Ingredient Labelling Technology Market Analysis (2024 – 2030)

The Ingredient Labelling Technology Market witnessed a valuation of USD 36.78 billion and is anticipated to attain a market size of USD 49.06 billion by the conclusion of 2030. Across the forecast span spanning from 2024 to 2030, the market is poised to exhibit a Compound Annual Growth Rate (CAGR) of 4.2%.

INSIGHTS INTO THE INGREDIENT LABELLING TECHNOLOGY MARKET

Characterized as a printed medium comprising metal, fabric, polymer, or paper, a print label is utilized to showcase a product's emblem, symbols, and pertinent information. Its functions encompass establishing brand recognition, product identification, and counterfeit prevention to uphold trust. Print labels, distinct from woven labels, offer various advantages including precise printing, superior quality, and intricate imagery. Among the commercially available label types for print labels are wet glue, pressure-sensitive, and multi-part tracking labels.

The market's growth trajectory is propelled by several factors, notably the robust expansion of the food and beverage (F&B) sector and the increased adoption of print labels within the food industry. Additionally, the widespread application of print labels across various sectors, heightened consumer health awareness, escalating demand for manufactured goods, and rising disposable incomes contribute to market expansion. Favorable governmental interventions across several nations mandating informative label inclusion in fast-moving consumer goods (FMCG) further drive market expansion. Technological advancements in dust control technologies are also positively influencing market growth. Moreover, substantial investments in research and development (R&D) endeavors for advanced digital print labels contribute favorably to market expansion. The creation of visually appealing print labels further augments market perception on a global scale.

IMPACT OF COVID-19 ON THE INGREDIENT LABELLING TECHNOLOGY MARKET

The pervasive effects of the pandemic have left no industry untouched, with the food and beverage sector actively strategizing to mitigate Coronavirus ramifications. Amid widespread outbreaks, food and beverage enterprises have navigated challenging decisions including temporary shutdowns to adhere to travel restrictions and social distancing mandates, with repercussions extending beyond operational constraints. Despite these challenges, there was a notable surge in the consumption of packaged foods during lockdown periods, owing to the designation of food and beverages as essential commodities. Consequently, this surge in demand for packaged foods has facilitated favorable growth within the printing inks market.

MARKET DRIVERS:

Surge in Smart Packaging Adoption Propels Market Growth

The burgeoning adoption of significant end-use verticals such as healthcare, cosmetics, and food & beverage has propelled the ingredient labelling industry to the forefront of evolving sectors. To uphold and bolster brand reputation, this expansion has engendered increased demand for packaging innovations leveraging smart technologies including augmented reality and artificial intelligence. Furthermore, risks such as re-importation and counterfeiting necessitate sophisticated printed packaging to safeguard business reputations and provide consumers, particularly in the medical and food industries, with assurances regarding product authenticity.

Growing Preference for Digital Printing Stimulates Market Momentum

The escalating utilization of digital printing techniques stands as a pivotal driver fueling market expansion for ingredient printing. Digital printing garners favor among packaging providers as it enables them to retain clientele through benefits such as production flexibility, personalized packaging, and expedited printing speeds. Unlike traditional methods, digital printing obviates the need for frequent replacement of printing plates, resulting in shorter turnaround times at reduced costs. The imperative to efficiently package large volumes of goods within compressed timelines while ensuring top-tier print quality has further bolstered digital printing adoption, particularly across retail and e-commerce domains amidst heightened market competition and online shopping trends. Moreover, its capacity to deliver offset-quality prints for series items without color constraints renders it an ideal choice for packaging printing applications. In 2021, Fres-co System USA, Inc. augmented its packaging printing services with the introduction of digital printing capabilities, aimed at offering clients in diverse sectors such as food, coffee, pet food, and chemicals, bespoke printing options for a myriad of packaging applications.

MARKET CHALLENGES:

Elevated Costs Pose Hindrances to Market Progression

The substantial upfront expenditures associated with printed packaging escalate manufacturers' production costs, constituting a prominent constraint to market advancement. Given the fiercely competitive landscape of the packaging industry, businesses frequently undergo revisions or replacements of packaging labels, materials, logos, graphics, and other components to fortify market presence and enhance brand recognition. End-users bear significant costs associated with these periodic upgrades or modifications to printed packaging, necessitating new labels, seals, inks, and other materials. Furthermore, the acquisition and maintenance costs of printing or labeling equipment impose substantial financial burdens on end-users, dissuading small and medium-sized enterprises from embracing the technology. Startups and small-scale entities typically opt for straightforward and cost-effective packaging alternatives with minimal printing to mitigate manufacturing expenses, thereby impeding industry expansion.

