Labels Market Size, Share and Growth Analysis Report - Forecast Trends and Outlook (2025-2034)

The global labels market attained a volume of 68.81 Billion Sq. Metres in 2024. Sustainable label substrates, such as biodegradable and recycled films, are gaining prominence among manufacturers due to tightening EU regulations and rising demand from eco-conscious B2B clients across retail and logistics. In turn, the market is expected to grow at a CAGR of 4.50% during the forecast period of 2025-2034 to reach a volume of 106.86 Billion Sq. Metres by 2034.

Market growth is also driven by smart packaging, recyclability mandates, and automation-ready solutions. Labels are rapidly becoming touchpoints for traceability and sustainability. These shifts are fuelled by regulatory pressure and retail automation. In the United Kingdom, for instance, the Packaging Waste (Data Reporting) Regulations, introduced in 2023, now require brands to track and report label waste in granular detail.

Digital label printing is also accelerating further labels market growth. EU’s Horizon Europe programme has significantly invested in projects focused on intelligent labelling technologies, including QR-based traceability and temperature-sensitive inks for pharma and cold chain logistics. Asia-Pacific remains dominant in the global market, with China’s smart label rollout under its “Made in China 2025” policy boosting local production.

Simultaneously, developing economies are prioritising food safety and pharma traceability. For example, India’s FSSAI labelling regulations now enforce front-of-pack nutrition labels on packaged foods. Brands are increasingly aligning with evolving rules while leveraging labels for brand differentiation and digital marketing via embedded NFC chips and blockchain-based authentication. These innovations are transforming the labels market dynamics with real-time consumer engagement and inventory control tools.

Key Trends and Recent Developments

May 2025

The TX5015 M830, a new ARC-certified RFID inlay made for sporting goods, consumer electronics, clothing, and loss prevention applications, was introduced by Hana Technologies, a RAIN RFID business. The TX5015 redefines performance in a small package, designed to meet the needs of the retail, supply chain, and logistics industries. This launch enhances intelligent labelling for retail and logistics firms, fuelling demand for high-performance, inventory-optimised label solutions.

January 2025

The Premium Labels line was introduced by Avery Dennison South Asia, a leader in materials science and packaging solutions. This new product line consists of a variety of textured substrates for premium labelling that are intended to improve customer experiences by showcasing distinctive surface patterns and textures. The Premium Labels line addresses the B2B push for elevated brand differentiation in luxury FMCG, offering textured substrates that improve shelf appeal and tactile engagement.

January 2025

The label printing company Labelys aqcuired Etiquel, a Portuguese business that specialises in wine and alcohol labels, as part of its ongoing worldwide expansion strategy. In addition to creating new expansion opportunities for Etiquel, this operation enhances the French group's standing on the European market, where it is already present in Italy, Switzerland, Spain, and Portugal.

January 2025

The label division of Screenprint/Dow was acquired by Resource Label Group, a custom label and packaging company. This acquisition demonstrates Resource Label Group's dedication to upholding and expanding the heritage of prominent figures in the label industry while reinforcing consolidation trends across North America's custom labelling market.

Smart Labelling and Track & Trace Solutions

Smart labels, including RFID, NFC, and blockchain-based tags, are growing popular across pharma and logistics sectors. Governments are mandating traceability, boosting the labels market development. For example, Brazil’s National Medicine Control System (SNCM) and the EU Falsified Medicines Directive now require pharmaceutical traceability via coded labelling. In March 2023, Avery Dennison launched atma.io, a connected product cloud, linking labels to supply chains via real-time digital twins. Retailers like Zara and Decathlon now embed RFID in every product tag to automate stock visibility. The demand is being amplified by Industry 4.0 initiatives, with smart labels acting as critical data carriers for automated warehousing and delivery systems.

Demand Surge from Sustainable Packaging Mandates

As brands direct their efforts to reduce their carbon footprints, labels made from compostable and recyclable materials are becoming standard. The United Kingdom Plastic Packaging Tax, which penalises packaging with less than 30% recycled content, is pushing companies to adopt eco-friendly label substrates, boosting the labels market trends and dynamics. For instance, Avery Dennison’s CleanFlake technology allows PET bottles to be fully recyclable without label contamination. In Germany, ALDI and Lidl have shifted to FSC-certified paper label variants. Sustainability certifications like Cradle-to-Cradle and Blue Angel are becoming competitive differentiators, fuelling R&D activities for water-based adhesives and biodegradable inks.

Personalised and Short-Run Digital Printing

The shift toward customisation is driving digital label printing demand. HP Indigo and Xeikon are enabling ultra-short-run jobs with high variability, ideal for seasonal promotions and influencer tie-ins. Coca-Cola’s personalised name label campaign is one key example. EU-backed SMEs are accessing grants under the Eurostars programme, which supports SMEs developing digitally enabled label solutions. Digital presses also reduce waste and speed up time-to-market, aligning with agile marketing models. FMCG and cosmetics brands are exploiting variable data printing to localise messages, comply with multi-lingual labelling laws, and meet SKU diversification needs.

