In-Mold Labels Market Size

In-Mold Labels Market Size

Global In-mold Labels Market size was registered at USD 1.8 billion in 2020 and is expected to showcase considerable growth at a CAGR of 6.9% from 2021 to 2027 due to changing customer preferences toward branded and quality products.

In-mold labeling is a decorative process during plastic packaging. It is widely used in the manufacturing industry owing to its easy processability, long-lasting & eye-catching appearance, and high impact resistance capacity. The in-mold labeling technique is notably applied for food & beverages, consumer durables, home & personal care products, and the automotive industry to offer maximum durability with a high degree of safety & quality requirements.

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In-Mold labels have started penetrating the market of emerging economies as a choice of labels due to growing need of incorporating sustainable labelling solution during packaging solutions. Various consumer durable and personal care industry players are actively looking for in-mold labels as a viable labelling solution. The growing product penetration in various emerging economies will further drive the in-mold labels market.

Growing need for product identification labels in consumer durable goods will cater to the product demand owing to their unique ability to withstand severe conditions. Rising disposable income coupled with the rapid adoption of modern lifestyles is likely to drive demand for consumer durables in recent years. Moreover, consumer electronics manufacturers are focusing on quality products with extended features at affordable prices, specifically in emerging economies.

According to the Retailers Association of India, sales of home appliances and electronics goods surged up by 23.5% at the end of the third quarter of FY21 compared to the same period in FY20. In-mold labels offer significant benefits to manufacturers due to their unique attributes such as product optimization and cost-effectiveness without affecting the product packaging. As the label becomes an integral part of the product, it provides exclusive solutions for product manufacturers to entice consumers and maintain brand identity.

In addition, factors including weather resistance, high resilience, and UV resistance properties for outdoor durable goods will stimulate the need for high-performance in-mold labels to reduce the loss of color quality in harsh weather conditions. Furthermore, the rising trend of decorative molded parts for automotive and consumer electronics is likely to propel the in-mold labels market share over the projected timeframe.

Easy availability of substitute labelling products is likely to restrain the business growth in the near future. Moreover, the recent COVID-19 pandemic has adversely impacted the industry size due to the economic downturn, low labor force, and supply chain disruptions across the globe. However, the lifting of government restrictions and quick recovery of the manufacturing sector will revive the in-mold labels market trends in the coming years.