World Label Shipments to Grow thru 2005, Reports Freedonia

CLEVELAND, OH, USA—World label shipments are forecast to advance at an annual pace of nearly 7% through the 2005, says The Freedonia Group, Inc. The group says this growth will take shipments to a level of 32 billion sq m, valued at $61.5 billion (US).

In its new study World Labels, the group says these gains will be fueld by expansion of the world's packaged consumer goods markets; specialty beverages, personal care products, and medicinals offer especially good prospects. "Also important will be the diffusion of advanced logistics and data-processing systems throughout the developing world, and the development and penetration of technologically sophisticated, value-added labels that serve a range of functions in addition to product identification," the study says.
The Freedonia Group says the study offers information on various label products throughout the world:

The best gains are expected in the world's emerging economies, which already account for almost one-third of global label production. China will experience explosive growth, surpassing Japan, as the second leading label-producing nation after the US; Eastern Europe also will log double digit annual gains as greater self-sufficiency in label production is achieved. Label markets in East Asia and Latin America will enjoy robust growth as well, fueled by rapid economic expansion, rising populations, and expanding consumer sectors increasingly able to satisfy their desire for foods, beverages, personal care items, and other packaged consumer products.

Pressure sensitive (i.e., self-adhesive) labels, which surpassed wet glues as the leading label type in the late 1990s, will account for 54% of the global market by 2005. Newer label types, like sleeve, in-mold, and heat-seal filmic wraparounds, also will capture a larger share of the market, albeit from a slim 2000 base, logging double-digit annual gains in most countries.

Plastic labels will cut more deeply into traditional paper applications, capturing 27 percent of the world market by 2005. Technological, financial, aesthetic, performance, and environmental considerations will all favor the use of plastic over paper substrates.

Flexography, which is already the dominant label printing technology in the developed world, will make rapid gains in the developing markets at the expense of letterpress and (to a lesser extent) other printing technologies (offset lithography, gravure, screen). Moreover, the nascent market for digital label presses—200 or so were in place worldwide in 2000—will expand rapidly in the new decade. Variable information printing of various sorts also will become increasingly more common.



Based in Cleveland, OH, the industrial market research firm is offering World Labels for $4800 (US). For more information, contact Corinne Gangloff at The Freedonia Group @ 440/684-9600; email @ pr@freedoniagroup.com; or visit freedoniagroup.com.



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