Self-Adhesive Labels Market Size, Share & COVID-19 Impact Analysis, By Type (Linerless, Release Liner), By Label Type (Permanent, Removable), By Application (Food & Beverages, Pharmaceutical, Household & Personal Care, Consumer Goods, Others), and Regional Forecast, 2021-2028

The global self-adhesive labels market size was USD 40.8 billion in 2020 and is projected to grow from USD 42.9 billion in 2021 to USD 64.9 billion in 2028 at a CAGR of 6.1% during the 2021-2028 period. The impact of COVID-19 has been unprecedented and staggering, with self-adhesive labels witnessing a negative demand shock across all regions amid the pandemic. Based on our analysis, the global market exhibited a decline of 6.4% in 2020 as compared to the average year-on-year growth during 2017-2019. The sudden rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.

Self-Adhesive is commonly referred to as ‘pressure sensitive labels’ as it requires pressure applied during the application to adhere to a surface. They are widely used in various applications owing to their adhesion, UV resistance, solvent resistance, shear resistance, minimum temperature properties. The labels improve the aesthetic properties of food & beverages and other packaging products. Increasing consumer awareness regarding the product’s ingredients information and growing demand for consumer goods are key factors driving the market. They are an easy, convenient, and time-saving option for labeling. Rapid expansion in the food & beverages and pharmaceutical industries will likely create opportunities for the global labels market.

Prominent Companies Are Facing Issues Because of Disrupted Supply Chain Amid COVID-19 Outbreak

COVID-19 pandemic has severely affected the global market, including manufacturing and supplying certain products. The imposition of stringent policies by governments to control the spread of infection is expected to disrupt the supply chain. Most manufacturing companies face issues keeping the supply and logistical chains moving during the pandemic.

Labeling and labels technology are crucial parts of the medical and food supply chain. They provide product information to consumers and supermarkets after the product purchase. Also, they offer doctors and pharmaceutical companies the opportunity to deliver customized information for an individual patient and facilitate goods tracing and tracking in the value chain. Labels are one of the sectors playing a crucial role in ensuring the safe supply of pharmaceutical and food products worldwide.

However, a rise in demand for the labels is attributable to the significant increase in demand for pharmaceutical and medical products. For instance, increased testing for COVID-19 has increased the demand for apparatus and adhesive labels to identify the samples for test. Additionally, there has been a significant rise in the e-commerce industry due to the lockdown, which, in turn, has increased the product demand for packaging and labeling. This factor is expected to positively impact the self-adhesive labels market growth.

SELF-ADHESIVE LABELS MARKET TRENDS

Rising Importance of Biodegradable Products to Favor Growth

Self-adhesive labels are generally made up of plastic or paper. Paper is bio-degradable, while plastic is non-degradable. Though they can be recycled, plastic labels are smaller in size, which is categorized as micro-plastic and is challenging to gather and recycle. The increasing awareness among consumers regarding the adverse effects of plastic on the environment and the importance of using bio-degradable alternatives leads towards innovations in the development and employment of such materials.

For instance, in December 2018, VPF, a manufacturer of self-adhesive materials, added a new eco-friendly product line of adhesive-coated label stock to its product portfolio. The new eco-friendly labels are made of grass paper with two adhesive coatings that are used in the cosmetics, food, and beverages industries.

In July 2019, Ritrama, a self-adhesive manufacturer, launched environmentally friendly adhesive materials to adhere to grass paper, plastics for packaging applications. Additionally, the increasing use of digital labels due to enhanced aesthetic properties, durability, waterproof printing, and ease of usage boosts the demand for digitally printed adhesive labels. 

SELF-ADHESIVE LABELS Market GROWTH FACTORS

Increasing Demand from Consumer Goods Sector to Aid Market Growth

Self-adhesive labels are generally used to describe the contents, manufacturing date, expiry date, and other important information about the product. This factor helps select the appropriate product according to the logo, label description, and instructions. These labels are widely used in food & beverages, pharmaceutical, medical, and consumer goods industries.

