13 May 2024

India: Customization and sustainability riding high

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According to Mordor Intelligence, the global label market is expected to grow at a CAGR of 4.2 percent over the forecast period 2023-2027. However, in India, the labels market is expected to grow at more than double that rate, at 8.9 percent CAGR over the forecast period.
Many factors are driving this growth, such as increasing demand for more attractive and personalized packaging, and a rise in the packaged food industry. The growth of the e-commerce industry is another significant factor that is expected to propel this trajectory in an upward direction.
However, we can’t overlook the challenges that the sector is facing: supply chain issues, price increases, worker shortages and ongoing non-availability of key production components.
Despite the challenges, India’s label converters are resilient and resourceful, as they often are in times of crisis.
Personalized packaging
Consumer buying behavior in India has changed largely with a growing generation of younger consumers and a surge in the e-commerce sector. With that boom, there are now greater expectations for brands to create more personalized experiences.
‘A notable trend on the horizon is the increasing adoption of digital embellishments in labels, as brands seek innovative ways to make their products stand out on retail shelves,’ says Tej Prakash Jain, managing director of Monotech Systems. ‘This shift is driven by the desire to enhance brand visibility and create a lasting impact on consumers.’.
He continues: ‘Furthermore, the demand for short and medium runs is projected to remain robust, driven by market needs for quick-turnaround mock-ups, overnight product launches, and the rising importance of personalization and customization.’
“There is increasing adoption of digital embellishmenats as brands seek innovative ways to make their products stand out”.
And hence, many converters are turning toward digital printing. According to Harveer Sahni, chairman of Weldon Celloplast, the number of digital press installations in the region grew from 22 in 2017 to between 60 and 65 in 2023. ‘Earlier, digital has been slow for obvious reasons of high CapEx and high cost of consumables, but with the start-ups and customization fueling a demand for short runs, digital is steadily making inroads into label printing,’ shares Sahni.
For the full Labels & Labeling article click here.


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