A wide range of developments in the inseverable end-use industries of food & beverage, healthcare among others and above all the emergence of the all-pervasive eCommerce industry are the factors that are anticipated to drive the global market for linerless labels which has been forecasted to grow at a CAGR of 4.77% by Knowledge Sourcing Intelligence from 2019 estimates of USD1.816 billion to attain a market value of USD2.401 billion. The unique benefit extended by linerless labels is that it offers a cost-efficient labeling alternative to its lined label counterparts, due to the absence of labels which allows more labels to be wound onto a roll. While the aforesaid saves production cost and reduces manufacturing time, the other aspect which makes linerless labels more advantageous is the reduction of freight cost which stems same reason mentioned earlier because the absence of labels also enables the reduction of additional liners which leads to the reduction of freight costs. Another benefit of the release coating which is instrumental to the aforementioned advantages extended by linerless labels mentioned above is that it also serves as a protective coating that prevents the linerless labels from being affected by weather elements and chemicals prolonging their shelf life.
Further elimination of the liner is an environmentally friendly solution that industries across the world are aspiring to make the entire value chain eco-friendly. While the aforementioned factors are primary drivers of the global linerless market, the packaging industry is poised to experience a meteoric demand which is anticipated to foster high investments in R&D, new product development, and increased production of a variety of products like linerless labels due to expanding pool of working women which is an addition to the already growing global working population, the resultant increasing availability of disposable income, ultimately contributing to the linerless labels market growth. The regions of North America are expected to hold a substantial share of the market during the forecast period whereas the APAC region is expected to witness a stratospheric growth due to a gradual increasing pool of consumers who are environmentally conscious and whose purchasing behaviors are also influenced by the aforementioned, as well as the due to projected rate of internet penetration resulting in the eCommerce being accessible by tier 2 and tier 3 cities as well. Thus, it is pertinent to note that eCommerce and its newly realized potential during COVID 19 pandemic will aid in the stratospheric growth of the global linerless labels market during the forecast period. The status of global eCommerce sales is being provided below to put the things in this context.
First of all the global E-Commerce packaging market has been forecasted to grow at a CAGR of 19.55% from the market value of US$23.431 billion estimated for 2018 to reach a market value of US$68.404 billion in 2024 by Knowledge Sourcing Intelligence, which is a clear indication of the scope which eCommerce is expected to expand contributing to a healthy global linerless labels market growth. Also as of 2018, according to UNCTAD which is United Nation’s trade and development body eCommerce sales were in the order of $25.6 trillion globally which was a reported increase from the figures registered during 2017. Further, the combined sales of business-to-consumer (B2C) sales and business-to-business (B2B) accounted for around 30% of global GDP (gross domestic product) in 2018. Additionally, it is important to note that the B2B e-commerce was estimated to have a value of $21 trillion in 2018 which reportedly representing 83% of all e-commerce that constituted both electronic data interchange transactions as well as sales on online market platforms. Also, the value of B2C e-commerce was in the order of $4.4 trillion which was reportedly an increase of 16% from 2017. In 2018 the value of cross-border B2C e-commerce sales was in the order of $404 billion which is reportedly a growth of 7% over 2017. From a national perspective, the top 10 countries which dominated the B2C e-commerce sales are being mentioned along with their respective figures. United States (1,098 $ billion), Japan (163$ billion), China (1,361$ billion), Republic of Korea (102$ billion), United Kingdom (266$ billion), France (121$ billion), Germany (101$ billion), Italy (32$ billion), Australia (21$ billion) and Spain (72 $ billion).
It is also important to note that the top 20 economies which were registered to have a noteworthy B2C eCommerce sales reportedly comprised of developing and transition economies with China accounting for 1,361$ billion, Hong Kong, China accounting for 38$ billion, Thailand accounting for 27$ billion, Mexico accounting for 26 $ billion; Russian Federation accounting for 20 $ billion; Malaysia 19$ billion; India accounting for $ 17 billion and Brazil accounting for 15$ billion. Also, in relation to GDP, B2C sales were registered largest by Hong Kong (10%), China (10%), and the United Kingdom (9.3%). Further, it’s also important to note the extent to which Internet users engage in online purchases Viz. within the developing and transition economies, China leads the list with 73% of its internet users constituting online shoppers, followed by Malaysia with 53% of its internet users constituting online shoppers, Hong Kong with 38% of its internet users constituting online shoppers, and Brazil and Russian Federation both registered 34% of its internet users constituting online shoppers, conversely Thailand and India registered 14% and 11% its internet users constituting online shoppers. Besides, it was estimated that around 1.45 billion people which is ¼ of the global population who were reportedly aged between 15 and older partook in transactions online in 2019 which was reportedly 7% higher than the figure which was registered for 2017. In this regard, it is relevant to note that the global B2C E-commerce market has been forecasted to grow at a CAGR of 13.18% to reach a market size of US$3,940 billion by the year 2022 from the market value of US$2,122 billion estimated for 2017. Above all, the potential of eCommerce to enhance productivity and foster a digital economy has been widely recognized by the national governments across the world as one of the powerful drivers that would aid in the achievement of sustainable development goals which is also another factor that eCommerce would experience an undeterred expansion.