In-mold Labels Market to be worth US$3.23 bln by 2020

22-Feb-16

The market for in mold labels is projected to grow from US$2.58 bln in 2015 to US$3.23 bln by 2020, at an estimated CAGR of 4.54%, as per MarketsandMarkets. This growth is due to the increasing technological advancements leading to cost-efficient manufacturing processes and increasing awareness among the consumers about the sustainable labels and their pace of adopting the products. Growing food & beverage industry also provides an opportunity to the market to grow further, especially in the emerging Asia-Pacific and Latin American regions. Polypropylene is a raw material used in the manufacture of in-mold labels, which is extremely versatile as a plastic material. It can be used in a wide range of plastic containers and labels. They can be softened sufficiently to bond with other polymers, hence reducing the need for other additives. Because of superior characteristics, performance, and low cost compared to other polymers and resins, PP fibers are widely used in this industry and dominate the In-mold Labels Market. It is used in packaging and labeling of various consumer and industrial products such as foods, cosmetics, hand tags, bar code labels, retail labels, and no label look. The demand from the food & beverage sector is expected to experience a higher growth rate, mainly because of the growing demand for packaged and branded products, and consumer awareness toward the authenticity of the product. Beverage manufacturers are widely using in-mold labels on bottles owing to technological advancements such as injection molding, thermoforming, and extrusion blow molding that offers cost-effective solutions. On the basis of key regions, the market for in-mold labels is segmented into North America, Europe, Asia-Pacific, and the Rest of the World (RoW). The European region held the largest share among all the regions in 2014. This is mainly due to increasing demand for in-mold labels from France and Germany due to the increasing manufacturing output, rising income and consumption level, and growing demand for effective and efficient labeling solutions.