The report forecasts the global glue applied label market to grow at a CAGR of 3.43% during the period 2016-2020.
Demand for premium appearance labels will be a key trend for market growth. Vendors in the market are adding upscale enhancements such as embossing and thermo-chromatic inks, matte and soft-touch finishes, acid etch simulation, high-sheen metallic inks, and cold foil stamping to enhance the appearance of shrink sleeves. This is helping glue applied labels expand into new segments that traditionally have not utilized these types of labels. The increasing demand for premium packaging, especially for premium consumer products such as cosmetics and other household items, is attributed to developed and mature markets such as the US, Japan, and Western Europe.
According to the report, integration of advanced technology will be a key driver for market growth. There are several new advances in technology and innovation in the global glue applied label market. End users are demanding labels that are easily readable and are highly durable. Apart from the traditional liners made of paper and synthetic paper, new innovations have emerged in the market. For instance, the use of mono directed oriented (MDO) films are used in cosmetic and personal care packaging products. MDO films used in labels provide high stiffness in machine direction, which results in better runnability of a printing press.
Further, the report states that packaging companies always face the problem of choosing the right combination of technology, materials, and cost. The high initial investment needed to manufacture glue applied labeling materials is a major challenge faced by vendors in the glue applied label market. The new designs and materials required to develop these products have increased the overall manufacturing and production costs. The machines required for developing glue applied labels of varied sizes and designs are also expensive.