Eco-friendly Labels Market

Market Overview: 

The global eco-friendly labels market size reached US$ 1.4 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 2.5 Billion by 2032, exhibiting a growth rate (CAGR) of 7.07% during 2024-2032. The increasing sustainable development goals and global initiatives promoting responsible consumption and production, the rising public awareness campaigns and education on the benefits of eco-friendly labeling, and the growing use of these labels for product traceability and transparency are some of the factors propelling the market.

Eco-friendly labels have emerged as a vital trend in response to the growing environmental consciousness among consumers and businesses. These labels communicate the sustainable attributes and environmental credentials of products and packaging. They provide essential information about the product's eco-friendliness, recyclability, biodegradability, and use of renewable materials. The adoption of these labels reflects the increasing demand for transparent and responsible consumption. Consumers actively seek products that align with their values and contribute to environmental preservation. These labels empower consumers to make informed choices and encourage companies to adopt sustainable practices throughout their supply chains. These labels present a valuable marketing tool for businesses, showcasing their commitment to environmental stewardship and appealing to eco-conscious consumers. The rise of eco-labeling schemes and certifications further reinforces the credibility of eco-friendly claims, fostering trust and loyalty among consumers. As the world shifts towards sustainability, these labels are expected to promote environmentally responsible products and drive positive change across industries.

The global market is majorly driven by the increasing consumer awareness and demand for sustainable and eco-friendly products. In line with this, the rising concern about environmental issues, such as climate change and plastic pollution, is significantly contributing to the market. Furthermore, the government's worldwide regulations and policies promoting eco-friendly labeling and sustainable packaging are creating a positive outlook for the market. Corporate sustainability initiatives and commitments by companies to reduce their environmental footprint are positively influencing the market. Apart from this, the growing adoption of circular economy principles, emphasizing recycling and waste reduction, is catalyzing the market. Moreover, the escalating popularity of eco-friendly and green certifications for products is propelling the market. Expansion of eco-labeling programs and standards to verify environmental claims is strengthening the market. Besides, the shift in consumer preferences towards brands that demonstrate environmental responsibility is bolstering the market. Additionally, the innovation in eco-friendly label materials, such as recycled paper and biodegradable materials, is providing a boost to the market.

Eco-friendly Labels Market Trends/Drivers:

Increasing use of these labels in various industries

The increasing use of these labels across various industries is a key driver of market growth. As sustainability becomes a top priority for consumers and businesses, the demand for eco-friendly labeling solutions has grown in numerous sectors. In the food and beverage industry, these labels are gaining popularity in packaging for organic, natural, and locally sourced products. These labels communicate a brand's commitment to environmental responsibility, appealing to eco-conscious consumers and boosting product sales. Similarly, in the cosmetics and personal care sector, they are becoming prevalent in products made with natural ingredients and environmentally friendly packaging. These labels enhance product appeal and align with the growing interest in green beauty and sustainable self-care practices. Moreover, industries like homecare, automotive, electronics, and textiles are adopting these labels to convey eco-credentials, compliance with environmental regulations, and commitment to reducing their carbon footprint. As these labels become a standard expectation across various industries, label manufacturers are innovating with sustainable materials and printing technologies.

Rise of e-commerce and demand for sustainable packaging solutions

The rise of e-commerce and the growing demand for sustainable packaging solutions is offering numerous opportunities for the market. As e-commerce expands, so does the need for effective, sustainable, visually appealing packaging that aligns with environmental concerns. Consumers are increasingly conscious of the environmental impact of their purchases, and they prefer brands that use eco-friendly packaging. These labels are crucial in communicating a product's sustainability and differentiating it from competitors. With the rise of online shopping, brands are investing in sustainable packaging to reduce waste and minimize the ecological footprint of their products during shipping. These labels, made from recycled materials or featuring biodegradable adhesives, complement these sustainable packaging solutions. As e-commerce giants and small businesses embrace green practices, product demand is accelerating across the supply chain. To meet this demand, label manufacturers are offering innovative, environmentally responsible labeling solutions, contributing to the market's growth and advancing sustainable practices in the packaging industry.

