MarketsandMarkets projects that the security labels market size by value will grow and reach USD 26.47 Billion by 2020 at a CAGR of 5.13% between 2015 and 2020. The market is growing in accordance with the growth trends of the converting and labeling industries. Factors such as increasing demand from food and beverage industry, demand for retail supplies, consumer durables, and logistics application, increasing consumer awareness, and growth of the e-commerce industry have propelled the growth of the global market. Security labels are used for anticounterfeiting, brand protection, transmitting information, and providing waring, among other functions. Product innovations and technological developments in the market are expected to create strong investment opportunities.
The market is segmented on the basis of type, form, identification method, composition, application, and region. On the basis of composition, facestock held the largest market share, in terms of both volume and value. Bar codes was the most widely used identification method among other technologies, in terms of both volume and value. On the basis of form, sheets held the largest market share, in terms of both volume and value.
On the basis of application, the market is segmented into food & beverage, retail, consumer durables, pharmaceuticals, and others. Increasing disposable incomes of people in developing countries and changing preferences of manufacturers for cost-efficient and effective labeling are some of the factors that are driving the market.
On the basis of key regions, the market for security labels is segmented into North America, Europe, Asia-Pacific, and the Rest of the World (RoW). The European region held the largest share among all the regions in 2014. This is mainly due to emerging economies in Germany and U.K., coupled with growing applications of security labels in the food & beverage and consumer durables industry. Asia-Pacific is projected to be the fastest-growing market during the forecast period, due to the growing demand for security labels products and increasing awareness among end users. In terms of type, branding is projected to be the largest market for security labels.
Certain factors such as the high capital investment, lack of standards & regulations, rising environmental concerns, and rising raw material cost hinder the growth of this industry The rising raw material cost is one of the strongest restraints for the security labels market. High raw material costs are at the forefront of the agenda of both end-user packaging buyers and their label-converter suppliers. Raw materials such as film materials, resins, inks, paper & wood pulp, hydrocarbon resins, carbon black, adhesives, and solvents are largely driven by rise in prices. The rise in raw material cost has added to limiting the growth of the market.
The new product developmets and aqusitions were the major strategies adopted by most players in this market. Companies such as 3M Company (U.S.), Avery Dennison Corporation (U.S.), CCL Industries Inc. (Canada), UPM (Finland), Honeywell International Inc. (U.S.), Tesa SE Group (Germany), and Seiko Holdings Corporation (Japan) were the key players who adopted these strategies to increase the customer base in key markets. The leading security labels manufacturers are focusing on emerging countries that are estimated to show potential for industrial development in the near future.
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