Push-Pull Strategies
November 2003
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The pressure-sensitive label market continues to stretch itself in pursuit of increased market opportunities. Could it do more to extend its reach?
On top of the lingering challenges of overcapacity and maturity in the narrow-web industry, the pressure-sensitive label market is having to weather a persistent price squeeze and steady inroads by alternative label and package structures. How are pressure-sensitive converters and suppliers staying strong in the face of these market forces?
Statistics have long favored this label segment, and for good reason. "Pressure-sensitive has the widest application base of any label decorating method," says Jennifer Dochstader, managing director at Label and Packaging Communications (LPC), a market research and communications firm serving the label and package-printing industry. Dochstader pegs current overall growth for the pressure-sensitive market at 4 to 6 percent, and believes that among the strongest markets for current and potential pressure-sensitive growth are the beverage, security, health and beauty, and pharmaceutical sectors.
A Freedonia Group study released in 2002 notes that pressure-sensitive labels also continue to play a key role in variable information labels, expanded content labels for medical and personal care products, and secondary-labeling applications such as "smart" RFID labels.
Marks of a commodity?
Amid this strong market presence and steady application development is the specter of commoditization, a trend that industry insiders both acknowledge and dispute to varying levels. At the very least, pressure-sensitive label converters may need to more aggressively differentiate themselves.
One online directory of pressure-sensitive label suppliers, www.pressuresensitivelabels-ez.com, powered by Thomas Register, lists nearly 800 label companies. What's more, a quick examination of converter Web sites suggests that many pressure-sensitive players highlight similar aspects of their services—specialization in pressure-sensitive labels, long-term industry experience, ability to serve all markets, custom capabilities, and single-source or total production services.
Dochstader acknowledges that some types of pressure-sensitive label applications have arrived at commodity status. She observes that for some consumer product companies (CPCs), "the label is thought of as just one element of the total package," noting that packaging engineers at a few CPCs are currently very focused on package functionality, and may devote more attention to design elements such as the container's contour, shape, and aperture, than to the label.
"And [CPCs] know there are a multitude of companies out there that can do quality pressure-sensitive label printing. We're witnessing more and more end users implementing reverse auctions/on-line bidding into the overall supply chain management structure, and the label certainly isn't exempt from this trend," Dochstader adds.
On top of the lingering challenges of overcapacity and maturity in the narrow-web industry, the pressure-sensitive label market is having to weather a persistent price squeeze and steady inroads by alternative label and package structures. How are pressure-sensitive converters and suppliers staying strong in the face of these market forces?
Statistics have long favored this label segment, and for good reason. "Pressure-sensitive has the widest application base of any label decorating method," says Jennifer Dochstader, managing director at Label and Packaging Communications (LPC), a market research and communications firm serving the label and package-printing industry. Dochstader pegs current overall growth for the pressure-sensitive market at 4 to 6 percent, and believes that among the strongest markets for current and potential pressure-sensitive growth are the beverage, security, health and beauty, and pharmaceutical sectors.
A Freedonia Group study released in 2002 notes that pressure-sensitive labels also continue to play a key role in variable information labels, expanded content labels for medical and personal care products, and secondary-labeling applications such as "smart" RFID labels.
Marks of a commodity?
Amid this strong market presence and steady application development is the specter of commoditization, a trend that industry insiders both acknowledge and dispute to varying levels. At the very least, pressure-sensitive label converters may need to more aggressively differentiate themselves.
One online directory of pressure-sensitive label suppliers, www.pressuresensitivelabels-ez.com, powered by Thomas Register, lists nearly 800 label companies. What's more, a quick examination of converter Web sites suggests that many pressure-sensitive players highlight similar aspects of their services—specialization in pressure-sensitive labels, long-term industry experience, ability to serve all markets, custom capabilities, and single-source or total production services.
Dochstader acknowledges that some types of pressure-sensitive label applications have arrived at commodity status. She observes that for some consumer product companies (CPCs), "the label is thought of as just one element of the total package," noting that packaging engineers at a few CPCs are currently very focused on package functionality, and may devote more attention to design elements such as the container's contour, shape, and aperture, than to the label.
"And [CPCs] know there are a multitude of companies out there that can do quality pressure-sensitive label printing. We're witnessing more and more end users implementing reverse auctions/on-line bidding into the overall supply chain management structure, and the label certainly isn't exempt from this trend," Dochstader adds.
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