Linerless and Automation-Ready Labels

Automation is reshaping how labels are used in logistics and retail, boosting the labels market development. Linerless labels, which eliminate backing waste, are experiencing fast adoption in high-speed printing lines. Retailers like Tesco and Carrefour are trialling linerless technology to reduce operational waste and improve print efficiency. Industrial players are switching to pre-encoded RFID tags for use with robotic sorters. The United States Department of Energy is supporting R&D into high-efficiency labelling systems as part of its smart manufacturing roadmap. As e-commerce grows, automation-ready labels are helping to streamline operations in micro-fulfilment centres.

Cold Chain and Pharma Compliance

Temperature-sensitive and tamper-evident labels have become critical in pharmaceuticals, vaccines, and perishable food logistics. The WHO’s CCEOP initiative and GAVI-supported cold chain programmes in Africa have spurred demand for sensor-integrated labels. In the United States, the FDA’s Drug Supply Chain Security Act mandates serialised labelling for all prescription drugs. Such developments are boosting adoption of smart indicators and serialised barcodes across healthcare logistics, increasing the labels market value. This trend is also attracting major innovation funding from public and private players focused on pandemic preparedness and vaccine traceability.

Global Labels Industry Segmentation

The report titled “Global Labels Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by Material

• Paper
• Plastics
• Others

Key Insight: The market can be categorised into paper, plastics, and specialty materials like aluminium foils and biodegradable films. Paper leads the market with their adoption in the food and beverage sector due to sustainability alignment, while plastics gain traction in pharma and logistics for their resilience and smart technology integration. Specialty materials are emerging for niche applications like security, anti-counterfeit, and luxury branding. Market shifts are primarily driven by cost, recyclability, and compliance with region-specific waste management laws. Manufacturers are balancing between print quality, lifecycle impact, and machine compatibility when selecting materials.

Market Breakup by Application

• Pressure Sensitive
• Glue Applied
• Stretch and Shrink Sleeve
• In-Mould
• Others

Key Insight: Label applications span across pressure-sensitive, glue-applied, in-mould, stretch and shrink sleeves, and specialty formats. Pressure-sensitive occupies a considerable share in the labels industry revenue through logistics and retail due to automation compatibility. Shrink sleeves are emerging fast in branding-heavy categories. In-mould finds niche use in rigid containers, while glue-applied dominates low-cost, high-volume markets. Each application is being reshaped by end-use compliance, sustainability mandates, and packaging innovation. Functional integration like tamper-evidence, re-sealability, and smart labelling is influencing the choice of label type among B2B buyers.

Market Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Key Insight: The global labels market report covers growth dynamics across North America, Europe, Asia Pacific, Latin America, and Middle East and Africa. Asia Pacific dominates the industry due to its expanding industrial base and compliance upgrades. Europe and North America are shifting toward sustainability and traceability. Latin America is balancing export-driven demand with packaging reform. Middle East and Africa is emerging fast through public health and trade initiatives. Each region aligns label use with economic goals including automation, waste reduction, export quality, or food traceability.

Global Labels Market Share

By Material, Paper Accounts for the Dominant Share of the Market

As per the market report, paper remains the most widely used label material due to its cost-efficiency, printability, and compatibility with eco-friendly packaging goals. Leading FMCG and beverage firms are reverting to paper labels as part of their plastic reduction pledges. In March 2024, in partnership with German packaging expert Karl Knauer, Krones AG, and AB InBev, the premium beer brand Stella Artois unveiled a sustainable packaging innovation with FSC-certified paper. Paper also aligns well with compostable packaging, and the growth in organic and clean-label food brands is further fuelling its demand. Regulatory support, like the EU Green Deal and the United Kingdom's Extended Producer Responsibility rules, is pushing converters to prioritise recyclable substrates like paper, especially in retail and beverage packaging formats.

Plastic-based labels, especially BOPP and PE films, are rapidly boosting growth in the labels market, through pharma, personal care, and logistics due to their durability and moisture resistance. Their compatibility with high-speed application machinery makes them ideal for high-volume SKUs. Smart functionalities like embedded sensors and tamper seals are easier to implement with plastic films. This material category is witnessing innovation in bio-based plastics derived from corn or sugarcane, addressing sustainability concerns. Companies like UPM Raflatac are introducing wash-off plastic labels that aid closed-loop recycling.

By Application, the Pressure Sensitive Segment Registers the Largest Market Share

Pressure-sensitive labels (PSLs) are dominating the global market due to their ease of application and adaptability across industries, from consumer goods to e-commerce. They do not need heat or water, which makes them suitable for automated lines. PSLs are also highly customisable and compatible with variable data printing, essential for SKU diversity. Retailers are increasingly demanding PSLs with reseal features and tamper evidence. This application benefits from a low failure rate and is pivotal in cold chain tracking, medical packaging, and high-velocity distribution environments.