Growing focus on waste management and extended producer responsibility

The growing focus on waste management and extended producer responsibility (EPR) is propelling the market. Governments and organizations worldwide are implementing stringent waste management regulations and EPR programs to hold producers accountable for the end-of-life disposal of their products and packaging. As a result, businesses are increasingly adopting sustainable packaging practices and using these labels to convey their commitment to responsible waste management. They play a crucial role in ensuring that product packaging can be easily recycled or disposed of in an environmentally friendly manner. Moreover, consumers are becoming more conscious of the environmental impact of packaging waste and actively seek products with these labels. The demand for eco-friendly labeling solutions is rising as companies strive to meet consumer expectations and comply with EPR requirements. In response to this growing focus on waste management and EPR, label manufacturers are innovating with recyclable, biodegradable, and compostable label materials, further driving the market's growth and promoting sustainable packaging practices across industries.

Eco-friendly Labels Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the eco-friendly labels market report, along with forecasts at the regional and country levels from 2024-2032. Our report has categorized the market based on material, label type, printing technology, and end user.

Breakup by Material:

• Paper
  • Semi-gloss/Matte Paper
• Plastic
  • PLA (Polylactic Acid)
  • PHB
     

Paper dominates the market

The report has provided a detailed breakup and analysis of the market based on material. This includes paper (semi-gloss/matte paper) and plastic (PLA [polylactic acid] and PHB). According to the report, paper represented the largest segment.

Paper labels are rising due to their recyclability and biodegradability, aligning with eco-conscious trends. Paper labels are widely used in various industries, such as food and beverage, cosmetics, and household goods. The paper's natural appeal complements the marketing of organic and environmentally friendly products, driving its adoption.

Furthermore, eco-friendly plastic labels from recyclable or biodegradable materials are gaining traction. Plastic labels offer durability and water resistance, making them suitable for various applications, including personal care and household products. Sustainable plastic alternatives, such as PLA (polylactic acid), contribute to reducing the environmental impact of labeling.

Breakup by Label Type:

• Pressure Sensitive Labels (PSL)
• Shrink Labels
• Stretch Labels
• Wet Glue Labels
• Others
   

Pressure sensitive labels (PSL) dominates the market

The report has provided a detailed breakup and analysis of the market based on label type. This includes pressure sensitive labels (PSL), shrink labels, stretch labels, wet glue labels, and others. According to the report, pressure sensitive labels (PSL) represented the largest segment.

Pressure Sensitive Labels (PSL) are adhesive labels that adhere to the product surface with light pressure. They are versatile, suitable for various packaging types, and can be made from eco-friendly materials like recycled paper or sustainable plastic films. The ease of application and compatibility with eco-friendly adhesives contribute to their widespread adoption in industries like food and beverages, personal care, and pharmaceuticals.

On the other hand, shrink labels are heat-sensitive labels that conform tightly to the product shape when heat is applied during packaging. They are commonly used in bottles, containers, and cans. Eco-friendly shrink labels made from recyclable or biodegradable materials meet the rising demand for sustainable packaging in the beverage, dairy, and cosmetics sectors.

The increasing use of eco-friendly pressure-sensitive and shrink labels in various industries drive market growth as brands and consumers prioritize environmentally responsible packaging solutions. Label manufacturers are continuously innovating to offer eco-friendly options that align with sustainability goals, stimulating the market's expansion and fostering a more eco-conscious labeling industry.

Breakup by Printing Technology:

• Flexography
• Digital
• Gravure
• Screen
• Offset
   

Flexography dominates the market

The report has provided a detailed breakup and analysis of the market based on printing technology. This includes flexography, digital, gravure, screen, and offset. According to the report, flexography represented the largest segment.

Flexographic printing is a widely used printing technology in the labeling industry. It utilizes flexible relief plates and is compatible with eco-friendly inks and substrates. Eco-friendly label materials, such as recycled paper and biodegradable films, can be effectively printed using flexography. This printing method is commonly used for high-volume label production, meeting the demands of industries like food and beverages, retail, and logistics.

On the contrary, digital printing is gaining popularity in the eco-friendly labels market due to its advantages in customization, short-run printing, and reduced waste. Digital technology enables the printing of variable data and designs, supporting brands' efforts to communicate their eco-friendly initiatives effectively. This method is suitable for printing on eco-friendly label materials, including recycled and sustainable substrates, while minimizing the environmental impact.

Breakup by End User:

• Food and Beverages
• Pharmaceuticals
• Cosmetics and Personal Care
• Homecare and Toiletries
• Clothing and Apparels
• Chemicals
• Automotive
   

The report has provided a detailed breakup and analysis of the market based on the end user. This includes food and beverages, pharmaceuticals, cosmetics and personal care, homecare and toiletries, clothing and apparels, chemicals, and automotive.

