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Labels giant eyes growth in nation

China Daily Updated: 2018-05-07


Georges Gravanis, president of label and graphic materials at Avery Dennison Corp. [Photo/China Daily]

Avery Dennison welcomes sector expansion amid e-commerce boom

The explosive growth of e-commerce and consumers' buying power in China has pushed up demand for label solutions, and made the country the second biggest contributor to Avery Dennison's global business, said a senior executive of the US-based corporation.

The company thinks China could become its biggest market. "It will take another six to 10 years to get there, if this market continues as it is now," said Georges Gravanis, president of label and graphic materials at Avery Dennison Corp, a leading labeling and packaging materials company.

For the past few years, China, which is currently its second largest market, grew between 6 and 8 percent, eclipsing the 2 to 3 percent growth seen in its largest market - North America. China currently contributes close to 20 percent to Avery Dennison's global business.

According to Gravanis, it is mostly driven by the growth of consumer goods packaging materials and br anding, the demand for more detailed information on labels, as well as the e-commerce boom.

In his opinion, intelligent labels are going to be a key area of growth in the coming years.

"Intelligent labels, radio-frequency identification or RFID ... (is) a good area of growth for us," he added.

According to Gravanis, the application of RFID technology to labels will allow consumers to track products and increase inventory accuracy from about 70 percent to nearly 98 percent.

According to research findings from Future Market Insights, the global market for smart labels saw revenues of $4.7 billion in 2016, and is likely to reach $22.6 billion by the end of 2026. During the forecast period, the global smart labels market size is anticipated to expand at a compound annual growth rate of 17 percent.

Avery Dennison launched production of its $40 million high-speed emulsion and hot melt coating line in Kunshan, Jiangsu province, on Wednesday. It represents the latest in coating technology and is the single largest Avery Dennison investment in its label and graphic materials business in China to date.

"The launch of this high-speed coating line is another important milestone in the history of our growth in the Chinese market. Underlying our long-term commitment to the local market, it will enable us to continue to provide high-quality products and services to our customers here in China," Gravanis said.

Avery Dennison will continue to lead in the development and growth of China's pressure sensitive adhesive label market while also fulfilling its commitment to sustainable operations and moving toward the 2025 sustainability goals, he added.

"We are not looking for the biggest country to attract investment, we are looking at where the biggest opportunities are. We are a global company ... and China is one of our best investment opportunities," Gravanis said.