Avery Dennison

To make a material difference for our customers and the world by helping to create a more intelligent, more sustainable future.

Avery Dennison SWOT Analysis

Updated: October 3, 2025 • 2025-Q4 Analysis

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This analysis for Avery Dennison was created using Alignment.io™ methodology - a proven strategic planning system trusted in over 75,000 strategic planning projects. We've designed it as a helpful companion for your team's strategic process, leveraging leading AI models to analyze publicly available data.

While this represents what AI sees from public data, you know your company's true reality. That's why we recommend using Alignment.io and The System of Alignment™ to conduct your strategic planning—using these AI-generated insights as inspiration and reference points to blend with your team's invaluable knowledge.

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The Avery Dennison SWOT Analysis reveals a company at a pivotal transformation point. Its established leadership in materials science provides a stable foundation, but its future hinges on successfully scaling the Intelligent Labels division. This is both its greatest strength and biggest opportunity, capitalizing on the macrotrends of digitalization and sustainability. However, the company must guard against cyclical market weaknesses and margin pressures from volatile input costs. The key priorities identified—accelerating digital ID, innovating in sustainable materials, expanding into high-growth verticals, and optimizing core operations—form a clear and potent strategy. Executing this plan will transition Avery Dennison from a materials supplier to a true technology and data leader, solidifying its role in creating a more intelligent and sustainable future for global commerce.

3M UPM-Kymmene CCL Industries Zebra Technologies SATO Holdings

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To make a material difference for our customers and the world by helping to create a more intelligent, more sustainable future.

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Strengths

LEADERSHIP: Dominant market share in pressure-sensitive materials.
INNOVATION: Strong growth in high-margin Intelligent Labels (+15% YoY).
SCALE: Global manufacturing presence enables supply chain resilience.
FINANCIALS: Consistent cash flow generation and disciplined capital.
PLATFORM: Atma.io manages over 25B unique digital product IDs.

Weaknesses

CYCLICALITY: Exposure to consumer spending, apparel, and auto markets.
MARGINS: Raw material price volatility impacts Materials Group profits.
INTEGRATION: Complexity in unifying diverse acquired technologies.
DEBT: Moderate leverage of ~2.5x Net Debt to EBITDA to manage.
PERCEPTION: Still viewed as a 'label company,' not a tech innovator.

Opportunities

DIGITALIZATION: Every product becoming connected creates massive TAM.
SUSTAINABILITY: Growing demand for recycled content & compostable materials.
REGULATION: EU's Digital Product Passport mandates item-level data.
EXPANSION: Penetrating underserved markets like healthcare and food.
SERVICES: Monetizing data analytics and insights from the atma.io cloud.

Threats

COMPETITION: Intense rivalry from 3M, CCL, and low-cost Asian players.
RECESSION: Global economic slowdown could reduce label/tag volumes.
INPUT-COSTS: Inflationary pressures on polymers, pulp, and chemicals.
DISRUPTION: Label-less tech (e.g., direct-to-object printing) emerges.
GEOPOLITICS: Trade tensions and supply chain disruptions affect operations.

Key Priorities

ACCELERATE: Double down on Intelligent Labels to lead digital ID tech.
INNOVATE: Launch next-gen sustainable materials to win green economy.
EXPAND: Aggressively pursue high-growth medical and logistics verticals.
OPTIMIZE: Protect core business margins through operational excellence.

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Avery Dennison OKR

Updated: October 3, 2025 • 2025-Q4 Analysis

This Avery Dennison OKR plan is a masterclass in strategic focus and execution. It translates the SWOT's conclusions into a clear, ambitious, and measurable roadmap. The objectives—LEAD DIGITAL ID, WIN SUSTAINABILITY, CAPTURE HIGH-VALUE, and FORTIFY THE CORE—are not just goals; they are declarations of intent that perfectly balance offense and defense. The Key Results are specific, outcome-driven, and directly address the company's biggest levers for growth and profitability. This plan provides the clarity and alignment needed to rally the entire organization, ensuring that every team is driving toward the singular vision of becoming the data-driven leader in sustainable, intelligent solutions. It's a blueprint for transforming a market leader into a market-defining institution.

