AMI, Bristol, 12/11/12 A new report from industry consultants, AMI Consulting, published in September 2012, highlights the dynamic structural changes that have been occurring in the European label industry in recent years.
Despite the economic hardships of recent years, plastic label demand grew on average by 6% per year since 2008. While the end-use applications are relatively mature in Europe, plastic labels converters are taking market share from paper at an increasing rate. The increasing penetration of plastic labels is driven by:
- Improved brand positioning
- More frequent brand revamps
- Paper/pulp price volatility
- Technological advancements and increased production efficiency driving cost reduction
- Film down-gauging further reducing the overall cost of plastic labels
- New market entrants
- Recycling initiatives promoting mono-material packaging (i.e. all plastic).
Plastic glue applied labels illustrated the paper to plastic transition best, through the wrap around labels in the beverage industry, which resulted in 400 million square meters additional demand in the past three years. Plastic dominates the in-mould labels segment as well.
In self-adhesive labels, the key issue is inter-material competition of PP and PE. PP is expanding penetration, driven by the growing demand of clear-on-clear labels allowing for no-label look. Similarly, PET increased its penetration versus PVC in shrink sleeves.
Figure 1: Plastic Labels in Europe - volume segmentation by type* 2011
*Excluding release liner
Advances in digital technology are driving major changes in the European label industry. new technology converters to print smaller batches, much quicker lead times, creating greater operational flexibility, reduced stock holding and improved cash flow. The ability of label makers to adopt and exploit new technology helps define winners from losers. These are complex supply chain issues with far-reaching implications, as explained in the report.
There are segments of the industry for which economies of scale are important and in these segments companies like Avery Dennison and Raflatac dominate. In other segments and at points of the value chain the industry is fragmented.
"Plastic labels in Europe" is a detailed multi-client research report published in September 2012, aimed at assisting industry participants and investors in anticipating change, formulating response strategies, directing R&D investment, and proactively managing the threats.
For further information please contact: Martyna Zimakiewicz on +44 (0)117 924 9442 email@example.com