"There is a disruption happening in the niche markets"
“Thinner films and labels is one of the most predominant trends. Not only thinner in caliber but also in weight. You have to embrace the trend or risk being left out.” These were the opening remarks of Robyn J Buma, global procurement director - paper, Avery Dennison materials group, at the Label Release Liner Industry Seminar 2013. Sharing her perspective on the release liner trends as a laminator, she touched upon various topics that are a common discussion point at every label in
24 Sep 2013 | By Supreeth Sudhakaran
Expressing her view about the filmic labels, she said that the growth at the expense of paper will depend on two key factors: the economics and the rate at which large glue applied applications switch to pressure-sensitive. “From an economic standpoint, there will be a stronger push towards filmic labels. It is the highest value products that will make the move to films faster,” she added.
Talking about liner-less labels, she said, “It is an interesting concepts and has made inroads to simple liners. But is it disruptive? That is yet to be seen.” Quickly moving over the talked-to-death and one of the most over-used subjects of any conferences, sustainability, Buma admitted that sustainability is a slow trend which includes stages such as liner recycling, recycled content (paper and film) and responsible, apart from many other possible stages and actions. However, she stressed that paper industry has done a ‘horrible job in marketing its initiatives and benefits’. “In 2007, there was a strong demand for sustainable products, but with the recession the sentiments were diluted by economics. I see the trend picking-up again,” she added.
According to Buma, there is lot of consolidation and movement in the niche areas. “You can’t say you cannot do one thing and not the other. The trend is that there is a disruption happening in the niche markets. Players need to decide whether they are completely in or out of a particular niche,” she said.
“For alternative products, the trend is different in different regions. At the end of the day everything comes to the cost. Europe is slower in the adoption. But the adoption rates are picking up in US. In economic situations like these, options are good!” she added.
Further, she continued, “Globalisation is happening. The cost of entry and understanding where you can play and where you can’t is important. Looking at the whole picture is the necessity instead of just focusing on the cost matrix. When it comes to quality aspects, end-user requirements will continue to trickle down. Quality is and will be the key differentiator.”
Wrapping her presentation, Buma heavily criticized the over-use of the term “innovation”. Calling it a term that is very loosely used for even the minutest changes in the production line she noted, “Innovations are mostly around cost reduction. Perhaps because it is the biggest need from the demand side of the business. There are certain small changes which solve pain-points and can be termed as innovations.”