COMPANY PROFILE -Avery Dennison
Business Sector :Labelling and Functional Materials
Operating Geography :United States, North America, Global
About Avery Dennison :
Headquartered in Mentor, Ohio, United States, Avery Dennison Corporation is a multinational manufacturer and distributor of pressure- sensitive adhesive materials (such as self- adhesive labels), RFID inlays, apparel branding labels and tags and specialty medical products. Founded in 1935, the name of the company was coined as Avery Dennison after its merging with Dennison Manufacturing Company in 1990. The Avery Dennison operations are organized into three business units: The Pressure- Sensitive Materials Segment manufactures and sells pressure- sensitive roll- label materials, reflective highway- safety products, performance polymers, films for graphic applications, a variety of specialized tapes and extruded films. The Retail Branding and Information Solutions Segment designs, manufactures and sells various branding and information management products and solutions for general retail and apparel, including tickets, barcode, graphic and radio-frequency identification (RFID) tags. Avery Dennison Medical, which provides products such as barrier films, wearable sensors, wound dressing and a variety of tapes and securement products for the healthcare industry. In 2022, Avery Dennison acquired Frick, a Switzerland- based company and Tex Trace, a technology developer that specializes in custom- made woven and knitted RFID products. In 2022 the company also acquired the linerless label technology developed by the UK company, Catchpoint Ltd. As of early 2022, the number of people employed with Avery Dennison are approximately 36,000 working in over 50 countries.
Avery Dennison’s vision statement is “The pursuit of our vision has aligned our businesses into a focused, customer- driven company that specializes in materials science. Our in- depth pool of expertise and global scale enable us to deliver insights, innovative products and intelligent solutions to customers all over the world.” The USP or Unique Selling Point of Avery Dennison lies in having a strong market presence in pressure- sensitive materials along with being a member of Fortune 500.
Avery Dennison Revenue :
US$ 8,408.3 million - FY ending 31st December 2021 (y-o-y growth 20.6%)
US$ 6,971.5 million - FY ending 31st December 2020
Competitive Analysis of Avery Dennison
The SWOT analysis for Avery Dennison is presented below in a matrix followed by the detailed analysis report:
Strengths | Weaknesses |
1. Several successful acquisitions.
2. The company was able to significantly reduce cost in face of the pandemic.
3. Teaming up with the Premier League on embellishments.
4. Investment in automation and digitization.
5. The company has been way on track in terms of their environmental goals.
6. Became the first label manufacturer to offer a complete range of film solutions.
7. Efficient management of foreign exchange risks.
| 1. Decline in profit margins |
Opportunities | Threats |
1. Massive growth prospects in Intelligent Labels division
2. Print label market looks promising for the company’s products
3. Expansion into newer markets
| 1. New and innovative developments by competitors.
2. Supply chain challenges to the labelling industry.
|
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Detailed SWOT Analysis of Avery Dennison
Strength
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Weakness
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Opportunity
1. Massive growth prospects in Intelligent Labels division: Avery Dennison’s Intelligent Labels are a suite of IOT-enabling technologies that authenticate product history, provide tracking and inventory solutions and conjure richer consumer encounters. Avery’s Intelligent Labels division saw a growth of nearly 30% in 2021. With over 0.7 billion in sales in 2021, Intelligent Labels more than tripled in size over the last five years, primarily driven by the adoption of the technology across the apparel supply chain. While the company continues to expect apparel to be the main growth driver in the coming years, there is an even greater long-term opportunity in other key industries, including food and logistics. In logistics, several of the world’s largest providers are using RFID based solutions, including one of the world’s largest e-commerce companies which uses Avery Dennison’s complete and integrated solution for their shipment of lithium-ion batteries.
The remaining section under "Opportunity" is available only in the 'Complete Report' on purchase.
Threat
This section is available only in the 'Complete Report' on purchase.
The PESTLE analysis for Avery Dennison is presented below in a matrix followed by the detailed analysis report:
Political | Economical |
1. Impact of ongoing conflict in Ukraine on business | 1. Record inflation to affect margins.
2. Weakening of the Euro against the Dollar to affect its revenue from Europe.
|
Social | Technological |
1. Shift toward e-commerce and curbside pickups increasing demand for safe and secure packaging
2. Consumers demanding more transparency in their food products
| 1. Collaboration with innovators to address technological challenges in the labelling industry
2. Blockchain to transform digital verification industry
|
Legal | Environmental |
1. Newly imposed plastic regulations in India
2. Greater responsibility placed on industry to manage chemical usage compliances
| 1. Focus on sustainability-oriented products helping clients
2. Initiatives to be in line with the world’s net zero carbon emission goals by 2050
Digital care-labels improving circularity and tracking
|
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Detailed Pestle Analysis of Avery Dennison
Political
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Economic
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Social
1. Shift toward e-commerce and curbside pickups increasing demand for safe and secure packaging: The Covid-19 pandemic made food labelling more important than ever before. As customers continue to order more food online, the concerns over tamper-evidence and security labeling have become paramount. This trend is expected to continue and it is estimated that soon around 90% of the consumers will prefer home delivery over in-store options. This presents brands like Avery Dennison with an opportunity to utilize all the latest printing trends to capitalize on this booming sector. According to the company’s internal surveys around 40% of Americans are ready to pay more for the right store-branded products. Timely tapping into this booming segment can prove to be beneficial for the company.
The remaining section under "Social" is available only in the 'Complete Report' on purchase.
Technological
This section is available only in the 'Complete Report' on purchase.
Legal
This section is available only in the 'Complete Report' on purchase.
Environmental
This section is available only in the 'Complete Report' on purchase.
Avery Dennison SWOT and PESTLE Analysis PDF Report is a custom report and will be delivered to your email inbox within 2 business days from purchase.
TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?
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Check Out Analysis of Other Relevant Companies
References used in Avery Dennison SWOT & PESTLE Analysis Report
1. Annual Report - https://www.investors.averydennison.com/static-files/852997f5-c835-47d4-825a-6bce2db3069b
2. Print Label Market to Garner $59.08 Billion by 2030 - Future Projections, Emerging Technical Advancements, Upcoming Challenges, Increasing Demand Outlook: The Brainy Insights - https://finance.yahoo.com/news/print-label-market-garner-59-162200658.html
3. Avery Dennison focusing on healthcare and pharmaceutical labeling trends - https://www.labelandnarrowweb.com/contents/view_online-exclusives/2021-08-27/avery-dennison-focusing-on-healthcare-and-pharmaceutical-labeling-trends/
4. US inflation accelerates to 9.1%, highest in 41 years - https://www.moneycontrol.com/news/business/us-inflation-accelerates-to-9-1-once-again-exceeding-forecasts-8822571.html
The detailed complete set of references are available on request in the 'Complete report' on purchase.
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Avery Dennison SWOT and PESTLE analysis has been conducted by Uttiya Majumder and reviewed by senior analysts from Barakaat Consulting.
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