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Labels: Adding Value to Packaging

Global trends in product decoration provide challenges and opportunities for label printers around the world.

September 2012 By Jules Lejeune, Managing Director FINAT
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The evolution of supply and demand for self-adhesive labels is not just a matter of collecting and interpreting industry statistics and quantitative indicators. Especially in the last three-to-five years, macro-economic factors such as the twin crises of bank credit and sovereign debt, and the associated volatilities, have distorted the picture of underlying longer-term trends and developments. What are these underlying trends? How is the label industry positioned in the context of the broader packaging industry? What is driving demand for labels in comparison to alternative decoration technologies? What is the label printer's share of the total added value created along the supply chain?

In this article FINAT aims to address these questions and monitor relevant trends and developments.

Evolving industry

The advent of the paper bag—the universal packaging in a 19th century grocer's shop—created the need to identify the contents with some kind of label. This was, of course, really helpful for customers and since then, labels have been greatly expanding their role in packaging.

Today, it is certainly true that a self-adhesive label adds value to a product's packaging in a variety of ways: as a source of information on pack contents; as a location for bar codes and other track-and-trace and authentication devices; and for promotion and decoration. In all these spheres, the convenience and versatility of the self-adhesive laminate have been key contributors to product packaging. They serve manufacturers across the whole spectrum of products, providing a valuable and easily-accessed tool for product development and marketing.

Even in the 21st century, self-adhesive labels are adding value to products and brands in new and developing ways around the world, in partnership with an ever-changing base of packaging materials. Label converters benefit—almost uniquely in a manufacturing environment—from being part of a harmonized but complex value chain that embraces raw materials suppliers, self-adhesive laminators, ink, die, and other press consumables suppliers. All levels of this value chain are assisted and nurtured by self-adhesive labeling associations, such as Europe's FINAT, and other counterpart organizations around the world.

Label demand

Global label demand (across all technologies) is expected to reach more than 50 billion square meters by 2015. World label demand growth for 2012/13 will be approximately 6-7 percent.

 

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