Selfadhesive label use in Europe has now exceeded the 5Bm2/year mark, as sales in 2006 soared overall by 7.7 per cent, Jules Lejeune, managing director of FINAT, told the association’s annual Congress in Berlin. Over the last 10 years, selfadhesive label use has grown by 86 per cent.
Nevertheless, last year’s growth was achieved in each of the industry’s main areas –paper rolls and non paper rolls, paper sheets and non paper sheets, – although when examined across the five regions of Europe (Scandinavia, UK and Ireland, Central, Southern and Eastern Europe) growth patterns were erratic.
Jules Lejeune pointed out that in the paper rolls market, Eastern Europe led the way with a 15 per cent growth (from a low base), followed by Southern Europe (up 6.9 per cent), Central Europe (up 6.7 per cent), with Scandinavia only showing a 4 per cent increase and the UK and Ireland barely changing with just a 0.3 per cent improvement. Overall paper roll sales grew by 6.4 per cent.
But in the non paper rolls market – the fastest expanding sector – Scandinavia showed a 20.8 per cent increase in demand and the UK and Ireland 6.4 per cent. Southern Europe lagged behind with only a 5.8 per cent improvement, but Central Europe (16.2 per cent) and Eastern Europe (28.2 per cent) had the largest expansion. Over the whole market non paper rolls expanded by 13.2 per cent.
Similarly, in the paper sheet market Scandinavia showed a 23.5 per cent fall. The UK and Ireland receded by 1 per cent and growth in Central and Southern Europe was only 2.5 per cent and 2.8 per cent respectively. Eastern Europe expanded by 17 per cent. Growth of paper sheet based labels across Europe was six per cent.
Non paper sheet operations also showed a mixed pattern with demand receding in Southern Europe (minus 6.1 per cent), the UK and Ireland (down 4.7 per cent), only up by 1.9 per cent in Scandinavia, by 14.9 per cent in Eastern Europe and by 16 per cent in Central Europe. Across Europe this averaged a 3.4 per cent expansion.
The survey is based on information provided by eight major companies representing an estimated 85 per cent share of Europe’s selfadhesive materials consumption and operating in 27 countries.
Looking ahead at the short and medium term, Jules Lejeune stressed that the business climate in the selfadhesive label sector continues to be upbeat. “The strong development of business confidence as indicated by FINAT’s quarterly member survey is also reflected in the positive assessment of order books, new orders and the volume of output. The downside is that our profitability index, whilst positive, so far has remained behind other business indicators.”
Based on the results for the first quarter of 2007, FINAT anticipates a continuation of the growth trends of 2005 and 2006 into 2007, with overall business growing between 6 and 7 per cent, and filmic rolls continuing at growing more than twice the rate of paper rolls.
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