Exploring insights, trends and opportunities in the global label market

Welcome to this special edition of the Labels & Labeling newsletter, where we examine the market data and evolving trends shaping the future of the global label and packaging industry.

This edition explores each region individually, analyzing the unique trends, opportunities and challenges all converters and suppliers face.

However, if you zoom out and look at the markets as a whole, you’ll see that they’re not so different after all. You undoubtedly will notice several common themes across these pages: the rise of sustainability as a global priority, a technological transformation led by digitization and automation, increasing demand for short-run labels and packaging, and regulations that could change how the industry operates.

As readers of Labels & Labeling already know, the label and package printing sector is proven to be resilient in the face of economic headwinds and adaptable to new market demands. As we navigate these global trends, one thing is clear: the label and packaging industry is at the forefront of some of the most exciting developments in manufacturing. Globally, the industry’s ability to adapt to shifting consumer buying patterns and regulatory landscape, the adoption of cutting-edge technology, and the sustainability focus have – and will continue to – define this industry’s success.

Zooming back in on the individual needs and demands of diverse markets is why Labelexpo Global Series is an invaluable industry resource. We are proud to publish this special edition of Labels & Labeling in conjunction with our sister company, Labelexpo Global Series. As with all Labelexpo events, we invite you to learn about the innovations that continue to drive global growth.

Whether you are a converter, supplier, brand owner, or label and packaging designer, we encourage you to explore this special section to gain insights from industry leaders and get inspired with information you can bring back to your local businesses.

Chelsea McDougall

Europe: Sustaining uncertain recovery

Persistent economic and political uncertainties weigh on the industry despite healthy labelstock growth through 2024. Andy Thomas-Emans reports

On the surface, 2024 looks to have been a good year for overall European label market growth.

In the first half of 2024, labelstock demand showed a healthy 26 percent year-on-year increase compared to the same period in 2023. The trend continued through Q3 2024, albeit at a markedly slower pace of just under 7 percent, bringing cumulative growth of 19.5 percent compared to 2023.

The cause of this growth is not a turbo-charged European economy. It is because European converters have used the stocks built up in 2022 in response to the ‘perfect storm’ of post-COVID dislocation, supply chain disruption, Finnish paper strikes and the advent of war in Ukraine.

With warehouses full of unused labelstock, demand for new materials in 2023 plummeted by a staggering 25.8 percent to levels not seen since Finat first started collecting figures in 2013. This represented over 2 billion sqm (6 billion sqft) of lost label production.

This situation was made worse by rising interest rates and high inflation, which impacted consumer confidence, meaning it took longer than expected for labelstock to make its way through the system. So, the 2024 label industry growth figures represent a return to ‘business as usual’ as converters finally used up their last buffer stocks.

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North America: Companies look to grow in tight labor market

With an unemployment rate of 4.1 percent, businesses are increasing automation and upping benefits. Selah Maya Zighelboim reports

on a strong economic note. Inflation is under control at 2.4 percent, and the Federal Reserve has reduced interest rates to 4.5-4.75 percent.

According to Mordor Intelligence, the North American label market is valued at 9.8 billion USD in 2024, with a CAGR of 3.53 percent and is expected to grow to 11.68 billion USD in 2029.

For much of 2024, high interest rates and an uncertain political environment caused by the presidential election made many labeling businesses reluctant or unable to invest in capital expenditures and hire new employees. At the same time, many press operators, particularly those skilled workers operating flexo presses, are aging out of the industry, and so converters held tight to the employees they did have. While there was an occasional bump in hiring, such as around Q2, hiring remained stagnant for much of the year.

With recent decreases in the interest rate, many companies are looking to grow in the last quarter of 2024. However, employers face challenges, according to Claudia St John of The Workforce Advisors during a recent TLMI webinar.

With a 4.1 percent unemployment rate in the US – what economists consider full employment – finding workers is difficult. Only about 7 million unemployed Americans are currently looking for work.

There are several ways companies have been addressing this issue.

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Branding and design: Packaging trends that shaped 2024

As 2024 comes to a close, the labels and packaging industry is buzzing with exciting trends that are transforming the market, writes Akanksha Meena .

