FMI’ Analyst view: “Sustainability at Its Core: Water-Soluble Labels Redefine Packaging”
The global water dissolvable labels market size is expected to be valued at US$ 106.9 billion in 2023. Technological advancements, bolsters the overall scope for water dissolvable labels market, which is projected to grow at a CAGR of 5.0% between 2023 and 2033, totalling around US$ 174.2 billion by 2033.
Convenience and ease of use are significant factors driving the adoption of water dissolvable labels in various industries. The labels are designed to provide a hassle-free and user-friendly experience for both consumers and businesses. The convenience factor is particularly pronounced in situations where temporary or short-term identification is required, such as labelling products for promotions, events, or temporary storage.
According to Future Market Insights, water dissolvable labels are specifically engineered to dissolve when they come into contact with water or any other specified liquid. The unique characteristic eliminates the need for manual removal, which can often be time-consuming and require the use of additional tools or chemicals. Consumers can simply rinse the labelled item under water or immerse it in a liquid, and the label will dissolve without leaving any residue behind.
Traditional labels often require meticulous peeling, scraping, or scrubbing to remove adhesive residue, which can be inconvenient and time-consuming. Water dissolvable labels save valuable time, especially when a large number of items need to be labelled and later de-labelled, which is particularly advantageous in industries that deal with high volumes of products, such as food and beverage, hospitality, and retail.
The effortless removal process of water dissolvable labels contributes to an enhanced overall user experience. Consumers appreciate packaging that is easy to interact with and doesn’t require extra effort to remove labels. The positive experience can lead to improved customer satisfaction and brand loyalty.
Factors Driving the Market for Water Dissolvable Labels
Online Retail and Delivery Services is Likely to be Beneficial for Market Growth
The rise of e-commerce and the expansion of online retail and delivery services have reshaped consumer expectations and created new challenges and opportunities in the packaging industry. The water dissolvable labels offer a smart and innovative solution to address the unique demands of the e-commerce landscape.
Water dissolvable labels enable brands to streamline their packaging design by eliminating the need for excessive label removal instructions or adhesive residues, which results in a cleaner and more visually appealing packaging presentation, reinforcing the overall brand image and aesthetics.
Clear Communication: Information such as product details, usage instructions, promotional messages, or QR codes can be printed on water dissolvable labels. The labels serve as a convenient medium to convey important information to customers without cluttering the packaging design. Once dissolved, the packaging retains its clean and pristine appearance.
The e-commerce industry has come under scrutiny for its impact on packaging waste and sustainability. Water dissolvable labels contribute to a more eco-friendly packaging approach by eliminating the need for manual label removal, reducing packaging waste, and promoting sustainable disposal practices.
Innovation in Dissolvable Materials to Fuel the Market Growth
Innovation in dissolvable materials is a driving force behind the growth of the water dissolvable labels market. Manufacturers are investing in research and development to create new materials that push the boundaries of performance, versatility, and environmental sustainability. The ongoing innovation is opening up exciting opportunities for a wide range of industries and applications.
One of the primary focuses of innovation in dissolvable materials is to enhance the overall performance of water dissolvable labels. Manufacturers are working to develop materials that dissolve quickly and completely upon contact with water, ensuring a seamless and efficient label removal process. The materials are designed to dissolve without leaving any residue, maintaining the integrity of the packaging and the quality of the product.
Innovations in dissolvable materials aim to improve the durability and resistance of water dissolvable labels. Labels are being designed to withstand various environmental conditions, such as temperature fluctuations, humidity, and moisture, without prematurely dissolving. The durability ensures that labels remain intact and legible throughout the product’s lifecycle until they are intentionally removed.
New dissolvable materials are being engineered to offer greater flexibility in application methods. Manufacturers are developing materials that can be used with various printing techniques, including digital printing, offset printing, and flexographic printing. The versatility allows brands to seamlessly integrate water dissolvable labels into their existing labelling processes without significant modifications.
The United States and Germany are expected to Witness the Major Share
Geographically, the water dissolvable labels market is segmented into North America, Latin America, Europe, South Asia, East Asia, Oceania, and Middle East & Africa (MEA). The United States & Germany is expected to flourish in the water dissolvable labels market. The United States and Germany are expected to hold CAGR of 4.9% and 4.8% of the market during the forecast period.
While India & China are expected to witness the maximum growth of water dissolvable labels market share during the forecast period mainly, due to the rapid growth in the foodservice industry in developing economies.
The growing awareness of plastic labels causing harm to the environment and growth trends in dissolvable paper labels drive the demand for water dissolvable labels in these developing nations. GCC Countries and South Africa are also expected to experience above-average growth in the water dissolvable labels market share.
Key players in the water dissolvable labels market are strongly focusing on profit generation from their existing product portfolios along while exploring potential new applications. The players are emphasizing on increasing their water dissolvable labels production capacities, to cater to the demand from numerous end use industries. Prominent players are also pushing for geographical expansion to decrease the dependency on imported water dissolvable labels.
- In 2023, Brady Worldwide Inc. acquired Avantar, a leading provider of water dissolvable labels and printing systems.
- In 2022, Shenzhen Mibils Precision Co.,Ltd. launched its new line of water dissolvable labels for the food and beverage industry.
- In 2022, River Labels & Labeling Ltd. expanded its production capacity for water dissolvable labels.
- In 2021, Stranco introduced its new water dissolvable label printer, the S2000.
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