IN-MOLD LABEL MARKET ANALYSIS

In-mold Label Market Size and Trends

The global in-mold label market is estimated to be valued at USD 4.73 Bn in 2024 and is expected to reach USD 7.16 Bn by 2031, growing at a compound annual growth rate (CAGR) of 6.1% from 2024 to 2031.

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The global in-mold label market is expected to witness significant growth during the forecast period. This growth can be attributed to the increasing demand for short run label jobs across industries such as food and beverage, pharmaceuticals, personal care, and automotive. In-mold labeling offers superior product aesthetics, scratch resistance, and excellent durable labeling solution, thus finding increasing preference across various end-use industries. Rising demand for eco-friendly labels along with appeal for cost-effective labeling technology is further expected to propel the demand for in-mold labels. Shift towards sustainable and efficient labeling solutions and expansion of the e-commerce sector particularly in emerging economies are likely to pave opportunities for in-mold label market in upcoming years.

Environmental Friendly Properties of In-mold Labels

One of the major drivers propelling the growth of the global in-mold label market is the environment friendly properties of these labels. In-mold labels provide manufacturers an eco-friendly alternative to traditional pressure sensitive labels without compromising on functionality. As environment sustainability has become a key focus area across industries, companies are under increasing pressure from consumers as well as regulatory bodies to reduce waste and adopt greener production techniques. In-mold labels help address this need as they are lighter in weight and require less raw material to produce compared to pressure sensitive labels. Additionally, since they are not separate pieces added to packaging later but instead molded directly onto the product during manufacturing, there is no left over release liner film that needs to be disposed of. This results in less packaging scrap at the production line. What's more, in-mold labels increase production efficiency by eliminating extra steps involved in applying separate labels to products and packages. Many branded goods and consumer product companies have switched to in-mold labels for their primary, secondary, or tamper evident labeling needs to lower operational costs as well as shrink the environmental footprint of their packaging line.

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Growing Popularity among End-use Industries

Another major factor driving the adoption of the in-mold labeling solution is its growing popularity among various end-use industries for both promotional and functional labeling applications. Industries such as food and beverages, automotive, personal care, and cosmetics amongst others have increased their spending on in-mold labels significantly over the recent past years. This is because these labels provide excellent protection from abrasion, moisture, chemicals, and other production line hazards for products while also allowing aesthetically appealing designs and customized branding and marketing messages to be seamlessly integrated into the package or part.  Several FMCG companies are investing in new in-mold labeling machines as they want durable labels that can pass through high-speed production and distribution with products clearly branded and tagged. Automotive OEMs and component makers also prefer using these labels for vehicle part identification and traceability, especially for exteriors and interiors. Even industries like healthcare and electronics which had traditionally used stick-on labels more are now deploying in-mold ones for product safety labeling, tracking, and authentication purposes owing to their resilience. This diversifying popularity across sectors continues to open new opportunities and drive higher demand. Growing end-use industries are expected to drive the market growth. According to data published by IBEF in 2023, the Indian cosmetics industry is majorly categorized into the skin care, hair care, oral care, fragrances, and color cosmetics segments. The overall market share is expected to grow to US$ 20 billion by 2025 with a Compound Annual Growth Rate (CAGR) of 25%.