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Developing Economies, Sustainability Driving Growth for Labels Market

Smithers Pira says economic, lifestyle changes and the focus on sustainable packaging will drive market growth by 5.4% annually through 2021.

Smithers Pira says economic, lifestyle changes and the focus on sustainable packaging will drive market growth by 5.4% annually through 2021.
Smithers Pira says economic, lifestyle changes and the focus on sustainable packaging will drive market growth by 5.4% annually through 2021.

Future market growth in labels and release liners will come from economic, social, demographic, and lifestyle changes, as well as an increased focus by brand owners on source reduction and sustainable packaging and consumer focus on convenience.

Smithers Pira’s “The Future of Labels and Release Liners to 2020” indicates label market demand “is also being driven by the relatively low cost with which labeling can be replaced or changed; and a continuing need for barcodes and other secondary packaging applications that support food safety and pharmaceutical compliance issues.”

“The outlook for label market growth will be negatively influenced by an expectation of moderate global economic growth over the forecast period,” says Dan Rogers, Head of Publishing at Smithers Pira. “The emerging and developing economies are forecast to grow at twice the rate of advanced countries and offer the best opportunities for label market growth.”

Sustainable packaging and labeling, says the report, is growing in popularity because of the increasing focus by brand owners on carbon footprint and lifecycle impact analysis. Retail chains and brand owners are reacting to growing interest from consumers concerned with depletion of fossil resources and climate change, and are taking initiatives to evaluate the packaging and labels used by their suppliers in terms of source reduction, eco-friendliness, and cost reduction.

Smithers Pira’s report says the growing trend for sustainability in packaging and labeling means linerless labeling systems are gaining in popularity because they eliminate the need for non-recyclable release liners, and the absence of backing material means that reel changes are quicker and easier. Linerless technology also provides full-color, high-end graphics, together with the option to print on the back of the label for promotional, coupon, and instructional applications. Linerless labels also eliminate waste and reduce cost associated with label production.

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