Sustainability continues to take center stage, with brands eagerly embracing recyclable, compostable and bio-based materials to meet stricter regulations and growing consumer demand for eco-friendly products. At the same time, digital innovation is revolutionizing packaging – RFID tags, NFC chips and QR codes are making it easier than ever for consumers to access product details and sustainability practices.

Flexible packaging is also making waves as brands ditch heavy containers in favor of lighter, more sustainable packs. And let’s not forget the power of tactile packaging—features such as foiling, embossing and unique textures create strong emotional connections with consumers, encouraging them to buy. These trends show how the packaging industry is evolving to be more sustainable, smarter and consumer-friendly.

Sustainability has evolved from a mere trend to a critical priority for brands, driven by increasingly stringent packaging regulations worldwide. As governments tighten policies around plastic waste, carbon emissions and packaging recyclability, brands must prioritize sustainable packaging to comply with these laws and meet consumer expectations for environmentally-responsible products.

Leading packaging and label material manufacturers have taken significant steps forward by launching new sustainable packaging materials that are recyclable, compostable or derived from bio-based content.

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Latin America: Reason for optimism

Economic growth remains sluggish, but market conditions are improving. James Quirk reports

As elsewhere in the world, the fortunes of the label market in Latin America ebb and flow with the prevailing economic currents. As noted previously in this annual review, economic growth in the region rebounded strongly in the wake of the pandemic before slowing in 2023.

Economic indicators for 2024 continue to look sluggish, with growth across Latin America and the Caribbean seen declining to 1.8 percent this year from 2.1 percent in 2023, according to the World Bank. ‘Despite the enthusiasm for nearshoring, foreign direct investment remains below levels of 13 years ago in real terms,’ noted the bank’s report. Growth in the region’s two biggest markets, Mexico and Brazil, was forecast to decline to 1.7 percent and 2.8 percent respectively, down from 2023 expansions of 3.2 percent and 2.9 percent.

There is greater optimism for next year, however, with the region’s economy predicted by the World Bank to accelerate to a 2.7 percent growth rate as interest rates stabilize and inflation falls.

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India: Sustainability and automation propel growth

A confluence of factors, including economic shifts, technological advancements, and changing consumer preferences, significantly influenced the industry's trajectory. Adyasha Sinha reports

The Indian label industry faced several challenges during this past year.?

Global economic uncertainties and complex and ever-changing regulations hit the industry. Price pressure and thinning margins also presented significant challenges, with intense competition driving some converters to undercut prices unsustainably.?

Fluctuating raw material costs, especially for specialty papers, films and adhesives, remained another pain point for an otherwise booming industry.?

Many companies faced challenges adopting advanced machinery and automation to remain globally competitive. Subsequently, finding skilled operators to maintain consistent quality remains a persistent hurdle.

Despite these challenges, 2024 underscored the industry's resilience, adaptability and commitment to innovation. With lessons learned and challenges met head-on, India’s label and package printing sector is well-positioned for a promising future.

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Africa: Short runs, significant impact

The African packaging market is on the rise, fueled by a young, urbanizing consumer base and an increasing demand for affordable, smaller-sized packaging options, Akanksha Meena reports

The African packaging market is valued at 43.48 billion USD in 2024. It is expected to grow to 52.52 billion USD by 2029, reflecting a CAGR of 3.85 percent over the forecast period (2024-2029), according to a report by Mordor Intelligence.

While South Africa remains the largest market for labels and packaging, foreign investors have been paying close attention to East African nations, particularly Kenya, Ethiopia, Uganda, Rwanda and Tanzania. As previously reported in Labels & Labeling, some economic experts predict that Africa will be the second fastest-growing major economy in the world behind Asia. The rising number of young consumers is fueling the market, with an increased demand for consumer goods and growing individual incomes, particularly in East and West Africa. Consumers in this region prioritize value, favoring discounted and smaller package options.

Sachen Gudka, managing director of Skanem Interlabels Industries in Nairobi, affirms that the East African packaging industry is seeing growth in small SKUs in the short-run flexible packaging segment as consumers prefer buying smaller units of products due to the rising cost of living. ?

This also provides a substantial growth opportunity for converters in the region, as many families demand conveniently packaged goods across a wide array of fast-moving consumer goods.

