The global pre-gummed labels market is anticipated to accumulate a market value of US$ 32.2 billion in 2023 and is expected to garner a valuation of US$ 51 billion by exhibiting a CAGR of 4.7 % in the forecast period 2023 to 2033. The market for pre-gummed labels reflected growth witha 3.9% CAGR in the historical period 2018 to 2022.
Pre-gummed labels are known to enhance the aesthetic features of food and beverage packaging brands. Labeling and packaging play an important role in the sale of products, as they help to attract consumers' attention. They are primarily used by marketers to encourage potential consumers to purchase the product.
Labels provide information about the usage, transport, recycling, and/or disposal of the package or product. These features are expected to fuel the product demand in the coming years. These labels provide product and ingredient information and cautionary notifications in the food and beverage sector. Self-adhesive label manufacturers need to take care of the legal requirements put in place to ensure that the adhesive does not affect the quality of food ingredients.
Also, the expansion of retail marketing and the presence of digital platforms for the support of the retailers, and the convenient packaging materials are some of the other factors responsible for inducing growth in the market. On the other hand, with technological advancements and its integration into the packaging industry at large, the labels market is also transforming itself and with this transition, new market opportunities are being presented which will help the market to grow.
For example, the growing popularity of RFID technology in the label industry is giving a positive push to the market. This technology eliminates human errors and cuts employment costs, works without human intervention, and reads a long range of information. RFID labels are also less sensitive to negative conditions. Also, these technologically improved labels allow direct package-to-smartphone communication which is further expected to augment market growth.
Besides this, the manufacturers and the vendors are minimizing the industrial processes involved in pre-gum label manufacturing. Previously, the rolls or sheets were produced and then given to the printing industry to print the product information which consumed a lot of time and energy.
But now, the advancements in technology and the developments in machinery have potentially incorporated both processes in one place efficiently. This is resulting in an increased margin level for the clients. Such kind of advancements is creating lucrative opportunities for the overall growth of the market. The flourishing growth in the e-commerce sector, rising number of manufacturing industries, and the growing sales rate with the help of e-commerce sectors are some of the other key market drivers, propelling product sales.
Region-wise, Asia-Pacific is expected to dominate the market by withholding 38% market share by end of the projection period. With the flourishing packaging and healthcare industries in countries like India, China Japan, and South Korea, the consumption of gummed labels is increasing in the region.
In the Asia Pacific, China is the biggest center for electronics production. Electronic products, like smartphones, TVs, and other personal electronic devices, registered highest growth in the electronics segment. The country serves the domestic demand for electronics and exports electronic products to other countries. With the growing disposable incomes of the middle-class population, the demand for electronic products is expected to increase. Thus, the increased demand for electronic products will grow side by side with the pre-gummed labels market during the forecast period.
North America is expected to show significant growth with a CAGR of 4.5% due to a robust manufacturing base. Growing e-commerce sector in the United States is propelling the demand for adhesive labels that are used for packaging. Furthermore, growing disposable income is also anticipated to drive the demand for consumer goods which shall spur growth in the market.
There has been a significant rise in demand for consumables, ready-to-eat food, packaged food, and beverages due to fast-paced life of the working population. High demand for removable adhesive labels from end-use industries like food and beverages, e-commerce, packaging, pharmaceuticals, and others will foster market progress in the region.
Data Points
Key Statistics
Expected Market Value in 2023
US$ 32.2 billion
Projected Market Value in 2033
US$ 51 billion
Growth Rate (2023 to 2033)
4.7 % CAGR
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How Competitive is the Market?
Recent developments and breakthroughs in technology, mergers, acquisitions, tie-ups, and partnerships within the companies involved in manufacturing pre-gummed labels are expected to create lucrative opportunities for market growth during the forecast period.
In May 2022,Mondi informed about the switching of glassine-based liners to certified base paper to move to an environmentally benign supply chain and get a strong grip in European markets.
In May 2022, UPM purchased AMC AG, a German-based company. This move will expand the product base of UPM Raflatac in the coming period and in expanding economies.
A pre-gummed label is a piece of paper or other material which is already glued while manufacturing, that may give the information about the object it is attached to when printed which is an informative element for both, packaging as well as the product. Pre-gummed labels are produced using an advanced type of basic material and advanced tools.
These labels are produced with extreme excellence coupled with high standards of superiority. The pre-gummed labels are predominantly used to notice down the important contents and information such as barcode, RFID, product description, tracking code, and authentication coding for the product. They are also used for enhancing the decoration part on the label which can then be used to gain attention and thereby attract customers.
Pre-gummed labels are made up of three different layers, a layer of adhesive, release liner, and the face material. Pre-gummed labels impart various benefits when considering the packaging and labeling of the product, like they are easy to use, manufactured using accurate dimensions, and have an excellent finishing giving out sharp and precise edges.
All these factors are further expected to benefit into increasing the growth of pre-gummed labels consumption to new highs.
