The European printed packaging market was valued at 61.34 USD billion in 2020, and it is expected to reach a value of USD 78.70 billion by 2026, while registering a CAGR of 4.2%, during the period 2021- 2026. The growing technological advancements and expanding the end-user industry’s packaging applications are some of the major factors driving the growth of the printed packaging market in Europe. Although the advancement rates are higher in the western part of the region, the countries in Eastern Europe are also offering massive potential for the studied market vendors to expand in the region.
- The printing on the Corrugated packaged products accounts for the largest market share and is expected to maintain its position over the forecast period. Easy to customize, cost-effective, and sustainable are some of the major features driving the demand for corrugated packaging and printing. Many companies are also building corrugated factories in the region, which will offer massive opportunities in the studied market.
- The region is also increasingly investing in labels and tags and folding carton packaging segments. Labels printing is one of the most innovative sectors in the region, which is also contributing to the studied market growth. France-based Autajon Industrial Labels produces more than 15 billion labels per year, and the company is planning to expand its capacity due to growing regional demand.
- Germany is one of the largest markets in the region, owing to its dominance in the printing industry and corrugated packaging production. In developed markets, the packaging printing growth trend in nearly inline with the economic growth. However, the major potential growth opportunities come from the emerging markets.
- The growing adoption of digital printing in Europe is also expanding the scope of the studied market. The digital trend is not only driven by user demand, but also fueled from the technology supplier's intent on making the most of these changing dynamics. Digital printing is gaining market share, as improvements in the economics and productivity of the technology increase the competitiveness against the analog processes.
Key Market Trends
Label Type is Expected to Register the Highest Market Growth
- Wet glue labels are used in a variety of applications, including bottling, box covering, lamination, and food wrapping. Wet-glue labels are being widely used for alcoholic drinks. The rise in the consumption of alcohol in Europe is boosting the market's growth. For instance, according to the Department for Environment, Food, and Rural Affairs (DEFRA), in 2017/18, an average of 728 milliliters of alcoholic drinks (for at-home consumption) was consumed per person per week in the United Kingdom (UK).
- Pressure-sensitive labels (PSL) consist of five individual layers, such as liner, release coat, adhesive, face stock, and topcoat, and are analogous to a high-tech sticker. A PSL can use paper, film, and foil as its primary label materials and can be used with a wide range of inks to produce sharp and bright colors. Owing to the ease of use, cost-effectiveness, and versatility offered by PSLs, the demand for such labels is increasing.
- The multi-part labels help to prevent theft, increase the chance of asset recovery, and enhance tracking. The factors that are responsible for the growth of the multi-part labels are the growth of the food and beverage industry, and growing security issues of any equipment as products can get stolen, accidentally inventoried by subcontractors, or moved to another department.
- Growing financial stability has positively impacted the development of the European region for the packaging industry, specifically, for in-mold labels. In-mold labels are witnessing an increasing demand from France and Germany due to the increasing manufacturing output, rising income and consumption level, and increasing demand for effective labeling solutions.
Expanding End-User Packaging Applications is Significantly Driving the Market Growth
- The growing adoption of printed packaging across various end-user industries in the region, along with different personalized packaging trends adopted by these end-user companies, is also a significant factor driving growth in the market studied, especially in Eastern Europe.
- Online or e-commerce shopping is creating a massive opportunity for packaging manufacturers in the region. With growing internet penetration across the region, retailers are expanding their e-commerce presence, hence, its logistics and delivery. In 2019, the growth of e-commerce in Europe was over 12%, due to the rapidly increasing sales in the Central and Eastern European markets.
- Therefore, this is driving demand for protective packaging and forcing cardboard manufacturers. Corrugated packaging comprises 65-75% of the overall e-commerce packaging in the region, to invest in more innovative packaging and printing. Countries in Eastern Europe, like Romania, Poland, Russia, Hungary, and Ukraine, are significantly witnessing an expansion of their e-commerce industries, along with the corrugated or cardboard packaged product sales.
- The food and beverages, automotive, pharmaceuticals, and several other industries often require customization of the label. The growing food and beverage industry in the region, especially beverage, is also driving the market for customized label printing. Digital printing technology helps to make the customization and produce small batches of the same customization, as it eliminates many steps, like the ordering and setting up of plates. Hence, most of the companies looking for customization have started investing in digital printing technologies
The market is witnessing mergers and acquisitions by vendors, thereby, offering lucrative opportunities to the companies that enable them to boost the technological advancements and market growth.Some of the prominent players in the market are investing in new technologies and solutions for the labeling industry, which is expected to drive the investment in the market further. Some of the key Developments are:
- Feb 2020 - Sonoco acquired TEQ Thermoform Engineered Quality, a global manufacturer of thermoformed packaging, serving healthcare, medical device and consumer markets, and will rename and brand all its manufacturing locations strictly as TEQ. This includes facilities across Europe, currently branded as Plastique. The legal name will become SONOCO TEQ, with the appropriate company type dependent on the region of the facility.
- Oct 2019 - Smurfit Kappa continues its investment in sustainable technology in Mexico, by launching a new digital printer. An advanced new printer (the Barberan Jetmaster 1890) is expected to be installed in the Atlacomulco Corrugated Plant in Mexico in response to the growing need for high-volume digital printing. The new single pass high performance printer has the capacity to print up to 12 million m2 annually, significantly reducing the lead time to get products to market.
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Table of Contents
1.2 Scope of the Study
4.2 Industry Value Chain Analysis
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Intensity of Competitive Rivalry
4.3.5 Threat of Substitutes
4.4 Market Drivers
4.5 Market Restraints
5.1.1 Offset Lithography
5.1.6 Other Printing Types
5.2 Product Type
5.2.1 Corrugated and Solid Fiber Packaging
5.2.3 Flexible Packaging
126.96.36.199 Wet-glue Labels
188.8.131.52 Pressure-sensitive Labels
184.108.40.206 Multi-part Tracking Labels
220.127.116.11 In-mold Labels
5.2.5 Other Product Types
5.3.9 Rest of Europe
6.1.1 Duncan Print group
6.1.2 Mayr-Melnhof Karton AG
6.1.3 Sonoco Products Company
6.1.4 Stora Enso Oyj
6.1.5 WestRock Company
6.1.6 Sealed Air Corporation
6.1.7 International Paper Company
6.1.8 Mondi group
6.1.9 Georgia-Pacific LLC
6.1.10 DS Smith PLC
6.1.11 Smurfit Kappa Group
6.1.12 AMCOR PLC
6.1.13 Constantia Flexibles Group GmbH
6.1.14 AHLSTROM-MUNKSJÖ OYJ
6.1.15 Clondalkin Group Holdings BV
6.1.16 Autajon Group
6.1.17 Huhtamaki Group
6.1.18 CCL Industries Inc.
A selection of companies mentioned in this report includes:
- Duncan Print group
- Mayr-Melnhof Karton AG
- Sonoco Products Company
- Stora Enso Oyj
- WestRock Company
- Sealed Air Corporation
- International Paper Company
- Mondi group
- Georgia-Pacific LLC
- DS Smith PLC
- Smurfit Kappa Group
- AMCOR PLC
- Constantia Flexibles Group GmbH
- AHLSTROM-MUNKSJÖ OYJ
- Clondalkin Group Holdings BV
- Autajon Group
- Huhtamaki Group
- CCL Industries Inc.