Demand for printed labels to reach $ 48.16 billion

Self-adhesive labels, the wider use of inkjet and the adoption of more sustainable printing systems will be critical to the future growth of sales of printed labels in the period 2021-2026. This market will grow to a value of $ 41.75 billion with 1.21 trillion A4 equivalents printed in 2021, according to new Smithers market report – The future of label printing until 2026.

According to the report, the global market saw a slight overall decline in 2020 as the global recession caused by the Covid-19 pandemic affected sales of packaged goods. Label printing volumes declined -1.1% in volume and -0.8% in value that year. It was moderate compared to many other print segments.

However, Smithers market analysis predicts a rapid return of lost sales, with a compound annual growth rate (CAGR) of 2.9% in value for 2021-2026. Label volumes will grow faster at a CAGR of 4% over the same period. The equivalent of 1.47 trillion A4 sheets will be printed in 2026, for a combined value of $ 48.16 billion.

Smithers dataset tracks print volumes and value for the top five label formats: wet glue, stickers, multipart tracking formats, stretch and shrink film sleeves, and in-mold labels (IML) . It shows that the biggest increase in demand in 2021 will be for the printing of self-adhesive labels, with sales value increasing by 6.1% in 2020. These formats – already 59.6% of the market – will represent the majority. growth in value and volume over the next five years. years, although printed sleeves will also increase their market share.

According to the report, label printing and narrow web presses continue to be a priority for many printing equipment vendors and have proven to be critical to the wider penetration of the digital platform (jet) market. ink and toner). The majority of labels are still printed on analog presses, flexo accounts for 37% of production in 2021, offset litho 23.2% and helio adds 13.8% more – digital systems only account for 9, 0% of the market by volume.

In terms of value, the proposition for digital is more convincing, combined they represent 28.2% of the market, or 11.79 billion USD, in 2021. As this segment grows over the period 2021-2026, the jet d ink will become the preferred option with production growing by 13.1% per year. year on year, while electrophotography falls back to a CAGR of 5.3%.

“Beyond the adoption of digital printing, there are several compelling market trends that will be critical to the future success of narrow web press manufacturers, ink suppliers and printing service providers,” indicates the report.

“Improving the recyclability of labels and protective films is a major trend, supported by virtually all consumer brands and now part of corporate sustainability goals. This will lead to more label collection programs, easy-to-remove label formats and the need to print on label stocks themselves made from recycled materials or biopolymer films, ”the study found.

A similar momentum will require greater use of lighter labels, including a much wider use of unlined labels, according to the report.

“Shrink sleeves continue to grow their share of the overall label market with the growing appeal of full color wrap designs. By 2026, new materials will be introduced to replace some existing shrink sleeve substrates, encouraging easy separation, ”he said.

As demand for luxury goods returns, brands will be looking for more premium label options, including concepts for e-commerce and omnichannel sales, according to the study. This will provide a forum for the latest finishing and embellishment technologies: embossing / stamping, spot and high build varnish, lamination, hot and cold foil and special effect inks.

The report also states that online sales will also help make brand protection a more important consideration in label printing. Brand owners are eager to switch to labels that carry unique identification codes – to protect against counterfeiting, give more detailed marketing information, and allow for better sorting and recovery at end of life – if the price is correct

“Productivity improvements will be demanded through greater automation of narrowband processes. By the middle of the decade, there will be greater connectivity and integration with MIS systems, while converters will have unified print management platforms linking analog and digital print resources, ”says The report.