Increasing demand for packaged food, clothing, electronics, consumer durables, and non-durable goods globally is driving the demand. The increasing population surges the demand for consumer goods, and the daily use of products further boosts market growth.

The demand for FMCG goods increases due to the rise in per-capita disposable income, thus driving the product demand. Labeling is used for product packaging, which helps create awareness among consumers about the product they are consuming and helps to mention ingredients. For instance, pharmaceutical companies use the labels with logo and information on the product to educate people about the brand and its product offerings. These labels are durable, which prohibits the fading of ink on the label. Thus, this factor is projected to fuel market growth.

Low Product Cost is Likely to Foster Market Growth

The product has a comparatively lower cost than other labeling options such as digital printing, painting, and others. The raw materials required for manufacturing these labels such as plastic, paper, adhesives and other materials is easily available and cheap as compared to the digital printing inks that are used for direct printing. This is one of the factors that shall drive the market.

RESTRAINING FACTORS

Stringent Policies Imposed by Government for Labelling of Food Products May Hinder Market Growth

The food and beverages sector holds a major share in the market. Food products and perishable products are obliged to provide the date of manufacturing, expiry date, and other important data to avoid health complications and side effects. Government authorities have set up certain rules regarding the packaging and labeling of food products. The inks and adhesives used in such labels can penetrate through the packaging and mix with the edibles, which can be dangerous. For instance, some of the content in inks can cause poisoning, which can be fatal, thus acting as a restraining factor for the global market.

SELF-ADHESIVE LABELS MARKET SEGMENTATION ANALYSIS

By Type Analysis

Release Liner Held a Major Share in the Market Owing to its Increasing Demand from Pharmaceutical and Food Industries

The market by type are linerless and release liner. Pressure-sensitive labels are available with release liners to avoid adhering the labels to unwanted surfaces. In many industries, packaging and labeling processes depend on self-adhesive labels with release liners. Around 90% of release liners are made up of paper due to easy availability and lower price. The rest of the labels have film release liners which are stronger than paper liners but are comparatively expensive. It protects the labels from various factors such as dust and other minute particles that can adhere to the adhesive side of the labels and damage its sticking ability. Increasing demand from food and pharmaceutical industries is likely to drive the release liner market.

Linerless are generally pressure-sensitive BOPP, paper, or polymer films that are winded as rolls without backing paper. They are coated with hot melt adhesives that can be temporary or permanent. It is highly employed by the industrial sector for a wide range of applications like wraparounds for bottles, package labeling, and packaging, and others because of its availability in various colors, absence of backing paper, user-friendly, cost-effective, and aesthetically appealing nature. Additionally, the absence of backing paper makes the roll lighter, which adds to the reel capacity and significantly lowers the cost of transportation by 15% to 30% compared to the conventional adhesive labels with backing paper.

The increasing awareness among consumers regarding paper wastage and its environmental effect is leading consumers towards products with less paper wastage, such as linerless adhesives. Increasing demand from industrial and commercial sectors for environmentally and economically sustainable labeling options is likely to drive market development.

By Label Type Analysis

Permanent Label Type Accounted for the Major Share in 2020 Due to its Superior Adhesion and Durability Properties

On the basis of label types, the market is segmented into permanent and removable. Permanent label type is likely to dominate the market during the forecast time period as they are employed mostly for advertising and promotion of the brand. These labels have superior adhesion, high level of initial tack, durability, and better low temperature performance. It is used in signs, warnings, instruction, and other important data on food packets, medicines, chemicals, and other products.   Permanent labels are employed to avoid misuse and misinterpretation of products where simple or removable labels can be misplaced and cause inconvenience. Increasing demand from food, chemical and pharmaceutical sectors shall drive the market growth.

