Packaging Labels Market Size, Share & Trends Analysis Report By Material (Paper, Plastic), By Label Type (Pressure Sensitive Labels, Shrink Labels), By End-use (Food & Beverages, Pharmaceuticals), By Region, And Segment Forecasts, 2025 - 2030

Packaging Labels Market Size & Trends

The global packaging labels market size was estimated at USD 53.92 billion in 2024 and is expected to grow at a CAGR of 4.50% from 2025 to 2030. Governments worldwide are enforcing stricter labeling regulations, especially in industries like food, pharmaceuticals, and chemicals, to ensure consumer safety and transparency. This is driving demand for compliant labels with clear ingredient lists, expiration dates, and hazard warnings.

The packaging labels industry is witnessing a shift towards smart and sustainable labeling solutions. Brands are increasingly incorporating RFID tags, QR codes, and NFC technology into labels to enhance product traceability, authentication, and consumer engagement. At the same time, sustainability concerns are driving the adoption of eco-friendly labeling materials such as biodegradable films, recycled paper, and water-based adhesives. Regulations around waste reduction and circular economy initiatives in regions like Europe and North America are accelerating this trend, compelling manufacturers to invest in digital printing technologies that minimize material waste and improve efficiency.

Drivers, Opportunities & Restraints

The rapid expansion of e-commerce is significantly driving demand for packaging labels. As online retail continues to grow, brands and logistics companies require high-quality, durable labels that can withstand shipping, handling, and storage conditions. Barcode labels, tamper-evident labels, and RFID-enabled tags play a crucial role in streamlining supply chain operations, ensuring accurate tracking, and preventing counterfeiting. Additionally, customized and aesthetically appealing labels are becoming essential for brands to create strong visual identities in the competitive online marketplace, further fueling market growth.

The shift towards digital printing in the packaging labels industry presents a significant opportunity for manufacturers. Digital printing offers flexibility in label production, allowing for high-quality, cost-effective, and short-run printing with minimal lead times. This is particularly beneficial for small and medium-sized businesses (SMBs) that require customized, limited-edition, or seasonal packaging. Furthermore, variable data printing (VDP) enables brands to personalize labels with unique codes, promotional content, or localized information, enhancing consumer engagement. The continued innovation in inkjet and electrophotographic printing methods is expected to drive higher adoption across industries such as food, beverages, and pharmaceuticals.

Fluctuations in raw material prices pose a major challenge for the packaging labels market. The cost of essential materials such as paper, plastic films, adhesives, and printing inks is highly influenced by factors like supply chain disruptions, geopolitical instability, and fluctuating crude oil prices. For instance, price surges in petroleum-based materials directly impact plastic label production costs, while increased demand for sustainable alternatives adds pressure on paper-based labels. These price volatilities can strain profit margins for label manufacturers and end-users, particularly in cost-sensitive sectors, making long-term pricing strategies difficult to maintain.

Material Insights

Plastic dominated the packaging labels market across the material segmentation, accounting for a revenue share of 45.61% in 2024. The growing need for durable, moisture-resistant, and flexible labeling solutions is driving the demand for plastic-based labels. Industries such as chemicals, automotive, and personal care prefer plastic labels due to their ability to withstand harsh environmental conditions, including exposure to water, oils, and extreme temperatures. The increasing adoption of synthetic label materials like BOPP (biaxially oriented polypropylene) and PET (polyethylene terephthalate) is further fueled by their excellent printability, tear resistance, and compatibility with various adhesive types. As more brands focus on long-lasting and premium packaging, plastic labels continue to dominate high-performance labeling applications.

The shift towards sustainable packaging solutions is significantly boosting the demand for paper-based labels. Governments and regulatory bodies are enforcing stricter environmental laws, pushing brands to replace plastic labels with biodegradable, compostable, or FSC-certified paper alternatives. Consumer preferences are also shifting, with eco-conscious buyers favoring recyclable and plastic-free packaging, especially in segments like organic foods and luxury goods. Additionally, advancements in water-resistant coatings and durable paper substrates are making paper labels a viable alternative, even in industries where plastic labels were traditionally dominant.

Label Type Insights

Pressure sensitive labels dominated the packaging labels market across the label type segmentation, accounting for a revenue share of 40.70% in 2024. The rise in premium product branding and high-end packaging is driving demand for pressure-sensitive labels with advanced coatings. These labels offer superior adhesion, versatility, and high-quality print finishes, making them ideal for luxury goods, personal care, and specialty beverages. UV-curable and tactile coatings enhance aesthetic appeal by adding gloss, matte, or textured effects, improving brand differentiation on retail shelves.

Brands are increasingly adopting shrink labels to achieve full-body, high-impact branding on irregularly shaped packaging. The ability of shrink labels to conform seamlessly to complex containers in industries like beverages, personal care, and home care has made them a preferred choice for premium and visually striking packaging.

