Plastics Films Make Major Inroads Into European Label Market

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According to research carried out by AMI, a UK-based group, plasticsfilms are making major inroads into the European label market. Theyaccounted for 27 per cent of the 13 billion square meters of labelfacestock used in Europe in 2008 and are expected to hit a one-thirdmarket share by 2013, representing an annual growth of more than 6 percent whereas the demand for paper-based labels is expected to remainstagnant over the next 5 years.
Although lower food volumes and destocking weakened label demand throughout 2008, the prospects for film labels remained strong. The largest application segment for films was self-adhesive labels, which accounted for 35 per cent of the total demand for plastic labels in Europe. Only a quarter of the self-adhesive label market uses plastic films and replacement of paper facestock will drive growth in this segment at 7 per cent per year to 2013. Glue-applied plastic labels account for 15 per cent of the total market (25 per cent of plastic film label usage) and will grow at 5 per cent per annum. Other film label applications in 2008 included sleeves (21 per cent), release liners (10 per cent) and in-mould labels (9 per cent). The total production of plastic films for labeling applications in Europe was about 200,000 MT in 2008 made up primarily of PP. Other resins included PE, PET and PVC. According to AMI, 74 per cent of the output of plastic labels in 2008 came from ten companies.

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