Avery Dennison Corporation (AVY) Stock Analysis

Avery Dennison’s primary competitive advantages stem from its global scale, technical expertise, and deep integration across the value chain. The company is the clear market leader in pressure-sensitive materials, with net sales of $8.8 billion in 2024 and operations in over 50 countries. Its Materials Group is roughly 2.5 times larger than its next largest competitor, UPM Raflatac, and it holds leading positions in both label materials and UHF RFID technology.

Avery Dennison’s vertical integration—from adhesives and inlay design to digital identification platforms—enables cost efficiencies, rapid innovation, and quality control that smaller or less integrated rivals struggle to match. The company’s R&D investment and broad patent portfolio (over 1,500 patents in Intelligent Labels) support a steady pipeline of high-value products, such as RFID-enabled solutions, which are seeing double-digit growth and expanding into new sectors beyond apparel.

Customer relationships are sticky due to the mission-critical nature of labeling and supply chain solutions, as well as the company’s global service and distribution network. Avery Dennison’s scale and process technology allow it to serve large, multinational clients more reliably than regional players like Lintec or Fedrigoni.

Potential threats include raw material cost volatility and increasing competition in RFID from firms like Impinj. However, Avery Dennison’s diversified end markets, disciplined capital allocation, and strong culture of operational excellence provide resilience against these risks.