The label sector in Iberia

April 11th 2024

AIFEC

Graphic source: AIFEC. According to the latest benchmarking study of the sector carried out by AIFEC, label sector in 2022 has experienced a notable growth and significant evolution in Spain, marking a trend towards positive values ​​and consolidation in terms of company size and turnover. This progress has been reflected in various key aspects, highlighting the growth in billing, average profit and EBITDA.

In Spain, a notable transfer of companies towards larger sizes in terms of turnover has been observed, which indicates a consolidation in the market. Billing in 2022 experienced growth of close to 12% compared to the previous year. It is important to highlight that this increase was driven in part by the increase in product prices caused by the upward inflationary process in raw materials, which demonstrates the adaptability and health of the sector.

The average result has shown very positive figures, approximately 7%, which reflects generalized efficiency and profitability in companies in the sector. Furthermore, EBITDA has once again reached values ​​of 13%, which indicates solid operational and financial management in label companies in Spain.

On the other hand, in Portugal, the label sector has also shown remarkably positive performance. EBITDA has surpassed the Spanish market by almost two percentage points, which highlights the strength and efficiency of the sector in Portugal. Furthermore, the average result in this country has been equally positive, exceeding 6%.

In summary, the year 2022 has witnessed growth and positive evolution in the label sector in both Spain and Portugal. These results reflect the resilience and ability of companies to adapt in a changing environment, as well as their commitment to operational excellence and customer satisfaction. This positive trend is expected to continue in the coming years, supported by innovation, investment and market demand.

Iberia emerges as a growing market

On the other hand, during 2023 the sector has experienced a drop of 3% globally. However, amid a challenging global landscape, with raw materials shortages, stockpiling, supply chain disruptions, rising costs and economic decline, Iberia is emerging as a growth market, demonstrating remarkable resilience and showing signs encouraging recovery.

According to the latest sector reports prepared by AIFEC, Spain has managed to maintain its results at pre-pandemic levels, a feat that highlights its ability to adapt and thrive in a changing business environment. However, what is even more notable is the clear polarization seen within the Spanish market, with growth driven primarily by larger and smaller companies.

“Spain has demonstrated a remarkable ability to recover in the midst of significant global challenges,” he commented. Jose Carrasquer, CEO ETYGRAF Asteria Group and president of AIFEC. “The most interesting thing is the dynamics we are seeing within the market, with growth concentrated in companies that have the agility to quickly adapt to market demands, whether through innovation, customization or operational efficiency.”

In contrast to the global trend, Portugal has seen much greater growth in the label manufacturing sector during the same period. This growth has been largely attributed to high productivity improvement within the industry, which has led to stronger financial results and an overall increase in competitiveness.

“Portugal has managed to boost its label manufacturing sector through a determined focus on improving productivity and efficiency,” he said. Carlos Cole, director of the Labels Division of the Printeos Group and member of the board of directors of AIFEC. “This approach has led to significant growth and demonstrates the positive impact that a strategy focused on continuous improvement can have.”

As the label manufacturing sector continues to adapt to an ever-evolving business environment, it is evident that both Spain and Portugal are leading the way with unique, but equally successful, approaches. These trends highlight the importance of innovation, adaptability and efficiency in an increasingly competitive global market.

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