Coating - Aimcal

Executive Summaries • A Look Ahead
Labels & Labelstocks
There’s no doubt about it. The label industry has changed
dramatically in recent years. It’s now totally global –
whether industry suppliers or label-user brand owners
– they have a presence almost everywhere. Even key
converters are becoming increasingly international in
their operations with sites in more than one country or
continent.
The challenge for the industry has been that 80 percent
of label growth now comes from emerging markets,
especially China, India, South America, Eastern Europe
and Southeast Asia. Globally, labelstock growth still runs
at around 4-6 percent per annum; it’s just in different
places than where it historically used to be. While north
America and European market growth has declined to a
miniscule amount each year, places like China and India
are seeing double-digit growth. Suppliers to the industry
have had to rapidly adapt to this pattern of change,
building new coating, manufacturing and distribution/
service centers in developing markets.
Demand for label materials worldwide — now around 44
billion sq meters each year — has in turn lead to quite
rapid materials inflation and significant cost increases for
paper, film, adhesives and chemicals. This all comes at a
time when major buyers of labels have been rationalizing
their product lines and, at the same time, changing their
buying patterns to shorter and shorter run lengths, more
just-in-time sourcing and more variations and versions. In
addition, they have been looking to drive down prices.
not unsurprisingly, label-press manufacturers and
converters have had to adapt to the changing market
requirements for shorter runs and faster job changeover.
A key beneficiary has been the digital label press. Well
over 1,500 digital presses have been installed in the
global roll-label industry in the past eight years alone.
More than 300 new installations are expected during
2012, which will represent around 20 percent of new
narrow-web press installations this year.
Conventional label-press manufacturers are not sitting
idly by while digital races ahead. They have been bringing
out new innovations to compete in the quick-change,
quick-response, short-run marketplace. nilpeter, for
example, recently introduced its Revolver Die System
that enables a new die to be prepared while the press
is running. Shorter web paths, new chambered doctorblade
systems, slide-out print units, etc., are all helping
conventional (flexographic) press manufacturers to
compete in the new world of digital. Combination
printing-process presses are also continuing to find new
applications and markets.
96 | 2012 AIMCAL SourceBook
With shorter runs and more job changeovers comes a
growing need for enhanced prepress solutions, such as
HD Flexo and Digital Flexo Suite from EskoArtwork, and
more comprehensive management information systems
(MIS) and workflow software to handle 15, 20 or more job
changes per press per day.
On top of all the market and technology trends, there’s
also been an increasing demand from brand owners
and consumers for the label industry to be “greener.”
Labelexpo Europe saw the launch of thinner materials
(15 micron), fully-recyclable film liner, more labels per
roll, new recycling initiatives and new developments in
linerless and wash-off labels. Ink manufacturers, press
manufacturers, UV-curing system suppliers and others
are all applying environmental, waste-handling and
sustainability solutions.
So where does the label industry stand today? Pressuresensitive
labels continue to grow and are the dominant
technology in developed markets. Wet-glue labels are
still strong in emerging markets, but face increasing
competition. Shrink-sleeve labeling also is quite strong in
emerging markets and is even finding new applications
and markets in developed countries, but from a smaller
market base.
new ideas, applications and markets continue to be found
for labels. QR codes, Snap Tags, electronic labels and
other innovative, interactive ideas are gaining ground.
Smart labels are finding increasing applications, while
anti-counterfeit and brand-protection solutions are on
the rise. Converters certainly need to become more
customer- and service-focused, developing Web-toprint
portals, introducing MIS systems to link printer and
customer, and even becoming one-stop shops for more
than one label technology or to additionally supply folding
cartons, flexible packaging, pouches, sachets, etc., to the
same customer.
The world of labels is continuing to change, perhaps
faster now than ever before, but the opportunities are
still out there, and the best converters will survive and
grow. Labelexpo Americas in Chicago (Sept. 11-13)
undoubtedly will have much to encourage that growth. n
By Mike Fairley, director-strategic development,
Labels and Packaging Group, tarsus, +44-20-8846-
2700, email: mfairley@labelling.fsnet.co.uk,
www.labelexpo.com