Pressure Sensitive Label Demand to Exceed $15 Billion in 2021

Demand for pressure sensitive adhesive (PSA), or self-adhesive, labels is expected to rise 3.5% per year to $15.1 billion in 2021. Demand for pressure sensitives, which accounted for 76% of total label demand in 2016, will benefit from greater demand for value-added types and smart labels. The almost exclusive use of PSAs in fast growing markets such as the secondary and mailing and shipping segments will also drive growth. These and other trends are presented in “Labels Market in the U.S., 12th Edition,” a new study from The Freedonia Group (freedoniagroup.com), a Cleveland-based industry research firm.

While paper-based labels represent the vast majority of demand – 74% of the total in 2016 – plastic pressure sensitive labels are expected to grow more rapidly. Plastic offers numerous advantages including:

• durability
• a wide range of customizable resin options
• aesthetic advantages such as a no-label look

The entire U.S. labels market is forecast to grow 3.4% annually to $19.8 billion in 2021, accelerating from the 2011-2016 pace. Gains will be driven by increased focus on labels as sophisticated marketing and track and trace tools, leading to growth for value-added label types. According to analyst Ellen Kriz, “Ongoing improvements in converting techniques and printing technologies will lower costs and increase penetration of these higher value labels.”