3M UPM-Kymmene CCL Industries Zebra Technologies SATO Holdings

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To make a material difference for our customers and the world by helping to create a more intelligent, more sustainable future.

LEAD DIGITAL ID

Become the undisputed market leader in Intelligent Labels.

VOLUME: Increase intelligent label volume by 25% by securing two new multi-year, enterprise-wide contracts.
PLATFORM: Onboard 5 billion new items to the atma.io platform, focusing on the logistics and food sectors.
INNOVATION: Launch next-generation, low-cost UHF RFID inlays that reduce average unit cost by 15% at scale.
PARTNERSHIP: Establish a formal go-to-market partnership with a leading enterprise software provider (e.g., SAP).

WIN SUSTAINABILITY

Make sustainable innovation our #1 competitive advantage.

REVENUE: Generate over $500M in revenue from products with certified sustainable benefits and features.
RECYCLED: Increase post-consumer recycled (PCR) content across our top 5 product families by an average of 30%.
CIRCULARITY: Launch a new 'label for recycling' solution that increases PET bottle recyclability rates by 10%.
AWARENESS: Secure top-tier media coverage positioning us as the leader in sustainable material solutions.

CAPTURE HIGH-VALUE

Dominate new high-growth, high-margin market segments.

MEDICAL: Grow revenue from the medical and healthcare portfolio by 40% through new product introductions.
LOGISTICS: Secure three top-20 global logistics providers as clients for our intelligent labeling solutions.
AUTOMOTIVE: Win 5 new EV battery labeling programs with major automotive OEMs, establishing a market lead.
PIPELINE: Build a qualified sales pipeline in our target expansion segments that is 3x our revenue target.

FORTIFY THE CORE

Maximize profitability and efficiency in our core business.

MARGINS: Improve adjusted operating margin in the Materials Group by 150 basis points through productivity.
WASTE: Reduce manufacturing waste across our top 10 global sites by 20% by deploying new process controls.
AUTOMATION: Implement AI-driven process optimization in 3 pilot plants to increase throughput by 5%.
PROCUREMENT: Achieve $100M in cost savings through strategic sourcing and supplier negotiations.

METRICS

Adjusted EPS Growth: 10-12% Annually
Intelligent Label Volume Growth: 20%+ Annually
Return on Invested Capital (ROIC): >13%

VALUES

Integrity
Courage
External Focus
Diversity
Sustainability
Innovation
Teamwork
Passion

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Avery Dennison Retrospective

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Avery Dennison Q3 2024 Earnings Report and Investor Presentation
Avery Dennison 2023 Annual Report (10-K Filing)
Company website (averydennison.com), including leadership and sustainability sections
Industry analysis reports on RFID, packaging, and materials science markets
Reputable financial news sources for market cap, stock data, and competitive analysis

3M UPM-Kymmene CCL Industries Zebra Technologies SATO Holdings

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To make a material difference for our customers and the world by helping to create a more intelligent, more sustainable future.

Toggle Theme

What Went Well

SOLUTIONS: Intelligent Labels segment continues strong double-digit growth.
PRICING: Proactive price management successfully offset raw material inflation.
CASHFLOW: Maintained robust operating cash flow despite macro headwinds.
INNOVATION: Launched new sustainable product lines with high customer interest.
CAPITAL: Disciplined capital allocation, including share repurchases.

Not So Well

VOLUME: Softer-than-expected volumes in the base label business (Materials).
APPAREL: Continued softness in the apparel market impacting RBIS sales.
CHINA: Slower economic recovery in China impacted regional performance.
RESTRUCTURING: Incurred charges related to ongoing optimization efforts.
INVENTORY: Some channel inventory destocking observed in certain segments.

