Eco-Friendly Labels Market Size:

The Eco-Friendly Labels Market size was estimated at USD 1.46 billion in 2023 and is expected to reach USD 2.50 billion by 2032 at a CAGR of 6.14% during the forecast period of 2024-2032.

The eco-friendly labels market is gaining significant momentum as businesses and consumers increasingly prioritize sustainability. These labels, typically made from biodegradable, recyclable, or compostable materials, are used across various industries such as food and beverage, personal care, and packaging to communicate a brand’s commitment to environmental responsibility. They are designed to minimize environmental impact, both during production and after disposal, aligning with global efforts to reduce waste and carbon footprints.

A notable trend in the market is the rising demand for innovative labeling solutions, such as water-based adhesives, soy-based inks, and tree-free paper. Technological advancements have also enabled the creation of smart and digital eco-friendly labels, which provide enhanced product information and traceability, fostering transparency in supply chains. Consumer preference for sustainable packaging is another driving force, with brands adopting eco-friendly labels to appeal to environmentally conscious buyers. The adoption of government regulations and initiatives promoting sustainable practices is also bolstering market growth. For instance, the European Union’s stringent policies on single-use plastics and packaging waste are encouraging companies to invest in sustainable labeling solutions. Similarly, major corporations are setting ambitious sustainability goals, further propelling the demand for eco-friendly labels.

According to research shift in consumer behavior, with approximately 70% of global consumers reportedly willing to pay more for products with sustainable packaging. Additionally, according to research 55% of businesses claim that adopting eco-friendly labels has positively influenced their brand reputation and customer loyalty. These factors underscore the strategic importance of sustainable labeling in today’s market.

MARKET DYNAMICS

DRIVERS

• The growing consumer awareness of environmental issues has significantly boosted the demand for sustainable and eco-friendly packaging, including labels.

Consumers are increasingly seeking products that align with their values of sustainability and environmental responsibility. This shift has encouraged brands to adopt biodegradable, recyclable, and compostable labeling solutions to meet market expectations. The trend is particularly strong in industries like food and beverages, cosmetics, and personal care, where eco-conscious consumers prefer transparent and sustainable practices.

The eco-friendly labels market is experiencing steady growth, driven by a rising focus on reducing plastic waste and carbon footprints. Innovations in materials, such as plant-based films and water-based adhesives, are supporting this trend. Moreover, regulatory policies promoting green packaging solutions further amplify the market’s expansion. As awareness continues to grow, the eco-friendly labels market is projected to witness sustained growth, with businesses increasingly investing in sustainable packaging to attract environmentally conscious consumers.

RESTRAINT

• The higher production and material costs of eco-friendly labels pose a challenge for small and medium enterprises (SMEs), limiting their adoption despite growing demand.

Eco-friendly labels often come with higher production and material costs, making them more expensive than traditional labels. This presents a significant challenge for small and medium enterprises (SMEs), which may struggle to afford the premium prices associated with sustainable labeling solutions. The market is segmented into materials, including biodegradable and recycled options, and applications such as food & beverages, personal care, and pharmaceuticals. Despite the growing demand for sustainable packaging, the higher costs of eco-friendly materials remain a barrier to widespread adoption. SMEs, in particular, may face difficulties in integrating these labels into their products due to limited budgets and resources. However, as technology advances and economies of scale improve, the cost of eco-friendly labels is expected to gradually decrease, making them more accessible to a wider range of businesses.

MARKET SEGMENTATION

By End-Use

The Cosmetics & Personal Care segment dominated with the market share over 34% in 2023, due to its early and proactive adoption of sustainable packaging and labeling practices. As consumer awareness of environmental issues grows, there is an increasing demand for products that align with ethical and sustainable production methods. Cosmetics and personal care brands have recognized this shift and have integrated eco-friendly labels to reflect their commitment to sustainability. By adopting environmentally responsible practices such as using recyclable materials, reducing waste, and ensuring cruelty-free testing, these brands appeal to conscious consumers who prioritize environmental impact. Additionally, regulatory pressure and the desire to maintain a positive brand image have driven the sector to lead in this space. This dedication to environmental responsibility has positioned the cosmetics and personal care industry as a key player in the eco-friendly labels market, reinforcing its dominance in the global market.

By Printing Technology

The Flexography segment dominated with the market share over 42% in 2023, due to its efficiency, speed, and cost-effectiveness. This printing method uses flexible plates to transfer ink onto various substrates, such as paper, plastic, and foil. Flexography is particularly well-suited for high-volume production runs, making it ideal for large-scale manufacturing of eco-friendly labels, which are often used in packaging materials. Its versatility allows it to handle a wide range of materials, including recycled and biodegradable options, aligning with the growing demand for sustainable packaging solutions. Additionally, flexography is known for producing high-quality prints with vibrant colors and sharp details, while minimizing waste, making it more environmentally friendly compared to other printing methods. 

