Ceepackaging

Analysis

Labels to grow in excess of five percent p.a.

Best opportunities are anticipated for the pressure sensitive segment, which
accounts for the majority of label shipments. Pressure sensitives will face increased
competition from other application methods such as stretch sleeve and heat-shrink
labels, which will post more rapid advances. Gains in the stretch and shrink segment
will be driven by increased use in the large beverage packaging industry. Advances in
resin technologies will also support growth. These and other trends are presented in
Labels, a new study from The Freedonia Group, Inc., a Cleveland-based industry
research firm.
Paper will continue to dominate the label industry, but will slowly lose market
share as the use of plastic stock materials expands rapidly. Advances will be
based on the aesthetic and performance advantages of plastic labels; the growing use
of plastic packaging; and the popularity of labeling methods which heavily rely on plastic
substrates. Oriented polypropylene will exhibit the fastest growth among the major label
resins, further supplanting polyvinyl chloride.
Primary packaging will remain the major market for labels through 2011, although
demand for labels in secondary applications will post the fastest gains overall. A
growing interest in the use of labels as a tool to create a strong brand identity will
provide favorable opportunities for labels in the primary packaging industry, as will a
rising interest in labels as a means of serving value-added functions such as enhancing
security and providing expanded product information. Going forward, secondary
labeling will benefit from continued demand for bar coding labels; the utilization of radio
frequency identification (RFID); and electronic article surveillance (EAS).
The vast majority of US label shipments is accounted for by labels printed in
some manner before sale to the final user. Flexography, which will experience
above-average advances through 2011, represents the most commonly used label
printing method. A number of other printing techniques are also employed, including
lithographic, screen, letterpress, gravure and digital. These processes are commonly
combined in the label industry. Digital technology, for instance, will be increasingly
incorporated with conventional techniques. Digitally printed label shipments will
continue to expand at a double-digit pace through 2011, aided by a growing trend
toward the use of mass customization.