Learnings

DIVERSIFICATION: The value of the high-growth Solutions Group is clear.
RESILIENCE: The business model is resilient but not immune to macro trends.
SUSTAINABILITY: Green solutions are a key differentiator and demand driver.
AGILITY: The need to quickly adjust capacity based on regional demand shifts.
INTELLIGENCE: The strategic importance of the atma.io platform is increasing.

Action Items

INVEST: Accelerate investments in high-growth intelligent label applications.
COSTS: Continue disciplined cost control and productivity initiatives.
INNOVATE: Push commercialization of next-gen sustainable adhesive tech.
EXPAND: Drive further penetration in food, logistics, and pharma verticals.
COMMUNICATE: Enhance messaging around tech transformation to investors.

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Organization	SWOT Analysis	OKR Plan	Top 6	Retrospective

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Avery Dennison Market

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Claude

Gemini

GPT

Avery Dennison Q3 2024 Earnings Report and Investor Presentation
Avery Dennison 2023 Annual Report (10-K Filing)
Company website (averydennison.com), including leadership and sustainability sections
Industry analysis reports on RFID, packaging, and materials science markets
Reputable financial news sources for market cap, stock data, and competitive analysis

Founded: 1935, by R. Stanton Avery
Market Share: ~20-25% in pressure-sensitive labels
Customer Base: Global CPG, apparel, logistics, auto
Category:
Materials Science
SIC Code: 2672
NAICS Code: 322220 Paper Bag and Coated and Treated Paper Manufacturing
Location: Mentor, Ohio
Zip Code: 44060
Congressional District: OH-14 WARREN
Employees: 35000

Competitors

3M View Analysis

UPM-Kymmene Request Analysis

CCL Industries Request Analysis

Zebra Technologies Request Analysis

SATO Holdings Request Analysis

Products & Services

No products or services data available

Distribution Channels

Avery Dennison Business Model Analysis

AI-Powered Insights

Claude

Gemini

GPT

Avery Dennison Q3 2024 Earnings Report and Investor Presentation
Avery Dennison 2023 Annual Report (10-K Filing)
Company website (averydennison.com), including leadership and sustainability sections
Industry analysis reports on RFID, packaging, and materials science markets
Reputable financial news sources for market cap, stock data, and competitive analysis

Problem

Supply chain inefficiency and opacity
Counterfeiting and product diversion
Lack of sustainability and circularity data

Solution

Pressure-sensitive labeling materials
RFID inlays and digital ID triggers
Atma.io connected product cloud platform

Key Metrics

Intelligent Label volume growth
Adjusted earnings per share (EPS)
Return on invested capital (ROIC)

Unique

End-to-end: physical tag to digital cloud
Deep materials science and application expertise
Global manufacturing and service footprint

Advantage

Proprietary data from billions of items
Long-term, embedded customer relationships
Scale and efficiency in global production

Channels

Direct enterprise sales force
Global network of converters and distributors
Strategic technology partnerships

Customer Segments

Apparel and footwear brands
Consumer packaged goods (CPG) companies
Logistics and postal service providers

Costs

Raw materials (polymers, paper, chemicals)
Global manufacturing and R&D expenses
Sales, general & administrative (SG&A)

Avery Dennison Product Market Fit Analysis

Updated: October 3, 2025

Avery Dennison transforms physical products into digital assets, giving brands unprecedented real-time visibility into their supply chains. This drives efficiency, enhances sustainability, and unlocks new consumer experiences, turning every product into a data-rich, interactive platform. It's the intelligent future of commerce, delivered at global scale through advanced materials science and a powerful connected product cloud.

