No matter the material, pressure sensitive labeling and flexible packaging materials are gaining in popularity. According to The Freedonia Group in its Labels to 2015 study, pressure sensitive is the material of choice for more than 70 percent of labeled products, a demand said to rise 5.2 percent annually.
In fact globally, pressure sensitive systems are growing at nearly 10 times the volume of other labeling methods. This global growth statistic is similarly echoed in the U.S. According to a 2013 MarketWatch release, U.S. label demand will reach $19 billion in 2017, with the pressure sensitive segment accounting for more than 75 percent of the total market.
Flexible packaging appears similarly robust. Several studies project the global packaging market value to reach $99.6 billion by 2018, with CAGR at more than 5 percent. By 2017, U.S. flexible packaging growth is expected to exceed $28 billion.
So what’s driving this growth? In large part it’s spurred by consumer packaged goods (CPG) companies challenging the industry to meet the needs and demands of a changing public.
Appearance
Consumers have become increasingly savvy, with a growing appreciation of—and demand for—packaging aesthetics. Product shelf appeal is a must have and CPG companies worldwide are finding that shelf power equates to brand power. The need to succeed at shelf is encouraging packaging designers to innovate materials. And many are combining technological innovations with interactivity to attract consumer attention. For instance:
- Thermochromatic inks on packaging are now telling consumers whether the beer they’re buying is cold inside
- Electroluminescent labels, along with a graphic equalizer display, are allowing packaging to light up
- Special coatings are delivering a scent upon handling
- Packaging color is changing, indicating the ripeness of fruit
Lifestyles are also impacting package and label appearance. Perennially time pressed consumers are looking for quick and easy, stimulating single serve labeling and on the go packaging. While niche needs, such as gluten free, lactose intolerant and organic are the impetus for short runs, regional products and versioning, specially designed to fit unique profiles, needs and lifestyles.
Functionality
As technology becomes ever present in consumers’ lives, people are embracing and expecting tech enhanced experiences everywhere—including in labeling and packaging. RFID is one way that’s happening. As evolving RFID technology is being integrated into labels, new functionality is bringing greater benefits for brand owners at all levels of operation. RFID chips in labels are providing integrated solutions from source to consumer that increase speed, accuracy, visibility, productivity and margins in the following areas:
- Manufacturing logistics benefits
- Store level inventory accuracy in retail
- Enhanced loss prevention
Sustainability
The proliferation of sustainability targets and scorecards have resulted in major packaging materials changes. To improve scorecard numbers, brand owners are striving for thinner, lower weight, sustainable label options to reduce their environmental footprints and the label industry is complying. Thinner facestocks and recyclable polyester liners are gaining in use. Flexible packaging is also strong in the area of sustainability. Studies show flexible packaging production uses fewer natural resources, and requires less transportation and landfill space. In fact, a truckload of unfilled flexible packages is equal to 26 trucks of unfilled glass containers. Statistics like this are increasingly generating a packaging change from a labeled bottle or jar to a flexible packaging solution.
How are these macro trends impacting the use of label and packaging materials such as paper, film and board? Let’s take a closer look.
Paper
According to a Freedonia study looking out to 2017, when it comes to labels, paper still wins over film for the majority of label stock. That’s “…based on its cost advantages and ability to be coated for enhanced durability,” the study says. It also notes that, “the use of higher end materials—such as metallic and holographic papers—will also promote value growth.”
Looking at paper trends by segment helps creates a deeper understanding of the evolving trends.
Due to the enormous brand proliferation in the Wine & Spirits market, designers are increasing embellishment to differentiate products on shelf. Papers that combine a rough, porous surface with a rich tactile feel are being used as a canvas for such techniques as deep embossing and foil stamping. According to Matt Rompala, product and business development manager, wine and spirits at Avery Dennison Label and Packaging Materials, the increased need for paper performance is also leading to greater demand for heavier stocks. “We’re seeing increased sales of more robust wine label stock due to its ability to handle the trend towards increased embellishment,” he said.
For white and sparkling wine label materials, the challenge of condensation and exposure of labeled bottles to cold and wet environments is impacting film and paper choices. Here, facestocks are being combined with wet strength additives and unique adhesives to provide the necessary performance. Viable facestocks include a range of clear film materials as well as metallized, pearlescent, glossy bright white and traditional uncoated papers.
In spirits, papers that reflect an artisan vibe are gaining in popularity. Uncoated papers are being used to convey the unique craftsmanship of locally sourced and produced bourbon, vodka and tequila. Wood veneer facestocks, pioneered originally in wine, are also go to choices to showcase the market trend to barrel aging.
Wireless communication has created growing opportunities in on site, on demand printing. Whether for warehouse inventorying, medical sample labeling, retail point of sale or produce track and trace applications, advances in thermal chemistry are creating paper constructions that deliver optimum solutions. In mobile Variable Information printing, thinner, more flexible constructions facilitate more labels per roll, resulting in higher productivity with reduced waste. In health care applications, lighter weight, more flexible, direct thermal label constructions are providing excellent tight mandrel performance for labeling of laboratory test tubes, small diameter vials and syringes.
Increasing brand owner demand for Application Specific Solutions is sparking growth in specialty papers. From fluorescents and holographics to dissolvables and natural kraft papers, these materials are proving extremely successful for many distinct uses. Here’s why:
- With their pop of color, fluorescent papers are increasingly popular for promotional stickers and as well as identification labeling
- Eye catching holographic papers can be used on almost any product, including shampoo bottles, cosmetics, toothpastes, breath mints, vitamins and supplements
- Dissolvable labels simplify the washing and relabeling process in restaurants and other food preparation and entertainment venues. They also counter bacterial growth by eliminating residual adhesive and label materials
- For brand owners seeking an earthy and organic look, unbleached, uncoated high strength kraft brown paper is being chosen for applications ranging from design savvy apparel and textile labeling to spirits
According to a Smithers Pira forecast, the Flexible Packaging retail market is a key driver of demand, with 55 percent of papers being used for retail applications spurred by high growth in emerging economies. The forecast also noted the appeal of paper as an environmentally responsible material. Although film growth is projected to be the driver of flexible packaging innovations, rising oil prices work in favor of paper based packaging. Here’s how the trends by several key segments appear.
- MarketsandMarkets taps Pharmaceutical Packaging as the fastest growing market through 2018. Flexible paper consumption will be spurred by single use items to reduce infections and cross contamination, particularly in developing health systems
- The largest market for flexible papers is Dry Groceries. Here the latex impregnated, papers rule for cost effective pouches typically containing dry goods, such as hot chocolate, soups and gravy mixes. There is some movement away from traditional foil structures in food to using higher barrier films and resins. Cindy Collins, product manager, Rapid-Roll at Avery Dennison is seeing packaging engineers work with a less expensive paper/specialized sealant constructions for applications like dry oatmeal and samples. “Using specialized barrier films takes complexity out of paper structures and makes them more environmentally friendly,” she notes. Collins has also noticed an interest in heavier paper grades for sample sized packaging in home and personal care (HPC)
- The move to packaging with a “Natural” Appearance crosses traditional market boundaries and is stimulating paper use throughout the industry. These natural papers—typically brown krafts and heavily ragged whites—look recycled but are still FDA compliant