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Beyond Labels: Global, Middle East & KSA In-Mold Labeling Market - Pioneering Aesthetics, Sustainability, and Cost-effectiveness

June 22, 2023
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With a rising inclination towards visually appealing no-label looks, businesses are embracing the innovative approach of in-mold labeling. This technique not only enhances product appearance but also promotes environmental sustainability and cost efficiency. As the market witnesses a paradigm shift, it becomes imperative to delve deeper into the driving forces behind its evolution.
To understand the growth story and explore the immense potential of the Global, Middle East, & KSA In-Mold Labeling Market, read more.

1. The global IML market grew by 2% since 2019; Europe leads the global IML market in 2022 owing to rising awareness on IML grades and molding technologies

Global IML Market, USD Mn, 2019-2022

Global IML Market had reached the size of more than $3 Bn in 2022. The market growth plummeted during the pandemic with less than 1% in 2020 due to the slowdown observed in the production industry and delay in delivery cycles

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IML offers various benefits & advancements over pressure sensitive labels such as low packaging weight, high durability, recyclability, & protection against humidity. Along with rising demand for low weight & high aesthetic packaging systems is projected to augment demand for IML globally in coming years.

IML Market by geography, %, 2022

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2. Moreover, Sheetfed Printing Market in Middle East, which was highly import driven, turned domestic in last few years to diversify their investments beyond oil and reduce their dependency on packaging imports

Sheetfed Printing IML Market, 2019-2027F, USD Mn

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Top Sheetfed Printing IML Markets in Middle East

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Top Sheetfed Printing IML Companies in Middle East

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Highlights

  • Need for Domestic Printing Industry: The Gulf printing companies bagged the domestic market with a vision to reduce the dependency on packaging imports, and diversify their investments beyond oil and petroleum exports
  • Covid 19 acted as the growth catalyst: Supply Chain constraints and trade barriers during lockdowns along with diplomatic tensions with countries of origin of pre printed labels like Turkey tipped off the preference to boost the domestic market
  • Moulding companies such as Zamil Plastic, APICO, Al Sharq have shifted their IML label procurement from European players like Korsini, MCC Verstraete, and more to Domestic suppliers such as Al Ghurair, Safeer Pac.
  • Growth in Investments: Al Ghurair heavily invested in the Sheetfed IML, USD ~2.7 mn in 2020, disrupting the domestic market since. The company has since captured 60%-65% of the sheetfed label printing market
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3. F&B segment, especially dairy, generates a huge demand for IML printing packaging; In Middle East and KSA, F&B and Industrial demand can be an opportunity for any new entrant in the market

Middle-East Sheetfed IML Market by End Users, % revenue, 2022

The Middle East sheetfed In-Mold Labelling industry is led by food and beverage industry at around 50% with demands for the particular labels arising largely from dairy and ice cream cups

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End-User IML Demand Analysis

End-User Company Product Sold
Al Marai Dairy, Juices
Al Safi Danone Milk, Laban, Cheese spread, yogurt
Halwani Bros. Halwa, Cheese, Juices, Dairy, Ketchup
Oasis Ameron Industrial Paints, Protective Coatings, Emulsions
Jazeera Paint Paints
Clorox Abudawood Liquid bleech, household cleaning, industrial dis-infectant
Knooz Al-Ardh Detergents
SIDCO Liquid & powered detergents, dis-infectants
Wafir Household cleaning, detergents, fabric softeners, dish-washing, handwash
Source: Interviews with Industry Experts, Industry Articles and Ken Research Analysis

4. In the middle east, in-Mold labeling has seen gradual adoption in the market over the last two decades for several reasons like reduced overall manufacturing costs, market differentiation in graphics capability, etc.

New Market Entry

With recent ventures of Al Ghurair and Al Jawad printing into sheet fed in-mold industry, the market is likely to witness more printing players pushing towards the category of sheet fed IML

Attractive In-mold Packaging

The increasing inclination toward attractive packaging is one of the key factors in driving the market growth. Aesthetically appealing no-label look & multi-colored prints on consumer products acts as a lucrative marketing opportunity and an efficient branding tool for sheet fed printing.

