Benchmarking Europe’s label industry

Packaging Solutions

FINAT, the international association for the label industry, has published the fifth edition of its half yearly FINAT Radar – a wide ranging, professionally conducted industry trends report and analysis covering the European narrow web market. With a core focus on label converters, and produced exclusively for members, it delivers an in-depth profile of the current marketplace.

Managing director of the association Jules Lejeune was able to confirm that the industry as a whole continues to enjoy ‘buoyant growth’ at around 5% – well above European GDP – with label converting companies increasing their sales revenues on average by over 8% in 2015.

In response to a changing profile in end user/brand owner demand, average run lengths reduced significantly. With multi versioning, multi language, and multi location labelling operations, plus a current requirement for ‘fast to market’ product introductions and special editions/personalisation, end user companies now often specify just in time label deliveries – so print runs are naturally contracting. This is true for both conventional analogue and digital label print. As a result, analogue print runs have reduced by an average 22%, and digital print runs by 12%, with the beverage, health and beauty, and consumer durables segments showing the sharpest declines.

‘In the complex mix of traditional, hybrid, and digital print technologies which now characterise our industry,’ said Jules. ‘Current research shows that nearly one third of survey participants intend to invest in digital label presses in the next six months – for the first time overtaking printers’ commitment to buying conventional presses. But that is not all! Many FINAT member companies are now additionally investing in alternative product decoration technologies such as shrink and stretch sleeve, in-mould labels, and even flexible pouches. This is great evidence of the forward looking, innovative thinking that characterises our industry that is creating a new arena of all round, multi service suppliers for brand owners.’

Geographically, while Europe’s ‘top ten’ label markets continue to account for 75% of total label consumption, east European markets, particularly Poland, Turkey, and Russia are visibly increasing their share. In terms of end use markets, pharmaceuticals, health and beauty care, and food labelling were the strongest performers in 2015.

FINAT President Thomas Hagmaier commented, ‘The outcomes of the current Radar indicate that our industry’s fundamentals are healthy and that the European label industry is well positioned to face current challenges like the proposed exit of the UK from the European community.’