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US demand for primary packaging labels is forecast to increase 3.1% annually to $10.2 billion in 2025, accelerating from the pace seen during the 2015-2020 period, when average annual growth was affected by a 2020 decline in label demand that resulted from the COVID-19 pandemic. Advances will be supported by:
- overall growth in packaging demand, both due to gains in the production of goods that are packaged as well as due to use of more or higher value packaging per product
- greater use of higher value labels, including:
- plastic labels
- larger, full-body labels
- labels incorporating higher performance inks and coatings, and specialty features like tamper evidence, expanded product information, and smart capabilities
However, demand will be limited to an extent by the continued growth of flexible packaging formats, especially pouches, which are typically direct printed and therefore do not require labels.
Pressure Sensitive Types to Remain Most Used; Heat Shrink Labels to Grow at Fast Pace
Pressure sensitive labels accounted for 60% of demand in 2020 and are expected to remain the most used types, supported by their widespread use in food and beverage packaging. However, labels face heavier competition from direct printing in the food segment than in other major applications. Increasing use of flexible packaging formats that generally do not use labels, such as pouches, will continue to restrain demand for food packaging labels going forward.
Heat shrink and stretch sleeve labels are expected to see the fastest growth as their use is expanding beyond food and beverage applications into the cosmetics, toiletries, and pharmaceutical markets. Stretch sleeve and heat shrink labels are expanding their presence with OTC products at the expense of pressure sensitives, as shrink sleeves are particularly valuable in this market due to their ability to provide tamper evidence.
Beverages & Pharmaceuticals to Hold Best Opportunities Among Applications
Markets expected to post the fastest growth through 2025 include beverages and pharmaceuticals. Both segments will continue to experience a more pronounced trend away from glass or metal packaging formats to plastic types, boosting demand for higher value plastic labels:
- Gains in the beverage market will be driven by efforts to differentiate products by employing higher value materials, inks, and label types – such as shrink sleeves and clear film pressure sensitive labels for a no-label look.
- Safety and regulatory considerations will be the primary growth driver in the pharmaceutical market. For example, high-value RFID tags, specialty inks, and other enhanced security features are increasingly required in these applications to prevent drug counterfeiting and diversion.
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Table of Contents
1. Executive Summary
2. About This Report
Report Details
Market Scope & Product Description
Impact of COVID-19 Pandemic
3. Overview
Historical Market Trends
Demand by Application Method
Sustainability Issues
Recycling & Recycled Content
Bioplastics & Compostable Plastics
Low-VOC Materials
Key Suppliers
4. Markets
Demand by Market Sector
Food
Beverages
Pharmaceuticals
Cosmetics & Toiletries
Other Markets
5. Appendix
Scope
Definitions
Freedonia Methodology
Study-Specific Methodology
Sources
Associations & Agencies
Related Studies & Reports
Macroeconomic Assumptions
Economic Environment
Demographic Trends
Manufacturers' Shipments
Consumer Spending
Business Establishments
List of Tables
2. About This Report
Table 2-1 | Annual Primary Packaging Label Demand by Market, 2019 - 2021 (million dollars)
3. Overview
Table 3-1 | Primary Packaging Label Demand, 2010 - 2020 (million dollars)
Table 3-2 | Primary Packaging Label Demand by Application Method, 2010 - 2030 (million dollars)
4. Markets
Table 4-1 | Primary Packaging Label Demand by Market, 2010 - 2030 (million dollars)
Table 4-2 | Food Primary Packaging Label Demand by Application Method, 2010 - 2030 (million dollars)
Table 4-3 | Beverage Primary Packaging Label Demand by Application Method, 2010 - 2030 (million dollars)
Table 4-4 | Pharmaceutical Primary Packaging Label Demand by Application Method, 2010 - 2030 (million dollars)
Table 4-5 | Cosmetics & Toiletries Primary Packaging Label Demand by Application Method, 2010 - 2030 (million dollars)
Table 4-6 | Primary Packaging Label Demand in Other Markets by Application Method, 2010 - 2030 (million dollars)
5. Appendix
Table 5-1 | Relevant HS Codes
Table 5-2 | Relevant NAICS & SIC Codes
Table 5-3 | Macroeconomic Indicators, 2010 - 2030 (billion 2012 dollars)
Table 5-4 | Population & Households, 2010 - 2030 (million persons)
Table 5-5 | Manufacturers' Shipments, 2010 - 2030 (billion dollars & billion 2012 dollars)
Table 5-6 | Personal Consumption Expenditures, 2010 - 2030 (billion dollars)
Table 5-7 | Personal Consumption Expenditures, 2010 - 2030 (billion dollars)
List of Figures
1. Executive Summary
Figure 1-1 | Primary Packaging Labels Market
2. About This Report
Figure 2-1 | Primary Packaging Labels: Product Examples
Figure 2-2 | Annual Primary Packaging Label Demand Growth, 2019 - 2024 (% annual change)
3. Overview
Figure 3-1 | Primary Packaging Label Demand, 2000 - 2020 (million dollars)
Figure 3-2 | Primary Packaging Label Demand by Application Method, 2010 - 2030 (million dollars)
4. Markets
Figure 4-1 | Primary Packaging Label Demand by Market, 2010 - 2030 (million dollars)
Figure 4-2 | Food Primary Packaging Label Demand by Application Method, 2010 - 2030 (million dollars)
Figure 4-3 | Beverage Primary Packaging Label Demand by Application Method, 2010 - 2030 (million dollars)
Figure 4-4 | Pharmaceutical Primary Packaging Label Demand by Application Method, 2010 - 2030 (million dollars)
Figure 4-5 | Cosmetics & Toiletries Primary Packaging Label Demand by Application Method, 2010 - 2030 (million dollars)
Figure 4-6 | Primary Packaging Label Demand in Other Markets by Application Method, 2010 - 2030 (million dollars)
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