The label adhesive market size is forecast to reach US$15.4 billion by 2027 after growing at a CAGR of 5.6% during 2022-2027. Label adhesives find their extensive use through labels attachment in the packaging of food and beverage products pertaining to safety regulations and consumer perspectives. The food and beverage industry globally expanding rapidly with increased production and processing and this will drive the growth of the market in the forecast period. As per the data by Investment Promotion and Facilitation Agency, the food processing sector in India is expected to be over a half a trillion dollars market by 2025. Furthermore, label adhesive is massively used in the labeling of consumer electronics products as these labels help in serving different purposes such as brief installation and usage instructions, protection covers, product codes, etc. The consumer electronics industry is rising globally with the increase in production and sales and this will drive the growth of the market in the forecast period. For instance, as per the July 2021 statistics by China.org.cn, consumer electronics exports maintained a growth trajectory for 12 months in a row. Pressure sensitive adhesives will witness the highest demand in the forecast period. Synthetic substrates such as polypropylene and polyethylene terephthalate will witness the maximum demand in the forecast period. The price fluctuation of synthetic substrates might hamper the growth of the market in the forecast period.
COVID-19 Impact
The label adhesive market was hit moderately by the COVID-19 pandemic. Disruption in the supply chain, idling of factories, and raw material procurement are the key challenges surfaced in the market due to COVID-19. Accordingly, market players modified their working ecosystem to maintain a stable business operation during the pandemic. Many market players still suffered deeply due to the pandemic. For instance, according to the COVID-19 global update data by Avery Dennison, multiple sites got impacted during the pandemic and the company came up with contingency plans later on to reduce the damage. However, the market witnessed decent growth due to the demand in the end-use industries such as food and beverage, consumer electronics, and healthcare. Going forward, the market is projected to have a robust growth rate owing to the product demand from several end-use industries.
Label Adhesive Market – By Technology
Hot melt technology dominated the label adhesive market in 2021. The growing demand for this technology is attributed to the robust properties provided by it to the adhesive labels compared to other technologies. Holt melt technology doesn’t need any dispersing agent like technologies with solvents and also it helps in limiting waste and emissions of volatile chemicals. Moreover, the adhesives produced through this technology dry quickly and offer strong adhesiveness, allowing for precise positioning of the labels. Owing to such robust qualities, market players are focusing on the expansion of the hot-melt technology portfolio. For instance, in August 2021, US-based Avery Dennison launched a new hot melt adhesive for product labels in sustainable packaging solutions. The company got validation of biopreferred certification from the USDA for this new hot melt adhesive for labelling purposes. Such developments with the help of hot melt technology will increase its demand in the forecast period.
For More Information About Label Adhesive Market @
https://www.industryarc.com/Research/Label-Adhesive-Market-Research-505576
Report Price: $ 4500 (Single User License)
Label Adhesive Market – By Process
Pressure sensitive adhesives segment dominated the label adhesive market in 2021. The growth of pressure sensitive adhesive labels is attributed to the increasing implementation of PSA labels as they offer limitless design possibilities compared to glue-applied labels. Furthermore, PSA is a low-cost label with good resistance to water and direct sunlight and is 100% recyclable. Owing to such robust qualities, market players are expanding the pressure sensitive adhesive portfolio. For instance, in October 2019, Fedrigoni acquired Ritrama which deals with pressure sensitive adhesives labels. This acquisition helped Fedrigoni to strengthen its position as a top player in Europe for pressure sensitive labels. Such growing activities in the pressure sensitive adhesives segment will increase its demand in the label adhesive market in the forecast period.
Label Adhesive Market – By Substrate Type
Synthetic substrate dominated the substrate type segment in the label adhesive market in 2021. This segment involves substrates such as polypropylene, polycarbonate, and polyethylene terephthalate which offer high durability and flexibility to adhesive labels. Synthetic substrates can be used for both indoor and outdoor applications with exposure to different harsh conditions compared to their natural counterparts. Owing to these robust properties, market players are engaging in the higher development of synthetic substrates for adhesive label applications. For instance, in April 2020, Finland-based global supplier of label materials UPM Raflatac launched an innovative polypropylene (PP) label developed from post-consumer recycled (PCR) plastic. Such growing developments of synthetic substrates will increase their demand in the label adhesive market in the forecast period. The natural substrate segment is projected to witness significant demand in the forecast period.
Label Adhesive Market – By End Use Industry
The food and beverage industry dominated the label adhesive market in 2021 and is growing at a CAGR of 6.1% in the forecast period. The high demand for label adhesive is attributed to the increasing innovations taking place in the packaging solutions for food and beverages. Market players are amplifying the adhesive label’s portfolio accordingly to meet the increasing demand from packaging in the food and beverage industry. For instance, in November 2021, UPM Raflatac introduced thermal paper labels made with 100% recycled fibers designed for labelling needs in the food sector. Similarly, in September 2019, Lecta introduced new hot melt adhesives (Adestor HM100 and Adestor HM300) for labelling purposes in the food sector. Such massive developments of label adhesive for the food and beverage industry will drive the growth of the label adhesive market in the forecast period. The consumer electronics industry will drive the growth of the label adhesive market significantly in the forecast period.