The food and beverages industry is witnessing a rise in demand for these labels to meet consumer expectations for environmentally conscious packaging. These labels on food products convey a commitment to sustainability, aligning with the growing trend of green purchasing. Brands use recyclable or compostable label materials to enhance the recyclability of packaging, driving the adoption of these labels in this sector.

Furthermore, the pharmaceutical industry is also embracing eco-friendly labels to support its sustainability goals. Labels made from sustainable materials are used on pharmaceutical products, promoting environmental responsibility throughout the supply chain. These labels are essential in communicating vital information to consumers and healthcare professionals while adhering to eco-conscious practices.

Moreover, the cosmetics and personal care industry is witnessing a paradigm shift towards these labels to cater to eco-conscious consumers. Brands use sustainable label materials to promote natural and organic products, elevating their market appeal. These labels on personal care products demonstrate a brand's commitment to environmental preservation and attract consumers seeking green and sustainable alternatives.

The growing demand for these labels in these end-user industries is fueling market growth as brands seek to align their packaging with sustainability initiatives and consumer preferences. These labels are pivotal in fostering a more environmentally responsible approach across these sectors, stimulating the expansion of the market.

Breakup by Region:

• North America 
  • United States
  • Canada
• Europe 
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Others
• Asia Pacific 
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Latin America 
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

North America exhibits a clear dominance, accounting for the largest market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa.

The region's growing awareness of environmental issues and rising demand for sustainable products propel the North American market. Governments, businesses, and consumers across the region are emphasizing eco-friendly practices, including responsible labeling. The adoption of eco-friendly labels in industries like food and beverages, pharmaceuticals, and personal care is witnessing a notable upswing as companies seek to appeal to environmentally conscious consumers.

On the other hand, Europe has been at the forefront of sustainability efforts, and the demand for these labels in the region is strong. Stringent environmental regulations, circular economy initiatives, and consumer preferences for sustainable products drive the adoption of eco-friendly labeling solutions. European companies in various industries prioritize using eco-friendly materials and printing technologies to reduce their carbon footprint and promote eco-conscious branding.

Competitive Landscape:

Top companies are pivotal in strengthening the market by leading the way in innovation, sustainability, and customer-centric solutions. These companies are at the forefront of developing cutting-edge eco-friendly label materials, printing technologies, and adhesive solutions that meet the evolving demands of environmentally conscious consumers and businesses. By prioritizing research and development, top manufacturers continuously introduce new materials made from recycled or renewable sources and biodegradable and compostable options. These companies are committed to reducing their environmental impact throughout the label production process, employing eco-friendly practices and certifications to ensure sustainable operations. Additionally, the leading companies work closely with their clients, offering personalized and tailored labeling solutions that align with the specific sustainability goals of each brand. They provide comprehensive support and expertise, helping customers make informed choices that promote their eco-friendly initiatives. Through their dedication to innovation, sustainability, and customer satisfaction, top companies are fostering market growth, influencing industry standards, and accelerating the adoption of environmentally responsible labeling practices globally.

The report has provided a comprehensive analysis of the competitive landscape in the eco-friendly labels market. Detailed profiles of all major companies have also been provided.

• Avery Dennison Corporation
• CCL Industries Inc
• Elevate Packaging Inc
• Hally Labels
• inkREADible Labels Limited
• JK Labels
• Labels Plus
• Paramount Labels
• SATO Holdings Corporation
• The Label Makers Ltd

Eco-friendly Labels Market Report Scope:

Key Questions Answered in This Report:

• How has the global eco-friendly labels market performed so far, and how will it perform in the coming years?
• What are the drivers, restraints, and opportunities in the global eco-friendly labels market?
• What is the impact of each driver, restraint, and opportunity on the global eco-friendly labels market?
• What are the key regional markets?
• Which countries represent the most attractive eco-friendly labels market?
• What is the breakup of the market based on the material?
• Which is the most attractive material in the global eco-friendly labels market?
• What is the breakup of the market based on the label type?
• Which is the most attractive label type in the global eco-friendly labels market?
• What is the breakup of the market based on printing technology?
• Which is the most attractive printing technology in the global eco-friendly labels market?
• What is the breakup of the market based on the end user?
• Which is the most attractive end user in the global eco-friendly labels market?
• What is the competitive structure of the global eco-friendly labels market?
• Who are the key players/companies in the global eco-friendly labels market?

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the eco-friendly labels market from 2018-2032.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the eco-friendly labels market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the global eco-friendly labels industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.