Shrink and stretch sleeves are considerably boosting the labels market value through beverage, personal care, and home care categories. Their 360-degree print surface offers maximum branding real estate, which is especially valued in crowded retail spaces. According to industry reports, shrink sleeve use in beverages accounts for 70%. Global brands like Nestlé and L'Oréal have started combining augmented reality with shrink sleeve labels for consumer engagement. Sustainability innovations like floatable shrink sleeves for PET bottle recycling are driving adoption. These sleeves also allow late-stage decoration and are ideal for irregular container shapes.

Global Labels Market Regional Analysis

By Region, Asia Pacific Occupies a Sizeable Share of the Global Market Revenue

Asia Pacific dominates the global market revenue owing to rapid industrialisation, retail growth, and government-backed digital traceability mandates. China’s smart factory initiatives and India’s compulsory food labelling laws under FSSAI are reshaping labelling standards. Japan is leading in functional labels for electronics and precision parts, while ASEAN nations are witnessing the introduction of traceable labelling in agricultural exports. Regional players are investing in flexographic and digital label presses to cater to both domestic and export markets. Growing e-commerce and modern retail are further accelerating label demand across diverse end-user categories.

Middle East and Africa considerably boosts the labels market value, supported by a rising focus on food safety, pharmaceuticals, and exports. In Saudi Arabia, SFDA regulations mandate smart labelling on medical and food products. Nigeria and Kenya are modernising agro-processing with traceable export labelling funded by the AfDB. UAE’s smart city vision is encouraging digitised retail ecosystems where RFID labels enable frictionless checkout. The region is witnessing high demand for tamper-evident and trackable packaging in healthcare and halal-certified products. Despite infrastructural hurdles, strong policy support and investments in domestic manufacturing are driving sustained growth.

Competitive Landscape

Global labels market players are expanding their production capacity via acquisitions and investing in linerless, RFID, and low-migration ink technologies. Innovation have given rise to multifunctional labels, those that can be used as security tags, freshness indicators, or digital engagement points. Startups are also disrupting with custom short-run label printing-on-demand for SMEs. Sustainability remains a core differentiator, with converters competing to get FSC, Cradle-to-Cradle, or Blue Angel certification.

Meanwhile, digital labelling ecosystems like smart label clouds are helping brands automate inventory and enhance traceability. Smart labels, sustainable substrates, digital short-runs, pharma-compliant labelling, and linerless automation are reshaping the market by blending compliance, speed, and branding with traceability and material innovation. Label companies focusing on recyclable substrates, data-rich printing, and fast-turn solutions are poised to gain traction across regulated and tech-driven sectors like pharma, food, and e-commerce. Localisation strategies and just-in-time label delivery models are offering fresh revenue streams.

CCL Industries

CCL Industries, founded in 1951 and based in Toronto, Canada, is a global leader in specialty labels and packaging. The firm offers RFID, eco-friendly, and digital printing solutions for consumer goods, healthcare, and industrial sectors. Their acquisition of Checkpoint Systems and Innovia Films boosted its smart labelling and film capabilities across Europe and North America.

Multi Packaging Solutions International Limited

Multi Packaging Solutions International Limited, established in 2005 and headquartered in New York, United States, is known for high-end labelling and carton solutions. They cater to pharmaceuticals, personal care, and premium beverage markets with an emphasis on tactile finishes, metallic foils, and anti-counterfeit labelling technologies.

Multi-Color Corporation

Multi-Color Corporation, founded in 1916, is one of the largest label printers worldwide. They specialise in shrink sleeves, pressure-sensitive, and in-mould labels for food, beverage, and home care industries, with facilities across 26 countries ensuring region-specific supply chain efficiency.

Fuji Seal International, Inc.

Fuji Seal International, Inc., established in 1897 and headquartered in Osaka, Japan, pioneers shrink sleeve and spouted pouch solutions. The company focuses on automation-ready and smart labelling technologies for FMCG, contributing to sustainability through lightweight label materials and energy-efficient printing systems.

Another key player in the market is DPS Group among others.

Key Highlights of the Global Labels Market Report:

• Dynamic demand shifts and technological evolution captured with precision till 2034.
• Breakthroughs in high-performance label adhesives, RFID-enabled tags, and linerless formats gaining commercial traction.
• Competitive profiling of converters and OEMs expanding across pharma, FMCG, and automotive verticals.
• Regional mapping pinpoints hotspots like Eastern Europe and Southeast Asia with accelerating e-commerce packaging demand.
• Capex-heavy investments tracked, especially in flexographic and digital label press technologies, supporting scalability and volume customisation.

Why Rely on Expert Market Research?

• Industry-trusted analysts with domain expertise across packaging and logistics solutions.
• Custom-built research frameworks aligned with procurement, supply chain, and sustainability KPIs.
• Actionable insights sourced via real-time vendor engagements and primary B2B surveys.
• Advanced forecasting models that integrate cost inflation, labelling compliance, and end-user trends.