Extended Text Labels Market is demanded worldwide during the Forecast period 2022-2025

Growing Demand for Sustainable Extended Text Labels to Boost R&D Investments

The packaging sector has witnessed considerable developments and innovations that are majorly driven by evolving consumer preferences and regulatory landscape. The packaging ecosystem continues to vary from industry to industry due to which, players operating in the packaging sector are likely to focus on product innovation and diversification. In addition, the evolving regulatory framework, particularly for text labels across various industrial domains, is expected to remain a key factor and have a considerable impact on the overall growth of the global extended text labels market. In the current scenario, packaging has emerged as a critical aspect in the product decision-making due to which, extended text labels have come under scrutiny.

At present, brands continue to emphasize on choosing the correct product packaging color scheme and extended text labels to improve the overall aesthetics of the product. The demand for extended text labels continues to witness a sizeable growth each year due to advantages such as space to include information pertaining to regulatory requirements, materials, safety warnings, etc. Furthermore, extended text labels are also widely used in cross-branding applications by several brands, particularly in the FMCG sector due to which, the overall prospects of the global extended text labels market look bright during the forecast period.

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Widening Applications of Extended Text Labels to Augment Market Growth

Over the past decade, extended text labels have come under the spotlight across the global packaging sector– a trend that is anticipated to continue during the assessment period. Extended text labels offer an array of advantages to brands such as they provide information regarding materials in use, regulatory requirements, and more. Automotive chemicals is one of the emerging end-use sectors that are increasingly utilizing extended text labels to provide usage information, drug-fact panels, and data regarding the ingredients. In line with the growing demand for sustainable packaging alternatives and increasing pressure from governments of major developed and developing nations, the adoption of sustainable materials to develop extended text labels has witnessed exponential growth over the past few years– a trend that is expected to bolster the demand for extended text labels during the assessment period. Due to the augmenting demand for customized extended text labels, players involved in the current extended text labels market landscape are increasingly focusing on the production of customized extended text labels.

Several brands involved in the extended text labels market are also focusing on research and development to explore ideal materials for the development of extended text labels. For instance, polypropylene has emerged as an ideal extended text label material for water bottles, as it provides the required resistance to cold, heat, and moisture. Noteworthy advancements made by inkjet and laser printing technologies are some of the key factors that are estimated to propel the global extended text labels market. Thermal transfer, HD digital, and flexography are some of the most extensively used printing processes to print extended text labels worldwide.

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Demand from Medical Sector amid COVID-19 Pandemic Likely to Witness Considerable Growth

The outbreak of the novel COVID-19 pandemic is expected to have a moderate impact on the overall growth of the global extended text labels market during the forecast period. Although the demand from automotive, chemicals, and animal health products sectors is likely to witness a slight decline, the surge in demand for extended text labels from food & beverages, general pharmaceuticals, and medical sectors amid the COVID-19 pandemic is expected to provide considerable opportunities to the players operating in the current extended text labels market landscape. Extended text labels are increasingly being used for medication bottles to offer information regarding proper use, dosage, side-effects, etc. Furthermore, as standard labels do not offer adequate space, the demand for extended text labels across medical and pharmaceuticals sectors has witnessed considerable growth. In addition, extended text labels market are increasingly being used in the packaging of protein powders, pesticides, vitamins, dietary supplements, and medicines, among others.

Clinical trials and pharmaceutical packaging sectors are gaining popularity, as large amounts of clinical trials are being carried out for the COVID–19 vaccine. This has had a positive impact on the global extended text labels market. These text labels enable printing of full-colour logos and graphic images, offer variable serialized data from databases, and comply with local language labelling requirements.

However, the global uncertainty of COVID–19 has also hampered the extended text labels market to a certain extent. This is mainly due to challenges such as not enough employees, changing consumer shopping habits from offline to online platforms, and unused stock and inventory in end-use industries, including pharmaceuticals, which is the biggest customer of extended text labels.

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Extended Text Labels Market: Overview

  • According to Transparency Market Research’s latest report on the global extended text labels market for the forecast period of 2022-2025, the market is estimated to be driven by growing demand for clinical trials and from pharmaceutical industries, as extended text labels offer enough space for large multi-lingual content and graphics for promotion
  • The global extended text labels market is expected to expand at a CAGR of 5% during the forecast period
  • Rising competition among pharmaceutical manufacturers has led to increased investments in research and development activities, attributing to new medicine product development and formulations. This, in turn, is driving the clinical trials end use segment of extended text labels market worldwide.

