Global In-mold Labels market is expected to reach to USD 8.78 Billion by 2026 at a CAGR of 5.9% during the forecast period from 2019-2026. Growing demand for packaged foods & beverages, growing population and rising demand for labels providing efficient brand recognition to product are the three factors affecting the demand of the market.
Asia-Pacific has a 9% share of the world market demand for in-mold labels. A CAGR of approx. 5.9% is expected by 2026. China dominates within this market with a share of approx. 34%. India is forecast to experience the greatest growth impetus. The cumulative movement of the population has led to increased migration of the rural population to the developed areas. The increase in people’s disposable income has led to a growing demand for industrial products, which has had a significant impact on the market for in-mould labels. FDI investment (foreign direct investment ) in the organised retail sector has also contributed to the demand for in-mould labels. UNCTAD, in its Global Investment Trend Monitor report said that the global foreign direct investment remained flat in 2019 at $1.39 trillion, a 1% decline from a revised $1.41 trillion in 2018. “South Asia recorded a 10% increase in FDI to $60 billion. The growth was driven by India, with a 16% increase in inflows to an estimated $49 billion.
An important momentum: A billion new consumers in emerging markets
This last decade marked the tipping point in a fundamental long-term economic rebalancing. In the last years, the growth of emerging markets continued to outstrip that of the developed world by a wide margin. While the emerging countries in Asia—most notably China, India, and Indonesia—already had a significant share of global growth (18 percent) throughout the decade before, this growth share increased to nearly 30 percent in the last decade. As a result, the global middle class expanded dramatically: by 2020, there are already more than 1 billion new consumers spending between $10 and $100 per day.
These developments are reflected in the Food & Beverage market and the growth in the division is also presented accordingly. Although the starting point (in terms of volume) is of course lower than in the mature markets of the Northern Hemispheres, such as Europe and the U.S.
The food and beverage segment will continue to dominate the IML market in the near future. Naturally, we will see a global bend in 2020, but from 2021 the figures will move into the normal growth range. Especially since IML technology offers a more cost-effective alternative to other types of packaging in selected areas.
Asia-Pacific has a 9% share of the world market demand for in-mold labels. A CAGR of approx. 5.9% is expected by 2026. China dominates within this market with a share of approx. 34%. India is forecast to experience the greatest growth impetus.
ASIA-PACIFIC | IN-MOLD LABELS MARKET SIZE BY COUNTRY
ASIA-PACIFIC | IN-MOLD LABELS MARKET SIZE BY TECHNOLOGY
ASIA-PACIFIC | IN-MOLD LABELS MARKET SIZE BY MATERIAL
ASIA-PACIFIC | IN-MOLD LABELS MARKET SIZE BY END-USE
- However, one development that can be followed like a red thread across countries, with different characteristics, is that product proliferation is increasing and consumer behaviour is essentially changing. These changing consumer patterns will lead to an expansion of the SKU and product offering.
- Changes that require converters to be more flexible and responsive to enable shorter production runs, faster development of new products and faster time to market.
- This is not without consequences for the F&B retail sector. Then we are talking about increasing margin compression for retail and therefore for FMCG.
The cost pressure in the packaging value chain will most likely intensify even faster.
The increasing price conscious of consumers due to the transparency of digital shopping channels is already causing enormous pressure on retail prices. At the same time, the prices of inputs, raw materials and personnel costs are expected to rise, increasing the cost of goods sold.
Converters are therefore well advised to take a very good look at their production units and processes under the burning glass and invest in the future. This is because the technological advances made by some printing press manufacturers offer significant opportunities for optimization in the production area in order to take future developments into account. And above all to work cost-efficiently. Because this is where the potential for further development exists.
Take the Gallus ECS 340, for example: with the shortest web travel in the label printing industry and the high efficiency of the press, waste during production is massively reduced. This results in label production at top speed and extremely low costs.
According to the motto “Speed Kills: For special applications, the Speedmaster XL 106-DD rotary die-cutter is equipped with an innovative magnetic cylinder with extraction. The machine not only cuts out the contour, but also removes even the tiniest injection holes of five millimeters diameter or more completely and reliably. All of this in a single step and at a higher speed than previously possible.
Heidelberg sets standards in the production of inmold labels with the Speedmaster XL 106-DD for rotary die-cutting. The Speedmaster XL 106-DD is ready for production following 15 minutes of make-ready. For production runs up to 500,000 sheets the cost of tooling is reduced by 50 percent compared to traditional flat bed die-cutting. Using the innovative components from Speedmaster XL 106 perfecting technology ensures precise align delivery piles without a single blank being detached from a sheet.
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