Market Trends of Print Label Industry
The Food Industry to Create Significant Demand During Forecast Period
- The food industry is poised to dominate the print label market in the coming years. Consumers today exhibit heightened awareness regarding the contents of their food. This has led to a pronounced focus on the materials listed on product labels, prompting manufacturers to lean toward more prominent branding.
- Furthermore, the surging demand for packaged foods, driven by their assurance of quality, safety, and extended shelf life, is a key factor propelling the print label market. Data from the Federation of Indian Chambers of Commerce & Industry (FICCI) highlights that the expenditure on packaged foods is on the rise, attributed to factors like escalating per capita incomes, urbanization, and the increasing working hours for women.
- With the advancement of global economies, there is a notable uptick in the presence of modern retail outlets, including supermarkets and convenience stores. These outlets, particularly in emerging markets, are increasingly stocking a wider array of frozen food products. The Organisation for Economic Co-operation and Development (OECD) underscores a significant rise in the popularity of frozen and packaged foods. Notably, Germany saw a remarkable 56% surge in sales of personalized packaged foods.
- Insights from Label Insight and the Food Marketing Institute revealed that a staggering 86% of shoppers prioritize transparency when grocery shopping. They express a higher level of trust in food manufacturers and retailers who offer comprehensive and easily understandable ingredient information.
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Asia-Pacific is Expected to Hold a Major Share
- China, driven by heightened corporate interest, stands as the dominant economy in Asia-Pacific. All end-user industries in the country are witnessing growth, with a rapidly growing economy bolstered by a surging population, rising living standards, and increasing per capita income.
- The ascent of e-commerce powerhouses, exemplified by Alibaba, is poised to propel the print labels market in China over the coming years. As a testament to this, during Alibaba's Double 11 shopping extravaganza, Chinese consumers were inundated with nearly 1.9 billion packages.
- Not to be outdone, the e-commerce surge in India is primed to drive the adoption of print labels. Projections from Invest India suggest that the Indian e-commerce landscape is on track to achieve a 30% CAGR, aiming for a USD 200 billion gross merchandise value by 2026, with a market penetration target of 12%, a significant leap from the current 2%.
- Highlighting the trend, Australia's e-commerce scene saw a notable surge. As per the Australia Post's e-commerce industry report, consumers spent a hefty USD 310.29 billion on retail sales, marking a 9.7% increase from the previous year. Online purchases, reflecting heightened consumer engagement, soared by 57% year-on-year, with a record USD 50.46 billion spent online, constituting 16.3% of total retail sales. This is a milestone the nation is eyeing for the upcoming year.
- Further underlining the industry's vigor, in March of the previous year, Multi-Color Corporation, a leading label entity, made waves with its acquisition of Herrods. Based in Melbourne, Australia, Herrods specializes in in-mold label (IML) solutions, catering to markets in Australia and New Zealand. Herrods was already on a growth trajectory, expanding its operations to meet the escalating demand. Multi-Color Corporation's move was strategic, aiming to leverage this added capacity to enhance service offerings for both new and existing clientele in the region.
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