No Pity for Paper Labels

Despite losses in market share, paper labels continue to dominate.

by Kate Sharon, Associate Editor

WITH ALL THE talk about film substrates, it's easy to forget that paper is still the most widely used material for packaging labels.

Films, and their sister substrates synthetic papers, often take the limelight thanks to the mounting popularity of shrink materials and the need for evermore durable labels. In the end, however, paper's simplicity and practicality persist.

"Paper is still the dominant label type, with over 70 percent of the market by volume," said Paul Bailin, an industry analyst and author of a study called "World Labels," soon to be released by The Freedonia Group. "They are really everywhere, in all major applications—primary packaging, retail pricing, logistics, mailing/shipping, etc."

Despite the pervasiveness of paper labels, they are gradually losing market share to films—they've lost somewhere between 8-10 percentage points of the label market in the past decade, Bailin estimates.

In addition, said Cindy White, VP of sales at Channeled Resources, Inc., "The paper label market is losing ground to films. But it has also lost volume due to the slowdown in our general economy."

This, however, is not a forecast of inevitable doom for paper labels, which have trouble competing with the clear-on-clear capabilities, durability, and moisture resistance of film. "There will always be a large demand for paper labels. They are cheaper and work well for most label applications," White said.

Paper also has the benefit of a very long history in the label market. "Paper's established position in the label industry will be protected by the large installed base of paper labeling machines and the costs associated with converting to plastic," Bailin said. "The developments of wet strength papers, which can be used on water and juice bottles, have also allowed paper to maintain its strength."

The benefits of simplicity

Although film materials have the ability to provide a no-label look, printers and converters can't beat paper's high printability, affordability, and other advantages, said Ray Mackura, technical marketing manager at Avery Dennison, Fasson Roll North America. "Paper label advantages include ease of printing effortlessly across a variety of processes, product runs, and inks cured at very high speeds, and maintaining registration," Mackura said.

"Corona treatment, top-coating, tension (and its affect on registration), lower curing speeds, static elimination requirements, and the type of ink system used are all items that need to be considered when running film label constructions," Mackura added.

The simplicity of printing and converting paper labels, and their affordability, makes them an attractive option. Bailin said: "Paper is … well suited for a majority of labeling applications. Advantages … include better printability than plastics, more efficient converting (lower heat sensitivity, higher diecutting ability), and the ability to be run at faster speeds. Paper can also be treated with plastic or metallic coatings to enhance its aesthetic and performance characteristics."

Improving a mainstay

While paper labels don't have the advantage of shrink capabilities or overall resilience, industry leaders are making notable improvements to the substrate. Advancements have come in the form of improvements in coatings for direct thermal, thermal transfer, and gloss, White said.

One such development is Avery Dennison's enhanced Fasson® Prime Paper portfolio, with next-generation semi-gloss paper face stocks. The Fasson 54# Semi-Gloss and Fasson 60# Semi-Gloss Elite™ products uphold a whiter appearance to intensify ink snap and contrast. Improved gloss for rich graphics, and higher opacity for greater cover-up accentuate these products, while 60# Semi-Gloss Elite grades feature increased ink holdout with a smoother print surface for better printability at 175/200 line screen.

Other industry improvements in paper labels include changes in caliper variation as manufacturers are forced to lower prices in a competitive marketplace, White said.

Resources

Avery Dennison averydennison.com

Channeled Res. channeledresources.com

Freedonia Group freedoniagroup.com

Green Bay Pkg. greenbaypackaging.com

Int'l Paper internationalpaper.com

Raflatac www.raflatac.com

Wausau Mosinee wausaumosinee.com