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3. New Product Launches Strategy is One of the Major Strategies Adopted by Key Players in the Label Adhesive Market.

The label adhesive market is projected to reach USD 12.97 Billion by 2022, at a CAGR of 4.91% between 2017 and 2022. Labels are made of paper, polymer, cloth, metal, or other materials which are affixed to containers or products. Adhesive in labels may be used interchangeably with glue, or paste, to any backing material applied to one surface, or both surfaces, of two separate items that binds them together and resists their separation. The label adhesive is made up of three layers; a face material, a pressure sensitive adhesive, and a backing sheet coated in a release agent. The layers are laminated together and then die cut to produce the individual labels. The final product can either be in sheet, roll, or fan-fold form. Label adhesives are used in the packaging industry in beverage bottles, pharmaceutical bottles, cosmetics bottles, metal containers, and packages, among others.

 The demand for label adhesive has increased in recent years due to its increased consumption in the Asia-Pacific region, which can be attributed to the growing population in the region leading to the rise in the number of manufacturers and converters. This, in turn, has contributed to the growth of the market for label adhesive in the region.

The new product launches strategy is one of the major strategies adopted by key players in the label adhesive market. This strategy has helped companies operating in the label adhesive market to enhance their product portfolios and expand their global presence. These key companies are also focused on entering new markets by launching technologically advanced and innovative label adhesives for varied end users in the packaging industry. Some of the leading manufacturers of label adhesive include Avery Dennison (U.S.), Henkel AG & Co. KGaA  (Germany), 3 M (U.S.), Bostik SA  (France), H.B. Fuller  (U.S.), The Dow Chemical Company   (U.S.), Herma (Germany), UPM Raflatac (U.S.), Ashland Global Holdings Inc. (U.S.), Lintec Corporation (Japan), and ITL Apparel Label Solution (U.K.), among others. These companies have adopted various organic and inorganic growth strategies to enhance their businesses and increase their shares in the label adhesive market.

Companies have also adopted the investments & expansions, joint ventures, partnerships, agreements, and mergers & acquisitions strategies to strengthen their positions in the label adhesive market. These strategies together accounted for a share of 49.57% of all the strategic developments that took place in the label adhesive market between 2015 and 2017.

The Asia-Pacific region is highly active region, in terms of strategic initiatives in the label adhesive market. In June 2013, Henkel Adhesive Technologies, a subsidiary of Henkel AG & Co. KGaA (Germany) officially inaugurated its Henkel Adhesives Innovation Center (HAIC), in Shanghai (China).The new facility has NVH Testing Lab, consumer adhesives lab and training center, which has greatly expanded Henkel Adhesive’s R&D capabilities in the Asia-Pacific region, providing innovative market-driven solutions to China locally and Asia-Pacific customers. Similarly, in March 2016, H.B. Fuller launched the production new hot melt pressure sensitive label adhesives in India. Through this expansion, H.B Fuller enhanced its product portfolio and regional revenue in India and the Asia-Pacific region.

UPM RAFLATAC (U.S.), Herma (Germany), and Avery Dennison (U.S.) are highly active players in the label adhesive market. These companies accounted for the largest share of all developmental activities that took place in the label adhesive market between 2015 and 2017. As a part of their organic growth strategies, these companies focus on enhancing their label adhesive product portfolios and expanding their presence in the Asia-Pacific and South American regions.

Another key player that has established a strong foothold in the label adhesive market is Henkel AG & Co. KGaA (U.S.). The company concentrates on expanding its customer base through investments & expansions, joint ventures, partnerships, and agreements. For instance, in September 2015, Henkel has launched Loctite Liofol LA 2760/LA 5891-21 and Loctite Liofol LA 2760/LA 7371 for high performance retort processing and demanding flexible packaging applications. This strategy has strengthened the labels and adhesives segment product portfolio of the company. Similarly in June 2015, Henkel Adhesive Technologies announced an investment of USD 32.29 million to establish India's largest adhesives plant in Kurkumbh, near Pune. In the first phase, the manufacturing facility will be operational with an annual capacity of 80,000 metric tons of adhesives and surface treatments. The investment will further support Henkel's global strategy to increase sales and business growth in emerging markets.

Related Reports:

Label Adhesive Market by Process (PSA, Glue Applied, In-Mold), Technology (Water, Hot Melt, Solvent-based), Substrate Type (PET, Metal Container, Polyolefin Bottle), Application (Permanent, Freezer, High Temperature), Region - Global Forecast to 2022

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