End-use Insights

Food & beverages dominated the packaging labels market across the end use segmentation, accounting for a revenue share of 35.85% in 2024. The food and beverage industry is driving the need for intelligent and interactive labeling solutions to enhance consumer engagement and regulatory compliance. QR codes, NFC tags, and temperature-sensitive inks are increasingly integrated into labels to provide real-time product information, traceability, and authentication. Growing consumer demand for transparency in ingredient sourcing, nutritional details, and expiration tracking is further accelerating the adoption of smart labeling. With global food safety regulations tightening, manufacturers are also incorporating tamper-evident and freshness-indicating labels to ensure product integrity and build consumer trust.

Regulatory authorities worldwide are mandating stricter serialization and track-and-trace systems to combat counterfeit drugs, making advanced pharmaceutical labeling a critical industry requirement. Serialization-ready labels with barcodes, RFID tags, and tamper-proof features are now essential for compliance with laws such as the U.S. Drug Supply Chain Security Act (DSCSA) and the European Falsified Medicines Directive (FMD). The demand for high-security labeling solutions is also rising due to the increasing threat of drug counterfeiting, ensuring that only genuine, safe medications reach consumers. As pharmaceutical companies invest heavily in supply chain transparency and patient safety, the market for advanced labels continues to expand.

Regional Insights & Trends

North America packaging labels market dominated the global market and accounted for largest revenue share of 31.23% in 2024, which is attributable to the increasing focus on sustainability and government-backed circular economy policies. Major brands and retailers are under pressure to adopt biodegradable, recyclable, and compostable labeling materials in response to both consumer demand and regulatory initiatives. The U.S. and Canada have introduced extended producer responsibility (EPR) programs, pushing companies to reduce packaging waste and use environmentally responsible labeling solutions.

The growing concerns over product authenticity, safety, and regulatory compliance are driving strong demand for tamper-evident and security labels in North America. Industries such as pharmaceuticals, food, and high-value consumer goods are integrating advanced labeling solutions to prevent counterfeiting, unauthorized access, and product tampering. With the rise of e-commerce and direct-to-consumer shipping, brands are increasingly adopting holographic labels, void-seal adhesives, and serialized tracking codes to enhance product security and traceability.

U.S. Packaging Labels Market Trends

The packaging labels market in the U.S. is witnessing a surge in demand for smart labeling technologies as companies seek greater supply chain visibility and efficiency. With the rapid expansion of e-commerce and omnichannel retail, businesses are investing in RFID-enabled labels, QR codes, and NFC tags to track products in real time, prevent counterfeiting, and enhance inventory management. Major industries, including food, pharmaceuticals, and logistics, are adopting intelligent labels that provide traceability and regulatory compliance.

Europe Packaging Labels Market Trends

Europe’s packaging labels market is primarily driven by the region’s strict regulatory environment, which enforces standardized labeling requirements across multiple industries. The EU’s Packaging and Packaging Waste Directive (PPWD) and the European Green Deal are pushing manufacturers to use recyclable materials and clear labeling to improve consumer awareness and waste management.

Asia Pacific Packaging Labels Market Trends

The packaging labels market in the Asia Pacific region is experiencing strong growth in the packaging labels market due to rapid industrialization and increasing demand for cost-effective labeling solutions. Countries such as China, India, and Southeast Asian nations are witnessing a surge in manufacturing activities across industries like food & beverage, pharmaceuticals, and consumer goods, driving large-scale adoption of economical yet high-quality labeling materials.

Additionally, rising middle-class populations and growing urbanization are boosting demand for packaged products, leading companies to seek affordable and scalable labeling solutions that balance cost-efficiency with branding needs. As local businesses expand their global presence, investments in digital and variable data printing technologies are also increasing to support high-volume and customized labeling requirements.

Key Packaging Labels Company Insights

The packaging labels industry is highly competitive, with several key players dominating the landscape. Major companies include All4Labels, CCL Industries, Amcor Plc, Avery Dennison, Multi-Color Corporation, Mondi plc, Huhtamaki Group, Neenah, Inc, Berry Global, and 3M. The packaging labels market is characterized by a competitive landscape with several key players driving innovation and market growth. Major companies in this sector are investing heavily in research and development to enhance the performance, cost-effectiveness, and sustainability of their types.

Recent Developments

• In January 2024, How2Recycle launched a new "How2Recycle Plus" label that includes a QR code powered by The Recycling Partnership's Recycle Check. Scanning the QR code allows consumers to enter their zip code and instantly see if an item is accepted for recycling in their local community.

• In November 2024, Resource Label Group created a new division focusing on specialty packaging. This unit will concentrate on providing unique packaging solutions, expanding the company's offerings beyond traditional labels.

Packaging Labels Market Report Scope

Global Packaging Labels Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the global packaging labels market report based on the material, label type, end-use, and region:

• Material Outlook (Revenue, USD Million, 2018 - 2030)

  • Paper

  • Plastic

  • Metal

  • Others

• Label Type Outlook (Revenue, USD Million, 2018 - 2030)

  • Pressure Sensitive Labels

  • Shrink Labels

  • Stretch Labels

  • Wet Glue Labels

  • Others

• End-use Outlook (Revenue, USD Million, 2018 - 2030)

  • Food & Beverages

  • Pharmaceuticals

  • Consumer Goods

  • Chemicals

  • Automotive

  • Industrial

  • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Australia

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • Saudi Arabia

    • UAE

    • South Africa