Labelling is an indispensable part of marketing, which impulse and highly influence consumer buying behavior. In each product category under FMCG market, brand owners are looking for new approaches to develop labels in order to face competitive market. Labelling is used to differentiate or giving distinct looks from the other products available in the market. FMCG labels can be made in different design as per the specific demand of the customers. It includes self-adhesive labels, barcode, tag, sticker and others, available in different shape, size and colors. However government organizations across the world has established packaging labels guidelines for particular products and packaging type and it is required to meet those requirements.
Increasing demand for grocery, personal care products and food and beverage is expected to drive consumption of FMCG products. In five years, FMCG market has become highly consolidated, majorly influenced by local players and retailers. In such competitive environment, brand owners are more inclined towards having private labels so that to stand against competitor. Private labels are gaining trust among end-use consumers, and expected to be potential substitute for FMCG labels.
FMCG Labels Market: Market Dynamics
The FMCG labels market is highly influenced by the performances of manufacturers who sells their products under FMCG domain. Following a recovery of the world economic turndown in 2010, the retail market of fast moving consumer goods has witness significant growth owing increasing per capita income across each geographies. Government regulations over packaging has forced manufactured to provide quality packaging and ensuring clean and persistence labels which represent all required contents of product and packaging materials. Owing to the demand and supply gap of FMCG products, the retailers has adopted a business strategy of expansion and number of retail store has increased significantly over the last five years.
Market penetration of multinational companies like Walmart in emerging economies such as China and India is expected to drive the FMCG labels market in high potential market. Increasing disposable income and rapidly expanding retail sector are two key drivers to drive the global FMCG labels market. However private labels is a potential treat for FMCG labels and it is expected to restrain the growth of FMCG labels market. Additionally, the sustainability of FMCG labels market is highly dependent on innovation and product development.
Growing demand for sustainable packaging and health conscious consumers is expected to augment the growth of FMCG labels market across the world. North America and Europe are expected to be most competitive market, owing to increasing industry preference for private labelling in these geographies. Owing to expansion of retail sectors and marketing strategies adopted by key players, Asia Pacific is expected to emerge as most attractive segment over the forecast period. This can offers an opportunity to multinational companies to penetrate in to high potential market of China and India. China is the largest market in Asia-Pacific followed by India in 2020, and is expected to grow rapidly in the near future. This is primarily because of growing industries such as food and beverages and pharmaceuticals which are highly rely on concise packaging labels.