Pressure Labels Market – Growth, Trends, COVID-19 Impact, and Forecasts (2021 – 2026)

The pressure labels market was valued at USD 93.19 billion in 2020 and is expected to reach USD 119.7 billion by 2026, at a CAGR of 4.26% over the forecast period 2021 – 2026. Pressure-sensitive labels will continue to be the most used label technology in the world. They have widespread applications in the food industry. Their applications are not limited to food and beverage but are also being used in the pharmaceutical industry, consumer durables, personal care, and other industries like construction even.

– Pressure-sensitive labels (PSL) /self-adhesive labels currently continue to have a major share in the overall label format segment during the forecast period. According to FINAT’s 2019 report, self-adhesive labels have the majority share, at 40%, with glue applied labels in second place at 35%, and the sleeve labeling technologies in third place at 19%. 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.
– Depending upon the usage, different adhesives can make pressure-sensitive labels removable or permanent. Additionally, pressure-sensitive adhesives for the heavy-duty application can last through extreme temperatures. They can support the weights of bulky labels, such as extended content labels, making them suitable for a wide variety of applications across various end-users, such as automotive products, cleaning products, alcohol/wine and spirits, and food and beverage.
– Also, the face stock of the PS Labels been made of recycled material grow in line with the growing consciousness concerning sustainability in the minds of the consumer. Further, technological advancements have allowed many companies to come up with special adhesives that do not interfere with recycling. Sustainable innovations like this are expected to help Pressure Sensitive labels to consolidate their position as market leaders.
– Further, the increasing share of the pressure-sensitive label market is using PE, PP, PET, PVC polymer film materials to provide added functionality, such as strength, moisture impermeability, color, surface smoothness, transparency, high gloss, durability, mechanical resistance to the label. Sustainability, durability, RFID, growth in anti-counterfeit labels, and removable and repositionable films as facestock are some of the important trends provided by the pressure-sensitive labels.
– Additionally, amidst of COVID-19 situation, the food, beverage, as well as the 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, for most of the vendors, the losses are increasing with sales and production on hold. The raw material prices are also rising, coupled with increased competition and evolving printing and decorating technologies.

Key Market Trends

Beverage End-User Segment is Expected to Drive Growth of Pressure Labels

– In terms of application, the beverage end-user segment is expected to grow at the fastest rate during the forecast period in terms of volume, due to the growing demand for packaged and branded products, and growing consumer awareness about authenticity and other details of the product.
– Pressure-sensitive labeling plays a crucial role for beverage labeling, as it is important for the labels to adhere to the container in a variety of environments. In beverage labeling, an adhesive designed should stick quickly and stay in place as needed, whether the application condition is room temperature or something more challenging, like 20F to 40F. The label and adhesive must meet the needed durability despite cold, moisture, and repeated product handling.
– The growth in Anti-Counterfeit Labels​ is expected to be one of the major drivers for the Pressure Labels. This is particularly significant for the food industry as it prevents imitation and confirms the authenticity of the food. Anti-counterfeit measurements also help companies minimize losses due to counterfeiting in-term of revenue and loyalty. Pressure Labels are mostly used in food and pharmaceutical product labeling to reduce counterfeiting by using barcodes for tracking or RFID technology.
– Label vendors are addressing sustainability trends by developing and offering label products to help beverage brands meet their packaging-related sustainability goals. For labels being applied to PET containers, there are new developments, including recyclable pressure-sensitive labels that easily separate from PET containers in recycling systems. For instance, Hammer Packaging Inc works closely with substrate manufacturers to support sustainability efforts. It has been working on innovative solutions for the pressure-sensitive label segment of its business.

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North America is Expected to Register Market Growth

– 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., North America’s largest privately owned 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 announces 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.
– Further, Partnerships are also propelling the market demand in the region; for instance, in December 2019, Mark Andy and UPM Raflatac entered a strategic partnership in the North American pressure-sensitive label market. This partnership is expected to allow these players to develop high-quality, sustainable printing options for both flexographic and digital converters.

Competitive Landscape

The Competitive Landscape for the Pressure Labels Market is highly fragmented due to the presence of a number of small and medium-sized players. This makes the market extremely competitive too. The recent developments in the market are as follows:-

– September 2019 – Lecta expanded its Adestor self-adhesive product portfolio by launching a new range of rubber-based Adestor Hot-Melt adhesives. Adestor HM100 and Adestor HM300 have been launched ​for the food sector, ​specifically for labeling under chilled or even frozen conditions, and Adestor HM200L developed for labeling in logistics and retail applications.
– August 2019: Fort Dearborn Company made a multi-million-dollar purchase of five new high-performance HP Indigo labels and packaging presses. The expanded digital capacity both HP Indigo 20000 and 6900 digital presses are likely to enable Fort Dearborn to expand production and speed delivery of digitally printed wrap-around labels, cut and stack labels, security labels, pressure-sensitive, and shrink sleeves.

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