The global sales of sustainable label is estimated to be worth USD 1,558.3 million in 2024 and are anticipated to reach a value of USD 2,374 million by 2034. Sales are projected to rise at a CAGR of 4.3% over the forecast period between 2024 and 2034. The revenue generated by sustainable label in 2023 was USD 1,488.4 million. The industry is anticipated to exhibit a Y-o-Y growth of 4.7% in 2024.
Paper labels are estimated to hold around 90% of the market share further expanding at a 4.6% growth rate during the assessment period. Since paper is an eco-friendly and recyclable material, the growing demand for sustainable labels is increasing.
Technological advancements in the manufacturing process have enabled companies to produce durable and functional paper labels. Sustainable paper labels have versatility in designs and allow multicolor printing which is anticipated to boost the growth of the target segment soon.
Global Sustainable Label Industry Assessment
| Attributes | Key Insights |
|---|---|
| Historical Size, 2023 | USD 1,488.4 million |
| Estimated Size, 2024 | USD 1,558.3 million |
| Projected Size, 2034 | USD 2,374 million |
| Value-based CAGR (2024 to 2034) | 4.3% |
Pressure-sensitive labels are a more preferred ones in label type anticipated to reach USD 654 million in sales by the end of 2024 expanding at a 3.2% growth rate by 2034 end. Pressure-sensitive labels are mostly adopted in the packaging industry because of their versatility and adaptability to different materials and surfaces.
The labels are easily attached to the surface without needing any heat, water and solvents making it the most convenient process of application.
Food and beverage packaging is the leading end-use in the sustainable labels industry capturing around 1/3rd of market share through 2034. The food and beverage industry is subjected to different regulatory pressures and food safety laws. The food and beverage business needs to provide all the excess information provided on labels which necessitates the demand for sustainable labels in the industry.
The recent shift towards a sustainable environment has led the eco-friendly labels market with increasing demand for the packaging industry across various industries which majorly include food & beverages. Eco-friendly labels are not only limited to 100% biodegradable criterion but also their properties are stretched to the recyclability and re-usability parameters with negligible harm to the environment.
Due to this, there is an increased demand by manufacturers and consumers to adopt eco-friendly labels on the global level. Additionally, the increasing per capita income of consumers and adaptability towards quality life have strongly boosted the sale of eco-friendly labels.
The sustainable label industry is set to experience moderate growth during the forecast period. It is projected to create an incremental opportunity of USD 885.54 million and is predicted to rise 1.5 times the current market value through 2034.
The above table presents the expected CAGR for the global sustainable label market over several semi-annual periods spanning from 2024 to 2034. In the first half (H1) of the year from 2023 to 2033, the business is predicted to surge at a CAGR of 4.4%, followed by a slightly lower growth rate of 3.8% in the second half (H2) of the same year.
| Particular | Value CAGR |
|---|---|
| H1 | 4.4% (2023 to 2033) |
| H2 | 3.8% (2023 to 2033) |
| H1 | 3.9% (2024 to 2034) |
| H2 | 4.2% (2024 to 2034) |
Moving into the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to increase slightly to 3.9% in the first half and remain relatively moderate at 4.2% in the second half. In the first half (H1) the market witnessed a decrease of 50 BPS while in the second half (H2), the market witnessed an increase of 40 BPS.
Increasing Environmental Concerns and Consumer Behavior Patterns
The increased concern about the environment is driving the market for sustainable labels as labels play a significant role in every industry for packaging, and the shelf life of labels has become a perilous concern for the manufacturer as well as consumers.
Especially, the rise in environmental awareness in industries such as household and cosmetics, clothing (apparel), and food & beverages is pushing manufacturers to manufacture an eco-friendly label owing to the purchase pattern of the consumer, who is willing to pay more for an eco-friendly product.
Consumers are demanding environment friendly packaging and labelling solutions to reduce the environmental impact of products driven by rising environmental pollution. Manufacturers producing eco-friendly labels have understood the consumer buying behaviour/pattern towards the purchase of an eco-friendly product.
An eco-friendly label on an eco-friendly product encourages consumers to purchase the product by considering the environmental issues when shopping (e.g. checking if the product is wrapped in recycled material) and by purchasing only ecologically compatible products (e.g. biodegradable paint, CFC-free hairspray or unbleached coffee filters).
The most supportive evidence is the increasing number of consumers who are willing to pay more for environmentally-friendly products that have eco-friendly labels attached to them. These factors are propelling the demand for sustainable labels and will eventually expand the global sustainable labels industry over the projected period.
Manufacturers Eyeing on Innovations in Sustainable Labels
Mono materials are one of the latest trends that are creating traction in the packaging industry. Mono material labels and packaging is made from similar types of material which helps in easy sorting and recycling of the packaging.
Since the packaging and label are made from different materials most of the time they will not be easily recycled together even if the materials used for both are recyclable. Mono material will ease the recycling process of packaging along with its labels.
