Market Trends of North America Self-Adhesive Labels Industry
Increasing Demand from Food and Beverages Industry
Self-adhesive labels are known to improve the aesthetic characteristics of food and beverage packaging brands. In the food and beverage packaging industry, self-adhesive labels help perform a major function in product authentication and tamper-evidence.
Packaging and labeling play an important role in the sale of products, as they help grab consumers' attention. Marketers mainly use them to encourage potential consumers to purchase the product. Labels communicate how to use, transport, recycle, and dispose of the package or product.
Labeling provides ingredient information, product identification, and cautionary notifications in the food and beverage sector. The self-adhesive label manufacturers must comply with the legal requirements to ensure that the adhesive does not affect the food ingredients.
With significant growth in the food and beverage industry and demand for packaged food products across the region, an increase is observed in the consumption of labels used in the packaging of food & beverage products.
According to the US Census Bureau, the annual sales of retail food stores in the United States accounted for USD 880.30 billion in 2021, compared to USD 850.20 billion in the previous year. Moreover, till October 2022, the total sales of food & beverage stores in the United States amounted to USD 784 billion, registering an increase of 7.7% compared to the same period in 2021.
Similarly, in Canada, the total sales of food and beverage stores in the year amounted to CAD 143.14 billion (~USD 114.2 billion) in 2021, registering an increase of around 5% compared to the previous year.
The demand for packaging material will increase with the increasing food and packed food industry. Thus, the growing food packaging market will increase the demand for self-adhesive labels in the coming years.
United States to dominate the North American market
The United States is the largest market in the region and is the world's largest economy. The self-adhesive market in the country is dominating. It will remain dominant in the forecast period owing to the huge demand from the country's food and beverage and pharmaceutical industries.
The demand for self-adhesive labels is due to high demand from the food and beverage sector. The food and beverage industry is essential to the United States economy. Food delivery services are gaining popularity in the region. With the high internet penetration rate and increasing demand for convenience, consumers are increasingly ordering groceries and other food products online.
The food industry in the country is the second-largest in the world after China. The demand for the studied market in North America mainly comes from the United States.
In 2022, the United States Department of Agriculture announced details of a framework to transform the food system to benefit consumers, producers, and rural communities. This framework provides more options, increases access, and creates new, more, and better markets for small and mid-size food producers.
Additionally, the department announced an investment of USD 600 million to support food supply chain infrastructure such as cold storage, refrigerated trucks, and processing facilities which will propel the growth of the United States food industry.
Along with food and beverages, the pharmaceutical industry in the country contributes significantly to the demand for packaging labels.
According to AstraZeneca, the projected pharmaceutical sales for the United States in 2024 are expected to be around USD 633 billion for North America.
Apart from that, many driving factors are responsible for the pharmaceutical industry of the United States, such as the decision of the Supreme Court to uphold the Affordable Care Act (Obamacare), the spur in drug demand due to the growing aging population, and others.
Furthermore, according to a survey by IQVIA Institute, in 2021, the United States spent approximately USD 574 billion on medicines which was approximately 10% more than USD 521 billion in the prior year.
The country's market will dominate the studied market due to all the facts above.
