THE DATA FRONT

Labels&Labeling |93
Label films offer
growth opportunity
In what it claims is the most in-depth study to date of the market for plastics labels in Europe, consultancy
AMI paints a rosy picture of the current market position and future prospects. Andy Thomas reports
Consultancy AMI has completed
an in-depth study of the market
for plastic-based labels in Europe,
identifying both the size of the market
and its future trends, as well as providing
a detailed analysis of the structure of the
value chain for each label technology.
According to AMI’s research in 2008
plastic films accounted for 27 percent
of the 13 billion meters squared of label
facestock used in Europe. However,
while the demand for paper-based
labels is expected to show little or no
growth over the next five years, demand
for plastic labels is expected to grow by
over 6 percent/year, says the report, so
that by 2013 plastic labels will account
for a third of the European label market.
While weak food volumes and
destocking towards the end of 2008
meant demand weakened throughout
the year, the overall prospects for plastic
labels remain strong. The importance of
the label within the consumer product
marketing mix is fuelling demand for
plastic labels, and brands remain
committed to investing in added-value
product presentation.
The market is being driven by growing
demand for clear-on-clear labels in
food and beverage applications, says
AMI, along with innovations in plastic
containers, plastic’s ability to deliver
aesthetics and functionality superior to
traditional materials and growth in the
packaged consumer goods industry in
Eastern Europe.
The largest market for plastic label
film is in self adhesive labels. In square
meterage terms, plastic self adhesive
labels accounted for 35 percent of
demand for plastic labels in Europe
in 2008. ‘With only one-quarter of the
total self-adhesive label market based
on plastic film, there is considerable
opportunity for replacement of paper
and this trend will help drive demand
growth of 7 percent/year to 2013,’ says
AMI. In glue-applied labels, plastic labels
accounted for 15 percent of the total
market in 2008 or 25 percent of the total
demand for plastic labels. Plastic film is
mainly used in wrap-around labels and
for roll-on-shrink-on-labels. The market
is being driven by paper replacement
and the development of plastic spot
patch labels – currently this market is
almost entirely in paper. AMI forecasts
this segment to grow by 5 percent/year
to 2013. There also exist specific label
applications, which have developed
through the use of plastic film, namely
in-mould labels and sleeve labels. Both
of these applications are expected
to enjoy growth of between 5 and 6
percent/year driven by new application
opportunities in food and beverage
containers.
A further 10 percent of the plastic label
market is accounted for by release liner
used with self-adhesive labels. AMI’s
comprehensive survey details both
the production of plastic film and the
demand from printers/converters. Plastic
film production for label applications
in Europe amounted to nearly 200,000
tonnes in 2008. Europe is a net exporter
of these films and demand from printers
and converters of labels amounted to
186,000 tonnes.
The types of plastic film used vary
significantly within each segment of
the label market. The primary material
used is PP which is the main material
used in the production of glue-applied
and in-mould labels. PE films are mainly
used in self-adhesive labels, while
PET and PVC films find use primarily
in sleeve labels. In addition, the rapid
development of plastic release liner
within the self-adhesive labels industry
is expected to contribute to annual
demand growth of over ten percent
for PET film within label applications in
Europe.
Supply of film in Europe is highly
concentrated, with 74 percent of output
accounted for by ten companies in 2008.
Most of the leading players are focused
on a particular segment of the plastic
label market, a consequence primarily of
the film technology employed. Nordenia
is the leading supplier of PE film;
Treofan, ExxonMobil and Innovia the
leading PP film suppliers to this market;
Klöckner Pentaplast is the leading
supplier of PET and PVC films.
The printing and converting of plastic
labels is more fragmented, with the
top 10 printers accounting for only 39
percent of production in 2008. The
largest printer of plastic labels is CCL
Label, which operates several sites
across Europe and has a leading
position in most plastic label segments,
apart from glue-applied. That sector is
led by Constantia and Mondi Packaging.
Fuji Seal is another leading supplier and
is an integrated film extruder/printer for
the shrink sleeve sector.
‘The European market for plastic
labels’ is a detailed market research
report published in January 2009. For
further information please contact John
Nash at AMI: jsn@amiplastics.com or
+44 117 924 9442.
An excellent example of leading edge plastics
labeling technology: CCL Decorative Sleeves and
CCL Label East Kilbride combined to deliver a sleeve
solution for the 5 liter container for the Dulux PaintPod
may 2009 | L&L