The shift has been identified towards the linerless labels that can achieve the sustainability goals of the business and brands. Linerless labels are similar to traditional labels without liner which reduces the use of extra waste material. These labels optimize resource usage and strapline production contributing towards a circular economy.
These labels significantly produce less waste material and along with reducing the adhesive by 80%. Food and beverage companies are now allowed to use recycled material in their packaging which is supplementing the demand for recycled material in labels. So innovating towards the development of sustainable materials and technologies will push the market forward.
Counterfeiting and Misleading Eco-friendly Labels
Nowadays, majority of the companies are trying to emerge newly in the market with the concept of eco-friendly or sustainable products, which is trending and ultimately is the need of the environment.
In the case of the label manufacturing industry, many third-party agencies play a role in between of counterfeiting the label as an eco-friendly label, which suggests a product is “green” based on an unreasonably narrow set of attributes and ignoring important environmental issues.
These counterfeit labels are also termed as “greenwashing”, which gives out the misleading claims of environmental benefits attached to a product. Some manufacturers think that all naturally occurring materials or substances are eco-friendly and then state the product as eco-friendly, which in turn is counted as a counterfeit label.
For instance, naturally occurring metals such as arsenic, mercury, uranium, and formaldehyde are poisonous and are not green. Other environmental claims can be that “CFC-free”, isn’t green, because CFCs are banned by law. For Instance, Zalando, a German fashion retailer has abandoned sustainable labels due to false claims following EU pressure.
Consequently, misunderstanding the concept of eco-friendly products can in turn affect the label stating as “eco-friendly”, which is a counterfeit label describing the vague and fake nature of the product.
The global sustainable label industry recorded a CAGR of 2.9% during the historical period between 2019 and 2023. The growth of sustainable label industry was positive as it reached a value of USD 1,488.4 million in 2023 from USD 1,329.1 million in 2019.
The constantly growing food & beverage, as well as the food service industry, is predicted to drive the demand for sustainable labels during the assessment period. The increased usage of packed food is creating a growth opportunity for the sustainable labels industry and the trend is likely to continue during the forecast period.
Similarly, a rise in the number of environment-conscious consumers across the globe is expected to propel sales of sustainable labels over the next ten years. With growing environmental concerns, consumers are adopting sustainable consumption patterns.
They prefer products with green packaging and labelling. This has prompted companies to use sustainable labels in their products and will continue to play a pivotal role in moving the global market for sustainable labels forward throughout the forecast period.
Sustainable labels are labelling solutions that testify to the product’s attention to safety for the environment in comparison to others. These labels have become ideal marketing tools for companies to tell their customers that by purchasing their products, they are making a more eco-conscious and sustainable choice. These labels also reduce waste and impact on the environment as they use eco-friendly materials (paper) and adhesives, and are easy to recycle.
Similarly, increasing production and consumption of packaged goods, especially packaged food items, across the globe is expected to boost the global market over the next decade.
Factors such as population explosion, increasing disposable income, and changing lifestyles have resulted in increased consumption of packaged food products. As sustainable labels are being increasingly used in these packaged food items, a rise in their production and consumption will eventually bolster sales in the market.
Tier 1 companies comprise market leaders with a market revenue of above USD 55 million capturing a significant market share of 10% to 15% in the global market. These market leaders are characterized by high production capacity and a wide product portfolio.
These players are distinguished by their extensive expertise in manufacturing across multiple products across different applications and a broad geographical reach, underpinned by a robust consumer base.
They provide a wide range of products utilizing the latest technology and meeting the regulatory standards providing the highest quality. Prominent companies within Tier 1 include CCL Industries Inc., Sato Holdings Corporation, and Zebra Technologies Corp.
Tier 2 companies include mid-size players with revenue of USD 10 to 55 million having presence in specific regions and highly influencing the regional market. These are characterized by a limited international presence and well-maintained market knowledge. These market players have good technology and ensure regulatory compliance but may not have advanced technology and wide global reach.
Prominent companies in tier 2 include HERMA Labels, Labels Plus, Weber Packaging Solutions, The Label Maker Ltd, Berkshire Labels, Crown Labels Mfg Co Ltd, Multi-Color Corporation, JK Label, Klöckner Pentaplast, and Europe GmbH & Co. K.
Tier 3 includes the majority of small-scale companies operating at the local presence and serving niche markets having revenue below USD 10 million. These companies are notably oriented towards fulfilling local market demands and are consequently classified within the tier 3 share segment.
They are small-scale players and have limited geographical reach. Tier 3, within this context, is recognized as an unorganized market, denoting a sector characterized by a lack of extensive structure and formalization when compared to organized competitors.
The section below covers the industry analysis of the sustainable label market for different countries. Market demand analysis on key countries in several regions of the globe, including North America, Asia Pacific, Europe, and others, is provided.