Label Adhesive Market – By Geography
The Asia Pacific region held the largest market share in the label adhesive market in 2021 with a market share of up to 34%. The high demand for label adhesive is attributed to the region’s expanding food and beverage sector as it is increasing the need for labelling in food and beverage packaging. As per the data by India Brand Equity Foundation (IBEF), the Indian govt. announced a PLI scheme of USD 1484 million for the food processing sector for six years starting from FY2022. Similarly, in March 2021, World Bank approved a loan amount of USD 400 million for the Food Safety Improvement Project in China. This project helps China in enhancing food safety management through the involvement of eco-friendly food packaging. Such massive activities in the food and beverage industry will increase the demand for packaging solutions which in turn will augment the need for label adhesive in the forecast period. The North American region will witness significant demand for label adhesive in the forecast period.
Label Adhesive Market Drivers
Expanding consumer electronics industry will drive the growth of the market
Label adhesive finds its wide use in the labelling process of various consumer electronics. The demand for consumer electronics globally is booming with the increase in sales and this will drive the growth of the market. For instance, according to the September 2021 stats by UK’s Office for National Statistics, the import value of consumer electronics in the European Union stood at 109.2 in the first quarter of 2021 compared to 108.4 in the first quarter of 2020. Similarly, as per the September 2021 report by China.org.cn, China’s Zhejiang witnessed a jump in online retail sales where consumer electronics ranked in the top categories. Such high growth in the consumer electronics industry globally will increase the need for labelling solutions and this will drive the growth of the label adhesive market.
Rising food and beverage industry will drive the growth of the market
The food and beverage industry ranks as the largest consumer of label adhesive owing to the high need for labelling in the food and beverage packaging solution. Synthetic substrates like polypropylene and polyethylene terephthalate are highly used in the food and beverage sector as they help the label adhesives to perform under extreme conditions. The food and beverage industry globally witnessing a rise in production, sales, and exports. This rising trend is projected to be there in the forecast period and this will drive the growth of the market in the forecast period. For instance, as per the stats by nordicalcohol.org, sales of systembolaget alcohol in Sweden accounted for 106.2 centilitres in 2020 which were 96.7 centilitres in the previous year. Similarly, as per the report by Invest India, the export of dairy, poultry, and meat products from India surged from US$ 483.5 million during April-June 2020 to $1022.5 million in April-June 2021. Such massive growth in the food and beverage sector will increase the need for labelling in the packaging solution for food and beverages and this will drive the growth of label adhesive in the forecast period.
Direct Purchase @ https://www.industryarc.com/purchasereport.php?id=505576
Label Adhesive Market Challenges
Price fluctuation of synthetic substrates might hamper the growth of the market
The label adhesive market involves synthetic substrates such as polypropylene, polyethylene, and PET. These materials are petroleum-based whose prices are fluctuating owing to the fluctuation in the price of petroleum and this might hamper the growth. According to the stats by ourworldindata.org, the price of crude oil was USD 54.19 per barrel in 2017 which increased to USD 64.21 per barrel in 2019. In 2020, the oil price again lowered to USD 41.84 per barrel. This lower trend in the crude oil price fluctuated the petroleum price, ultimately fluctuating the prices of the synthetic substrates. This fluctuation in the prices of the synthetic substrates might hinder the growth of the market in the forecast period.
Label Adhesive Industry Outlook
Investment in R&D activities, acquisitions, product and technology launches are key strategies adopted by players in the label adhesive market. Major players in the label adhesive market are:
CCL Industries Inc.
Avery Dennison Corporation
UPM Raflatac
Coveris Holdings
Adestor
Lecta
Fuji Seal International, Inc.
Lintec Corporation
Americk Packaging Group
Inland Label and Marketing Services
CS Labels
Secura Labels
Hansol Paper
BSP Labels Ltd
Label Craft
Etiquette Labels Ltd
Reflex Labels
Muroll GmbH
Ferdrigoni S.p.A.
Ritrama
Others
Recent Developments
In May 2021, Canada-based CCL Industries Inc. acquired Singapore-based Lux Global Label Asia Pte Ltd which deals with pressure sensitive labels and packaging solutions. This acquisition will contribute to the growth of the label adhesive market in the forecast period.
Key Takeaways:
The synthetic substrate segment is leading the label adhesive market. These substrates allow adhesive labels to withstand harsh conditions compared to their counterparts, making them a desirable choice among manufacturers.
The food and beverage industry will drive the growth of the label adhesive market in the forecast period. As per the survey by The Packer, the online source that covers the fresh produce industry, mentioned in its Fresh Trends 2021 report that consumption of vegetables grew upward during the pandemic and 73% of consumers stated they purchase a large number of fresh vegetables.
The Asia-Pacific region will witness the highest demand for the label adhesive market due to the rising food and beverage sector in the region. As per the data by International Trade Association, China’s food and beverage industry accounted for $595 billion in 2019, a 7.8% surge compared to the previous year. This growth in the region’s food and beverage industry will stimulate the higher demand for label adhesives.
Relevant Report:
Smart Label Market
https://www.industryarc.com/Research/Smart-Label-Market-Research-504134
For more Chemical and Materials related reports, please click here
About IndustryARC: IndustryARC primarily focuses on Cutting Edge Technologies and Newer Applications market research. Our Custom Research Services are designed to provide insights on the constant flux in the global supply-demand gap of markets. Our strong team of analysts enables us to meet the client research needs at a rapid speed, with a variety of options for your business. Any other custom requirements can be discussed with our team, drop an e-mail to sales@industryarc.com to discuss more about our consulting services.
Media Contact
Company Name: IndustryARC
Contact Person: Mr. Venkat Reddy
Email: Send Email
Phone: (+1) 970-236-3677
Address:Madhapur
City: Hyderabad
Country: India
Website: https://www.industryarc.com/