The global wrap around label films market is expected to rise at a CAGR of ~5.9%, during the forecast period.
The wrap around label films market is expected to witness a soaring growth in 2021 with revenues up 5.4% each year. A new forecast by FMI estimates that the wrap around label films profit margin will nearly double between 2021 and 2031. The majority of demand for wrap around label films is because of visual appearance which creates brand value and offers distinguishing features to a particular product.
Wrap around label films (WAL) are used to make products differentiable due to visual factors. Packaging industry is extensively benefitted from usage of wrap around label films. Wrap around label films create a brand value and provide extensive features to a product and increases its point of sales.
Some of the major properties include resistance to water, heat sealing, tamper evident, colour protection and tear strength. WAL films are mostly used in FMCG, healthcare, cosmetics and personal care industries. Most importantly wrap around label films can be easily customized in accordance to desirable attributes stated by client. These factors will augment the demand for wrap around label films in the forecasted period.
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Wrap around label films are an important product for brand owners in packaging of their products. This market is majorly driven by need of sustainable packaging for unique identification of an exquisite product and differentiate it from other products available in the market.
Increasing concerns of resource degradation and environment protection, the factor for sustainability also contribute to the rise in demand for biodegradable wrap around label films. Rise in FMCG sector will exponentially increase the demand for wrap around label films during forecast period. These factors are anticipated to accelerate the wrap around label films market.
Manufacturers are aiming for a continuous product level improvement in wrap around label films. Major opportunity has risen in recent times as stores and hypermarkets has enhanced the 360-degree product wrapping which has ascended the growth of wrap around label films market.
Cosmetics, home care and healthcare industries have significantly increased the usage of wrap around label films to differentiate their product in market. This factors have created vast opportunities for key players in wrap around label films market.
Changing environmental protection policies and implementation of stringent rules and regulations has created a surge in production of biodegradable wrap around films. This trend has gained a prominent base in North American and European markets, and is continuing to spread across the globe.
Moreover, upcoming printing technology such as UV, Flexography and Gravure is showing promising results in trial runs. These trends will positively impact the target market towards a profitable future.
High costs and recycling issues are the factors which pose a threat to growth of wrap around label films market. But with changing trends and adoption of biodegradable wrap around label films the recycling issues are overcome and it augments the demand of wrap around label films for the forecast period.
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The players operating in the wrap around label films market are trying to increase their market reach by expanding their presence in the untapped regions. Also, the key players are trying to focus on increasing their production capacity by developing their manufacturing facilities or through acquisitions:
South Korea will capture a significant portion of the wrap around label films market by the end of the 2031 due to an exponential increase in packaging for personal care & cosmetics, pharmaceutical products. Also, factors that will lead to South Korea’s rise in market share are low tax rate on cosmetics and personal care products and skilled labour which is extensively available and cheap.
The increasing numbers of South Korean end-use industries such as FMCG, online retail, home care products will cause a positive impact of the country’s share in APAC market. All these factors considered South Korea will have a major hold in the wrap around label films market during forecast period.
Wrap around label films market has a variety of end-use applications in FMCG, pharmaceuticals, cosmetics & personal care, and many more industries. The market has seen a downfall in sales due to outbreak of COVID-19 virus. Demand and supply of wrap around label films came to a halt across many factories because of the imposition of lockdowns by various countries.
The FMCG and pharmaceutical sector created sufficient demand during the outbreak to keep this market going without having major setbacks. In totality, the effect of the virus on the wrap around label films market was moderate and will recuperate back by the end of the year 2021.