Label Converting Equipment Market Forecasts to 2028 – Global Analysis By Type (Manual, Semi-automatic, Automatic and Other types), Application (Food and Beverages, Household Cleaning Products, Electronics, Cosmetics, Pharmacy and Healthcare and Other Appl

Label Converting Equipment Market Forecasts to 2028 – Global Analysis By Type (Manual, Semi-automatic, Automatic and Other types), Application (Food and Beverages, Household Cleaning Products, Electronics, Cosmetics, Pharmacy and Healthcare and Other Applications) and By Geography

According to Stratistics MRC, the Global Label Converting Equipment Market is accounted for $41.63 billion in 2022 and is expected to reach $59.06 billion by 2028 growing at a CAGR of 6.0% during the forecast period. Label conversion is primarily a technologically driven industry that uses traditional letterpress or flexographic printing. With all orders coming in shorter and shorter runs with shorter lead times, the demand from brand owners for label enhancements is growing to almost infinite proportions. While traditional flexo and offset presses with servo drives will still dominate the installed base of label presses for many years to come, it is clear that digital printing, especially inkjet printing, will overtake them as the market leader in the long run as quality and performance continue to advance. Alongside standalone digital presses, hybrid conventional and inkjet presses will undoubtedly experience growth in the market. Everything will keep becoming more automated, which reflects a market trend for the foreseeable future.

According to Big Presence, a digital marketing and sales solutions firm, says that 82% of investors want the companies they invest in to have a strong brand.

Market Dynamics:

Driver:

Market growth is fueled by increasing machine automation.

The industry is moving toward higher levels of automation across the machinery as a result of the expanding demands for label conversion as well as more flexibility and customization. Automation has quickly impacted the equipment industry as well, reducing labor costs associated with plate handling and plate room operations as well as removing critical points where plate damage could occur as a result of repeated handling in label converting equipment. Additionally, the incorporation of more recent technologies, like UV LED technology, is swiftly expanding in popularity in the equipment world.

Restraint:

Expensive label conversion machinery

The printing plates are the most crucial and expensive component of reprographics because most of this equipment is connected to flexographic printing for conversion, which is necessary to reach the final print stage. High operational costs are also associated with the use of machines. These concern things like the price of the electricity needed to run the machines as well as routine maintenance.

Opportunity:

Growth of premium labels and customization

More customization and promotion are in high demand, which means smaller runs, tighter budgets, and eventually a complete transformation of the digital workflow. 82% of investors, according to Big Presence, a provider of digital marketing and sales solutions, want the businesses they invest in to have a strong brand. Small and large brands alike are promoting so-called targeted campaigns, in which the labels alone can improve the apparent quality of a product, ultimately raising the brand's image. To give the labels a more premium appearance, various print effects like hot foil stamping, cold foil stamping, and gravure printing are used, as well as tactile or haptic effects produced by methods like spot varnishing. Some of these improvements are even computer-based. This significantly increases the need for label-converting machinery.

Threat:

Die-related issues that affect the quality of label conversion

The global Label Converting Equipment market expected to hamper growth during the forecast period. Dull cutting heads are the root of the die issue. The protective silicone layer that prevents the label from adhering to the liner may be cut through if the die strike is increased in force to make up for the loss. The label is subsequently attached to the liner by the adhesive, preventing a tidy release. Additionally, the adhesive or face material may not be appropriate for the end user's application, for example, where cold-temperature adhesive is required. Finally, a lack of release agent on the liner can make it challenging or impossible to remove labels.


Covid-19 Impact:

The market for labeling equipment was negatively impacted by COVID-19. The major end-user industries' subpar performance, including those in the food and beverage, cosmetics, and chemicals sectors, caused a sharp decline in the demand for labeling equipment on a global scale. Furthermore, restrictions put in place to stop the spread of viruses disrupted the supply chain, affecting both manufacturers and customers. However, the market experienced a brief respite due to an increase in demand from the pharmaceutical and healthcare sectors as well as from the e-commerce industries during that time. Due to the post-COVID period's sharp increase in industrial activity, the market is anticipated to recover quickly.

The household cleaning products segment is expected to be the largest during the forecast period

The application segment for home care products contributed significantly to revenue. This is due to consumers around the world spending more money on high-end cleaning products that are free of dangerous chemicals as a result of growing environmental concerns and rising disposable income levels. Over the forecast period, these elements are likely to increase product demand.

The Manual Labels segment is expected to have the highest CAGR during the forecast period

The Manual Labels segment is anticipated to witness the fastest CAGR growth during the forecast period. Manual labels are those that are manually applied to containers or packages. Both retail and industrial uses are possible for them. The global packaging industry's expansion is increasing the market's growth factor, which in turn is boosting demand for manual labels. The booming e-commerce industry has led to a rise in demand for automated label applicators, which have given businesses a competitive edge over rivals by giving them flexibility.


Region with highest share:

Asia-Pacific dominated the world market. In terms of revenue share, it is anticipated to hold that position throughout the forecast period. The expansion can be attributed to an increase in label printer demand from a variety of end-use industries, including, among others, the food and beverage, pharmaceutical, electronics, and cosmetics sectors. One of the main factors influencing regional growth is the increasing penetration of automated production lines and rising consumer awareness of product information on labels.

Region with highest CAGR:

Asia Pacific is projected to have the highest CAGR over the forecast period. The demand for packaging in the food, cosmetic, and household industries, as well as the demand for high-speed and high-quality labeling solutions, are driving market growth in the Asia region. This is due to the growing consumer awareness of packaging. With a population of over 646 million and a label consumption growth rate of about 7%, Southeast Asia is one of the fastest-growing markets in the world. Additionally, a number of international titans have set up shop in the Asian region, effectively assisting in market expansion. With the Ecoline brand, for example, RotoControl has increased the scope of its label finishing offerings.

Key players in the market

Some of the key players in Label Converting Equipment market include ABG International, Advanced Converting Equipment Ltd, ASHE Converting Equipment, BOBST, Daco Solutions, General Motors, JandJ Converting Machinery, LabelandNarrow Web, Labelexpo Europe, Labels and Labeling, Lemorau, Smag Graphique, Sohn Manufacturing Inc., Spartanics and Universal Converting Equipment

Key Developments:

In October 2019, ProMach acquired Canada-based Jet Label & Packaging, a manufacturer of labeling and coding solutions. With the addition of Jet, ProMach continued its label converting expansion that began over a decade ago with the vision of providing its North American customers with a labeling and coding partner that could serve their needs including labels, machinery, sales, service, and support.

In August 2019, French label-converting company SMAG Graphique expanded its label equipment portfolio to include RFID-based systems that provide inlay insertion, encoding, and control. The company brought approximately 165 potential RFID technology users to its headquarters in Paris, France, so they could view how the technology is being used and the benefits it provides to retailers and other companies that require automated access to digital data via a product's label.

In May 2019, SATO launched its new sales branch in Johor, Malaysia. The company increased their business by penetration of their products in untapped markets.

Types Covered:
• Manual
• Semi-automatic
• Automatic
• Other types

Application Covered:
• Food and Beverages
• Household Cleaning Products
• Electronics
• Cosmetics
• Pharmacy and Healthcare
• Other Applications

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements