GCC Labels and Release Liners Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The GCC Level and Release Liner market is expected to register a CAGR of 5.49% over the forecast period from 2021 to 2026. The release liner is a paper or plastic-based film sheet which can be coated with materials such as polyvinyl chloride, polyethylene, polystyrene, and polyethylene terephthalate. Moreover, most of the end-user industries are increasingly adopting polydimethylsiloxane(PDMS) based release liners, which can be recycled easily.

Key Highlights

• This market is overgrowing due to the higher demand for these products in the Medical, FMCG, and Cosmetic industries. Moreover, Release liners are an integral part of the manufacturing of tapes, fiber composites, and medical film materials due to its preventive capacity from prematurely adhering to the substrate. However, the rapid rise of digital print technology in Saudi Arabia and UAE have made the print labels market more sophisticated.
• Release Liners primarily coated on both sides using silicone, which provides proper release value for any specific adhesive process. Furthermore, the demand for clear-on-clear labels in beer, beverages, health, and personal care is fuelling the growth of film-based release liner for this region.
• Major Vendors in this market are also focusing on environmentally sustainable Release Liners to gain a competitive advantage over others. The government of Saudi Arabia and other countries are also supporting the growth of biodegradable release liner products. In 2020, Mondi launched a sustainable poly-coated kraft (PCK) paper release liner, which is recyclable. This recyclable Next liner product can positively impact on the environmental footprint of NextLiner.

Key Market Trends

The Growing Cosmetics Industry will Drive The Growth of this Market

• Cosmetics industries in this region are supporting the growth of print labels and release liner products. Moreover, the increased beauty and personal care awareness in Gulf Countries mainly due to the higher disposable income of these people. According to the Deutsche Bank, Dubai is listed among the world’s top 15 cities for the highest disposable income, and it is also cheaper than Rome, Singapore, Cairo, and New York.
• Print labels are used in the Personal care and Cosmetics industry to enhance the brand value of those products. Moreover, the vendors in this market are also equipped with different technologies such as filling, lamination, rainbow, and metallic effects, which can enhance the display of any products. For instance, Kimoha offers aroma level and screen printing levels for home care and personal beauty products.
• Moreover, Shrink sleeve level format is widely used in the cosmetics industry due to its cost-effectiveness, lightweight, and durability. Different technological innovations such as RFID, including RFID, QR codes, NFC, and bar codes, are also fuelling the growth of this market. For instance, Label Tech UAE offers customized print label solutions for Cosmetics and Personal care industries.

Saudi Arabia will hold the Significant Market Share

• Rapid urbanization and industrialization are influencing the growth of this Print Label and release the Liner market for this country. Moreover, changing the lifestyle of the consumers and government efforts to diversify the economy can create a positive impact on the net demand of this market. According to the World Bank data, Saudi Arabia had 84% urban population in 2019, and this rate is increased by 0.23% from its previous year 2018.
• Moreover, Saudi Arabia's National Companies Promotion program aims to transform more than 100 local companies into a global player. However, the Saudi Government had announced to pay 60% of the salaries of Saudi employees working in different organizations during this COVID 19 pandemic. These types of Govt initiatives are fuelling the growth of this Print Label and Release Liner markets.
• The growing investment of the Saudi government in different healthcare and cosmetic industries is fuelling the growth of this market. For instance, Saudi Arabia's health and social affairs budget for 2019 is increased by 8% from 2018, and this equates to about 15% of total government spending. Hence this can create vast market potential for these products under this country.

Competitive Landscape

The market is highly competitive due to the lack of presence of any dominant players in this region. Major vendors in this region include Safeer Luxury Pack, Pacman CCL, Sticker Products Company (Lawaseq), Taghleef Industries LLC, etc. Moreover, the vendors are providing sustainable Release Liner and Print Label products to reduce the carbon footprint from its manufacturing process.

• July 2020: Mondi Group recently introduced Next Liner product, which consists of a sustainable poly-coated kraft (PCK) paper release liner. According to Mondi's expectation, this product can reduce the environmental footprint due to its recycled fibers and renewable materials.
• March 2020: Label Tech UAE​ offered labeling solutions and packaging solutions in Nairobi, Kenya, for different petroleum and tea products. The company also offers a customized packaging solution to create a unique differentiation from its other competitors.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support