PFFC - November 2007 - (Page 28) RELEASE LINER SPECIAL REPORT Total Release Liner Market Worldwide By Region (30,541 Million sq m) 30.3% Europe 24.0% Asia (Incl. Japan) By Segment 14.1% Tapes 9.3% Industrial 9.0% Other 6.7% Hygiene 6.1% Graphic Arts 2.8% Medical 37.4% North America 8.3% ROW 49.7% Label Stock 2.3% Envelopes Material Costs Today material cost inflation is a key issue in the entire label industry, with raw material costs—particularly those related to petrochemicals—at record highs with no solution in sight in the short to medium term. This is creating a domino effect in the supply chain, and everyone—from raw material and chemical suppliers through siliconizers and laminators to converters and end-users—is suffering margin pressures and looking for ways to reduce costs. As a result, there is a resurgence of interest in downgauging release liner (which not only saves material costs but, by providing longer rolls, reduces enjoy their large market share thanks to variable information labels used in logistics, retail, While there is overcapacity in and transport applications, not primary product applications. developed markets, there is not In the variable information printing arena, linerless labels enough capacity in the world’s certainly offer a threat. RFID and other “smart” lively emerging economies. technologies may represent a strong developing market for p-s label stock. However, even downtime, both on press at Technical Challenges when they are fully commercialThe release liner manufacturer ized, they are unlikely to replace the converter and on the label dispensing line at the end-user). faces a number of technical other traditional track-and-trace Both paper and film release lin- challenges in the search mechanisms such as bar codes. for lower-gauge, highers are in the spotlight in this Alternative product identificarespect, and even a small down- performance materials that tion and decoration methods are involve not only the base mate- taking market share from p-s in gauging could mean a worthrial but also the silicone coatwhile savings. Low-platinum prime label applications, too. Inrelease coatings are also a focus. ing. We are seeing evidence mold, sleeving, and even direct of an increase in supply chain print are technologies in which a partnerships between siliconrelease liner has no place. izers and silicone suppliers and 2006 World Release Liner The Good News paper and film liner suppliers Shares By Labeling Technology to develop cost-effective, inno- It is not, however, all bad news for release liner manufacturers vative solutions. 40% in market terms. Their highPressureThe Threat of Linerless performance, high-value prodSensitive The “holy grail” of linerless ucts are still at the heart of the label stock also is now a focus p-s label industry. of interest. The label stock The fact that business is laminator that comes up with a healthy is evidenced by the viable solution to take the tech- continuing consolidation, nology beyond print-onglobalization, and private eq7% demand and simple butt-cut uity investment we are seeing Sleeve label shapes will create real throughout the value chain. 2% change in the label market. While there is overcapacity In-Mold 50% 1% It is important to rememin release liner manufacture Glue Applied Others ber, however, that p-s labels in developed markets, there WWW.PFFC-ONLINE.COM 28 | NOVEMBER 2007 http://WWW.PFFC-ONLINE.COM
For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.