Label Market in India
Stories about today’s global economies often include information about China, and the seemingly endless power of its reach. Because it’s the world’s largest economy, its financial decisions have ripple effects around the globe. What many fail to realize, though, is that while China is the world’s largest economy, India has a distinct position of being one of the world’s largest, most stable and dynamic free market economies. In fact, a recent article in The Times of India said: “India is to beat China as the world’s largest economy by 2050...[with] a projected GDP of $86 trillion.” China, it would seem, has officially been put on notice.
According to a report by Naresh Khanna and Jaya Pathak of Indian Printer and Publisher magazine and IppStar, respectively, the Indian label market is growing fast and shows no signs of slowing down. Conversely, statistics on the Chinese label market indicate a recent decline in growth. IppStar, which tracks press installations in India as part of its ongoing research on the Indian print industry, has estimated that the base installation of digital production presses has grown year-to-year by more than 30 percent.
A recent study by AWA Alexander Watson Associates estimates the Indian label market has been growing by a strong 10 percent per year. Glue-applied labels still dominate the market, with a 57 percent share. Pressure sensitive labels account for approximately 31 percent, while sleeve labels and other, unidentified labels each take a 6 percent share. In-mold labeling makes up less than one percent of the market.
The AWA study notes that while glue-applied formats remain the dominant labeling technology in India, it is quickly losing share to the rapidly growing volumes of pressure sensitive labelstocks that are entering the market by companies such as Avery Dennison and UPM Raflatac. Additionally, cold (wet) glue-applied labels continue to show growth, but more significant growth can be seen in glue-applied label technologies in the wrap-around format. The pressure sensitive label market is also served by local laminators who may in turn be supplied with high-quality release liner base by international companies, such as Loparex.
According to Harveer Sahni, managing director of Weldon Celloplast in Delhi, India, the significant growth in India can be directly attributed to its growing middle class. “There has been significant and consistent double-digit growth in recent times, driven by the onset of a change in the pattern of retailing from the family-run stories to organized retail. A growing middle class and a growing, literate, young generation that is working more, earning more and spending more is driving the growth in the consumer product market. It brings growth to the label industry,” he says.
Though the growth of the Indian label market has exploded in recent years, Sahni says that there is significantly more to come. “Other markets, like North American, European and Chinese, are already mature and very focused. The Indian market is still in nascent stages. Most of the label printing is in the urban areas. The use of labels is still less than one square meter per capita, which is still a fraction of the usage patterns in the mature markets.”
From Internet
21 April, 2012
