White paper for Gallus
By AWA Alexander Watson Associates
Highlights of Developing Markets across the Globe
Prior to the global pandemic, according to the IMF, the global economy was projected to grow at 3.6% in the current year – a figure that AWA forecast would be higher than growth in the mature label markets of Europe and North America. However, it is not possible to make a serious growth estimation for the near future, so all existing forecasts are given with reservations. AWA are actively studying the current situation in the label markets around the globe and will be appending special COVID-19 supplements to its 2020 label market studies. More activity was forecast in the world’s developing packaging and labeling markets – Asia, Africa and the Middle East, and South America. While these regions are all significantly different, they share in some measure the dynamism created by developing urban-based populations with increasing purchasing power and retail and online sales.
South American label volume growth in 2019 was estimated at 1.6% – comparable to the growth evidenced in previous years – and the outlook is for continued moderate growth. The forward forecast for the region through 2022 predicts a continuation of positive growth.
Key end-use label market segments within the region are beverage – representing around 43% of the market; food (around 34%), and household chemicals.
Glue applied labels still claim the majority share of labeling technology, at 64%, and continue to grow, but – especially in the key recovery market of Brazil – pressure-sensitive labels increased their 25% market share by a healthy 2% in 2019. The sleeve labeling technologies also increased their share overall at 3.6% in the same period, with heat shrink TD sleeves enjoying even healthier growth at 4%. In-mold labels grew 8% – mainly in food applications – but from a very small base.
Label and product decoration print is unquestionably an opportunity across the world’s developing economies, with all the available production technologies offering potential, both analog and digital. The regional differences are considerable, and national profiles – and products – within those regions also differ, creating real challenges for both local and global brand owners – many of whom are keen to invest.
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