The USA sales of Labels are estimated to be worth USD 15,417.7 million in 2024 and are anticipated to reach a value of USD 22,702.4 million by 2034. Sales are projected to rise at a CAGR of 3.9% over the forecast period between 2024 and 2034. The revenue generated by the box in 2023 was USD 14,909.4 million. The industry is anticipated to exhibit a Y-o-Y growth of 3.4% in 2024.
Food industry to utilize most of the Labels offering an incremental opportunity worth USD 1,559 million in the coming next decade and is set to capture approx. 1/4th of the total market share in the 2024.
The increasing regulation in the US for the display of crucial information in the food industry such as the products content, safety warnings, and others. This increase in regulatory policies is increasing sales of labels in the sector.
USA Labels Industry Assessment
| Attributes | Key Insights |
|---|---|
| Historical Size, 2023 | USD 14,909.4 million |
| Estimated Size, 2024 | USD 15,417.7 million |
| Projected Size, 2034 | USD 22,702.4 million |
| Value-based CAGR (2024 to 2034) | 3.9% |
Plastic by materials to reach a valuation of USD 8,070.9 million in 2024 and to further reach up to USD 11,531.4 million by the end of 2034.
Plastic materials are preferred as they can withstand harsh environmental conditions, and offers excellent resistance to moisture making it ideal for the chemical and food industry where products require refrigeration for maintaining quality.
Midwest region is poised to offer incremental opportunity worth USD 1,609 million and is predicted to grow at a CAGR of 3.6%. The sub-regions growth can be attributed by the strong manufacturing and industrial base in the states such as Ohio, Illinois with variety of industries that range from food, chemical, and beverages which requires labels due to increasing stringent compliances.
The USA Labels market is anticipated to reach USD 15,417.7 million in 2024 with a growth rate of 3.9% during the assessment period. The growth in the USA can be experienced by the growing e-commerce and the online sales of pharmaceutical products necessitating for labels for displaying crucial safety information for consumers.
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The below table presents the expected CAGR for the USA Labels market over several semi-annual periods spanning from 2024 to 2034. In the first half (H1) of the decade from 2023 to 2033, the business is predicted to surge at a CAGR of 3.7%, followed by a slightly higher growth rate of 4.0% in the second half (H2) of the same decade.
| Particular | Value CAGR |
|---|---|
| H1 | 3.7% (2023 to 2033) |
| H2 | 4.0% (2023 to 2033) |
| H1 | 3.6% (2024 to 2034) |
| H2 | 4.1% (2024 to 2034) |
Moving into the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to decrease slightly to 3.6% in the first half and increase to 4.1% in the second half. In the first half (H1) the market witnessed a decrease of 10 BPS while in the second half (H2), the market witnessed an increase of 10 BPS.
Innovations in Printing Technology to Drive the Market
The different label printing methodologies includes flexographic, offset, digital, gravure, and letterpress printing. These techniques have their own advantage in terms of quality, speed, and cost-effectiveness.
The recent innovations in the printing technology such as smart labels and digital printing, have impacted the sales of labels. These innovation allows personalization, better traceability, and interaction. The need for sustainable labeling solutions is also increasing with growing environmental awareness.
Labels must meet the variety of regulatory policies, especially for the sectors such as food & beverages and pharmaceuticals, where precision and transparent labeling is important to ensure customer safety.
Consumer behavior is changing in terms of demands for convenience, personalization, and merchandise traceability, that would influence the label design and its functionality.
The label business is competitive, with both domestic and foreign companies vying for share. Quality, pricing, innovation, and client service are all driving forces in competition.
Labels are considered to be a vital part of the packaging process and supply chain. As effective labeling solutions are essential to identify, track, and engage consumers, their demand can expand.
Labels are also powerful tools for that can be used for marketing and branding purpose. Labels that are unique and pleasing to the eye make products stand out on store shelves and communicate brand identity.