Drive supply chain efficiency and accuracy

Enhance sustainability and circularity goals

Enable new digital consumer experiences

Before State

Opaque, disconnected supply chains
Manual, error-prone inventory tracking
Limited brand-to-consumer interaction

After State

Real-time, item-level supply chain visibility
Automated, accurate inventory management
Direct digital engagement with end-users

Negative Impacts

Lost sales from stockouts, high waste
Counterfeiting & gray market diversion
Inefficient recall and return processes

Positive Outcomes

Increased sales, reduced operational costs
Enhanced brand protection and authenticity
Improved sustainability and circularity

Key Metrics

Customer Retention Rates - ~90% for top accounts

Net Promoter Score (NPS) - Estimated 40-50 (B2B industry avg)

User Growth Rate - 20%+ YoY growth in intelligent labels volume

Customer Feedback/Reviews - N/A (B2B focus, not on G2)

Repeat Purchase Rates) - High, due to integration in client products

Requirements

Digital triggers (RFID, QR) on every item
Cloud platform to manage item-level data
Integration with enterprise systems (ERP)

Why Avery Dennison

Embed RFID inlays into labels/packaging
Utilize atma.io connected product cloud
Provide APIs for seamless data integration

Avery Dennison Competitive Advantage

Decades of materials science expertise
Global scale for consistent application
End-to-end solution from tag to cloud

Proof Points

25B+ items managed on atma.io platform
Adopted by top global apparel & food brands
Proven ROI in inventory accuracy & sales lift

Avery Dennison Market Positioning

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Claude

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GPT

Avery Dennison Q3 2024 Earnings Report and Investor Presentation
Avery Dennison 2023 Annual Report (10-K Filing)
Company website (averydennison.com), including leadership and sustainability sections
Industry analysis reports on RFID, packaging, and materials science markets
Reputable financial news sources for market cap, stock data, and competitive analysis

Strategic pillars derived from our vision-focused SWOT analysis

Lead in digital ID solutions (RFID).

Drive circularity and eco-friendly materials.

Expand in high-value categories like medical.

Optimize global operations and capital allocation.

What You Do

Provides materials science and digital ID solutions.

Target Market

Global brands in consumer goods, retail, apparel, and healthcare.

Differentiation

Global scale and manufacturing footprint
Leadership in RFID tech (atma.io)

Revenue Streams

Sale of label & graphic materials
Sale of RFID tags & software

Avery Dennison Operations and Technology

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Claude

Gemini

GPT

Avery Dennison Q3 2024 Earnings Report and Investor Presentation
Avery Dennison 2023 Annual Report (10-K Filing)
Company website (averydennison.com), including leadership and sustainability sections
Industry analysis reports on RFID, packaging, and materials science markets
Reputable financial news sources for market cap, stock data, and competitive analysis

Company Operations

Organizational Structure: Two primary segments: Materials Group and Solutions Group.
Supply Chain: Global sourcing, manufacturing, and distribution network.
Tech Patents: Holds over 1,500 patents globally.
Website: https://www.averydennison.com

Top Clients

Board Members

Avery Dennison Competitive Forces

Threat of New Entry

Moderate: Capital intensity for global-scale manufacturing is a high barrier, but niche digital/RFID solution providers can enter more easily.

Supplier Power

Moderate: Key raw materials like polymers and pulp are commodities, but consolidation among chemical suppliers can shift power.

Buyer Power

Moderate to High: Large CPG and retail customers have significant purchasing power, but high switching costs for qualified materials.

Threat of Substitution

Low to Moderate: While digital media is a substitute for some labels, physical product identification is essential. Direct-to-object printing is a long-term threat.

Competitive Rivalry

High: Intense competition from large players like 3M, CCL, and UPM, plus numerous regional specialists, leading to price pressures.

Analysis of AI Strategy

Updated: October 3, 2025 • 2025-Q4 Analysis

The Avery Dennison AI SWOT Analysis underscores an extraordinary, yet latent, advantage. The company's atma.io platform is not just a digital ID system; it is a colossal, proprietary data-generation engine—the essential fuel for any world-class AI. This data is its moat. The primary challenge is not technology but transformation: evolving its talent, culture, and business models to fully harness this asset. By embedding AI services into atma.io, optimizing its own operations, and co-innovating with key partners, Avery Dennison can create an unassailable competitive advantage. The focus must be relentless: convert its unique data stream into predictive insights and automated actions for customers. This is the path from being a component supplier to becoming the intelligent nervous system of global commerce.

