Label Market Report | Global Insights [2033]

LABEL MARKET OVERVIEW

The global Label Market size was valued approximately USD 52.38 Billion in 2024 and will touch USD 80.08 Billion by 2033, growing at a compound annual growth rate (CAGR) of 4.83% from 2024 to 2033.

Product features, origin, ingredients, safety instructions, and branding are just a few of the crucial details that are communicated by labels, which are printed or electronic identifiers that are attached to goods, packaging, or objects. They are extensively utilized in sectors like food and beverage, pharmaceuticals, electronics, and retail and can be made of a variety of materials, such as paper, plastic, and fabric. Labels accomplish a number of goals, including as identification, marketing, and legal compliance. They are crucial to packaging because they allow producers trace products along the supply chain and give consumers vital information.

COVID-19 IMPACT

“Market development slowed down significantly”

The COVID-19 pandemic's worldwide spread has caused the label market's growth to significantly stall. However, the healthcare sector is expanding in the post-pandemic era, which promotes the usage of labels to aid with pharmaceutical waste disposal and inventory management. The use of labels has also expanded as a result of travel restrictions leading to an increase in e-commerce sales. The need for packing materials like corrugated boxes and films has grown along with the demand for food, fast-moving consumer goods, and medical supplies. Since these products require appropriate labels, this bodes well for the use of labels.

LATEST TREND

”RFID technology is being used skillfully”

Because RFID technology eliminates human mistake and lowers hiring expenses, it is becoming more and more popular among tag producers. It can read a lot of data and operates without human assistance. Moreover, the acceptance of this technology is increasing due to its identification capabilities, which is crucial in the retail industry. RFID tags are less sensitive to adverse conditions, which will further boost their use in the tag market.

LABEL MARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into Pressure-sensitive labels, Glue-applied labels and Heat Transfer Labels.

Pressure-Sensitive Labels: Because of their variety and ease of use, these labels dominate the market. They are perfect for a variety of products and applications since they stick to different surfaces without the requirement of heat or water.
Glue-Applied Labels: The food and beverage industry makes extensive use of glue-applied labels, which have historically been employed for product branding and information. They provide a traditional, dependable, affordable, and simple labeling approach.
Heat Transfer Labels: In the beverage and textile industries, this kind of label is becoming more and more common. They are appropriate for uses when a strong and long-lasting label is needed because they are applied to an object's surface using heat.

By Application

Based on application, the global market can be categorized into Consumer Durables, Transportation and Logistics and Automotive.

Consumer Durables: This segment includes labels used in the manufacturing and branding of consumer goods that are not quickly exhausted or consumed.
Transportation and Logistics: Labels are essential in this industry, especially for tracking and delivery. E-commerce's expansion and the requirement for effective logistics have increased demand for labels that convey accurate product information and can survive harsh transportation circumstances.
Automotive: The automotive industry uses labels for a variety of purposes, including part identification, branding, and compliance with safety regulations.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

Driving Factors

”Growth of the Packaging Industry and Consumer Trends”

Convenience packaging, emerging markets, sustainability concerns, and the growth of e-commerce are all driving the packaging industry's expansion, which in turn is driving the label market. Labels play a crucial role in packaging since they are necessary for information, branding, and product identification. Additionally, shifting consumer preferences towards convenience packaging, personalized goods, and eco-friendly packaging are driving innovation in label materials, printing methods, and design aesthetics.

Restraining Factor

”High cost of printing equipment”

Label printing is a costly task that consumes a significant portion of the industry’s reserves. Hence, its application is mainly limited to high-end products and high-income manufacturing sectors, thus limiting market penetration. Due to the high cost, small and medium-sized enterprises cannot afford the cost of smart label printing solutions and tend to rely on traditional standardized labels. This factor is becoming a significant obstacle to the expected growth direction of the label market over the next decade. Moreover, the lack of attention paid to smart label solutions in certain regions due to limited internet access is acting as a barrier to the growth of the smart label market.

Opportunity

”Sustainable Labels and E-Commerce Growth”

Opportunities are created for market participants by the rising consumer demand for eco-friendly and sustainable labels. The growing e-commerce sector makes it feasible to promote environmentally friendly products and inform customers about sustainable labels. The expanding pharmaceutical and healthcare sectors necessitate tamper-evident and secure labels, and the usage of smart labels with RFID technology creates new labeling application possibilities.

Challenge

”Regulatory Compliance and Counterfeit Labels”

The labels market faces challenges in complying with the changing regulatory demands for precise product and sustainability information, which forces producers to alter labeling procedures periodically. The complexity of the global supply chain makes flexible labeling solutions necessary. Counterfeiting remains an ongoing issue, requiring strong security precautions. Physical and digital labels must work together seamlessly to avoid compatibility problems brought on by digital transformation, which is necessary for a successful omnichannel experience.

LABEL MARKET REGIONAL INSIGHTS

North America

The North American label market is differentiated by technological advancements and maturity, with significant demand from a variety of industries such as consumer products, pharmaceuticals, and food and beverage. The market is being driven by severe legal limitations as well as a significant focus on innovation and sustainability. U.S. businesses are progressively implementing smart and interactive labels, incorporating elements like as RFID and QR codes to improve customer interaction. As companies want to enhance logistics and tracking capabilities, the continuous expansion of e-commerce increases the need for effective labeling solutions.

Europe

Both opportunities and problems are confronting the European label industry. The region is renowned for its strict labeling laws and strong emphasis on sustainability, both of which fuel demand for environmentally friendly labeling options. However, there are possible threats to market growth from economic uncertainty, especially those pertaining to the Eurozone and Brexit. To fulfill the demand for personalization and shorter production runs, the European market is seeing notable trends despite these obstacles, such as the growing use of digital printing technologies and hybrid flexo/inkjet solutions.

Asia

The Asia Pacific label market is experiencing rapid growth, driven by industrialization, urbanization, and a burgeoning consumer goods sector. This rise is being driven by nations like China and India, with China emerging as a major player thanks to its extensive manufacturing capacity and growing e-commerce industry. Particularly in the FMCG, pharmaceutical, and food and beverage industries, there is an increasing need for creative and varied labeling solutions. Cost-effective production and a focus on technology innovations, like smart labels and automation in industrial processes, also benefit the area.

KEY INDUSTRY PLAYERS

”Key Players Focus on Partnerships to Gain a Competitive Advantage”

To keep ahead of the competition, leading industry players are working together by forming partnerships with other businesses. To increase the variety of products they offer, many businesses are also investing in the introduction of new products. One of the main tactics employed by companies to increase the variety of products they offer is mergers and acquisitions.

List of Top Label Companies

CCL Industries Inc.
Avery Dennison Corporation
Fuji Seal International, Inc.
Huhtamäki Oyj
Amcor plc
Coveris Holding S.A.

KEY INDUSTRY DEVELOPMENTS

March 2021: Dearborn Company announced the acquisition of Hammer Packaging Corporation. The United business leverages Hammer’s cutting-edge technology to strengthen Fort Dearborn’s leadership position in the decorative label and package market by extending the company’s geographical reach, capacity, and capabilities.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

A number of factors, including rising demand from the consumer goods, pharmaceutical, and food and beverage sectors, are propelling the label market's present robust expansion. In addition to being essential for conveying product information, labels are also vital for branding and marketing tactics. The label market is anticipated to keep growing in the future, particularly in Asia-Pacific emerging countries where the need for packaged goods is being driven by fast urbanization and industrialization.