US demand to grow 4.5%
annually through 2013
US label shipments are projected to
advance at a 4.5 percent annual rate to
$19.2 billion in 2013. More than threequarters
of total gains will be attributable
to the pressure sensitive segment, which
will continue to dominate label shipments.
However, more rapid growth will
be achieved by heat-shrink and stretch
sleeve, and in-mold labels as these
application methods provide increasingly
intense competition for pressure sensitives.
Heat-shrink labels are forecast to
outperform all other major label types,
benefitting from their attractive 360
degree aesthetics, broad promotional area
and capacity to provide tamper evidence,
as well as their increasing cost effectiveness
and ability to form-fit contoured
containers.
Plastic stock material to outpace
larger paper segment
Despite losing market share to plastic,
paper will continue to be the most widely
used stock material in the label industry.
Paper will advance strongly in absolute
terms, but will be significantly outpaced
by plastic -- which will account for more
than one-quarter of label shipments by
2013. Increased use of plastic stock
materials will be supported by the shift
toward plastic packaging, as well as the
material’s aesthetic and performance
advantages over paper. The popularity of
pressure sensitive, heat-shrink and stretch
sleeve, in-mold and thermal transfer
labels will also bode well for plastic, as
this material is heavily utilized in each of
these labeling methods. Plastic label
shipments will be further boosted by the
continued development of new products,
including the increasingly widespread
commercialization of environmentally
friendly substrates such as polylactic
acid. Among plastic label resins, oriented
polypropylene will continue to exhibit
favorable growth, while polyvinyl
chloride will lose market share to other
plastic substrates with lower perceived
environmental and health risks.
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Additional Information
Digitally printed labels to
expand at most rapid rate
The vast majority of US label shipments
are printed in some manner before sale to
the final user. Flexography is the most
common method for printing labels,
owing to its widespread use in the large
pressure sensitive segment. Additional
printing technologies include lithography,
screen, letterpress, gravure and digital.
Increasingly, different printing processes
are being combined in order to achieve
superior label graphics. This will support
gains in screen and digital technologies in
particular. Shipments of digitally printed
labels are forecast to expand at the most
rapid rate, nearly doubling by 2013.
Growth will be fueled by trends favoring
shorter label runs and mass customization
-- a popular marketing tool which
capitalizes on the advantages offered by
digital printing technologies.
Mailing/shipping, secondary
labels to grow the fastest
Primary packaging will remain the single
largest application for labels in the US
market. However, faster growth will be
posted by mailing and shipping, and
secondary labels. Internet shopping will
continue to boost demand for mailing and
shipping labels, as many items that had
previously been shipped in volume to
retailers are now mailed individually to
Internet customers. Gains in secondary
labels will be based on continued demand
for barcoding labels, and increased
utilization of radio frequency identification
and electronic article surveillance
anti-shoplifting systems.
Study coverage
Labels, a new Freedonia industry study,
is priced at $4800. It presents historical
demand data (1998, 2003 and 2008) plus
forecasts for 2013 and 2018 by raw material,
application method, stock material,
printing technology and function. The
study also considers market environment
factors, evaluates company market share
and profiles 41 competitors in the US
industry.
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