Market Trends of Primary Packaging Labels Industry
This section covers the major market trends shaping the Primary Packaging Labels Market according to our research experts:
Growing Demand for Beverages
- The beverage industry is witnessing an increasing demand for primary packaging labels as manufacturers continually look for new ways to present their products and create new identities for their brands. This demand forces new labeling technologies to develop and expand continuously. In addition, stringent norms and regulations set by the regulatory authority of the countries for labeling, especially alcoholic beverages, further support market growth.
- With the growing alcoholic beverages demand, the need for labeling is becoming crucial. According to the Wine Institute of the United States, in 2021, the total retail value of wine sales in the United States amounted to about USD 78.4 billion, an increase of 17.3% compared to 2020.
- Pressure-sensitive labels play a crucial role in beverage labeling, as it is essential for the labels to adhere to the container in various environments. Thus, it may continue to drive the market for primary labels for beverage applications as more high-end products, even bottled water, are switching to pressure-sensitive labels instead of paper cut-and-stack labels.
- Moreover, the vendors in the market are investing in capacity expansion to cater to the increased demand for primary packaging labels. For instance, in May 2022, Avery Dennison Corporation, a labeling and packaging materials provider, invetsed more than Euro 60 million (USD 63.2 million) to expand its manufacturing capacity and enhance factory efficiency in Europe. This expansion will help the company to meet the demand for its label and packaging materials in the region.
Understand The Key Trends Shaping This Market
Download Sample
Asia-Pacific to Witness Fastest Growth
- China and India are among the largest economies in the Asia-Pacific region, supported by the rapid growth of manufacturing industries. China is one of the fastest-growing economies globally, and almost all the end-user industries have been growing due to the rising population, living standards, and per capita income of consumers in the region.
- The increasing consumption of beverages is one of the foremost factors boosting beverage manufacturers' demand for primary packaging labels. According to USDA Foreign Agricultural Service, in 2022, the consumption value of organic beverages across India is valued at USD 92 million. This is an increase compared to the previous year when the consumption value was USD 81 million.
- Additionally, according to the National Bureau of Statistics of China, the total retail sales of consumer goods in China were valued at CNY 44.1 trillion (USD 6.2 trillion) in 2021, representing an increase of 12.5% compared to the previous year. Due to the COVID-19 pandemic, sales in 2020 fell to CNY 39.2 trillion (USD 5.5 trillion), a decline. The market is likely to recover in the future. This consumption trend is expected to drive market growth over the forecast period.
- Moreover, the pharmaceutical and healthcare sector of the region is one of the world's key markets, primarily driven by the presence of key pharmaceutical companies and an aging population. There is a high demand for pharmaceutical packaging in the region. Government initiatives and patient safety standards underline this demand for high-quality packaging. This is expected to drive the market's demand for primary packaging labels.
Get Analysis on Important Geographic Markets
Download Sample
