Technavio’s latest market research report predicts the global warning labels and stickers market to surpass revenues worth $10 billion by 2020, posting a moderate growth rate over the next four years. In this report, Technavio covers the present scenario and growth prospects of the global warning labels and stickers market for 2016-2020.

This market research report also includes up to date analysis and forecasts for various market segments and all geographical regions. “The global warning label and stickers market has witnessed many innovative products in the past few years. Vendors are launching products such as clear-on labels that provide a no-label look, used in packaging premium products. These stickers provide absolute transparency, high aging resistance, good adhesion, and clean label positioning,” says Sharan Raj, Technavio’s lead market research analyst for tags and labels.

The market is witnessing a growing popularity of labeling processes such as UV-curing hot melt to provide removable stickers. The use of acrylate-based pressure sensitive adhesives for providing trouble-free labeling at exceptionally low temperatures is a growing trend in the market.

“These new products have increased the application of warning labels across many new product areas, thus boosting demand in the overall market,” says Raj.

The top four key drivers for the global warning labels and stickers market, according to Raj, are:

Increase in demand for packaged foods and beverages
Increasing demand for packaged food and beverages from consumers worldwide is the primary driver for growth in the warning labels and stickers market. The soaring global population, along with rising consumer income levels, has boosted the demand for packaged food and beverages. Subsequently, there has been a rise in demand for packaging and labeling solutions.

“Packaged food and beverage companies need packaging products and solutions with unique label designs that meet their increasing production requirements and help create product differentiation,” says Raj. “The differentiation in products allows vendors to stay ahead of their competitors. Food products that provide valuable information, such as safety measures and how to use the product on the package, are witnessing high demand.”

R&D spending by manufacturers
The manufacturing of warning labels and stickers requires skilled manpower and high-end machinery to develop labels with specific properties. Vendors use advanced technologies in the selection and processing of raw materials, the design of the label and the final printing process.

For instance, the shrink sleeve label substrates used in the market are shrunk in lateral direction and pre-formed into a tube shape. This requires a separate step before further processing on the labeling machine. Top companies 3M spent $1.77 billion in R&D in 2014, while Brady spent $590.5 million. This trend is likely to surge investments from many other vendors during the forecast period.

Growth in labeling industry
There has been a significant shift in the perception of consumers and manufacturers about packaging in recent years. Market trends suggest an increased level of attention paid by consumers on the design of packaging, colors, and ingredients used, safety measures, and related warning labels.

From the consumer goods manufacturers’ point of view, labeling has become a major branding tool. In highly cluttered markets, creating shelf appeal and visibility has become the most important strategy for manufacturers. Manufacturers are thus focusing on proper labeling to create appropriate product awareness to attract consumers. This in turn is contributing to the growth of the global warning label and stickers market.

High demand for colored labeling
Technavio’s research analysts believe that the use of color inkjet printing in labeling attracts the attention of customers, and their rate of response to the marketing activities of companies has increased with the use of color printing. Color printing helps in effectively communicating the manufacturer’s message to customers who often face information overload of repetitive messages. To overcome these problems, marketers resort to color printing as it allows them to focus on key points of the products. These practices in the use of warning labels and stickers will positively impact the brand recall ability of customers over the next four years.