Braille Embossing, Variable Data, and Tamper-evident Features to Streamline Extended Text Labels Market

  • Extended text labels or multipage labels with braille script are the new trend in global extended text labels market. In order to increase product clarity among consumers, end users emphasize on developing packaging solutions, which will provide in-depth information of the product. Besides, they are also focusing on development of user-friendly and convenient packaging. Braille embossing is the new trend adopted by key players and end users to gain competitive edge over their competitors and differentiate their products. Furthermore, this trend is helping to create a customer centric brand value.
  • Variable data printing on extended text labels is the recent trend where majority of end user companies is demanding variable data printed extended text labels. This is due to varying packaging formats and labelling regulations from one country to another.
  • End users of extended text labels are also demanding tamper evident features in extended text labels. In clinical trials, hiding some of the confidential data from clinical trial participants is very much necessary for unbiased results.
  • This has led to the increase in consumer confidence to use extended text labels, and emerged as the major reason for pharmaceutical and other industries to switch to extended text labels in order to retain and gain consumer belief in their products

Cross-Border Trade and Elongating Supply Chains to Strengthen Extended Text Labels Market

  • Globalization of trade has led to integration of supply chains, where global supply chains are becoming elongated. Trend of free trade has pushed pharmaceutical, chemical, animal health manufacturers to sell their products in various markets across the globe.
  • This trend is influencing manufacturers to adopt extended text labels with multiple languages and detailed instructions related to traceability, product origin, safe handling & storage, etc. Extended text labels with multi language instructions help manufacturers to trace their product for documentation and efficient distribution.
  • In healthcare industries as well, extended text labels are very helpful in systematic health monitoring of patients. Once the product has been used, extended text labels on it can be detached and attached onto patient’s record documents.
  • Global supply chains of pharmaceuticals and chemicals are becoming elongated; for instance, Japan is one of the major exporters of chemicals in the Latin America region.  Brazil is one of the major clinical trials exporters to North America and the European region.

Extended Text Labels Market: Key Findings

  • Based on label type, the re-sealable extended text labels segment is estimated to be most lucrative, mainly due to high consumer convenience in using the product. The segment is projected to capture around 90% of the market share by 2022 year end.
  • Globally, booklet/leaflet segment is estimated to hold around 3/4th of the market share
  • Extended text labels made from synthetic paper remain prominent in the global market. These types of labels are mostly recognised due to their attributes such as high water resistance, flexibility, durability, and tear resistance.
  • Among application types, extended labels are mostly preferred for bottle packaging. Therefore, this segment is anticipated to have a significant share of the global market.
  • As per the TMR analysis, general pharmaceuticals is the leading end user of extended text labels, and is expected to account for more than 2/3rd of the market share by 2025. This can be ascribed to stringent regulatory environment in the pharmaceuticals industry and rising cross-border trade.
  • In terms of market share, North America is the prominent region in the global extended text labels market. Increasing number of pharmaceutical industries and clinical trials are the key factor for the market growth in the region.

Extended Text Labels Market: Competition Landscape

  • TMR analysed that the global extended text labels market is competitive owing to presence of existing big players and very few new participants
  • Key players operating in the extended text labels market are
    • Denny Bros Ltd.
    • JH Bertrand Inc.
    • Faubel & Co.Nachf. GmbH
    • CCL Industries Inc.
    • WS Packaging Group, Inc.
    • Cimarron Label
    • LLC
    • Schreiner Group GmbH & Co. KG
    • Columbine Label Company Inc.
    • Resource Label Group LLC.
    • Valley Forge Tape & Label co, Inc.
    • Paris Art Packaging Co. Inc.
    • Label Impressions Inc.
    • NSD International (ETI POST)
    • Beneli AB
    • Abbey Labels Limited
    • Unick Fix-A-Form & Printers Ltd. (India)
    • Weber Packaging Solutions, Inc.
    • Tapecon Inc.
    • Amberley Adhesive Labels Ltd
    • Primeflex Inc.
  • TMR distinguished these extended text labels market players as per their segmental earnings into different tier slabs. Among these players, CCL Industries Inc., Schreiner Group GmbH & Co. KG, and Faubel & Co.Nachf. GmbH are identified as Tier 1 companies. The Tier 2 players include WS Packaging Group, Inc., Denny Bros Ltd., and JH Bertrand Inc. Tier 3 players are Resource Label Group LLC, Columbine Label Company Inc., Resource Label Group LLC., Cimarron Label, LLC, Label Impressions Inc., etc.

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