About the Report
In the last couple of years, penetration of retail chains across the globe has boosted the sales of the consumer and non-consumer goods. Rising demand for clothing & apparels, pack food items, and consumer electronics gadgets has been fuelling the demand for labelling solutions. This has created an ideal environment for sales hang tags. These tags are primarily used by manufacturers to display product information and their brand logos.
In its new study, ESOMAR-certified market research and consulting firm Future Market Insights (FMI) offers insights about key factors driving demand for hang tags. The report tracks the global sales of hang tags in 20+ high-growth markets, along with analyzing the impact COVID-19 has had on the hang tags industry.
How Historic and Future Outlook for Hang Tags Market Compare?
Hang tag is an effective medium for communicating the must-know information to users. In the past few years, end users have shown greater inclination towards use of sticky notes, labels, and other tags for conveying product information. However, some of the end users such as textiles and apparels were facing numerous challenges with the sticky labels, as quality of the product get damaged on removal of these labels. Sticky labels can cause color damage and bubble formation on clothes, due to manufacturers gradually switched from the traditional labels solution to hang tags. Against this backdrop, FMI predicts that the clothing and apparels segment has lion’s share in the global hang tags market, during the forecast period.
Manufacturers are looking for a way to properly and effectively market their products. Many businesses such as clothing, retail fashion, and accessories mostly rely on eye-catchy printing on the hang tags to generate sales. Advanced printing technology based and die cut hang tags are easily grabbing consumer’s attention. Therefore, FMI predicts promising future for the hang tags market growth on the back of increasing need for effective branding and promotions.
According to FMI’s analysis, hang tags sales have grown at 3.3 % CAGR between 2015 and 2020. Hang tag is an opportunity to gain attention of consumers and establishing a brand name. They can create a memorable experience for whoever interacts with a product. With their super attractive glossy finishing, hang tags offers extra wow-factor and lure consumers. Brand owners from different industries are becoming increasingly reliant on hang tags for product banding.
The emergence of hang tags as an effective branding tool is propelling its demand in the market. Furthermore, design level innovation is at all-time high in hang tags. Nowadays brand owners directly contact with the hang tags manufacturers for required customization. With a full range of hang tag designs and finishing options, brand owners order hang tags which they consider are best suited for respective products. Design level innovations in hang tags is boosting their sales to a significant extent.
How will Expansion of E-commerce Sector Impact Hang Tags Sales?
The global E-commerce sector has experienced astonishing growth in the last few years and is projected to witness the same during the foreseeable future. Increasing online shopping among millennials have boosted growth of the E-commerce sector. Starting from consumer goods, clothing & apparel, electronic gadgets to food and beverage items, hang tags come with these products either for product information or brand promotion.
In the last couple of years, online buying has witnessed a significant spike owing to several factors such as ease of purchasing, variety of options, attractive pricing offers, and time-saving. Consistently rising inclination of people towards online shopping not only pushes growth in the E-commerce industry but fuels the demand for hang tags. This rapid expansion of the E-commerce industry will therefore induce a positive impact on the hang tags market.
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What is the Impact of Organized Retailing on Hang Tags Sales?
Hang tags are predominantly attached with merchandise, consumers, and non-consumer goods to provide the required information about products to customers. Hang tags have become an integral part of a wide range of products and an efficient way of branding and advertising.
In the last couple of years, the global retail industry has witnessed immense growth and a noteworthy increase in several modern retail formats such as convenience stores, supermarkets, specialty stores, hypermarkets, and others. Factors such as changing lifestyle, increasing per capita income of individuals, changing eating and drinking patterns, and others have propelled the growth of the organized retail sector.
This rapid expansion of the organized retail sector has increased the demand for products that require hang tags for product identification, authentication, and branding.
Is Food & Beverages Sector A Key End User of Hang Tags?
Hang tags are popularly used by garments and clothing brands, but in the last few years, the use of hang tags in the food and beverage items has risen significantly. Starting from beverage bottles to packed food items, hang tags are immensely use for brand promotion and to advance the aesthetic of products. The global food and beverage industry has experienced spectacular market growth in recent years.
This attractive market growth is significantly driven by rising expenditure on food & beverage consumption and inclination towards packaged food and beverage items. Hang tags attached with these items offer a new experience to customers in terms of product interaction and lure a major portion of the customers.
Rising consumption of packed food items and carbonated and non-carbonated drinks among the youth, which has propelled the market growth of the global food and beverage industry. This factor has ultimately widened the applications of hang tags in the food and beverage industry and also uplifts its sales significantly.
Will Availability of Alternative Labeling Hamper Growth?
