Germany – In Mold in the most difficult retail food market in the world
Europe has a share of over 58% of the global IML market. Germany has a European share of about 28%. In other words, a little more than a quarter of the total European production is attributable to Germany.
There is no question that the German market is one of the most mature markets. Both technically and in terms of end products. As a result, a strong product profile is necessary due to the strong competition. This circumstance is accompanied by a constant expansion of the products. Brand expansion is the keyword. Whether product line extensions or brand expansion. The SKU’s are increasing. The demand for effective, cost-effective, advanced premium labelling technologies is increasing. Accompanied by an ongoing increase in production output and a rise in per capita consumption.
Germany stands out in particular in that even multinational corporations from abroad have virtually gritted their teeth at Germany as a trading centre and started to withdraw. Toughly contested, highly fragmented.
Although the turnover in the food trade is constantly increasing, a decline in the number of branches is noticeable. Currently, the German food market counts about 38,000 shops. Compared to 2006, this represents a decline of around 34 percent. The most widespread sales division in German food retailing is the discounters.
The decline is deceptive, as the number of supermarkets has risen steadily in recent years. The number of large supermarkets with a sales area of between 2,500 and 5,000 square meters has also increased.
With an average SKU size of around 26,000 items in a supermarket, one can get an idea of the dimensions of competition. This can also be seen from the increase in the total sales area development. While in 2006 it was 33.6 million m², today we have about 36 million m².
All of this is also driving steady growth for IML label printers in this segment. Value-based growth rates of around 4% and volume increases of 5% are expected.
And above all, IML labels can be found in the dairy products sector. With a 66.3% share of the total net procurement value, this segment is just behind canned and convenience food. And these are characterized by a constant expansion of product lines. According to an IFH Cologne study from 2018, 70.7% of consumers consider the large selection of different products to be decisive. This is an increase of 6.1% compared to the survey from 2011.
by MOLD TECHNOLOGY in Million m²
GERMANY – In-Mold Labels Market Size 2020f
by MATERIAL in Million m²
GERMANY – In-Mold Labels Market Size 2020f
by END USE in Million m²
In a Nutshell
- The SKU’s (Stock Keeping Units) are increasing
- Product proliferation is increasing
- Regional players conquer the markets
- Job lengths are getting shorter from time to time
- Premiumisation of products in the branded goods sector
- Private labels dominate the market with large print runs
- New surfaces and material properties open the market to other printing technologies
In Germany, offset printing is the dominant printing technology in the field of IML labels. This is also due to the history of development. However, the brand landscape is changing as described above and the trend will continue. Here, flexo printing offers a sensible complement to existing technologies.
The question is not either or. It is an either and. Depending on volume requirements and budget. It is flexibility that will be crucial in the coming years. Different printing options offer several possibilities for custom additions. These include rotary screen printing, hot foil stamping and metallic papers and so on. A benchmark calculation is needed to show when which process can be most economical for the printer and for the end customer.
Here you can request the benchmark value calculation tailored to your needs.
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