Thermal Transfer Labels Market 2024 : Overview Of The Key Driving Forces To Create Positive Impact On The Industry Growth

According to Transparency Market Research’s latest market report on the thermal transfer labels market for the historical period of 2015-2018 and forecast period of 2019-2025, the market is expected to be driven by increasing demand from retail and logistics industry. Globally, the thermal transfer labels market is estimated at ~US$ 2 Bn in 2019 and is projected to register a CAGR of 5.5% during the forecast period of 2019-2025.

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Growing Requirements for Long Lasting and Anti-counterfeit Labels to Bolster Market Growth

  • Labelling is an integral part of packaging and hence, manufacturers require labels to function as long as the product is in use. The global thermal transfer labels market is characterized by pronounced preference for retail applications. Thermal transfer labels protect the authenticity and the integrity of the product by acting as an anti-counterfeit measure.
  • Apart from communicating product information, labels also play a role in branding and business communication. Long lasting qualities offered by thermal transfer labels fulfill the packaging and marketing objectives for manufacturers and suppliers of consumer products.

Rising Demand for Digitally-printed Labels with Enhanced Quality

  • Thermal transfer labels are ideal for companies printing large volumes of shipping and barcoding. In the last few years, the global thermal transfer labels market witnessed the penetration of digital technology for printing of thermal transfer labels.
  • Digital presses have adopted to match the conventional presses to meet the minimum size requirements of thermal transfer labels. Apart from format specifications, digital presses used for label printing also have to provide high quality image printing capabilities. Digital printing technology used for printing thermal transfer labels have improved image quality for labels on numerous parameters.
  • Digital printing technology has allowed manufacturers to incorporate unique inks to order to secure the print on their product. Thermal transfer labels are printed in high resolution with the help of digital technology in order to improve their application in retail markets. A major outcome of these presses has been to print thermal transfer labels used in food, beverages, pharmaceuticals, and electronics markets.

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Development in Organized Retail Sector to Propel Market Growth

  • The organized retail sector is experiencing a healthy evolution in developing economies and is expected to advance rapidly in the foreseeable future. Consumers are interested in buying products from supermarkets and retails stores, attributable to the changing lifestyles and rising per capita disposable incomes.
  • Expansion of the retail sector supports growth of several related sectors such as labelling. Manufacturers are offering advanced labelling solutions to brand owners, which ultimately contributes to the growth of the thermal transfer labels market.
  • Moreover, due to perishable properties of the merchandise, retail companies use labels to monitor their longevity. Thermal transfer labels are useful for inventory tracking in the retail industry, which directly boosts sales of these labels.

Shift to Environment-friendly Packaging to Boost Adoption of Thermal Transfer Labels

  • The global push for use of environment-friendly packaging and labeling solutions is one of the key factors that are anticipated to facilitate the increase in demand and applications for thermal transfer labels in the market.
  • Thermal transfer labels have witnessed tremendous growth in adoption over the past few years, attributable to their eco-friendly nature. Furthermore, using thermal transfer labels helps reduce label waste by lowering plastic consumption. Environmental benefits from manufacturing thermal transfer labels are significant. Therefore, the global thermal transfer labels market is expected to have a largely positive outlook during the forecast period.

Thermal Transfer Labels to Gain Traction as Cost Effective Alternative

  • Manufacturers in the thermal transfer labels market are actively innovating their products to cater to the increasing demand from various end-use industries. This is expected to increase competition, and facilitate growth of the thermal transfer labels market. One of the key factors expected to play a pivotal role in increased adoption of thermal transfer labels is their potential to be a cost-effective alternative to conventional labels. This advantage is expected to encourage many brands and manufacturers to shift to thermal transfer labels in the foreseeable future.

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Regulatory Legislation Limiting Scope of Labelling Designs and Patterns

  • Legislation plays a determining role in packaging and labeling, particularly concerning the regulation of information disclosure. Manufacturers must consider health and safety guidelines to which their products are subjected to before implementing the content and design of labels. Accommodating regulatory requirements into the finite limits of thermal transfer labels restrains the marketing and communication objectives of brands and product manufacturers.
  • Regulatory requirements pertaining to information disclosure on labels also severely affects the flexibility of design patterns and label shapes and sizes. Thus, manufacturers in the thermal transfer labels market are facing restricted scope of value addition in terms label offerings.

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