Manufacturers operating in the global beauty and personal care, clothing and apparel, food & beverages, and other industries are eager to switch to advanced labelling solutions for product branding. Even though a significant portion of manufacturers are using hang tags for showcasing the product information to customers, there is adequate availability of alternative labelling and tag solutions in the market.
Labelling solutions such as pressure-sensitive labels, QR code stickers, and others are also used frequently to indicate the product information and product branding. The consistent adoption and preference for these alternative solutions are impacting the sales of hang tags. Development and adoption of such alternative labelling and tag solutions are projected to limit the sale of hang tags to a certain extent during the upcoming years.
Why is Consumption of Hang Tags Increasing in the U.S.?
The consumption of hang tags in the U.S. market has increased in multiples in the past couple of years. This growth is attributable to the increasing sales of electronic goods. As per the U.S. Environmental Protection Agency (EPA), American has manufactured nearly 3 Mn Tons of consumer electronic goods in the year 2018.
To provide essential guidelines and product information, many of the manufacturers of electronic goods are adopting hang tags over labels. The consumer electronics industry in the U.S. is estimated to increase at a growth rate of 4.3% in 2021 and therefore, FMI predicts that the consumption of hang tags in the electronics industries will increase exponentially in near future.
Why are Market Players Attracted to China Hang Tags Market?
As per the report published by PlasticsEurope, a European association of plastic manufacturers, Asia is the largest producer of plastics in 2018 and China holds a prominent market share of 30% of Asia’s plastic production. Significant production of plastic in the country resulted in easy availability of the raw material for key players of the hang tags market.
Further, low material prices, manufacturing cost and labour cost in the country propelling additional benefits for the key players. On the back of these factors, the sales of plastic hang tags in China market is expected to gain a new horizon and reach over US$ 96.4 Mn, by the 2031-year end.
How will India’s Evergreen Textile Industry Impact Hang Tags Sales?
India’s textile sector is one of the oldest sectors in the economy, dating back to several decades. Hang tags are predominantly used or attached with clothes and garments for indicating the product information. The rising manufacturing output from Indian textile industry has creates the significant demand for hang tags in the Market.
As per the India Brand Equity Foundation (IBEF), the Indian textile and apparel industry contributed 12% of the export earnings in 2019. Furthermore, in 2020 India has exported readymade garments of worth US$ 1.04 Bn. This economic growth of Indian textile sector is ultimately projected to fuel the sales of hang tags during the foreseeable future.
How is Growth of Cosmetics Industry Shaping Germany Hang Tags Market?
The cosmetics industry is one of the fastest-growing industry in the Germany market. As per Cosmetics Europe, the personal care association, Germany is the largest national market for the sales of cosmetics and personal care products and contributing to nearly US$ 16 Bn (Euro 14 Bn) in 2019. Following this, France is the second leading country for boosting sales to US$ 13.8 Bn (Euro 11.4 Bn) in 2019. On the back of the increasing demand for cosmetics and personal care products, the consumption of hang tags in Germany is expected to increase during the forecast period.
How is Increasing Tourism in Japan Driving Hang Tags Sales?
Increasing tourism across Japan has a significant impact on the demand and consumption of hang tags. As per International Trade Administration, Japanese outbound travelers reached 20.1 Million in 2019. An increasing number of travelers reciprocates prominent sales of clothing, apparels, fashion jewellery and many artefacts.
Manufactures of these products have significant demand for the quality tags to ensure gain attention of the buyers and effectively share product information. It is anticipated that the demand for plastic tags is increased in the past several years due to their tamper resistance, However, fabric tags are expected to increase with the prominent CAGR of 6.3% during 2021-2031 attributed to increasing demand for green tag solutions.
Which is Preferred Material for Hang Tags Manufacturing?
As per the FMI, paper is the most commonly used and preferred material for manufacturing hang tags. Hang tags made up of paper are glossy and are available in a variety of shapes as per the brand owner’s requirement. Possibility of customizing paper hang tags makes it first choice among end users. On the back of these factors, the segment is projected to expand by 1.7 times to its current market value during the forecast period.
Which Printing Technology is Gaining Traction in Hang Tag Market?
Leading as well as medium scale hang tag manufacturers are using flexo printing and direct thermal printing technologies to print a variety of hang tags. Printing ability for long run, precise print finish, and print durability are a few factors that encouraged manufactures to use flexo printing and direct thermal printings over the others. These two printing technologies are anticipated to hold ~60% of the market share by the end of 2031.
What is the Top-selling Hang Tag Type?
By hang type, the global hang tags market is thoroughly driven by hang tag/swing tag segment. Hang tag/swing tag segment is anticipated to gain 210 BPS due to its frequent use and wide applications in clothing & apparels and hospitality and travel industries. On the back of its consistent demand, the segment is projected to hold more than 80% of the market share by the end of 2031.
Who is the Leading End User of Hang Tag?
