Growing demand for Fast-Moving Consumer Goods (FMCG), and pharmaceutical products will drive robust growth for the packaging & labelling services market. The covid-19 pandemic has provided a major boost to spending on essentials, cleaning products, and over-the-counter medicines.
According to 2020 annual numbers released by Procter & Gamble, the demand for its cleaning products has risen by 30%. Moreover, similar trends are witnessed across the industry, as detergent manufacturers like Ariel, Tide report 10% growth in cleaning products in households. The demand for pharmaceutical products also remains promising as new technologies like 3D printing promise new opportunities for labelling with key trends like personalized medicine.
The FDA among other government agencies have noted a need for pharmaceutical products to move towards personalised doses of medicine, and in products like prosthetic organ manufacturing, trends like 3D printing are expected to shorten ques, and reduce costs, and meet the widened gap between supply, and demand. The notable technology trends, and rising demand for essentials, and cleaning product will remain key driver of growth in the packaging & labelling services market.
Rising Digitalization, and Growing Demand for E-commerce Remains Major Driver for Growth
According to the US census bureau, the retail e-commerce sale in the US amounted to over US$ 200 billion in 2020. Moreover, the total retail sales in 2020 reached over $1,468.9 billion in the third quarter of 2020. The total retail sales witnessed an increase of 12% from second quarter, while, e-commerce witnessed an increase of 36.7% growth in the third quarter of 2019. These trends are indicative of major growth prospects for the e-commerce market around the world.
The increasing tech-savviness among consumers, growing risks to shop in-person due to COVID-19, and increasing tilt towards e-commerce due to convenience remain major drivers of growth for e-commerce in the near future. The census bureau data confirms the growing assumption among industry experts that e-commerce will likely become the future of retail.
Moreover, the e-commerce is overtaking traditional retail at breath-taking speeds with some of the highest growth-rates industry-wide. The rising demand for e-commerce, increased penetration of e-commerce, and rising demand for FMCG products will remain key drivers for growth in the packaging & labelling services market.
Demand for Cosmetics, Electronics, and Toys Will Remain Robust
Amidst the looming threat of the global pandemic, the demand for high-end products like electronics had slowed in 2019. However, in 2020, thanks to growing economic recovery, the demand for premium goods like electronics, and cosmetics have showed promising signs of recovery.
The horizon of vaccine programs, and economic recovery through rising employment will lead to more business confidence, and much needed growth in disposable incomes. The cosmetic industry continues to reel from challenges like artificial ingredient-based manufacturing, while consumers increasingly remain concerned about effects of health. However, the cosmetic industry promises to make recovery, thanks to growing demand for skin protection amidst turbulent weather conditions.
E-commerce will likely remain a key driver of growth for electronics, and cosmetics products, thanks to growing demand for cost-effective products. Moreover, the rising trust factor for e-commerce will also drive tremendous growth for electronic and cosmetics goods in the packaging & labelling services market.
Some key players in the packaging & labelling services market are Amcor Limited, 3M Company, CCL Industries, Inc., Bemis Company, Inc., Gerresheimer AG, and E. I. du Pont de Nemours and Company.
The Packaging & Labelling Services Market is Segmented as Below:
- Virgin fiber
- Recycle fiber
- High-Density Polyethylene (HDPE)
- Low-Density Polyethylene (LDPE)
- Linear Low-Density Polyethylene (LLDPE)
- Polystyrene (PS)
- Polyvinylchloride (PVC)
- Polyethylene Terephthalate (PET)
By End-use Industry
- Personal care
- Food and Beverage
- Transport and Logistics
- Automotive and Aerospace
- Retail and e-commerce
- North America
- United States
- Rest of North America
- United Kingdom
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Middle East & Africa
- Saudi Arabia
- South Africa
- Rest of the Middle East & Africa
- South America
- Rest of South America