In the label business, ongoing research and development activities are concentrated on developing technologies, new products, and solutions to address shifting demands and difficulties.
Stringent Regulations & Advanced Features like RFID & QR Codes to Drive the Market
The RIFDs and QR codes in labels help manufacturers, distributors, and end users to track their products and reduce the risk of counterfeiting. These new technologies also help in understanding the adoption of their products and satisfaction in consumers.
Manufactures in many industries are adopting these new technologies for ensuring security and quality of their products until they reach to their customers.
In particularly manufacturers from the food, beverage, and pharmaceutical companies are adopting RFIDs and QR codes to a large extent compared to other sectors. Strict regulations implemented from the United States state government over the quality of food items forced the food & beverage firms to add data such as ingredients, expiry date, and nutritional value of the product on their packages.
These factors can partially be added to a single label due to size concerns and often require the help of QR codes and RFID tags.
The governing body in the United States has implemented the Fair Packaging and Labelling Act, which mandates the requirement of labels for all consumer commodities. As per this act, the label should contain the net content of the product, product identity, and information about the manufacturer, packer, and distributor.
The act further suggests the addition of product ingredients to eliminate consumer deception. These stringent regulations imposed by the US government is expected to drive the market.
Fluctuating Import Duties May Hamper the Market Growth
Many manufacturers from the different regions of US that depends on the imported raw materials and finished labels may face challenges due to the increase in the trade tariffs and import duties implemented.
This increase in the import duties increases the costs of these raw materials and eventually affect the profit margins and pricing stability.
These policies are impacted with the geopolitical tensions, economic policies, and trade agreements that changes the overall scenario increasing the cost of products for consumers. These increased product costs also impact the sales and thus may hamper markets growth.
Principal Consultant
The USA Labels industry recorded a CAGR of 1.7% during the historical period between 2019 and 2023. The growth of the Labels industry was positive as it reached a value of USD 14,909.4 million in 2023 from USD 13,942.3 million in 2019.
Digital printing methods in labels have changed the process of its productions in terms of shorter print runs making it more affordable and easy personalization in packaging solutions. This also changed the production outcome time which is becoming the trend that started in early 2020s and is said to be on the rise.
Sustainability these days are the key factors prioritize in all the industries including labels. This preference for sustainability is rising with the growing demand from the customers amid the environmental concerns. These demands resulted in the shift towards eco-friendly label materials.
The integration of radio frequency identification technology and smart labels is expanding in the industry that provides features such as authentication, tracking, and interface with digital devices. These label applications especially in the sectors such as food and pharmaceuticals, has affected the labeling requirements due to stricter guidelines for example nutritional information, allergen declaration, and serial number.
The growing concerns about counterfeiting in products have increased the focus for the incorporation of security aspects such as special inks, holograms, and tamper-proof seals into the labels. Advancements in the printing technology have made personalizing in labels much easier that allows brands to generate unique and attractive packaging.
Tier 1 companies comprise market leaders with a market revenue of above USD 400 million capturing significant market share of 20% to 25% in USA labels market. These market leaders are characterized by high production capacity and a wide product portfolio.
These market leaders are distinguished by their extensive expertise in manufacturing across multiple packaging formats and a broad geographical reach, underpinned by a robust consumer base. They provide a wide range of series including recycling and manufacturing utilizing the latest technology and meeting the regulatory standards providing the highest quality.
Prominent companies within tier 1 include CCL Industries Inc., Avery Dennison Corporation, Multi-Color Corporation, and 3M Company.
Tier 2 companies include mid-size players with revenue of USD 100 to 400 million having presence in specific regions and highly influencing the local market. These are characterized by a strong presence overseas and strong market knowledge.
These market players have good technology and ensure regulatory compliance but may not have advanced technology and wide global reach. Prominent companies in tier 2 include Resource Label Group, LLC, Fuji Seal International, Inc, BRADY Corp, and Mondi plc.
