UPM Raflatac keynote at Labelexpo Europe: Self-adhesive label still has the potential to grow - demand will increase especially in the emerging markets

​(UPM Raflatac, Tampere, 30 September 2011) – In his keynote speech at Labelexpo Europe, UPM Raflatac President Jussi Vanhanen presented some of the key findings from a recent market survey commissioned by the company. According to Vanhanen, growth in self-adhesive label demand will continue in Western Europe and North America at a slower pace than in the previous decade, while demand will increase especially in the emerging markets.

“In the developed markets of Europe and North America, the consumption of self-adhesive labels will follow the growth of packaged products. Self-adhesive labels will take marginally market share from other labelling methods. Therefore the growth rates for the industry will most likely remain at around 1-2% per annum. The highest growth rates will be enjoyed in the food and beverage end-use segments where the penetration of the self-adhesive label is rather low,” said Vanhanen at Labelexpo in Brussels.

Nevertheless, on the global level self-adhesive labelling will enjoy robust growth of around 4-5 % per year. According to Vanhanen, some 80% of this growth will come from emerging markets. This also reflects the shift in global economic power towards the Asian and Latin American countries.

Vanhanen emphasized that the labelling industry has to work hard for new business opportunities, particularly in the developed markets. “Growth will not come automatically. The industry needs to continue to develop solutions for ever more specialized applications. Self-adhesive label is the most versatile labelling method, and all participants in the value chain need to continue to promote and develop products which make use of its strengths,” Vanhanen continued.

Another challenge to be addressed by the industry is the sustained raw material inflation. “Over the next decade, consumption growth in the emerging markets will continue to drive raw material prices up even if there may be some short breathers in times of economic uncertainty. The best way to combat this inflation is that substrate suppliers and printers develop and commercialize thinner, fit-for-purpose material constructions and leverage the fast-developing recycling opportunities”, Vanhanen emphasized

For further information, please contact:
Mr Jussi Vanhanen, President, UPM Raflatac, tel. +358 2041 5111
Ms Elisa Nilsson, Vice President, Communications, UPM Raflatac, tel. +358 40 500 3150

This press release will be available in other languages under ‘News & Publications’ on our website: www.upmraflatac.com.

About UPM Raflatac
UPM Raflatac, part of UPM’s Engineered Materials business group, is one of the world’s leading suppliers of self-adhesive label materials. UPM Raflatac has a global service network consisting of 12 factories on six continents and a broad network of sales offices and slitting and distribution terminals worldwide. UPM Raflatac employs 2,400 people and made sales of approximately EUR 1.1 billion (USD 1.5 billion) in 2010.