China, India lead world in label demand (Converting)

CHINA, INDIA LEAD WORLD
IN LABEL DEMAND
Global market value up 8.3 percent a year to $100 billion in 2011.

Edited by Chief Editor Mark Spaulding

Global warming, in this case, refers to the hot market for labels worldwide—whether measured as volume or value.
Based on data from the new study, World Labels, by The Freedonia Group, Inc., the global label market will advance at 5.5 percent a year to 42 billion sq meters in 2011. In dollar terms, demand will grow 8.3 percent annually, topping $100 billion.
Gains will be fueled by expansion of the world’s packaged consumer-goods markets—specialty beverages, personal-care products and medicinals offer especially good prospects. Also important will be the diffusion of advanced logistics and data-processing systems throughout the developing world, and the development and penetration of technologically sophisticated, value-added labels that serve a range of functions in addition to product identification. Some examples include RFID smart labels; authentication, tamper-evident and other security labels; and expanded-content booklet labels.

“Other” regions on top
The best gains are expected in the world’s emerging economies, which already account for over 40 percent of global label demand by area, Freedonia says. Label markets in developing countries will enjoy robust growth, fueled by generally healthy economies, rising populations and expanding consumer sectors increasingly able to satisfy desires for foods, beverages, HBA and other highly packaged consumer products (see chart). China, which recently surpassed Japan as the world’s second largest label market after the US, will continue to log double-digit demand growth, and is likely to leapfrog the US itself within a decade. India and East European markets such as Poland and Russia also offer especially favorable prospects.
Traditional packaging uses are more mature in the developed economies of North America, Western Europe and (especially) Japan, where labels also face stiff competition from direct printing. Still, labels will find opportunities in new applications in inventory control, product security and other areas, Freedonia predicts.
Pressure-sensitive labels, which bested glue-applied as the leading label type in the late 1990s, will account for 55 percent of the global market by 2011. One example is the Petit Manava shampoo-bottle label converted by Spain’s Germark S.A. Printed in one pass at 82 fpm, it combines rotary silkscreen, rotary letterpress and flexographic technologies to yield a thermochromic label that changes color when exposed to warm water.
P-s label gains have slowed in recent years, however, as growth markets such as wine and electronic security have matured and plastic sleeve, in-mold and wraparound labels have cut into pressure-sensitive’s strongholds such as beverage packaging. In terms of materials, plastic labels will continue to penetrate traditional paper applications, capturing 38 percent of the world market by 2011, Freedonia forecasts.