Market Trends throughout the European Label Supply Chain
THE NETHERLANDS • 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.
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.
Average Converter Turnover Growth: 2013
All of Europe
Average Converter Projected Turnover Growth per End-Use Category: 2014
Average Brand Owner Projected Label Procurement Volume Increase: 2014
Historical Converter Growth and 2014 Projections: Converters and Brand Owners – All of Europe (Source: LPC, Inc. FINAT Radar)
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.
Four forces Model
Jules Lejeune defined the four forces that drive the label industry: the end-use market drivers, technology innovation, sustainability and corporate drivers. “Together these four forces impact the label industry as they are the subject of initiatives and activities that are today within the remit of FINAT, making the association’s relevance to its membership higher than ever before,” he concluded.