Written by Corey Reardon from AWA
Growth rates in developed markets are slowing, and generally forecast to exceed slightly the growth in GDP.Corey Reardon
Globally, the forecast CAGR for the period 2018-2021 is 4.8%, and is expected to remain constant throughout the period. It is, however, slowing in some regions, especially in the developed North American, European, and Japanese markets.
Growth in the mature European market to 2021 is forecast at 4%, in line with GDP, driven mainly by the eastern European countries and ever-expanding VIP label applications. Conventional and UV flexo, narrow-web combination presses, and digital presses will all see growth.
In North America, where pressure-sensitive already dominates, the market will grow at 3.1%, with Mexico a small but attractive potential area for increasing volumes.
In Asia – where China and India are now the major regional drivers for growth – we expect to see good growth at 7%, with pressure-sensitive benefiting from its flexibility as a technology as well as from increasing investments in local label laminate manufacture.
In South America, thanks to Brazil’s expected economic recovery after the crisis years of 2015-2016, growth is forecast at 2.5%. Retailing and distribution networks are developing in response to improving levels of personal disposable income, and global brand owners in the major end-use segments are also now showing interest in the region’s possibilities.
Africa & the Middle East
A new focus region for pressure-sensitive labels is Africa and the Middle East. In South Africa and Israel, per capita pressure-sensitive label consumption is already relatively high, but growth across the entire, relatively-undeveloped region in terms of consumer goods is now forecast at a healthy 4% to 2021, partnered by expanding activity in both VIP and primary product labeling.
© 2019 AWA Alexander Watson Associates BV.
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