Market Trends in the European Label Industry

Market Trends throughout the European Label Supply Chain - by FINAT

 

At its recent congress in Monaco, FINAT presented the annual 360° tour of the label industry, looking at underlying forces for the industry as a whole and for the association. Jules Lejeune, managing director of FINAT, reported on the labelstock statistics for 2013 and introduced the first findings of the new FINAT RADAR regular report and analysis of the European narrow-web market.

Features from the first FINAT RADAR

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Earlier this year FINAT announced the launch of RADAR, a member-exclusive half-yearly publication that will report trends and growth rates at all levels across the European narrow web supply chain.

President Kurt Walker commented: “The FINAT RADAR gives members something they cannot find anywhere else. The publication offers FINAT membership a resource that benchmarks key metrics within each European region and market segment, in addition to providing comparisons between Europe and other major global regions. The RADAR is a comprehensive report, tying together converter, brand owner, material supplier and capital equipment trending and performance analysis.”

In this recently released debut edition of RADAR, more than 50 FINAT label converters participated in a detailed survey focusing on sales and profit trends, production data and capital equipment procurement trends. Converters from every European region participated in the research to enable benchmarking analysis in each market.

Revenue growth

In the Converter Survey, participants were asked to predict revenue growth over the course of the next six months for each major end-use sector they serve (food, beverage, pharmaceuticals, consumer durables, etc.), in addition to providing their companies’ turnover growth for 2013. These data enable converter members to gauge their performance and projections against the European market as a whole, and against companies in their own specific region.

In parallel to this approach, the RADAR Brand Owner Survey asked companies to project growth and/or contraction rates for their label purchases over the next year. This exercise is essential in order to cross reference converter projected growth rates with what brand owners are predicting label procurement increases will be, in order to calculate growth rates for the market that are as close as possible to what the future will actually deliver. The table below indicates average growth rates from both converters and brand owners that were surveyed for the first edition of the report. Historical Converter Growth and 2014 Projections:

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