Automatic Labeling Machine Market: Overview
The market for automatic labeling machines was worth USD 2,619.4 million in 2021, and it is anticipated to expand at a compound annual growth rate (CAGR) of 3.4%. The automatic labeling machine market is expanding due to increased demand for automation in the food industry, bettering economic conditions, urbanization, and rising demand for packaging solutions for various products. Customers are seeking a bigger variety of products with more product diversity. As a result, more products are being produced and marketed, which has increased production complexity. Product producers are increasingly looking for versatile labeling machines that can work with a greater variety of materials and integrate several technologies to tackle these challenges.
Growing consumer desire for accurate, quick, and straightforward labeling solutions is projected to further fuel market expansion. The market for labeling machines is also anticipated to be driven by the expanding e-commerce sector, which will profit from features including convenience, choice, and cost savings. Between 12 and 24 million eCommerce sites exist worldwide, and new ones are being developed daily. Therefore, in the booming e-commerce industry, labeling machines are used to apply labels and barcodes on various cartons and packages.
As of 2021, the counterfeiting product industry exceeds USD 600 billion. Labeling ensures the product makers that they can easily trace shipments thanks to tracking and anti-counterfeiting capabilities on labels. Furthermore, labels ensure that the products are delivered to the clients without any disturbance, providing protection against tampering. Further anticipated to increase demand for this equipment is the rising demand for security labeling to prevent theft and fraud.
A developing trend is the use of green labels. Using green labels helps prevent tampering and ultimately improves product security. The market for automated labelers is expected to rise as a result of technology advancements as well as shifting consumer perceptions about products with labels. For instance, in September 2019, the M2 labeling head, a modular wipe-on high-speed label applicator with faster performance and increased possibilities, was unveiled by ID Technology, a ProMach product brand.
Automatic Labeling Machine Market: COVID-19 Impact
With the global lockdown brought on by the COVID-19 epidemic, the automatic labeling machine industry stopped producing several products. This has slowed the market expansion for automatic labeling machines during the past few months, and it will probably do so again in 2022. COVID-19 impacted sales of automatic labeling machines in the final quarter of 2021, and it is projected that this would have a negative effect on market growth all year. Large manufacturing regions, including North America, Europe, Asia-Pacific, and South America, which are adversely impacted by the coronavirus's expansion and consequent decline in demand, previously had the highest demand for automatic labeling equipment.
Furthermore, the lockdown's potential effects are now unknown, and organizations' ability to recover financially depends entirely on their cash reserves. Manufacturers of automatic labeling machines can only afford a complete lockdown for a limited period of time before the players must change their investment strategies. For instance, several market participants temporarily stopped output to cut costs. Contrarily, very few participants used employee layoffs to survive the COVID-19 health crisis. Manufacturers of automatic labeling machines should prioritize safeguarding their personnel, business operations, and supply chains to respond to urgent emergencies and develop new operational strategies following COVID-19.
Automatic Labeling Machine Market: Drivers
With Increased Competition, Food And Beverage Industry have High Demand For Automation
The role of labels and packaging in product management has changed significantly throughout time, just as the ability of the modern consumer to comprehend what is contained in the product he or she chooses to buy has. The market is driven by the industry's need for automation in the food and beverage industry. Labels are crucial in providing information about the product and promoting sales as buyers become more aware of its features. Manufacturers are switching to automated labeling solutions to meet the rising demand from the food and beverage sectors. 127.92 million Americans ate fully frozen meals in 2020. The demand for packaging would rise due to the country's rising consumption of frozen and packaged foods, propelling the market for automatic labeling machines.
The demand for the product has increased due to the continued competition, which has increased the necessity for prompt delivery and suitable quality. 567 companies that produce frozen food will be operating in the US as of 2022, employing 97,873 people. The need for automatic labeling machines is increasing due to the manufacturer's need to provide products quickly while maintaining consumer satisfaction in the face of escalating competition.
Market Growth is Influenced by Use of High-Quality Labeling Adhesive for Packaging Solutions
Pressure-sensitive adhesives were first utilized for practical and hygienic labeling in the early 1920s. From that point forward, labelers have a strong preference for adhesives. They are used to shorten the package lining and quicken the drying of the finished product. Labeling adhesives, such as biopolymers, biodegradable adhesives, etc., are used depending on the industry's uses. High-quality adhesives reduce the need for solvents, speed up manufacturing, use less energy, and ensure consistency during machining, all of which boost the sustainability of packaging solutions. For instance, in May 2019, Herma unveiled the Herma 42X, a UV-curable, removable adhesive based on the acrylic that offers resistance to grease, detergent, and water. High-quality labeling adhesives are therefore anticipated to boost market expansion.
Automatic Labeling Machine Market: Restraints
Automated Labeller Maintenance Costs May Restrain Growth
Comparatively speaking, automatic labeling machines cost more than traditional labeling machines. Well-known manufacturers are creating these machines by combining labeling equipment with coding, painting, or palletizing equipment, eventually raising production costs. Additionally, when a machine breaks down unexpectedly when a firm is in operation, it causes major downsides such as damage to the container material, label wrinkling, label flagging, etc. The need for automated labelers is constrained by the difficulty small- and medium-sized packaging businesses have expensive integrating machinery. Given all of these aspects, it is projected that maintenance costs will be a key factor in limiting this market's growth.