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Middle East: Flexo leads the charge

The label and flexible packaging industry in the Middle East and Africa (MEA) region has been undergoing rapid transformation in 2024, driven by the rising demand for high-quality, sustainable, and cost-effective packaging. Akanksha Meena reports

Among the most prominent trends in this shift is the growing adoption of flexo technology, a versatile and efficient tool for meeting the evolving needs of brand owners, converters, and consumers alike. According to Grand View Research, the flexographic printing market in the Middle East and Africa is expected to reach a projected revenue of USD 1,027.7 million by 2030. A compound annual growth rate of 4.7 percent is expected of the Middle East and Africa flexographic printing market from 2024 to 2030.

Thomas S. Andersen, area sales manager at Nilpeter says: ‘The demand for flexo technology rose significantly in MEA as brands and converters sought high-quality, efficient solutions for flexible packaging. Flexo and inline combination machines have been pivotal in meeting these needs, especially in segments such as food and personal care, where speed and quality are paramount.’

As demand grows for smaller runs in flexible packaging, particularly for jobs requiring less than 500kg, the MEA region is seeing a surge in the use of mid-web flexo presses.? ‘Neither digital nor wide web gravure could meet the cost demands of the brand owners and the only solution providers are the converters with mid-web flexo presses. Nilpeter with 430/480/575/670mm wide presses are the right fit to such a growing segment,’ explains Manu Muraleekrishnan, regional business manager at Nilpeter.

Another significant development in the MEA region is the rising demand for narrow and mid-web presses, particularly for in-line board packaging production. Andersen highlights that these presses are favored for their ability to streamline production processes, improving efficiency while adding value to the final product.

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Asia-Pacific: Unpacking APAC potential

Multiple business intelligence firms have hailed the APAC region as one of the fastest-growing label markets globally. ? What’s the secret behind this growth? Piotr Wnuk reports

Due to the COVID-19 pandemic, the market for self-adhesive labels in the region was negatively impacted. The implementation of the lockdown in the region led to supply chain constraints that significantly obstructed the industry's expansion.?

‘The onset of the COVID-19 pandemic disrupted supply chains across the region, causing delays in raw material procurement and manufacturing operations. The label market was not immune to these challenges, facing both demand fluctuations and logistical hurdles,’ notes John Ooi, an industry veteran known for his visionary sustainability approach in label and packaging markets and founder of Materials in Works. ‘Many businesses had to halt or slow down operations due to lockdowns, labor shortages and transportation issues, leading to a temporary decline in production and sales.’

According to Mordor Intelligence, the market has made a full recovery and is on track to grow at a compound annual growth rate (CAGR) exceeding 6.3 percent through 2029. In the near term, the firm projects that the market will reach 16.23 billion USD by the close of this year.

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China: Entering a fast-reforming period

China leads the global label industry with rapid growth, innovation and market dominance. Yolanda Wang reports

According to the data released by Zhongpu Industrial Research Institute, the total output value of China’s printing market in 2024 exceeded 1.43 trillion RMB (197 billion USD), ranking first globally, showing its strong growth potential. The Chinese label printing industry is one of the fastest-growing areas.

China’s label industry started in the late 1970s, later than in Western countries. Thanks to the continuous and stable growth of China’s national economy, the growth rate of China’s label market has stayed high, making it one of the fastest-growing markets in the world.

In the Asian label market, China’s market share reached more than 60 percent. After years of development, China has become the world’s largest label producer and consumer, accounting for about a quarter of global label consumption. In 2023, China’s label printing industry was about 51.12 billion RMB (7 billion USD), increasing by 5.1 percent.

In China’s label market, self-adhesive and wet glue labels are the most prominent applications, while shrink sleeves, in-mold labels, and variable data labels have significant market share.

As the largest self-adhesive label market in the Asia-Pacific region, the demand in the Chinese market continues to grow. Statistics from the label Printing Branch of the Printing and Equipment Industry Association of China (PEIAC) show that from 2017 to 2023, China’s self-adhesive label production increased from 5.8 billion sqm to 9.98 billion sqm, with a CAGR of about 9.47 percent. This growth rate has slowed significantly compared to before the epidemic, as China’s label printing industry has entered a stable growth and development stage.

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The special issue of Labels & Labeling is also available for download on our website.

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