World demand for labels looks to remain strong in the coming years, increasing 4.9 percent annually to nearly 58 billion square meters in 2018 with a value of $114 billion, according to World Labels, a new report from Freedonia Group.
“Renewed vigor in global manufacturing output will be the primary factor driving growth,” noted analyst Mike Richardson. Additionally, the report suggests that the global economic expansion that continues to develop in the wake of the recent economic downturn will drive consumer spending on packaged goods.
Growth in spending, unsurprisingly, will remain highest in the world’s developing regions where consumer spending is growing most rapidly.
The Chinese and Indian label markets will fuel expansion in the Asia/Pacific region at a faster rate than the rest of the world. The blistering pace of China’s economic growth will slow a little in coming years, but the country’s enormous market for labels will still account for nearly one third of label demand through 2018. The Indian market is smaller in scope than that of China but it is projected to grow at a faster rate.
Gains will not be as dramatic in the developed markets of the United States and Western Europe but the growth will be a marked improvement over that of the 2008-2013 period. During the economic decline, many countries experienced slowdowns in label demand and even the best performing economies struggled. But, according to the report, growth in manufacturing, especially in food processing, will lead to a revitalized label market in the future.