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FLEXO Magazine : September 2012
Producing tags, labels or flexible packaging? Or are you active in the cor- rugated or folding carton market? The CDI Spark family offers a wide range of digital flexo imagers for plates for different markets. There is a CDI for every company. Bringing the very best flexo quality, the CDI Spark will deliver results that make you smile. RESULTS THAT MAKE YOU SMILE For more information: 1-800-743-7131 www.esko.com Labelling and Product Decoration A Status Summary By Corey M. Reardon The definition of a prime label no longer simply covers glue-applied and pressure-sensitive identification and decoration media. Today, these formats compete with sleeving in all its forms – heat shrink, stretch, and wraparound; with the various in-mold technologies; and increasingly with di- rect printing on bottles, cans, cartons, and flexible packaging. Growing the business is certainly a challenge across all industries as we struggle to regain a balanced economic base following the recent turbulence in developed nations. For 2012, forecasts suggest that global GDP is set to grow at 2.4 percent — a lower figure than in 2011, which saw 3.8 percent growth. This is a response to the revival of market demand and re-stocking. Much of the global growth this year will derive not from the developed economies but from countries like China, India, and Brazil. But, even in these comparatively buoyant markets growth is slowing, reflecting a combination of a slowdown in exports and the introduction of financial controls to limit inflation. As the USA revitalizes its domestic manufacturing base, 2012 GDP is forecast at 2.3 percent. But, growth in Europe will be very limited, with the Euro zone experiencing a negative growth figure. Increasing demand for goods and services naturally impacts demand for labels. This is true around the globe, but it is no surprise that, today, the greatest demand for labels comes from the Asia Pacific region, with 34 percent of the world market. It is still growing, although not at the high historical rates. South America is currently the star performer, growing at around 12 percent in 2011. Here, glue-applied labels dominate, as beer and beverages are strong markets. But pressure-sensitive labels, heat-shrink sleeves, and in-mold labels are also growing strongly, partnering growth in con- sumer product retailing — particularly foods, beverages, and personal care products. The region is the focus for investment and infrastructure across the whole of the label value chain. Now beginning to show signs of developing in terms of both label demand and converting capabilities is the complex mar- ket region that takes in the whole of Africa and the Middle East. Overall, estimates indicate that global growth in the use of label products for 2011 is 4-4 .5 percent, varying by region and label format. The developed label markets of Europe and North America grew by only 1.5 percent and 1.2 percent respectively. Eastern Europe — hitherto the hero market in Europe — no longer represents the strong regional driver it was although it still remains a major component of European growth. In Europe, across all technologies, growth in film label formats remained strong in 2011. Food, beverages, and pharmaceuticals remain the key end-use label market seg- ments in Europe. In North America, food and beverage are also the key label users. It is therefore not surprising that sleeve labels were the prime drivers of growth in label volumes, with reel-fed shrink sleeving the top performer, at over 8 percent growth in 2011, albeit from a low level. In-mold volume growth disappointed at 1-1 .5 percent. LEADING LABELS • Increasing demand for goods and services naturally impacts demand for labels • Africa and the Middle East are now beginning to show signs of developing in terms of both label demand and converting capabilities • Food, beverages, and pharmaceuticals remain the key end-use label market segments in Europe • Heat shrink sleeves show signs as being the most- favored format, evidencing high growth, even in the emerging economies 34% North South 10 h America h America 0% 5% Europe Africa & Middle East 22% 29% Asia Pacific % Pressure 39% 15% -s e nsitive 2% 5% Glue Appliedd Sleeving 39% In-mold Others WORLD MARKET SHARES BY LABELLING TECHNOLOGIES WORLD DEMAND FOR LABELS BY GEOGRAPHIC REGION 28 FLEXO SepteMBeR 2012 www.flexography.org InduStRy IndiCAtoRS