Tier 3 includes the majority of small-scale companies operating at the local presence and serving niche markets having revenue below USD 100 million. These companies are notably oriented towards fulfilling local market demands and are consequently classified within the tier 3 share segment.
They are small-scale players and have limited geographical reach. Tier 3, within this context, is recognized as an unorganized market, denoting a sector characterized by a lack of extensive structure and formalization when compared to organized competitors.
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The section contains information about the leading segments in the industry. By end use, food is estimated to grow at a CAGR of 3.2% throughout 2034. Additionally, the plastic materials are anticipated to offer an incremental opportunity worth USD 3,728 million and is predicted to reach a market valuation of USD 8,070.9 million by 2024.
| Ink Type | Water Based |
|---|---|
| Value Share (2034) | 43.3% |
The water-based Labels are anticipated to offer an incremental opportunity worth USD 3,074 million throughout the next ten years and are expected to grow at a CAGR of 3.5% during the assessment period. The water based inks are with water as the main element reduces the volatile organic compounds as compared to solvent-based inks.
Many manufacturers are opting it as the regulations are increasing with sustainability demands. In the food and beverage industry where products safety is the prime focus water based inks are mostly preferred for its less toxic thus increasing the adoption.
| Printing Technology | Digital |
|---|---|
| Value Share (2034) | 50.9% |
Digital are predicted to reach a market valuation of USD 8,135.5 million in 2024 and are set to capture a market share of 52.8% by 2024. Digital printing technology is known for its flexibility, speed and cost-effectiveness which is beneficial for the small and medium sized print runs. Digital print does not require plates making the setup quicker and less expensive.
This reduces the wastage and business can produce as per the requirements thus saving the inventory costs. The ability of digital printing to print custom designs and incorporate variable data, such as unique barcodes, QR codes and other contributing to segments growth.
Key players operating in the Labels market are investing in new technology including digital for improved product quality and easy customization in products of labels to meet customer demand and also entering into partnerships.
Key Labels providers have also been acquiring smaller players to grow their presence to further penetrate the Labels market across multiple regions.
Recent Industry Developments in the Labels Market
In terms of product type, the industry is divided into pressure sensitive labels (PSL), shrink labels, stretch labels, thermal labels, and others (in-mold, pre-gummed, etc.).
In terms of material, the industry is segregated into plastic, paper, and aluminum. Plastic is further classified as polyethylene (PE), polypropylene (PP), polyvinyl chloride (PVC), polyethylene terephthalate (PET), and others (PA, EVOH, etc.). Paper are sub-categorized as kraft paper and recycled paper.
By ink type, the market is divided into solvent based, water based, UV based, and others (bio-based, oil based, etc.).
By printing technology, the market is divided into flexographic, digital, gravure, offset, and letterpress.
The market is classified by end uses such as food, beverages, healthcare, cosmetics & personal care, homecare & toiletries, chemicals, automobiles, and others industrial. Food is sub-categorised as bakery & confectionaries, dairy product types, baby food, chilled/frozen food, others (snacks, pet food, etc.). Beverage is classified as alcoholic and non-alcoholic. Healthcare is sub-divided into medical devices, medical supplies, pharma & biological.
Key states of Northeast, South West, West, South East, and Midwest have been covered in the report.
The USA Labels industry is projected to witness a CAGR of 3.9% between 2024 and 2034.
The USA Labels industry stood at USD 14,909.4 million in 2023.
The USA Labels industry is anticipated to reach USD 22,702.4 million by 2034 end.
South West region is set to record the highest CAGR of 4.7% in the assessment period.
The key players operating in the USA Labels industry include CCL Industries Inc., Avery Dennison Corporation, 3M Company, Multi-Color Corporation, Amcor Plc, Klöckner Pentaplast Europe GmbH & Co. KG, Mondi plc., UPM Raflatac, BRADY Corp, Sigma Aldrich Corporation, and Fuji Seal International, Inc.
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USA Labels Market
