After a relatively modest start to 2021, demand for labelling materials boomed in Europe in the second quarter. Demand was particularly strong for paper. According to Finat, consumption of self-adhesive label materials rose by 9.3 per cent compared to the same period last year.
According to the European self-adhesive label industry association, demand for labels had already peaked in the second quarter of 2020 with a growth rate of eight per cent due to the Covid-19 outbreak. The peak in demand in spring 2021 correlated with the general economic recovery in Europeas shown by the EU economy's growth of 13.2 per cent compared to the second quarter of 2020.
In contrast to 2020, growth in the area of adhesive materials led by the demand for paper rolls. It rose by 14.6 per cent compared to the previous year, while demand for label materials on film rolls fell by 4.2 per cent. In comparison: in the second quarter of 2020, non-paper rolls achieved a record increase of 22.4 per cent. The huge increase in demand for paper rolls was, according to Finat The first signs of this began as early as the first quarter, when reports of paper bottlenecks in the supply chain arrived following a phase of destocking.
Demand for labelling material varies from region to region in Europe
Overall, the demand for self-adhesive labelling materials in Europe was by 5.4 per cent in the first half of 2021 compared to the first half of 2020 (up 7.7 % for paper rolls and 0.3 % for film rolls).
At a regional level, demand growth in the first half of 2021 was characterised by double-digit growth rates in Great Britain and Ireland, Southern Europe and Eastern Europe led the way. A year ago, all three regions had Northern and Central Europe still performed below average. Northern and Central Europe, on the other hand, have now suffered significant declines compared to the previous year.
Source: Finat
