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Tamper-Evident Labels Procurement Category Market Research Report from IBISWorld has Been Updated [EMBIN (Emerging Markets Business Information News](EMBIN (Emerging Markets Business Information News) Via Acquire Media NewsEdge) 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. (c) 2014 EMBIN (Emerging Markets Business Information News) Provided by SyndiGate Media Inc. (Syndigate.info). |