INGREDIENT LABELLING TECHNOLOGY MARKET – BY PRINTING TYPE

• Flexographic
• Digital, Gravure
• Lithographic
• Screen
• Others

Segmented by printing type, the Ingredient Labelling Technology market includes Flexographic, Digital, Gravure, Lithographic, and Screen, among other methods. In terms of revenue, the lithographic segment held a substantial market share in 2021. Its expected expansion throughout the projection period stems from its ability to produce high-quality prints and its effectiveness in large-scale projects. Moreover, the lithographic method is well-suited for flat materials such as fabric, foil, paper, plastic, and flat cardboard.

Gravure printing also significantly contributes to market growth. This method enables the printing of photographs using gravure printing inks, suitable for applications like paper cups, thin papers, films, and metal foils. Utilizing "liquid inks," this technique finds application across food packaging, tobacco products, and cosmetics, on substrates like cardboard, paper, plastic, foil, and labels.

Flexographic inks find application across various substrates including paper, laminates, films, foils, and corrugated cardboard. With their cost-effectiveness and eco-friendly nature, the demand for these inks is projected to rise notably in the forecast period. The increasing need for flexible packaging and cardboard printing, especially in the United States and European nations, further propels the demand for flexographic ink.

INGREDIENT LABELLING TECHNOLOGY MARKET – BY LABEL FORMAT

• Wet-glue Labels
• Pressure-sensitive Labels
• Linerless Labels
• Multi-part tracking Labels
• Sleeves
• In-mold Labels

The Ingredient Labelling Technology market, categorized by label format, encompasses Wet-glue Labels, Pressure-sensitive Labels, Linerless Labels, Multi-part tracking Labels, In-mold Labels, and Sleeves. In-mold labels, crafted from plastic films using various printing techniques, are anticipated to witness high demand in the coming years. These labels are inserted within the mold used for container production, eliminating the need for post-labelling processes and saving time and effort.

INGREDIENT LABELLING TECHNOLOGY MARKET - BY APPLICATION

• Food
• Beverage
• Healthcare
• Cosmetics
• Household
• Industrial

Segmented by application, the Ingredient Labelling Technology market covers Food, Beverage, Healthcare, Cosmetics, Household, and Industrial sectors. The food industry is poised to dominate the market, driven by the increasing adoption of modern retail venues and the growing sales of frozen and packaged foods, particularly in emerging economies. Various packaging innovations, including personalized labelling, graphical designs, and smart packaging labels, are further enhancing the packaging styles to cater to the demands of the food industry.

For instance, a Central American dairy company introduced enhanced, high-protein milk in 2020, leveraging packaging to engage and inform consumers. Their milk sachets feature a unique DM code that, when scanned, allows consumers to participate in cash prize draws and access health-related information through an accompanying app. This strategic use of packaging is expected to contribute to the company's long-term sales growth.

INGREDIENT LABELLING TECHNOLOGY MARKET - BY REGION

• North America
• Europe
• The Asia Pacific
• Latin America
• The Middle East
• Africa

Categorized by region, the Ingredient Labelling Technology Market spans North America, Europe, Asia Pacific, Latin America, the Middle East, and Africa. The Asia Pacific region emerged as the leader in 2021, accounting for the largest revenue share (35.6%) and is expected to maintain this trend in the forecast period. Factors such as the rising consumption of packaged food and the rapid expansion of the packaging and labelling industry, driven by sectors like food & beverage, consumer goods, healthcare, and e-commerce, positively influence the market growth in this region.

COMPANIES IN THE INGREDIENT LABELLING TECHNOLOGY MARKET

Prominent entities involved in the Ingredient Labelling Technology Market comprise:

1. 3M Company
2. Avery Dennison Corporation
3. Brady Corporation
4. Cenveo Corporation
5. Clondalkin Group
6. Constantia
7. Fort Dearborn Company
8. Fuji Seal International Inc
9. Mondi Group
10. Multi Packaging Solutions

SIGNIFICANT DEVELOPMENTS IN THE INGREDIENT LABELLING TECHNOLOGY MARKET

1. APPROVAL: In April 2021, Neenah Inc. celebrated a milestone with the validation of nine of its durable label solutions as U.S. Department of Agriculture (USDA) Certified Biobased Products. This achievement underscores the company's commitment to sustainability initiatives. Various DISPERSA, ENDURA, and PREVAIL durable label and board products have secured certification, indicating biobased content ranging from 68-99%, following third-party verification.
2. ACQUISITION: March 2021 witnessed Fort Dearborn's acquisition of Hammer Package Corporation. Through this strategic move, Fort Dearborn aims to enhance its capacity, capabilities, and global presence by leveraging Hammer's technology. This acquisition reinforces Fort Dearborn's position in the decorative label and packaging industry.
3. PRODUCT LAUNCH: In February 2021, Mondi Group introduced EverLiner Labelite and EverLiner M R, two novel paper-based sustainable products. Crafted from recycled and lightweight materials, these offerings provide environmentally friendly solutions to various challenges.