Rus Articles Journal

Label on raising of

the Last 15 - 20 years the world industry of labels - one of the most dynamically developing branches of the printing market. Meanwhile now in a label segment the competition sharply escalated, profit markup was slowed down, and consolidation and globalization of producers becomes the main characteristic of the market. This process lasts several years, and in recent years considerably accelerated.

By 2007 the capacity of the world market of a label was estimated at 36,6 bln sq.m. According to consulting agency Freedonia, the tendency of growth of the world label industry in the next years will remain invariable. Growth rates of demand remain at the level of 6% today. It is worth emphasizing that growth rates of world production of a label advance consumption a little and there correspond on average 9%.

Structure of the world market

Europe is the largest market of a label in the world. Demand volume corresponds 37%, or 11,9 billion quarter here. m from universal demand for a label. North America led by the USA follows (27%, or about 9 billion sq.m). Also in the three of leaders - Hugo - East Asia: it possesses 18% of the total volume of consumption of a label. The countries of Asia, first of all China, develop the highest rates now. Increase in production of a label in them is approximately twice higher than average world. In the next five - ten years, according to forecasts of analysts, this region can become the largest producer of a label. One of the reasons: large global manufacturers even more often form new production capacities in the countries of Asia, Eastern Europe and Latin America as the tendency of intensive economic growth is peculiar to the markets of developing countries.

Regional structure of demand for a label in the world, %

If to look from the point of view of the production technology of labels, then the leading positions still occupy self-adhesive labels, today about 55% of total production are the share of them. Rather new, fast-growing segments, such as labels - the explanations applied on goods in segments of personal hygiene and medical supplies and also the labels used in combination with systems of electronic safety are created on the basis of production technologies of self-adhesive labels. As the difference in costs of production between traditional (27% of the world market) and self-adhesive labels considerably will decrease, the last will continue the expansion on a share of traditional types of a label on a glue basis and labels of a hot stamping. The most considerable prospects in the market of a label vpressovanny and thermoshrinkable hose labels as they have indisputable advantages thanks to the esthetics have and can be used in combination with other types of labels, including for improvement of appearance of a container. The output of a plastic container with a vpressovanny label is for the present very small - 2% of the total amount of consumption, however growth rates of this segment the highest. As for hose types of a label, they occupy 13% in the world market. Mainly, it is round and thermoshrinkable labels.

The world structure of consumption of a label, %

In the market of labels was outlined one more tendency - their growing level. The products called (Smart Labels) are already applied. Their secret consists in an integrated chip which opens ample opportunities of application. Such labels can be used for traffic control of products and materials in production lines, and also for prevention of thefts and fakes.

the European market of a label

Following the results of 2007 the volume of demand for a label in the countries of Western and Eastern Europe made about 11,9 bln sq.m. According to research of consulting agency AWA Alexander Watson Assoc., growth of the market in Europe since 2002 is estimated at the level of 5,5%. The European structure of consumption of a label by views with some distinctions reflects the average world structure of consumption. The following types of a label are the most popular in Europe (in decreasing order):

- self-adhesive,

- traditional ,

- hose,

- vpressovanny.

The segment of a self-adhesive label grew at the highest rates since 1980 and now takes the leading positions in the market of a label in general. The share of this segment in 2005 was estimated at 44%. The second place is taken by a so-called label: it possesses 37% of the total volume of consumption of a label in tonnage expression. In spite of the fact that growth rates of the market of a label were significantly slowed down and so far became minimum (1 - 2%), consumers of labels still continue to give preference to traditional technologies. So high share of a label in the general structure of consumption is in many respects provided with its popularity in the market of beer and drinks. Meanwhile from 2001 to 2007 the consumer structure is gradually displaced in favor of hose and vpressovanny types of a label (see the chart). Today the segment of a hose label grows at the highest rates. And the greatest increase in demand is observed in a segment of a circular label - about 18 - 20%. Besides, recently producers of a circular label even more often pass to a film, forcing out paper. At the European manufacturers the opaque focused polypropylene film (OPP) as metallized, and white enjoys the greatest popularity, usually it is applied with glue. Such label became the most acceptable format for packing of PET - bottles of the average and big size with mineral and sweet sparkling water.

