| 109Market Focus: China Chinese label market grows despite lingering pandemicAs the Chinese economy reopens after years of Covid-19 shutdowns, the label industry is poised to rebound with the country’s economy. Yolanda Wang reportsccording to the latest AWA report, “Everything from raw materials, inks, printing in 2021 the total amount of labels methods to the recycling of label after the use Aconsumed across Asia-Pacifc exceeded 30 billion sqm and accounted for is under the environmental microscope”45 percent of the global label market. Of that, Chinese-produced labels accounted for 58 percent of the total Asian label online-sourced deliveries will reach 122.5 be the engine that drives the development market. This is up 5.3 percent from 2020, billion in 2022, up about 13 percent. of the digital economy. and higher than the wider Asian label Pharmaceutical and personal health Label print production in China is market, which grew at 4.6 percent. care sectors also saw gains in recent years, becoming more automated. Newly According to the statistics of the label driven by demand for anti-epidemic drugs launched machines are equipped with printing branch of the Printing Equipment and disinfectants. In particular, the sales intelligent control systems including and Equipment Industry Association of of cold and cough medicines have soared servo motors, automatic register and China (PEIAC), the value of the Chinese since the end of 2022, when the Chinese inline stamping, die cutting and other pressure-sensitive label market increased quarantine policy was lifted. While the fnishing processes. Further, label from 39.2 billion RMB (USD 5.75 bn) in demand for labels related to the epidemic converters have begun integrating ERP 2016 to 50 billion RMB (USD 7.37 bn) is temporary, the epidemic has put renewed (enterprise resource planning) and other in 2019. focus on health, so the future labeling automatic management systems to The Chinese economy has been greatly demand in the feld of medicine and streamline business.affected by Covid-19. With reduced personal health care deserves attention. Meanwhile, the development of digital consumer consumption, growth of the label Smart labels are also making inroads printing technology continues both at printing industry has slowed down, while at in the Chinese market. Currently, China home and with foreign technology. At the same time labels for medicine, alcohol is the world’s largest producer of smart present, there are more than 10 digital and anti-epidemic products, have achieved tags, while the US is the largest user printing equipment suppliers in China. steady growth. (China ranks second). According to an AIoT International suppliers, such as HP, Xeikon, According to China’s label printing Research Institute report, China’s UHF RFID Konica Minolta, Epson, Domino, Durst industry fgures, it is estimated that the tags output accounts for about 70 to 80 and Screen have been fully entered the market size of pressure-sensitive labels in percent of the global share. In 2021, the Chinese market. Domestic digital printing China will reach about 59 billion RMB (USD production of UHF tags in China reached equipment enterprises such as Haotian, 8.7bn) in 2022. 16.8 billion. HanGlobal, Flora, Pulisi and Vorey have Industry experts predict that under also released digital presses. In 2022, label Main driving force normal circumstances, global shipments converters have continued purchasing China is no stranger to the diffculties of UHF RFID tags will maintain an annual digital printing equipment. plaguing the world, and yet, the Chinese growth of 10-20 percent. At present, key The advantages of digital technology label printing industry continues to smart label manufacturers such as Avery with no plate, short delivery time and less innovate and transform. Dennison, Arison, Xindeco, Century and human interference became evident during While traditional consumption was Checkpoint, have production plants the epidemic, which further accelerated the severely restricted by the pandemic, a in China. development of digital printing technology new tech-minded economy emerged, and in the region.e-commerce labels boomed and drove Digitization There is no doubt that Chinese steady growth throughout the region for In China the Internet, big data, AI and the converters are asking more comprehensive related industries like logistics. online economy are deeply integrated questions when outlining their capital According to the National Bureau of into everyday life. The China Academy expenditure plans: is this equipment Statistics, the total retail sales of online of Information and Communications conducive to obtaining future orders? Does shopping reached 13.1 trillion RMB in 2021, Technology has released a report on it meet the needs of digital transformation? accounting for nearly one-third of China’s China’s Digital Economy Development, Can it improve effciency and reduce total retail sales of consumer goods of showing that the digital economy is playing production costs? 44.1 trillion RMB. In 2021, China’s online a more prominent role as a stabilizer and Whether traditional or digital printing retail sales increased by 14.1 percent over accelerator of the national economy. The equipment, most label converters prefer to the previous year. Among them, online scale of the digital economy reached 45.5 invest in diversifed, hybrid printing systems retail sales of physical goods grew by 12 trillion RMB in 2021, with a year-on-year to enhance resilience to future risks.percent, signifcantly higher than offine nominal growth of 16.2 percent - higher consumption. than nominal GDP growth in the same For more on the Chinese label According to the National Conference period, accounting for 39.8 percent of GDP.market, visit www.labelsandlabeling.on Postal Administration, the volume of Industrial digitalization will continue to com/asia-pacifcJan - Mar 2023