Automatic Labeling Machine Market: Segment Overview
Self-Adhesive Labelers to Dominate Market due to Ease Of Application
Self-adhesive/pressure-sensitive labelers will rule the market for automatic labeling machines worldwide. You have the creative freedom to create a label that provides value using a pressure-sensitive labeler. Self-adhesive labelers have the advantages of being a straightforward solution, being resistant to harsh environmental conditions, offering a wider variety of adhesives, and being more affordable than other labelers. The full-range application of self-adhesive labelers is anticipated to grow at the quickest rate during the forecasted period. In the coming years, there will likely be a major increase in demand for self-adhesive labels because of the growth of the food and beverage, pharmaceutical, and e-commerce businesses. The demand for consumer goods and electronics in developing regions like the Asia-Pacific countries is one of the main development reasons for the self-adhesive label business. Some key factors fueling the growth of self-adhesive are the expansion of retail marketing, digital platforms for merchants' general help, and the accessibility of convenient packaging materials.
With Increased Demand for Safety Packaging, Personal and Cosmetic Segment to Dominate Market
The significance of labeling has grown significantly over time due to technical development and the digital transition. Products for the home and cosmetics come in various materials and container designs. The need for quicker and more automated labeling equipment has increased due to the changing environment. Numerous label-related laws exist for the cosmetic sector in the US and Europe. The producers in this area must all disclose the ingredients used, the date of production, and the batch number.
Additionally, manufacturers frequently use automated labeling devices due to these restrictions to reduce human mistakes. According to the Association for Packaging and Processing Technologies, the FMCG sector, which includes personal care items, drives the industry in the United States in terms of packaging and labeling service providers. Additionally, pressure-sensitive labeling is in high demand in this market since it is a very adaptable label solution that can be used on almost any form of packaging.
Automatic Labeling Machine Market: Regional Landscape
Asia Pacific to Acquire Major Market Share due to Increase in Consumer Purchase Power
The Asia-Pacific area is anticipated to have substantial growth. The world's largest population is concentrated in the Asia-Pacific area. The need for packaging in the food business is increasing along with the demand for high-speed, high-quality labeling solutions as consumer awareness of packaging increases. The leading APAC exporters of automatic labeling machinery are China and Taiwan.
The Chinese economy has expanded quickly, allowing international businesses to invest significantly. The demand for brand awareness among the vast country's consumer base has driven advertising to a new high. New technology is being incorporated into automatic labeling equipment by several Chinese enterprises. With the various producers and the growing need for frozen foods, China is a significant consumer of packaging. 35,000 processing and manufacturing facilities in China provide food for the nation's populace. Regional product demand may be influenced by rising consumer spending on packaged foods and better lifestyles.
North America is expected to have considerable growth in the market share of automatic labeling machines throughout the projected period because of factors including rising health consciousness and implementing automated technologies. Wet glue-based automatic labelers are anticipated to gain traction in the food and beverage industries over the forecast period. This growth might be attributed to the region's market's significant need for premium packaging. Urbanization, automation, and growing industry are all contributing to market expansion. The market is expected to profit from increased awareness of the use of automated labeling equipment in various sectors to increase productivity. 161 million Americans, or 80% of American women, are believed to use cosmetics daily. The typical American woman spends between USD 200,000 and USD 300,000 on skincare and cosmetics throughout her lifetime, using at least 16 facial care or cosmetic products daily (or an estimated USD 250 per month). In the upcoming years, the packaging market will experience expansion due to the rising use of cosmetic items, particularly among women.
Global Automatic Labeling Machine Market: Competitive Landscape
In October 2021, ProMach Pharma's Weiler Labeling Systems introduced the VR-72 Labeler for COVID-19 vaccine packaging applications. The product has a pressure-sensitive continuous motion system with a modular design that can apply wrap-around labels to various cylindrical items at high rates. In August 2020, Multi-Color Corporation acquired the Hexagon Label Group in Australia and New Zealand. This acquisition will expand the company's footprint and product offerings to Australian and New Zealand consumers in Adelaide, Brisbane, Griffith, Melbourne, Perth, Sydney, Auckland, and Christchurch.
Few of the players in the Automatic Labeling Machine Market include Krones, Sacmi, Sidel, KHS, Herma, Promach, Marchesini Group, Etiquette, Pack Leader, Novexx Solutions, Fuji Seal International, Sleever International, IMA Group, Tech-Long, Bausch+Ströbel, Accutek, Quadrel Labeling Systems, Logopak, Topjet, Videojet, Sinclair International, Maharshi Group, Heuft Systemtechnik, Barry-Wehmiller, and Label-Aire.
Regional Classification of the Global Automatic Labeling Machine Market is Described Below:
Middle East and Africa
*Regions and countries are subject to change based on data availability
Key Elements Included In The Study: Global Automatic Labeling Machine Market
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