U.S. label shipments are
forecast to increase 5.1% annually to $18.3 billion in 2011. The 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 that
rely heavily 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 labels used 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).
Most of U.S. label shipments are comprised of 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 double-digit pace through 2011,
aided by a growing trend toward the use of mass customization.
For more information, contact Corinne Gangloff, The Freedonia Group
Inc., 767 Beta Drive, Cleveland, OH 44143-2326; phone (440) 684-9600; fax (440)
646-0484; e-mail pr@freedoniagroup.com;
or visit www.freedoniagroup.com.
