The rising prices of raw materials and surging demand for tamper-evident labels, as a result of strengthening business activity across major downstream markets, has underpinned price growth over the three years to 2014. For these reasons and to help procurement professionals make better buying decisions faster, business intelligence firm IBISWorld has updated a report on the procurement of Tamper-Evident Labels in its growing collection of procurement category market research reports.
Los Angeles, CA (PRWEB) October 20, 2014
Tamper-evident labels have a buyer power score of 3.9 out of 5, indicating generally favorable negotiating conditions for buyers. Over the three years to 2014, buyers have gained the upper hand in price negotiation due to various beneficial factors in the market. “Market fragmentation and low market share concentration, along with low product specialization and minimal switching costs, have bolstered buyer negotiation power,” says IBISWorld procurement analyst Anna Son. “Despite low barriers to entry into the tamper-evident labels market, the wide variety of product offerings and diverse buying needs make it difficult for individual companies to capture a large market share.” Despite the presence of big brand names, like 3M and Brady, the rest of the market remains highly competitive and fragmented. As suppliers aggressively compete in terms of product quality and price to win business, buyers should face minimal risks in the quality and functionality of tamper-evident labels.
On the other hand, the rising prices of tamper-evident labels as a result of growing demand and input costs have undermined buyer power over the past three years. “In light of improving economic conditions and recovering disposable income, consumers have increased their spending on products, such as electronic and cars,” adds Son. “In response to rising consumer needs, businesses have expanded their production capacity, thus facilitating demand for tamper-evident labels.” Meanwhile, the rising prices of raw materials, such as plastics and resin, have raised production costs, causing suppliers to adjust their prices upward to account for heightened production costs. Fortunately for buyers, fierce market competition has helped keep prices of tamper-evident labels in check.
The trends that have shaped the market over the past three years will continue during the three years to 2017, further bolstering buyer power. During the period, buyers are likely to benefit from intensifying price competition as imports of cheaper tamper-evident labels increase. As the same time, rising regulatory scrutiny in the downstream markets where buyers operate may also underpin demand for tamper-evident labels as businesses, like pharmaceutical and medical device companies, seek to maintain integrity of their products. For more information, visit IBISWorld’s Tamper-Evident Labels procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of tamper-evident labels. Tamper-evident labels are labels used to indicate whether a package or other object has been previously opened. For example, these labels may contain patterns that misalign when tampered with. This report does not cover other types of labels nor label-printing devices.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
Buying Lead Time
Key RFP Elements
Buyer Power Factors
About IBISWorld Inc.
IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.
For the original version on PRWeb visit: http://www.prweb.com/releases/2014/10/prweb12264541.htm