Over 51.7 bn sq/m of labels will be converted by 2015: Michael Fairley

Labelexpo Europe team has returned with a bigger and better show this year at the Brussels Expo Centre. Covering over 31,000 sq/m, the show has received visitor registrations from 65 Indian converting and label printing companies. “We are looking at 30,000 visitors. The show is bigger and better than ever before. Visitors will also witness the highest number of product launches at the show,” said Lisa Milburn, managing director of the Labelexpo Global Series.

25 Sep 2013 | 2510 Views | By Supreeth Sudhakaran

Briefly elaborating on the Inkjet Trail initiative, she added, “Six leading inkjet press manufacturers will be producing same labels on same materials so that visitors can compare what various manufacturers can offer. There are over 50 digital machines on display this time, and Hall 5 is majorly dedicated for digital technologies.”

Michael Fairley, consultant director of strategic development, Labelexpo Global Series in his keynote address shared various statistical data regarding the worldwide label market. He noted that the worldwide growth for labels in 2013 will be 5%, while packaging printing will grow at a rate of over 8%. He added that the expected growth rate for 2013 could have touched 10%, but China’s growth story has lately slowed down a bit. Fairley stated that around 46bn sq/m of labels (including all types) are converted today. This, he expects to grow to 51.7 bn sqm by 2015.

He estimates that the global sales value in 2013-14 will be worth $76.5 bn. Scandinavia, western Europe and USA lead the per capital consumption of labels (12-18 sq/m), while China is witnessing approximately one-tenth per capita consumption followed by India (0.9sqm). The interesting bit in the statistics is that Fairley expects the per capita consumption to double over the next one decade; especially, in Asian markets.

Fairley also noted that there are several new materials, solutions and products that are being introduced in the market such as wash-off labels, re-sealable labels, liner-less innovation, low migration labels and adhesives for application on condensation. “The industry is coming up with solutions for almost any issue,” he said.

He dedicated a good share of his presentation to stress upon the emergence of digital inkjet label printing technology. “In 1996, there were 15 label presses in the industry, mainly Indigo and Xeikon. In 2012, there were over 2,112 digital presses available in the market. Approximately, 20% of all new presses installed in labels were digital. But the total print share is still less than 2%. In fact, the number of machine models launched for digital label and packaging has doubled from 25 models in 2010 to over 50 in 2013,” he added.

However, he mentioned that inkjet labels are most effectively making inroads into the industrial labels rather than the home and personal care or beverage market segment. “It has been successful in eating up the share of wide format labels and even screen.”

Further, he said that private and own brand labels is a huge trend, and added personalisation is the biggest trend happening in the supermarket arena. “Brand owners are moving to shorter runs, while conventional technology is trying to fight back with fully automated press that need least or no human intervention. Smart intelligent labels and multi-purpose labels are growing. Also, there is a huge opportunity in the on-the-go travel product packaging and labelling,” he said.

With over 600 wine producers operating in China, Fairley states that it will be the biggest wine producer in the next three years. “There are opportunities beyond labels such as in blister packs, folding cartons, pouches sachets, tubes, etc.” he said asking the industry to explore several niches.

Summarizing the trends, Fairley concluded by stating, “Few trends that I foresee are: MIS systems linking material through printing to end-user, greater use of web-to-print portals, increasing advances using nanotechnology, new environmental solutions, more interactive and reactive labels, adhesives from natural oils (to lower the costs), and use of virtual imaging technology. Before you even print anything at all you can test-market it online.”

He concluded by saying, “We are in the process of launching a label academy. This will lead to eLearning materials and online certification courses. We are trying to standardize the education in the label industry and make it more accessible.”

Later, Kurt Walker, president of FINAT, during his presentation stressed upon the importance of sustainable practices. Summarizing his presentation in two lines he said, “Our future depends on understanding the change, communicating and implementing them. The customers are now asking for decorated products than mere just labels.”

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