Print label market is estimated to be valued at USD 51.13 billion in 2024, growing at a CAGR of 4.3% over the forecast period (2024-2031). Furthermore, the growing popularity of digital printing owing to its cost-effectiveness and flexibility is fueling the market growth.
The growth of the global print label market is driven by the increasing demand for e-commerce sales and growing preference for multicolored labels among end-use industries. This has increased the demand for labels from the logistics and transportation sectors for the proper packaging and identification of products. Additionally, manufacturers are increasingly adopting multicolored labels to grab consumer attention on shelves. This has propelled the demand for digital printing technology among label manufacturers. Digital printing offers various advantages over traditional printing including on-demand printing, mass customization, and variable data.
Growth in E-commerce and Online Shopping is driving the Demand for Print Labels
The past decade has seen explosive growth in e-commerce and online shopping. As more consumers prefer to shop from the comfort of their home rather than visiting physical stores, the demand for product packaging and labelling has increased tremendously. Print labels play a key role in product identification, branding, and providing important information to customers. E-commerce retailers recognize the importance of attractive, high-quality print labels in giving customers a positive shopping experience and building trust in online purchases. The exponential rise of e-commerce sites like Amazon has created huge opportunities for print label manufacturers.
Increasing Regulations around Food Safety and Product Information are boosting the Need for Compliant Print Labels
Government agencies across the world have introduced stricter regulations regarding food safety, ingredients and nutrition labelling. Products now need labels that clearly mention allergen information, expiry dates, storage instructions, recycling codes, etc. to meet compliance standards. Failing to provide the right labelling can lead to hefty fines and legal trouble for manufacturers. This has encouraged companies to invest more in print labels that help meet regulatory requirements. The nutritional labelling regulations rolled out by FDA and EU have majorly boosted label printing. Furthermore, anti-counterfeiting measures have made traceable product identification through unique printed labels mandatory. The tightening regulatory environment is acting as a key driver for the global print label industry.
Slow Shift to Digital Labelling Poses a Threat
While print labels continue dominating the market currently, there is a slow transition taking place towards digital labels. Technologies like e-paper, Near Field Communication (NFC), and QR codes enable product information to be updated digitally without reprinting labels. This offers benefits like lower costs, flexibility, and interactivity. Several FMCG brands have started experimenting with digital labels attached to their products. If this shift gathers pace over time, it could undermine growth opportunities for conventional print label printing. Furthermore, packaging trends like flexible packaging are reducing the label real estate available for branding. These changing dynamics may pose challenges to the traditional print label sector.
Environmental Concerns are restraining the Growth of Print Labels
With growing environmental awareness, brands are under pressure to adopt more eco-friendly packaging solutions. Print labels involve using paper, plastic, and non-renewable resources in their manufacturing. This makes them less sustainable than alternatives. Stricter regulations targeting single-use plastic and restrictions on certain materials may discourage brands from conventional print labels. Another restraint is the costs involved in label printing, storage, and disposal. Sustainability norms will nudge companies towards digital, reusable, and recyclable labelling options. This poses a key challenge for the growth of the print label market. Declining paper and plastic usage policies could also limit the demand and profitability of this industry in the coming decade.
Increased Demand for Specialty Labels Present New Opportunities
While general print labels may see slower growth, there are bright prospects in specific segments like specialty labels. Examples are shrink sleeves, stretch sleeves, pharmaceutical labels, weatherproof labels, RFID labels, etc. that offer enhanced functionality compared to basic paper labels. As product differentiation becomes important, the need for specialty labels matching varied applications will surge. End-use sectors like food, pharmaceuticals, chemicals, and electronics commonly use specialty labels due to compliance or product protection needs. Their complexity attracts higher prices. So specialty labels present a profitable revenue opportunity for manufacturers. Moreover, the market opportunity from emerging economies entering the consumer goods sector also augurs well for the growth of niche print label segments.
*Link: https://www.coherentmarketinsights.com/market-insight/print-label-market-5127
Key Developments
- In April 2024, Brother International introduced the latest in labeling technology and printing solutions with its IoT-enabled connectable label printers. These innovative label printers allow for seamless connectivity and integration with Internet of Things (IoT) devices, enabling efficient and automated labeling processes.
- In 2023, Konica Minolta launched a new label press
- In March 2021, Fort Dearborn announced that it has acquired Hammer Packaging Corporation. The combined organization can take advantage of Hammer’s technology to enhance Fort Dearborn’s position in the decorative label and packaging marketplace by further expanding the company’s geographic footprint, capacity, and capabilities.
- In March 2021, The Company announced that it became a full association member of the Glass Packaging Institute (GPI). GPI is the trade association representing the North American glass container industry.
Key Players
Fort Dearborn, Multi Color Corporation, Mondi Group, Ahlstrom-munksjö Oyj, Autajon Group, Avery Dennison Corporation, CCL Industries Inc., Multi Packaging Solutions (Westrock Company), Clondalkin Group Holdings BV, Cenveo Corporation, Brady Corporation, Fuji Seal International Inc., Constantia Flexibles Group GmbH, R.R. Donnelley & Sons Company, 3M Company, Taylor Corporation, Huhtamaki OYJ, Taghleef Industries Inc., Ravenwood Packaging, and Coveris
