In-mold labels are self-contained labels that are molded into plastic containers during the blow molding or injection molding process. These labels offer superior performance compared to traditionally applied pressure-sensitive labels. In-mold labels eliminate the need for adhesive application and produce a higher quality, more durable final product. The global in-mold label market is mainly driven by the growing demand for sustainable packaging from end-use industries such as food & beverage, automotive, personal care, and healthcare.
The global In-Mold Label Market is estimated to be valued at US$ 5.12 Mn in 2023 and is expected to exhibit a CAGR Of 5.6% over the forecast period 2024 To 2031, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
Sustainable packaging is a key market opportunity in the in-mold label market. In-mold labels help reduce carbon footprint and waste generation compared to traditional adhesive labels as they are part of the molded product. They contribute to reusable, recyclable and compostable packaging goals of brand owners. Furthermore, in-mold labels improve the aesthetics and functionality of molded plastic parts. Their sustainable production attributes and superior performance characteristics are driving their increasing adoption across industries aiming for eco-friendly packaging. This growing emphasis on sustainability presents lucrative growth pathways for in-mold label manufacturers.
Porter's Analysis
Threat of new entrants: The in-mold label market requires high capital investment for machinery setup and label manufacturing. Established key players dominate the distribution channels.
Bargaining power of buyers: Buyers have moderate bargaining power. They can negotiate on price and bulk purchases. The availability of substitutes provide leverage to buyers.
Bargaining power of suppliers: Different raw material suppliers exist. Switching costs are low. Suppliers have low bargaining power.
Threat of new substitutes: Substitute technologies like shrink sleeve labeling, pressure sensitive labeling pose potential threat.
Competitive rivalry: Large established players compete on technology, quality, and credibility. Pricing pressure exists due to competition.
SWOT Analysis
Strength: Diversified product portfolio. Innovation in sustainable labeling materials. Strong distribution network.
Weakness: Heavy reliance on few industries like automotive and FMCG. Price fluctuations impact margins. High initial investment.
Opportunity: Growing e-commerce sector requires durable labeling. Increase in pharmaceutical and food packaging pushes demand.
Threats: Stricter regulation on film materials may affect costs. Economic slowdown reduces discretionary spending.
Key Takeaways
The Global In-Mold Label Market Demand is expected to witness high growth supported by increasing product labeling regulations globally. The global In-mold Label Market is estimated to be valued at US$ 5.12 Mn in 2023 and is expected to exhibit a CAGR of 5.6% over the forecast period 2024 to 2031.
North America dominates currently due to high automotive production and presence of key players. The increasing adoption of IML in packaging consumer durables, pharmaceuticals, food and beverage will drive future demand. Asia Pacific is forecast to grow at the fastest pace during the analysis period driven by China, India and other developing nations. Large automotive manufacturing hubs and emerging FMCG sectors support the regional growth.
Key players:
Key players operating in the in-mold label market are Apollo Tyres, Bridgestone Corporation, Continental AG, Pirelli & C SpA, Balakrishna Industries Limited, Nokian Tyres PLC, Titan International Inc. Alliance Tire Group focuses on innovative materials and automation to maintain leadership.
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