LABELS to 2013 (US industry forecasts for 2013 & 2018)

Abstract

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.

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.

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.

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, 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.

• Establishing consistent economic and market forecasts
• Using input/output ratios, flow charts and other economic methods to quantify data
• Employing in-house analysts who meet stringent quality standards
• Interviewing key industry participants, experts and end users
• Researching a proprietary database that includes trade publications, government reports and corporate literature