Market Trends of United States Print Label Industry
This section covers the major market trends shaping the US Print Label Market according to our research experts:
Pressure-sensitive Labels Accounts for the Largest Market Share
- Pressure-sensitive labels (PSL) consist of five individual layers, such as liner, release coat, adhesive, face stock, and topcoat, and are analogous to a high-tech sticker. A PSL can use paper, film, and foil as its primary label materials and can be used with a wide range of inks to produce sharp and bright colors.
- The PSL is one of the most widely used forms of label applicator, as it does not require any heat, solvent, or water to activate; it only takes light or moderate pressure to apply it to a product surface. According to the Resource Label Group and all subsidiaries, PSLs constitute more than 80% of all labels in the market.
- Moreover, according to Paper Recycles, the recycling rate of Paper in the United States was 65.7 percent in 2020. This was a slight reduction from the previous year when the recycling rate was 66.2 percent. Paper recycling in the U.S. has improved significantly over the past three decades.
- Further, the market in the region is moving towards sustainable solutions, which would be responsible for rapid growth in the future. For instance, in June 2020, Mohawk Fine Papers Inc., a manufacturer of fine papers, envelopes, and specialty materials for printing, launched a portfolio of papers made from rapidly renewable, sustainable fibers. As part of this new product range, Mohawk announced a strategic partnership with UPM Raflatac Americas. They will be offering roll-fed, pressure-sensitive labeling solutions made with Mohawk Renewal Hemp and Straw paper face stocks.
- Additionally, amidst the COVID-19 situation, the food, beverage, and healthcare segment have shown more positive growth. The vendors serving these industries are working on the front line to continue producing and supplying label materials for critical consumer and healthcare products. However, the raw material prices are rising, coupled with increased competition and evolving printing and decorating technologies.
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Beverage is Expected to Account For Significant Market Share
- The beverage is one of the primary end-user industries for the US print label market, owing to the high rate of adoption of innovative label and packaging in the beverage sectors and the growing market for the health drinks segment.
- Sales of significant beverage categories were around USD 150 billion in 2020 and are expected to cross USD 170 billion by 2024. Although the consumption of some beverage segments in the country was affected during the pandemic, the scope of many segments expanded due to the COVID-19 outbreak. Like bottled water, flavored sparkling water, and dairy alternatives, Beverages are significantly performing well in 2021.
- Furthermore, the country is home to some of the largest carbonated beverage companies, along with a strong market for energy drinks, which are increasingly adopting new packaging techniques to attract customers. These companies are also printing their ingredients on their labels, as health-related concerns are growing among US consumers, expanding the scope of printing. Also, these ingredients may vary between brands and specific energy drink products.
- With the growing wine market, the need for labeling is becoming crucial. Most of the wine labels use paper label look or no label look with film label. In addition, labels need to be designed to withstand the environment in which they are shipped, stored, and used. Therefore, the growing number of wineries in the country will also expand label printing and manufacturing.
- Further, the US vendors invest in collaboration and acquisition strategies to enrich their label solutions and increase brand awareness. For instance, US-based Fort Dearborn Company acquired Walle Corporation, a leading supplier of cut & stack, roll-fed, and shrink sleeve labels. This acquisition helped the company grow more in the printed label solutions in the US, primarily for the food, beverage, and household products segments.