Removable labels are designed for temporary use and can be discarded when unnecessary and outdated. Removable labels come off easily in one piece and does not leave any adhesive residue or mark on the substrate. These properties make removable labels appropriate choices for price tags, bar codes, energy tags, jars, bottles, containers and coupons. Tags with special prices are employed for sales which can be later discarded after the offer ends. Increasing demand from commercial and industrial sectors is expected to fuel the demand for removable labels.

By Application Analysis

Food & Beverages Accounted for the Largest Self-Adhesive Labels Market Share in 2020 Due to Increasing Demand for Ready-to-Eat Food

On the basis of application, the market is segmented into food & beverage, pharmaceutical, household & personal care, consumer goods, and others. Food & beverage dominated the global market share in 2020 because of consumers’ inclination towards ready-to-cook and ready-to-eat convenience food due to hectic lifestyle. Labelling of the food products consists of important data such as date of manufacturing, date of expiry and others. For instance, various organizations have imposed regulation on manufacturers to mention the content, shelf life, and storage temperature. The increasing demand for packed convenience foods has considerably increased the demand for labels from food and beverage sector. Additionally, the emergence of food delivery start-ups such as Zomato, Uber Eats, and Swiggy have self-adhesive labels and tapes for package sealing and branding. This factor is expected to drive the market growth.

Government has mandated the display of information about the content chemicals and their quantities in the medications, tablets and other pharmaceutical products. Pharmaceutical products are manufactured in controlled environment with utmost care and control to prevent contamination of medication. For instance, section 96 in The Drugs and Cosmetics Rules Act ,1945 states that proper description of drugs, net content in terms of volume, measure and weight, and other shall be mentioned in metric system. Therefore, medical drugs require special labels that differ from regular labels. For instance, the ink used for printing on labels must comply to the pharmaceutical standard, the adhesive used must withstand low temperatures and the label must not damage the product., This factor is expected to propel market growth.

REGIONAL SELF-ADHESIVE LABELS MARKET ANALYSIS

Asia Pacific dominated the market share in 2020 and may continue its dominance up to 2028 attributable to factors such as easy availability of raw materials and increasing demand from various end-use industries, which, in turn, may increase the consumer base. Increasing manufacturing activities in China and India due to the easy availability of raw materials such as adhesives, paper, plastic films and others is likely to boost the regional market progress. Additionally, densely populated countries of Asia Pacific such as India, China, Indonesia, Bangladesh, Japan and Pakistan has a wide consumer base for consumer products such as FMCG, food and beverage products, healthcare, and medical products shall fuel regional demand. 

North American market is expected to grow significantly during the forecast period due to large manufacturing base. Growing e-commerce sector in the U.S is fueling the demand for labels that are used for packaging. Additionally, the rise in disposable income is anticipated to drive the demand for consumer goods which shall fuel the growth of this market.  There has been significant increase in demand for consumables, ready to eat food, packaged food and beverages owing to the fast-paced life of the working population. Strong demand for removable adhesive labels from end-use sectors such as food and beverages, packaging, e-commerce, pharmaceuticals and others shall foster the market progress in this region.

Europe is expected to show considerable growth by the end of the forecast period. The increasing awareness among consumers regarding the product’s content such as consumables, cosmetics, personal care products and specifications regarding consumer goods such as electrical appliances, electronics, tools, packages and others shall boost these labels’ demand.   The demand for the product is increasing from packaging industry, consumer goods, pharmaceutical, electronics, food and beverages sectors due to its benefits such as reduced time consumption, convenience, and affordability.  These factors shall drive the European market progress.

South America is anticipated to show growth attributable to the industrial development in countries such as Brazil, Argentina, and others. Increasing e-commerce sector, manufacturing bases and other industrial activities shall boost the regional market growth.

Middle East and Africa is a region which has extreme weather conditions. Geographically, the middle eastern region cannot be cultivated to produce crops which ultimately makes the consumers of the region dependent on packaged food crops and other farm produces. The increasing demand for packaged food products is expected to drive the market growth.

