise in per capita income and the increase in the purchasing power are aiding the growth of beverages, which, subsequently, is increasing the demand.
- Intelligent packaging solutions such as RFID have been a major game-changer in the industry, and the adoption of these solutions is high in the food industry.
- Stringent safety regulations in the healthcare industry will drive the demand for strong labeling features, including NFC, RFID authentications, QR scanning.
- Pressure sensitive labels manufacturers are looking at reducing prices to retain customers as they are looking at diversifying their labels types.
- Flexographic printing is the most widely adopted in North America and South America. Rotogravure has a significant share in the APAC market due to the lack of strong regulation for printing techniques.
- The popularity of print-on-demand is growing significantly, hence the contract duration between vendors and customers is expected to be affected.
PRESSURE SENSITIVE LABELS MARKET SEGMENTATION
The market research report includes detailed segmentation by
INSIGHTS BY LABELSTOCK
Paper-based substrates are cost-effective and offer a range of applications in several sectors. The increasing application of paper-based packaging in logistics, food, and retail industries is a major driver for the growth of the segment. Papers provide a high-quality print and offer the flexibility of adding information at a later stage. Gloss, semi-gloss, and metallic papers are finding increasing application in the gift and luxury packaging industry, hence increasing business opportunities.
As plastic or film-based label prices are higher than paper-based ones, the demand is limited. Converters engage with large plastic suppliers to leverage the bargaining power as plastic prices are volatile. However, the growing pressure on companies to reduce plastic usage and the challenges related to recycling and disposal is decreasing the market share of the segment. Geographically, Europe and APAC lead the plastic-based labelstock market as the end-users have a high purchasing power. However, Europe is likely to exhibit strong growth during the forecast period due to the demand for luxury goods packaging.
INSIGHTS BY LABELS
Variable Information Print (VIP) labels, which are also known as thermal labels, are one of the fastest-growing segments in the market. They are made from either paper or film-based facestock materials, hence widely used in diverse end-use sectors. Their applications in logistics, weighing appliances, warehousing, medical and pharmaceutical, point of purchase, and transportation is growing.
Prime labels are the most widely used in the pressure sensitive labels market. They use both paper and film labelstock. However, paper-based labelstock witnesses a high-volume demand from end-use sectors as they are cost-effective. Film-based labelstock, on the other hand, is used for luxury product packaging as they offer a premium look. Anti-counterfeiting and security labels are the latest addition to the market. The increased investment to develop high quality, advanced print security and anti-counterfeiting technology is influencing the segment growth.
INSIGHTS BY PRODUCTS
The linered segment holds over 90% volume share in the PSL labels market. Conventional pressure sensitive labels have release liners, which permit a precise and high-speed label application. However, the increased focus on recyclability and disposal of release liners is a challenge for the growth of the segment. Linerless pressure sensitive labels, on the other hand, have gained prominence in recent years on account of sustainability and cost-efficiency. However, the linerless segment share is low as they are not as effective as linered ones.
INSIGHTS BY PRINTING
The importance of PSLs has been accepted across the packaging industry, as they play an important role in sales and packaging. A relatively low cost of flexographic plates and the ease of plate changeovers make flexography printing a preferred choice for high-quality graphic and low to medium volume label production. Hence, the increasing preference for flexographic label printing among vendors for longer production runs is influencing the segment growth.
Gravure printing technology is less intricate than flexographic printing and offsets printing since the ink is positioned on the surface. This method is useful as the ink consistency, and print quality is generally high. Although the printing cost is high, gravure printing enables manufacturers to print many intricate labels.
INSIGHTS BY END-USERS
The increase in the number of quick-service restaurants and retail outlets is fueling food consumption, thereby increasing the use of package labels. In terms of geography, the food industry has witnessed tremendous growth in China, India, and other Southeast Asian countries, thereby aiding the growth of packaging in APAC.
Packaging constitutes an important part of the medical devices industry as regulatory agencies strongly monitor it. Although the linered segment has a higher share in the market, the need for cost reduction is increasing the demand for linerless ones. VIP and primary product segment holds a share of over 60%, with North America leading the market.
The cosmetics industry is expected to have a positive influence on the pressure sensitive labeling market. South America, APAC, and MEA are likely to witness a significant growth rate during the forecast period due to their growing population, increasing per capita income, and expanding retail stores.
INSIGHTS BY ADHESIVE
The demand for general pressure sensitive labels with emulsion-based one is the highest. The presence of several properties such as moisture resistance, anti-microbial features, the power to withstand extreme temperatures is likely to influence the segment growth. UV-based adhesives have several advantages. However, legacy adhesives such as solvents and emulsions offer far superior performance at a low cost; hence they are expected to hold major shares in the market. Although solution-based PSLs offer excellent chemical and heat resistance, they have a high production cost.
INSIGHTS BY GEOGRAPHY
China dominates the Asia Pacific region as the country has a growing middle-class population with high disposable income. The lack of stringent norms concerning recycling and disposing of is aiding the growth of plastic-based labels. However, Japan, South Korea, Australia, and Singapore are exceptions as the regulatory environment is strong in these countries. The growth in retail and FMCG industries in the region has contributed immensely in recent years.
The highly developed retail market in Europe is increasing the demand for better print technology to differentiate products. Supermarkets in Europe, especially in Western Europe, are expanding at a faster pace. Globally, Germany has the highest number of supermarkets, followed by the US and the UK. Sustainability concerns are expected to impact the linered label segment in the latter half of the forecast period. However, the recycling and disposal challenges of plastic labelstock is a major hinderance for the growth of the industry.
North America is a major market with several key vendors and suppliers having their bases in the region. North America hosts highly developed industries such as retail and CPG, which require robust pressure sensitive labels. The automotive, healthcare, electronics & semiconductors sectors are the key end-users, which are exhibiting high growth potential. The share of labels in these industries is expected to grow further during the forecast period.
KEY VENDOR ANALYSIS
The pressure sensitive labels market is highly fragmented. The trend of advanced packaging features is growing. The need for brands to stand out in crowded retail shelves and ensure the safety and security of their products has opened up the functional and security segments, where the competition is expected to heat up. However, anti-counterfeiting technology is still at an embryonic stage in many countries with demand for anti-counterfeit labels few and far. The industry is characterized by a large number of organized and unorganized players. The market consists of both pure-play printers and large packaging companies having labeling verticals. The APAC market consists of many standalone printer converters, while the vendors with packaging and labeling verticals have a significant presence in Europe and North America.
The market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue ($billion) and volume from 2019 to 2025 for the following segments:
Market Segmentation by Labelstocks
- Functional & Security
- Food & Beverages
- Personal Care
- Hot Melt
- UV Cured
- South Korea
- North America
- Middle East & Africa
- South Africa
- Saudi Arabia
- Latin America