AWA projects growth in glue-applied label market

AWA Alexander Watson Associates, an international market intelligence and business insight services company, has published the AWA Glue-Applied Label Market Report 2024 projecting 2.8 percent CAGR growth by 2026.

According to AWA, glue-applied labels dominate the food and beverage sectors especially for labeling products like beer, mineral water, soft drinks and canned foods due to the high volumes required.

The most common method is cold or wet glue labeling. AWA defines glue-applied labels to include both cold (wet) glue patch labels and hot melt glue-applied labels, such as wrap-around cut-and-stack and wrap-around roll-fed formats.

Overall, the global market for glue-applied labels is forecast to increase at a compound annual growth rate (CAGR) of around 2.8 percent between 2023 to 2026. The forecast growth rate by individual glue-applied label format for the same period is estimated at an annualized rate of 2.5 percent for cold (wet) glue-applied labels and 3.0 percent for wraparound formats.

Regionally, Asia holds the largest market share for glue-applied labels, with 48 percent of production followed by Europe with 19 percent, while North and South America each account for 14 percent. The Africa and Middle East (AME) region contributes 6 percent.

In Europe, the inventory build-up and change in consumer behavior in 2023 resulted in cold wet glue-applied label volume decline by 18.1 percent, and North American decline by 6.2 percent, which influenced the global cold wet glue-applied label format to experience a decline in 2023 of 2.7 percent.

AWA said glue-applied labeling continues to face intense competition from alternative labeling technologies in these key markets – especially from pressure-sensitive labels in applications such as premium beers and wines; heat shrink sleeve labels in the labeling of ‘ready to drink’ (RTD) beverages and flavored alcoholic drinks (FAD); stretch sleeve labels in mineral waters; from Roso shrink sleeve labels in labeling jars of powdered products and spreads; and from RFS MD shrink sleeve labels in soft drinks, juices, energy drinks and mineral waters.