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Label Shipments to Soar By 2015


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Label Shipments to Soar By 2015

If recent label shipment figures are anything to go by, brands in the United States are stepping up their use of product labeling.

Over the next few years, U.S. label shipments will increase by 4.8 percent annually to be worth $20 billion by 2015, a study from research firm The Freedonia Group found. Growth will further be led by new technologies in the packaging world, such as pressure sensitive, stretch sleeve, heat-shrink and in-mold labels.

In fact, heat-shrink labels, which are named after their ability to contour to containers and provide 360-degree graphics, are expected to see the fastest rate of advancement during this time period.

"Primary packaging represents the leading application for labels in the U.S. market," The Freedonia Group noted in a statement. "Label demand in this sector will be driven by a shift in product mix favoring higher-value label types ... as labels play a crucial role in the building of brand identity in an intensely competitive consumer product marketplace."

Companies only have to look to relabeling efforts such as those undertaken by Tropicana to realize the importance the marketing pieces have in a company's ultimate success. When the juice maker tried to modernize its labels two years ago, all it received was a heap of criticism and plummeting revenues because of the change.