Product Security

With the use of specialty inks which can provide anti-counterfeiting measures-and because the label is part of the container, it cannot be removed and replaced.

Label Performance and sustainability

Rising demand for eco-friendly and high-performing sheet fed labels, and increasing technological advancements are making In Mold Labeling(IML) manufacturing processes more efficient.
Major driver for expansion of the market is increasing injection molded plastics in the automotive industry to decrease overall vehicle weight.

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5. Al Ghurair made a recent venture into IML with the induction of a Heidelberg XL 106-10P in order to promote domestic printing services for the IML industry

Name of the Company Timeline Investment type Total Investment (in USD Mn) Investment Analysis Characteristics
Al Ghurair Printing 2020 Machinery acquisition 2.75 per machine Heidelberg XL106 – 10P+L(X4) IML
  • 18,000 production speed - B1 sheets per hour.
  • Printing capability: 10 colors straight with conventional sheetfed offset inks and heat-resistant aqueous varnish coating for in-mould labels (IMLs). 10 colors straight with conventional sheetfed offset inks and heat-resistant aqueous varnish coating for in-mould labels (IMLs).
Al Jawad 2018 Machinery acquisition 1.8 KBA Rapida 106
  • Production speeds of up to 20,000 sheets/hour on the Rapida 106
  • Six-color Rapida 106 with coater, extended delivery and highspeed functionality as a replacement to three older sheetfed offset presses.
  • Sheet length up to 780 mmv possible.
  • Sheet format Maximum (straight/perfecting) 740 x 1,060 / 740 (750) x 1,060 mm 
  • Special formats (straight) 750 x 1,060 / 780 x 1,060 mm 
  • Minimum (straight/perfecting) 340 x 480 / 400 x 480 mm 
  • Print format Maximum (straight/perfecting) 730 x 1,050 / 720 (730) x 1,050 mm 
  • Special formats (straight) 740 x 1,050 / 770 x 1,050 mm
Korsini Packaging 2016 Binding agreement 20 IML Joint venture between CCL Industries & Korsini Packaging
  • The partners invested approximately $20 million between them, in a combination of debt and equity, each owning 50% of the new company.
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6. Recent investments, Global industry growth and Covid-19 are the recent trends observed in the middle east sheet fed in mold labelling market

Key Trends Sheet Fed IML Middle East Scenario
growth
Industry Growth
  • The Middle East sheet fed in-mold labeling currently accounts for a modest 2-4% of the global sheet fed IML market.
  • Sheet fed IML industry in the region is largely concentrated around Saudi Arabia and UAE, constituting ~80-90% of the middle east Sheet fed IML market.
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Household care and cosmetics Industry
  • Use of sheet fed in-mold labels in Middle East revolves primarily around household care and cosmetics products such as shampoo, lotions, and detergents. Brand preferences around the region are shifting towards sheet fed IML labels for its better durability, 360o applicability and higher recyclability proportion.
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Investments & Acquisitions
  • Recent investments in sheet fed offset printing in middle east is led by Al Ghurair printing with recent investments in Heidelberg XL106 – 10P+L(X4) IML machine and printing technology installation and set up worth $2.75 Mn per machine
  • Another prominent player Al Jawad increased its sheet fed offset IML printing capability to 4 machines with the installation of KBA Rapida 106 printing machine to go along with 3 older sheet fed presses.
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Covid-19 Impact
  • With rise in demand for food, beverage & pharmaceutical products, Sheet fed In-Mold label industry witnessed stable market growth barring few delivery cycles
  • Trade restrictions amid the covid-19 regulations led to few cases of delay in procurement of raw materials, mainly the PP sheets and polycarbonates from the suppliers
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Some of the Intelligence Curated by Ken Research in in Mold Labels Market Space:
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