KEY REGIONAL ANALYSIS

North America region dominated with the market share over 36% in 2023, fueled by a growing consumer preference for sustainable products. In the United States and Canada, there is a significant shift toward eco-friendly packaging and labeling driven by stringent environmental regulations and heightened consumer awareness of environmental issues. As sustainability becomes a priority, both companies and consumers are prioritizing eco-friendly solutions. The presence of major packaging and labeling companies in the region further accelerates this trend, offering innovative and environmentally conscious labeling options. This combination of regulatory pressure, consumer demand, and industry innovation solidifies North America's market leadership.

The Asia-Pacific region is witnessing rapid growth in the eco-friendly labels market, driven by countries like China, India, Japan, and South Korea. This growth is fueled by industrialization, heightened environmental awareness, and a shift toward sustainable packaging. As consumer demand for eco-friendly products increases, especially among the growing middle class, businesses are increasingly adopting eco-friendly labels to meet these expectations. Governments are also implementing stricter environmental regulations, encouraging the shift towards more sustainable packaging solutions. The combination of these factors has led to the accelerated adoption of eco-friendly labels in the region, making it the fastest-growing market.

Some of the major key players of the Eco-Friendly Labels Market

• Avery Dennison Corporation: (Recycled and biodegradable labels, pressure-sensitive and shrink sleeve labels)

• 3M Company: (Sustainable labeling materials such as recycled paper labels and eco-friendly adhesives)

• UPM Raflatac: (Labels made from renewable and recycled materials, paper and film labels)

• SATO Holdings Corporation: (Eco-friendly labeling solutions, thermal transfer ribbons, labels made from sustainable materials)

• JK Labels: (Sustainable labels utilizing eco-friendly materials and printing technologies)

• Elevate Packaging Inc.: (Compostable and recyclable labels, shrink sleeves, pressure-sensitive labels)

• CCL Industries: (Sustainable labeling solutions, pressure-sensitive and shrink sleeve labels)

• Hally Labels: (Eco-friendly labels made from sustainable materials and printing processes)

• Paramount Labels: (Sustainable labeling options, pressure-sensitive and shrink sleeve labels)

• Signal Limited: (Eco-friendly labels utilizing sustainable materials and printing technologies)

• Weber Packaging Solutions: (Sustainable labeling solutions, pressure-sensitive and shrink sleeve labels)

• HERMA Labels: (Eco-friendly labels made from sustainable materials and printing processes)

• Zebra Technologies Corporation: (Sustainable labeling solutions, thermal transfer ribbons, labels made from eco-friendly materials)

• Blair Labeling Inc.: (Sustainable labeling options, pressure-sensitive and shrink sleeve labels)

• Berkshire Labels: (Eco-friendly labels utilizing sustainable materials and printing technologies)

• Crown Labels Mfg. Co. Ltd.: (Sustainable labeling solutions, pressure-sensitive and shrink sleeve labels)

• Genesis Patterns: (Eco-friendly labels made from sustainable materials and printing processes)

• inkREADible Labels: (Sustainable labeling options, pressure-sensitive and shrink sleeve labels)

• The Label Makers Limited: (Eco-friendly labels utilizing sustainable materials and printing technologies)

• VR Labels & Stickers: (Sustainable labeling solutions, pressure-sensitive and shrink sleeve labels)

Suppliers for (recycled, recyclable, or biodegradable materials, helping to reduce environmental impact) on Eco-Friendly Labels Market

• JK Labels

• Monarch Graphics

• Supr Pack

• Sainmarks

• Labelcraft

• EcoEnclose

• Sticker Mule

• Avery Dennison

• Mactac

• Flexcon

RECENT DEVELOPMENT

In January 13, 2025: Avery Dennison South Asia introduced its Premium Labels collection, showcasing textured substrates designed to elevate the consumer experience for luxury brands in the food & beverage and beauty sectors. These labels prioritize both visual appeal and sustainability, targeting the expanding middle-class market, particularly Gen Z and millennials, who are drawn to personalized and aspirational products.

In January 16, 2025: UPM Raflatac revealed plans to remove Bisphenol-A (BPA) and Bisphenol-S (BPS) from its direct thermal laminates in North America, aligning with its sustainability objectives and ensuring compliance with important regulations.

In October 7, 2024: SATO Corporation shared its partnership with Konica Minolta to integrate recycled plastics into its CL4NX Plus and CL6NX Plus printers, resulting in a 65% reduction in carbon emissions. These printers, made with recycled ABS plastic, reflect SATO's commitment to sustainability while maintaining high quality.