As per the FMI clothing & apparels segment is going to be the most attractive end use segment in the foreseeable future. Rising demand for stylish hang tags in clothing & apparels industry for brand promotion and to provide precise information to the customers is providing ample revenue generating opportunities to the hang tags manufacturers. The target segment is estimated to offer incremental opportunity of US$ 263 Mn by the end of 2026.
Manufacturers operating in the global hang tags market are focusing on designing and manufacturing application oriented hang tags so that they can be used in various industries. There is a massive scope for product innovation and customization in the global hang tags market. Hang tag manufacturers are accepting the design for hang tags from brand owners and manufacture hang tags which best suited for the respective products.
These hang tags manufacturers are also incorporating advance printing techniques such as flexo, direct thermal, thermal transfer and others to print hang tags with elegant finishing. For instance, St. Louis Tag Company and Signal Ltd., one of the leading hang tags manufacturers design and manufacture customize hang tags by using thermal transfer and flexo printing methods for glossy finish. These companies hang tags finds wide range of application from logistics and inventory management to door hanger tags in hospitality and travel business.
Some of the leading companies operating in the market are:
- CCL Industries Inc
- Sato Holdings Corporation
- Dutch Label Shop
- St. Louis Tag Company
- Nilorn Group
- Finotex USA Corporation
- Pacific Coast Bach Label Inc
- Dortex Werbung und Vertrieb mbH
- Bornemann-Etiketten GmbH
- Signal Ltd
- CBF Labels Inc
*The list is not exhaustive, and only for representational purposes. Full competitive intelligence with SWOT analysis available in the report.
Scope of the Report
Historical Data Available for
USD Million for value and Mn Units for Volume
Key Regions Covered
North America, Latin America, Europe, South Asia, East Asia, MEA, and Oceania
Key Countries Covered
US, Canada, Brazil, Germany, U.K., France, Italy, Spain, Poland, Russia, China, India, GCC, South Africa, Northern Africa, Australia, and New Zealand
Key Segments Covered
Material Type, Hang Type, Printing Technology, End Use, and Region
Key Companies Profiled
Market Forecast, Brand share analysis, Competition intelligence, DROT analysis, Market Dynamics and Challenges, Strategic Growth Initiatives
Customization & Pricing
Key Questions Answered in the Report
Which is the Most Lucrative Market for Hang Tags?
South and East Asia are going to be the most lucrative market for hang tags during the next ten years. Sales in these regions will be over ~35 % of total demand throughout the forecast period.
Which is the Top-Selling Hang Tags by Tag Type?
Hang tag/swing tags are top selling and preferred hang tags in the market. The demand for hang tag/swing tags is expected to rise in the coming years owing to their wide range of applicability compared to loop tags.
Which Material is Preferred for Hang Tags Manufacturing?
Paper is the preferred material for manufacturing hang tags. This segment will holds over 55 % of the hang tags market by 2031.
Which are Some of the Leading Companies Offering Hang Tags?
Some of the leading companies offering hang tags are CCL Industries Inc, Sato Holdings Corporation, Nilorn Group, Dutch Label Shop, Dortex Werbung und Vertrieb mbH, Bornemann-Etiketten GmbH among others.
Which End User Holds Leading Share in Hang Tags Market?
As per FMI, clothing & apparels end use segment is exhibiting consistent demand for hang tags. This segment is projected to dominate the hang tags market with more than 55% of the overall share by 2031.
Enquiry before Buying
- Is this research conducted by Future Market Insights?
Yes, the research has been conducted by expert analysts of Future Market Insights through a combination of primary research and secondary research. To know more about how the research was conducted, you can speak to research analyst
- What research methodology is followed by FMI?
FMI follows a methodology that encompasses demand side assessment of the market, and triangulates the same through supply side analysis. This methodology is based on use of standard market structure, methods and definitions. Request detailed methodology
- Who are the respondents for primary research?
FMI speaks to stakeholders across the spectrum, including C-level executives, distributors, product manufacturers, industry experts. For a full list of primary respondents, please reach out to us.
- What are the sources of secondary research?
FMI conducts extensive secondary research through proprietary databases, paid databases, and information available in the public domain. We refer to industry associations, company press releases, annual reports, investor presentations, and research papers. More information about desk research is available upon request.
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Hang Tags Market by Category
- Other Composite Material
- Hang Tag/Swing Tag
- Loop Tag
- Direct Thermal
- Thermal Transfer
- Flexo Printing
- Offset and Screen Printing
- Laser Printing
- Clothing and Apparels
- Food and Beverages
- Hospitality and Travel
- Beauty and Personal Care
- Consumer Electronics
- North America
- Latin America
- South Asia
- East Asia
- Middle East and Africa (MEA)