What are the Key Trends Impacting Growth of the Pre-gummed Labels Market?
In today’s world, linerless labeling systems are receiving huge popularity as they successfully eradicate the need for non-recyclable release liners and also help in reducing the costs.IT trends of digitization and modernization can also fuel market growth.
RFID technology is expected to grow the market at a higher pace.Also, many retail industries are now going digitally or on the online/e-commerce platform to increase their sales by promoting their products, which in turn is setting a trend for the pre-gummed labels market for the instant packaging, labeling, and shipping of the product. An e-commerce platform is used by many industries like, manufacturers, suppliers, and others, which significantly boost the demand for the pre-gummed labels.
Nowadays, the use of sustainable materials as a result of public concern over the disposal of waste packaging and labeling is gaining huge attention in the labeling industry. The rise in the initiatives taken of using recycled paper, plastics, and bioplastics is also setting a trend to the pre-gummed labels market.
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How can Pre-gummed Labels Improve the Process When Compared to the Manual Process of Labeling?
Pre-gummed labels are already or in-advanced attached by the manufacturer of the product with the help of the technological advancement in the packaging industry.It employs the use of the equipment and different types of machinery to avoid the manual process of labeling which in turn results in time-saving and also improvement in adds more value to the label features or characteristics, like accurate size (dimensions) and shapes and the sharp edges.
Also, at a time pre-gummed labeling process can handle many products or packaging boxes to be labeled as compared to the manual gumming process of labels, thereby looking towards the improvements or advancements in the product as a label and process, it is anticipated to grow the pre-gummed labels market to great extent.
How will the use of Pre-gummed Label Technology cater to the Labeling Industry?
In recent times, the automation process in the majority of industries is the major trend that is uplifting the pre-gummed labels market which in turn is favorable in saving time in product packaging and labeling. High growth in the transportation and logistics/supply chain is expected to raise the market growth for the pre-gummed labels.
Furthermore, the regulation regarding the labeling industry has become more stringent in recent years which is very important for the businesses that operate in the labeling industry to work with a proper label management system that ensures to maintain of a validated and compliant labeling solution. Customization in the labeling requirements can also add to the market expansion.
Demand and growth in flexible packaging are also catering to the market on the positive side. Pre-gummed labels nowadays are majorly used on many products in food and beverages, industrial, healthcare, and many more. The majority of the labeling industries aim to achieve the best quality labels over their product in terms of appearance and quality aspects which again in turn are expected to positively grow the market.
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What are the Key Challenges that may hinder the growth of the Pre-gummed Label Market?
The cost of the pre-gummed label is quite high as compared to the traditional label, which may cause a barrier to the growth of the market.
Lack of awareness about various types of labeling techniques can also impact the pre-gummed label market. Countries devoid of the latest technology with the unavailability of equipment/types of machinery can be a challenge to the pre-gummed labeling market. Also, increased cost for labeling using automation technology can act as a barrier towards the growth of the pre-gummed label market.
So, unawareness of the trends in the labeling industry, devoid of the latest technology in the labeling industry and increased cost for the pre-gummed label production can hinder the market restraining its growth.
Competitive Landscape
Key players are
Americk Packaging Group
Constantia Flexibles Group Gmbh
SVS Labels
CCL Industries Inc.
H.B. Fuller Company
Muroll GmbH
Royston Labels Ltd.
UPM-Kymmene Oyj
Henkel AG & Co.
Mondi Group
S&K LABEL CCL Industries Inc.
Avery Dennison Corporation
Multi-Color Corporation
Coveris Holdings S.A
Huhtamaki OYJ
Fuji Seal International, Inc.
What strategies are the Key Players adopting for Increasing their Market Share in the Pre-gummed Labels Market?
Technology advancements, product development, growth and expansion of the industrial sector, and acquisitions are some of the strategies fueling the market share for the pre-gummed label market.
In August 2020, Geostick acquired the pre-gummed label division of iPB Printing B.V. to focus on flexible packaging and also to improve the market position.
In March 2020, Plasztik-Tranzit Kft successfully acquired Coveris which is a producer dealing in the food industry for flexible packaging solutions. This partnership between the both is thereby expected to develop a place for superior technology packaging manufacturing in the Eastern Europe region to enhance the production quantity of the medical, food, and film end-markets.
Why will the Asia-Pacific Generate Significant Demand for the Pre-gummed Labels Market?
The Asia-Pacific region is expected to witness growth in the forecast period with rapid and continuous growth in the retail (e-commerce) industry with the growing demand for packaging with the use of pre-gummed labels. Furthermore, an increase in the per capita income, changing lifestyle, rising consumption of packed products, and industrialization are expected to create massive opportunities for growth in the pre-gummed market.
Also, continuous developments and upgradations in the technology in packaging industry is expectedto gain huge demand for the pre-gummed labels market.
Key Segments of Pre-gummed Label Market covered in the Report