KEY INDUSTRY PLAYERS

Acquisition, Collaboration, and Partnership are the Key Strategies Implemented by the Companies to Strengthen Their Growth Stratagem  

There are many local and international players operating in the industry. Some of the key players are 3M Company, Avery Products Corporation, VPF GmbH, Lintec Corporation, S&K Labels, Ritrama, Mondi Group, H.B Fuller, and others. The increasing awareness among consumers regarding the environmental impact of plastic is expected to provoke manufacturers to focus on the development of eco-friendly and degradable adhesive labels.

• In December 2018, VPF developed a self-adhesive label product line made from grass. It is compostable, recyclable, approved for direct food contact, and certified as FSC-Mix.


• In May 2020, UPM Raflatac expanded its Forest Film range of sustainable self-adhesive label solutions with Forest Film PE (polyethylene) in cooperation with Dow Chemical Company.

Additionally, food grade self-adhesive labels are being developed by manufacturers that can comply to the rules imposed by the regulatory authorities to avoid contact with edibles and prevent contamination. Companies are also focusing on joining forces, acquisitions and joint ventures to develop their product portfolio and strengthen foothold in the market.

• In February 2020, the Fredrigoni Group completed its acquisition with Ritrama for specialized self-adhesive products with its manufacturing facilities in Spain, Italy, UK, Chile and China. This acquisition will widen the company’s product offering in the self-adhesive label and pressure sensitive products segment.  

In July 2019, Coveris acquired Amberley Adhesive Labels Ltd to strengthen its labels & board business in the U.K.. Coveris labels business focuses on serving the ambient, fresh, and chilled markets whereas, Amberley is focused on the home and personal care markets.

LIST OF KEY COMPANIES PROFILED IN SELF-ADHESIVE LABELS MARKET:

• 3M Company (Minneapolis, U.S.)


• Axicon Labels (Oxfordshire, U.K.)


• Avery Products Corporation (California, U.S.)


• ETIS Slovakia (Bratislava, Slovakia)


• UPM Raflatac (Helsinki, Finland)


• Müroll GmbH (Frastanz, Austria)


• Royston Labels Ltd (Royston, U.K.) 


• S&K LABEL (Illinois, U.S.)


• SVS Etikety (Karlstejn, Czech Republic)


• Mondi Group (Vienna, Austria)


• H.B Fuller (Minnesota, U.S.)


• LEO DESIGNS AND PACKAGING PVT LTD (Himachal Pradesh, India)


• Holoflex (West Bengal, India)


• Avery Dennison Corporation (California, U.S.)


• Pasky s.r.o. (Prague, Czech Republic)

KEY INDUSTRY DEVELOPMENTS:

• May 2021 - Herma, a German self-adhesive technology specialist launched 52W, a new wash-off label adhesive developed especially for PET bottles.


• March 2021 - Labelmakers Group acquired Rapid Labels, a supplier and printer of self-adhesive label products. The company has its customer base in the pharmaceutical, nutraceutical, and FMCG segments, making it an attractive market for the company. This acquisition will enable Labelmakers to move into the nutraceuticals business.


• August 2020 - Geostick acquired these labels division of iPB Printing B.V. This acquisition will allow iPB Printing to focus on the growth of its flexible packaging and in-mould labels (IML) business. Further, Geostick Group will strengthen its position in the self-adhesive labels, with the previous acquisitions of, LabelForm, LabelMed, Wyt hazard labels, and Etiket BV.

REPORT COVERAGE

The global self-adhesive labels market report provides a detailed analysis of the market and focuses on crucial aspects such as leading companies, competitive landscape, types, label types, and applications. Also, the report offers insights into market trends and highlights vital industry developments. This report includes historical data & forecasts revenue growth at global, regional, and country levels, and analyzes the industry's latest market dynamics and opportunities. In addition to the factors mentioned above, the report encompasses various factors contributing to the market's growth in recent years.

Report Scope & Segmentation