Apparel and Apparel Segment Consistent Demand Will Drive Hang Tag Sales: FMI

Hang tags are a very popular label/tag solution that are often used or attached with items to display item information. Using hang tags is also considered a way to brand items with an attractive look. Currently, hang tags are not limited to apparel and apparel, but have extended their application to several industries such as food, lodging and travel, beauty and personal care. According to a study by Future Market Insights (FMI), this    will enable sales in the hang tag market . The market is expected to reach a value of US$1.7 billion by 2021.

In terms of availability, there are many different types of hang tags made of paper, cloth and plastic. Among them, paper hang tags are quite in demand. As millennials’ buying patterns shift from in-store shopping to online shopping, apparel and apparel sales have grown significantly, which will be one of the key drivers of the hang tag market. Growing demand in apparel and apparel sector will continue to drive growth. By 2021, it is expected to account for more than 60% of market revenue.

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Key Highlights of Hang Tags Market

  • After a sluggish sales period, the hang tags market will register a CAGR of 5.2% between 2021 and 2031.
  • The United States will remain the major hangtag market, accounting for over 80% of North American sales.
  • Expansion of the beauty and personal care industry will help the UK grow.
  • Presence of growing textile industry will drive the Indian market for hang tags
  • Growing demand from food and beverage sector to support growth in China

“Incorporating an eye-catching print on a hang tag combined with a smooth finish makes it an excellent brand communicator with your target audience. The emergence of hang tags as an effective medium of interaction between merchandise and customers has increased their popularity among brand owners. This popularity of hang tags among brand owners has turned into a lucrative opportunity for hang tag manufacturers,” says an FMI analyst.

Print hang tags to enhance your product’s brand image

Leading players in the small food and beverage, beauty and personal care, apparel and apparel industries around the world prefer label solutions such as hang tags, loop tags and swing tags to promote their brands and attract end-user customers. Printing accurate product information on hang tags allows brand owners to differentiate their products from those of competitors already on the market.

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Hang tags can be printed with multiple printing options such as flexo printing, direct thermal and thermal transfer and other requirements. These custom printing options allow you to print any kind of print, starting with barcodes, on hang tags, tracking your products with different forms of information depending on your customer’s needs. The print quality of hang tags plays a pivotal role in the aesthetic appearance and finish of hang tags. This hang tag printing improves the overall look of the hang tag and makes it look more attractive, and also wins consumer interest in the product.

The availability of these advanced printing options provides multiple opportunities for hang tag manufacturers to design and manufacture more attractive and prominent hang tags to attract most of their customers in the market.

Impact of COVID-19 on Hang Tags Market

The global wave of the COVID-19 pandemic has had a modest impact on hang tag sales in the market. A significant portion of the demand for hang tags is derived from the Apparel & Apparel, Hospitality & Travel, and Food & Beverage sectors. Strict closures in several regions, including North America, Europe and Asia, have had a negative impact on these industries on both supply and demand side.

Hangtags market growth has been stagnant during the COVID-19 period as demand creation for hang tags in these industries has decreased. Additionally, a second wave of pandemics in some countries will cause manufacturers, including hang tag producers, to stop producing, further limiting hang tag sales for a certain period of time. Nevertheless, factors such as the recovery of the outbreak and the supply and demand of modified raw materials for production plants are estimated to drive hangtag sales in late 2021.

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Who is the winner?

CCL Industries Inc, Sato Holdings Corporation, and Nilorn Group are the top players operating in the hang tags market. Also, St. Louis Tag Company, Bornemann-Etiketten GmbH, WunderLabel Company, Dortex Werbung und Vertrieb mbH, Finotex USA Corporation and Pacific Coast Bach Label Inc are also prominent players in the hang tag market. Tier 3 players of the market hold 80-85% of the global hang tags market. In conclusion, the major players contribute almost 15-20% of the global market.

Hang Tags Market Report

Future Market Insights provides an unbiased analysis of the global Hang Tags market by analyzing historical demand from 2015-2020 and forecast statistics from 2021-2031 in a new report. This study covers material types (paper, plastics and fabrics), tag types (hang tags/swing tags and loop tags), printing technologies (direct thermal, thermal transfer, flexographic printing, offset and screen printing, laser printing) and end uses ( Apparel & Apparel, Food & Beverage, Hospitality & Travel, Beauty & Personal Care, Consumer Electronics & More) span seven regions.

About Future Market Insights Packaging

FMI’s Packaging Division provides  in-depth historical analysis and detailed forecasts of the global packaging market. From packaging materials to designs and formats, FMI has an exhaustive market research database, providing unique offers and strategic recommendations to its clients. With a repository of more than 750 reports, the team comprehensively analyzed the packaging industry in more than 70 countries. The team evaluates every node in the value chain and provides end-to-end research and consulting services. Contact us to find out how we can help

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