Finat benchmarks Europe’s narrow-web label market

Finat Radar is based on an extensive online survey carried out among Finat converter members in Europe and members of the affiliated European national label print associations, and on Finat regularly updated labelstock statistics.

Jules Lejeune, managing director, Finat, presenting the highlights during the association’s recent European Label Forum in Amsterdam, confirmed that the industry as a whole continues to enjoy ‘buoyant growth’ at around 5% – well above European GDP – with label converting companies increasing their sales revenues on average by over 8% in 2015.

Changing brand owner demands

In response to a changing profile in end-user/brand owner demand, average run lengths reduced significantly. With multi-versioning, multi-language, and multi-location labelling operations, plus a current requirement for ‘fast to market’ product introductions and special editions/personalisation, end-user companies now often specify ‘just in time’ label deliveries – so print runs are naturally contracting. This is true for both conventional analogue and digital label print. As a result, analogue print runs have reduced by an average 22%, and digital print runs by 12%, with the beverage, health and beauty, and consumer durables segments showing the sharpest declines.

A broader service offering

“In the complex mix of traditional, hybrid, and digital print technologies which now characterise our industry, current research shows that nearly one third of survey participants intend to invest in digital label presses in the next six months – for the first time overtaking printers’ commitment to buying conventional presses,” said Lejeune. “But that is not all… Many Finat member companies are now additionally investing in alternative product decoration technologies such as shrink- and stretch-sleeve, in-mould labels, and even flexible pouches. This is great evidence of the forward-looking, innovative thinking that characterises our industry that’s creating a new arena of all-round, multi-service suppliers for brand owners.”

Growth markets

Geographically, while Europe’s ‘top ten’ label markets continue to account for 75% of total label consumption, East European markets, particularly Poland, Turkey, and Russia are visibly increasing their share. In terms of end-use markets, pharmaceuticals, health and beauty care, and food labelling were the strongest performers in 2015.

Management and business challenges

The new Final Radar also explores key features of running a label converting business – employment, profit and loss, purchasing and investment, and the high-profile subject of waste management.

Final president Thomas Hagmaier said that the outcomes of the current Finat Radar indicate that our industry’s fundamentals are healthy and that the European label industry is well positioned to face current challenges like the proposed exit of the UK from the European community.

“As a label printer myself, I believe that Finat Radar provides an invaluable dossier of information that enables such companies to benchmark their own activities and performance – and make the most of them for the future,” he added.

Finat Radar complements the strong portfolio of industry-specific benefits – including the world-recognised and utilised Finat Test Methods, and the dedicated monitoring of the global regulatory affairs arena as it affects labels, packaging, and sustainability.

Founded in Paris in 1958 with headquarters in The Hague (The Netherlands), Finat is the worldwide association for manufacturers of self-adhesive labels and related products and services. With more than 500 members in over 50 countries around the world, Finat has much to offer to label converters and all suppliers to the labelling industry in terms of information exchange and in terms of international networking. For more visit www.finat.com.