Pressure-Sensitive Labels – Preventing Counterfeiting, Increasing Product Safety - Arizton

Pressure-Sensitive Labels – Preventing Counterfeiting, Increasing Product Safety

The usage of labels has increase manifold in end-user sectors. Enhancement in technology continues to drive changes in the pressure-sensitive label industry (PSL industry). With numerous options in the marketplace, brand and label recognition is essential, especially to capture the customer’s attention. Pressure-sensitive labels are one of the major label categories and is used across majority of the industries on account of its ease of use and effective functionality. The pressure-sensitive labels market is in the strong growth stage as the demand from the food and beverage industry is significantly high. The performance of the food and beverage industry has been positive in several regions. Pressure-sensitive labels have a higher degree of acceptability as they are mainly based on paper.

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Multiple Forms of Pressure-Sensitive Labels

Variable Information Print (VIP) – VIP labels are made from either paper or film-based face stock materials. Their application is predominantly used in logistics, warehousing, pharmaceutical, point of purchase, and transport industries. Printing technologies used for VIP labels comprise inkjet, laser, direct thermal, and thermal transfer printing. VIP and prime labels together hold the highest share in the pressure-sensitive labels industry and are likely to dominate the market during the forecast period.

Prime – They are made from both paper and film label stock. Paper-based labelstocks carry a high demand from end-users as they are produced at a low cost. Luxury products manufacturers utilize film-based labels to provide a premium look to the packaged product. Prime labels have the highest volume demand from the food industry.

Functional and Security – Anti-counterfeiting and security labels are the latest addition to the pressure-sensitive labels. The investment has increased for the development of high quality, advanced print security, and anti-counterfeiting technology to tackle counterfeiting. Brand security solutions have been in demand, particularly from the F&B industry as the prevalence of forging is high in the industry. The growing consumer preference for branded products, the increasing awareness of security and consumer protection, and the emergence of e-commerce are likely to be the major growth drivers of the segment.

Geographical Overview of PSLs

APAC – The region is characterized by high GDP growth and strong macroeconomic indicators. However, the per capita consumption of labels is not uniform and is offset by several countries with low per capita label consumption. The growth of e-commerce in China, India, and other countries in the region is expected to boost the demand for intelligent package labeling. The lack of stringent norms with respect to recycling is aiding the growth of plastic-based labels and liners. The usage of non-sustainable material is high in the region. Japan, South Korea, Australia, and Singapore are exceptions due to the stringent regulatory norms.

Europe – Supermarkets in the region, especially in Western Europe, are expanding at a faster rate. Germany has the highest number of supermarkets followed by the US and the UK. A highly developed retail market in Europe is pushing for better print technology. Europe is increasing stringency in labeling and setting new standards. The amount of information printed on a label is expected to increase. Functional and security labels such as tamper-evident, RFID, and barcode labels are likely to increase in the pharmaceutical sector.

North America – The region hosts several industries such as retail and CPG, which require robust pressure sensitive labels. The growth of M&A strategies is strong in the region. Automotive, healthcare, and electronics & semiconductors sectors are the key end-users, which have shown high growth in the region. The share of labels in these industries is likely to grow further during the forecast period. The pressure-sensitive label industry is witnessing high innovation and a degree of service differentiation.

Prominent Vendors

•Avery Dennison
•UPM Raflatac
•Lintec
•CCL Industries
•MCC Labels

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Source: Pressure Sensitive Labels Market - Global Outlook and Forecast 2020-2025 by Arizton Advisory & Intelligence

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