It has been going on for a while, but now it is getting serious and there are fears of more label stock problems in the market than there already are.
Our global economy is currently facing shortages in almost everything: energy, chemicals, pulp, (waste) paper, plastics, inks, transport, laminates, chips, components and especially people! This leads to reduced supply, long delivery times and extreme price increases in the label supply chain.
How are shortages affecting the label industry?
Due to the shortage of Nordic paper, reports in Europe indicate that lead times for paper-based label materials (about 70% of total European demand for labels) have risen to 3 months or more.
Label printers and raw material suppliers are already being forced to prioritize deliveries as raw material stocks are running low.
And this while the demand for self-adhesive labels has already risen to a peak during the corona crisis. On top of this, a huge increase in demand for labels and packaging materials has emerged with the revival of the economy in 2022.
How will the label shortage affect the provision of products?
The supply of many products will be affected by the lack of labels and packaging. Just ask yourself the following question:
“When was the last time you bought a product without a label?
Or received a parcel without a shipping label?“
You will quickly come to the conclusion that sectors such as food, cosmetics, pharmaceuticals and retail will eventually have problems to pack their products.
Label shortage: What are the greatest risks?
- The production of labels
- The supply of self-adhesive labels in the FMCG (Fast Moving Consumer Goods) sector (e.g. food, pharmaceuticals)
- The distribution of labeled goods to shops and consumers
The well-being of 500 million Europeans will eventually be affected by the label shortage
How many labels are used nowadays?
Consider that everything you buy has an information carrier in the form of a label.
Labels are not just used to give consumers information about a product. They are also used for:
- Decoration (e.g. branding, advertising)
- Encoding variable information (e.g. article numbers, bar code, best-before dates, prices)
- Implementing functions (e.g. seals, temperature indicators, tamper proof labeling)
In Europe, 8 billion square metres of self-adhesive label material is used annually. This represents about 240 billion labels used in a wide variety of sectors such as health, household, logistics or electronic components.
Labels are everywhere
5 tips to keep your label stock up to date
- Check your label stock regularly
- Contact your label supplier on time
- Keep a larger label stock than usual
- Determine the ideal batch size together with your label provider
- Order new labels on time
Weber Marking Systems supports you in label shortage times
Weber Marking Systems offers honest and customized advice. We are happy to support you in these turbulent times. Our team remains at your disposal to answer your questions and provide information about the latest trends, including the current label shortage.
We keep our customers and partners informed about further developments. In order to prevent unexpected surprises, we are in daily contact with our suppliers and keep a close eye on the market.
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