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Label industry stable in spite of world’s woes

Via FINAT we find an interesting prediction of the PS labelling situation in Europe. I enclose copy of the original PDF

Label industry stable in spite of world’s woes
With Europe’s economy in a state of flux, demand for self-adhesive labels will, at best,
remain stable during 2008, helped by strong demand for filmic roll products, Jules Lejeune,
managing director of FINAT, the medium’s global trade association, has forecast.
Presenting his state of the self-adhesive label industry report to FINAT’s 50th anniversary
congress in Paris, Mr Lejeune said: “It should come asno surprise that the economy is in a
state of flux. It is clear that the credit crunch, the situation in energy, raw materials and food
markets continue to undermine business confidence, although the over-valued Euro
has managed to dampen the effect of the oil and raw materials price increases.”
The self-adhesive industry saw total demand rise to just over 5.5-billion square metres
throughout Europe in 2007 –a 4.3 per cent increase over the previous year, which was less
than expected, but it was helped by a 3.3 per cent growth in paper roll consumption and a
9.1 per cent increase in non-paper roll demand.
Paper sheets grew by a negligible 0.1 per cent and non-paper sheets by 4.5 per cent which
reflects a market share situation where sheets have steadily lost to rolls –down from 10.5
per cent in 1996 to seven per cent in 2007.
The general slowdown continued in the first quarter of 2008, the first time in three years
when label consumption did not grow over the equivalent period of the previous year.
Examining the industry’s sale by region, Mr Lejeune reported a 13.2 per cent increase in
Eastern Europe, a 4.0 per cent rise in Central Europe, 2.9 per cent in the UK and Ireland, 1.9
per cent in Southern Europe and just 0.9 per cent improvement in Scandinavia.
Paper rolls still account for more than 70 per cent of the total market volume of self-adhesive
label materials. The total market growth pattern per region is therefore reflected in the
evolution of paper roll demand. After growth rates of four and 6.9 per cent respectively in
2006, Scandinavia and Southern Europe only recorded marginal increases in 2007.
Southern Europe remained the biggest consumer of paper rolls, followed by Central Europe.
The growing popularity of non-paper roll labels was reflected in strong increases in all the
regional markets. Eastern Europe showed a 20.4 per cent improvement, the UK and Ireland
was up by 11.8 per cent, Southern Europe increased by 9.4 per cent, Scandinavian demand
rose by 5.7 per cent and Central European by 4.3 per cent.
While roll labels now account for more than 90 per cent of total labelstock demand, the sheet
label business is consolidating its minority position, with the exception of Eastern Europe
where sheet labels use is still growing. Use of paper sheets fell in the UK and Ireland by 9.2
per cent and by 6.9 per cent in Southern Europe, with Scandinavia falling by 2.9 per cent
while year-on-year growth in Eastern Europe was 6.5 per cent and 4.8 per cent in Central
Europe.
Non-paper sheets hold only a niche in the overall market but gains of 14.4 per cent were
made in Eastern Europe and ten per cent in the UK and Ireland. Southern Europe saw an
increase of 4.2 per cent but the medium lost 8.6 per cent in Scandinavia and 0.7 percent in
Central Europe.
Mr Lejeune told his members: “Business confidence has seen a reversal in mood from the
very positive outlook in the first quarter of 2007.
“Eastern Europe will continue to drive the demand for label materials –not only because the
manufacturing of products like personal care and household chemicals continues to move
eastward, but also because disposable income there is rising and increasing domestic
demand.
Mr Lejeune added: “I am confident that the self-adhesive label industry will continue to
exercise its creative and innovative potential and that its spirit of entrepreneurship that has
been the key to success over the past 50 years will help it to explore new regions and new
markets.

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