Structure of consumption of a label in 2001, %

the Structure of consumption of a label in 2007, %

the Market of a thermoshrinkable label also continues to grow at high rates - about 15% a year. However the structure of consumption of materials from which the label is made changes, producers pass from polyvinylchloride films to focused polystyrene (OPS), poliestrovy (PET) and even to polypropylene (PP) films. The thermoshrinkable film differs in high beauty and appeal, and also an opportunity to present the largest volume of information. By estimates of analysts, at start of new grocery lines or a repozitsionirovaniya of already existing goods the thermoshrinkable label generally is used.

Growth of world demand for a label in 2002 - 2007, in one million sq.m

Annual growth rates of demand for labels of different types in Europe, %

Besides increases popularity of the label made on technology. So far volumes of consumption of bottles / containers with a vpressovanny label in the West are small, however the growth rates of demand inspiring - 15 - 16% per annum. It should be noted that the European technology differs from the American standards. So, in Europe about 80% of packing with a vpressovanny label are made by a molding method under pressure, meanwhile in North America this percent reaches only 15% - local producers of packing in most cases prefer having blown.

The size of the market of a paper label exceeds 8,68 bln sq.m. Despite the outlined tendency of transition to film materials in separate segments of the market, paper all the same remains the absolute favourite in production of a label. At the same time growth of the market very slow. According to the experts, now it is at the level of 1,5 - 2% a year. The film share in the general structure of production of a label makes about 24%, or 2 856 mln sq.m. However growth of the market in this segment is estimated at the level of 11%. So significant growth rates are explained by popularity of a film in hose and self-adhesive labels. Besides, the market of a label can be segmented depending on spheres of final consumption.

Annual growth rates of demand for label material in Europe, %

the Ratio of consumer segments in the European market of labels, in one million sq.m

the Largest consumer segments still remain food and drinks, 20% and 39% respectively of the total amount of demand for labels in Europe fall to their share. All other segments of the market strongly concede to two previous. However it is possible to distinguish the most significant from them: labels / stickers for tracking of commodity turnover in retail - 7%, office goods - 6%, logistics and transportation - 6%.

Considering use of different types of labels on branches of consumption, it is possible to note the following. In a segment of products and drinks level of consumption of self-bonding makes slightly less than 50%. Other volume of packing is labeled by a dry and hose label. And in structure of two last types more than 55% are necessary on . - circular and thermoshrinkable labels - take away the share in sector of the mineral, aerated waters and low alcohol drinks. Vpressovanny labels are used, as a rule, in the grocery market for packing of ice cream, and also pastelike products (pastes, jams etc.) . In automotive industry and a segment of consumer goods of long use self-adhesive labels prevail. Industrial and household chemicals can be labeled by means of various technologies. Until now self-adhesive labels enjoyed the greatest popularity, however in some spheres they are gradually replaced with a vpressovanny label. So, for household chemicals the thermoshrinkable label is often used.

The European market of a thermoshrinkable label

the Total volume of consumption of hose labels is estimated at 1 660 mln sq.m. As it was already noted above, grow at the highest rates (on average to 15%) as give to designers ample opportunities for dressing, and also the greatest recognition of a brand in comparison with other types of packaging. In the general structure of demand for hose labels more than a half of volume (59%) are occupied by a circular label. The volume of consumption of a thermoshrinkable label - 448,2 mln sq.m. In Europe PVC - a film, about 70% is applied to its production mainly. At this PET - the film is used for production of 23% of a label, OPS - 7%. Two thirds of total volume of consumption of a thermoshrinkable label are the share of producers of various drinks. 27% are taken away by producers of soft and low alcohol drinks, and also beer. A quarter of cumulative consumption of a thermoshrinkable label is the share of packing of kefirs, liquid yogurts, dairy products. Slightly smaller share is the share of packing of fruit juice - 23%. Use of a thermoshrinkable label pharmaceutical industry and producers of household chemicals, respectively 15% and 8% is significant.

About 2% of thermoshrinkable labels are consumed when packing butters, creams, cream.