3M UPM-Kymmene CCL Industries Zebra Technologies SATO Holdings

No past cycles

Mission & Vision SWOT Analysis OKR Plan Retrospective AI Strategy Data Acquisition

To make a material difference for our customers and the world by helping to create a more intelligent, more sustainable future.

Strengths

DATA: Massive, proprietary dataset from 25B+ items on atma.io.
SCALE: Global reach to deploy and train AI models on diverse supply chains.
DOMAIN: Deep expertise in supply chain and manufacturing processes.
INTEGRATION: Physical tag is the data collection point for AI systems.
PARTNERSHIPS: Strong relationships with brands to pilot AI solutions.

Weaknesses

TALENT: Competing with pure-play tech firms for top-tier AI engineers.
LEGACY: Existing manufacturing systems may be slow to integrate AI.
CULTURE: Shifting from a materials science to a data-first mindset.
MONETIZATION: Defining clear, scalable business models for AI services.
COMPLEXITY: High cost and effort to clean and structure diverse data.

Opportunities

PREDICTIVE: AI-driven forecasting for inventory and supply chain disruption.
OPTIMIZATION: Use AI to improve manufacturing yield and reduce waste.
AUTHENTICATION: AI-powered counterfeit detection using item-level data.
INSIGHTS: Sell aggregated, anonymized supply chain trend data to clients.
PERSONALIZATION: Enable brands to use data for targeted consumer offers.

Threats

COMPETITORS: Tech-native startups could build more agile AI platforms.
SECURITY: AI systems and the data they use are high-value cyber targets.
PRIVACY: Navigating complex global regulations on data usage and privacy.
BIAS: Risk of AI models showing bias from incomplete or skewed data.
DEPENDENCY: Over-reliance on a few large cloud AI providers (e.g., AWS).

Key Priorities

PLATFORM: Build AI/ML services directly into the atma.io platform.
EFFICIENCY: Deploy AI internally to optimize manufacturing and logistics.
TALENT: Acquire or build a dedicated AI team to accelerate development.
PARTNER: Collaborate with leading brands on pilot AI-driven projects.

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Avery Dennison Financial Performance

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Claude

Gemini

GPT

Avery Dennison Q3 2024 Earnings Report and Investor Presentation
Avery Dennison 2023 Annual Report (10-K Filing)
Company website (averydennison.com), including leadership and sustainability sections
Industry analysis reports on RFID, packaging, and materials science markets
Reputable financial news sources for market cap, stock data, and competitive analysis

Profit: FY 2023 Net Income: $608 Million

Market Cap: $18.5 Billion (as of late 2024)

Stock Performance

Annual Report: View Report

Debt: Total Debt: ~$3.1 Billion (Q3 2024)

ROI Impact: Focus on high-margin intelligent labels

SWOT Index

Composite strategic assessment with 10-year outlook

/ 100

Innovating Incumbent

ICM Index

STRATEGIC ADVISOR ASSESSMENT

Avery Dennison's score reflects its powerful position as an incumbent successfully pivoting to a tech-led future. Its high Ambition (intelligent, sustainable future) is grounded by solid Achievability, driven by strong OKR alignment. The massive AI potential from its proprietary atma.io dataset is a key differentiator. The growth multiplier is tempered by the maturity of its core markets but shows strong potential as the digital ID transformation accelerates, solidifying its 'Innovating Incumbent' status.

SWOT Factors

Upside: 83.3 Risk: 80.0

OKR Impact

AI Leverage

Top 3 Strategic Levers

Scale atma.io platform adoption exponentially.

Convert sustainability from a feature to a core business model.

Aggressively monetize data-driven insights and AI services.

AI Disclosure

This report was created using the Alignment Method—our proprietary process for guiding AI to reveal how it interprets your business and industry. These insights are for informational purposes only and do not constitute financial, legal, tax, or investment advice.

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