In Europe, Germany is anticipated to register a moderate growth at 2.1% with a value share of 20% through 2034. In Asia Pacific, India is an emerging country in sustainable label projected to capture 40% of value share with a growth rate of 5% by 2034 end.
| Countries | Value CAGR (2024 to 2034) |
|---|---|
| USA | 2.4% |
| Germany | 2.1% |
| UK | 2.5% |
| Brazil | 3.6% |
| India | 5.0% |
| China | 4.4% |
| Japan | 3.2% |
| GCC Countries | 4.3% |
Mexico is anticipated to record a CAGR of 3.5% for sustainable labels in Latin America by the end of 2024. The pharmaceutical market of Mexico is the second largest market in Latin America and ranks at number 15 globally. Mexico is known for producing medicines such as anti-inflammatory drugs, cancer treatments, and antibiotics.
According to the Wisconsin Economic Development Corporation, pharmaceutical sales in Mexico are projected to be USD 13 billion in 2028. The growing pharmaceutical sales and stringent labelling requirements associated with the pharma industry are contributing to the market growth in the region.
The industry of sustainable labels across India is predicted to accelerate at 5% CAGR during the forecast period, owing to the rapid growth of the paper and packaging industries in the country. The growing paper industry in India is projected to drive the demand for sustainable labels over the projected period.
Indian Paper Manufacturers Association (IPMA) reported that the Indian paper industry accounts for about 5% of the world’s production of paper. Further, about 71% of paper is produced from recycled fiber and the Indian paper industry is growing at a faster pace due to innovation and technology.
Paper is being increasingly used in the packaging industry to replace materials like plastic. As the paper is top material for sustainable labels, the growing paper industry is expected to increase production. This will drive the market for sustainable labels swiftly in India during the projection period.
The section contains information about the leading segments in the industry. Flexography printing is estimated to record around 3.7% of CAGR throughout 2034. Pharmaceutical industry is projected to showcase significant growth at 4% CAGR through 2034.
| Printing Technology | Flexography |
|---|---|
| Value Share (2034) | 46.4% |
Flexographic printing is mostly adopted by label manufacturers which is anticipated to hold more than 40% of the market share expanding at 3.7% through 2034. Flexographic printing is compatible with different types of substrates, such as paper and plastics as well.
This versatility has enhanced its applications to different applications such as food, pharma, and consumer goods. Flexographic packaging is suitable for large-scale production and the quick turnaround time is ideal for fast-moving consumer goods. This printing utilizes the UV and water-based links that are sustainable. This printing is inexpensive, high quality, fast drying time, and is consistency which is leading to its huge market share.
| End Use | Pharmaceutical |
|---|---|
| Value Share (2034) | 24.4% |
The pharmaceutical industry is subjected to regulations ensuring the safety and quality of products. The regulation authority is strictly emphasizing sustainability and ensures the use of sustainable labels. The strict guidelines to provide the packaging information about products in detail are boasting demand for sustainable labels in the industry.
The massive spike in demand for medicines and other healthcare products from hospitals as well as consumers is driving the market and the trend is likely to continue during the upcoming years.
The pharmaceutical industry is projected to reach 24.4% value share expanding at 4% CAGR during the assessment period. This can be attributed to the robust growth of the pharmaceutical industry worldwide and the increasing usage of sustainable labels in this sector over traditional ones.
Key manufacturers of sustainable labels are focusing on increasing their sales and revenues as well as meeting end-user demands by expanding their capabilities. They are adopting a merger & acquisition strategy to expand their resources and are developing new products to meet customer needs.
Recent Industry Developments in Sustainable Label Market
In terms of material, the industry is divided into up to plastic and paper. Paper is further divided as semi-gloss/matte paper, vellum paper, direct thermal label paper, and others.
In terms of label type, the industry is segregated into pressure-sensitive labels (PSL), shrink labels, stretch labels, wet glue labels, and others (in-mold, pre-gummed, etc.).
In terms of printing technology, the industry is segregated into flexography, digital, gravure, screen, and offset.
The industry is classified by end use industries as food & beverages, pharmaceuticals, cosmetics & personal care, homecare clothing & apparel chemicals, automobiles, and other consumer goods.
Key countries of North America, Latin America, Western Europe, Eastern Europe, South Asia, East Asia, and Middle East and Africa (MEA), have been covered in the report.
The global sustainable label industry is projected to witness CAGR of 4.3% between 2024 and 2034.
The global sustainable label industry stood at USD 1,488.4 million in 2023.
The global sustainable label industry is anticipated to reach USD 2,374 million by 2034 end.
South Asia is set to record the highest CAGR of 4.9% in the assessment period.
The key players operating in the global sustainable label industry include includes CCL Industries Inc., Sato Holdings Corporation, and Zebra Technologies Corp.
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Sustainable Label Market
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