Beyond the clouds of uncertainty: the European label industry’s 2025 outlook

The year 2025 is now fully underway.

This blog comes at a time of mixed emotions. After a recovery in 2024 (+15% in labelstock demand) following a sharp decline in 2023 (-25%), the market remains fragile. After a strong reversal in the first six months of 2024, the second half of the year saw a slowdown of the recovery, ending the year at a modest 4.3% year-on-year growth in Q4. Consumer confidence in Europe is weak, while producer sentiment is more stable but fluctuating between northwest and southern Europe due to differentiated economic fundamentals. Overall, for 2025, a modest growth of between 1-1.5% for Europe is expected.

But beyond this short-term outlook lie major uncertainties. The war in Ukraine continues, energy and commodity prices have skyrocketed, the economic recovery is very fragile, consumer and producer confidence is shaky, the German economy is in decline and we are anxiously awaiting the German elections this month. The French cabinet has fallen, and the new British prime minister has not yet been able to turn the post-Brexit tide. Polarisation in societies is now also reflected at government level in The Netherlands and Belgium. The European Green Deal that linked the necessary transitions to economic recovery is under pressure from concerns for our competitiveness against China, which is ‘dumping’ domestic demand outflows, and the new US administration, which is pushing for disruption of global trade and global politics. The net result is likely to resurge inflation and protectionism around the globe.

Fortunately, business prospects are not all about doom and gloom. In Europe, technology innovation and sustainability go hand in hand, and the ‘undercurrent’ of sustainable innovation is likely to remain a key driver for business development in the labels and packaging industry. Innovations like RFID-enabled labels for supply chain efficiency and digital and hybrid printing technologies are strengthening competitiveness. AI is increasingly used to predict trends and optimise production. Interactive labels can help reduce food waste.

Sustainability remains a top priority, with regulations such as PPWR and its delegated CEN design standards for reuse and recycling driving change. The industry is collaborating on projects like CELAB-Europe to enhance liner and matrix recycling. Improving energy efficiency and reducing carbon footprints are crucial to meeting stricter environmental standards, and one of the key initiatives on the FINAT agenda for this year is to drive harmonisation on product carbon footprint measurement along the value chain.

It remains a major challenge to balance short-term struggles such as low demand and overcapacity, with long-term needs like automation and workforce shortages. Via reports like this one, FINAT is there to help make available insights and views from the experts to see through the clouds of uncertainty. And as platform to facilitate industry-wide collaboration on sustainability and transparency, our aim is to make the labels and packaging sector more resilient for the future.

With technological advancements and a strong focus on circularity, the label industry is well-positioned to adapt to changing market conditions and seize new growth opportunities. And in 2025, all of this will come together at the next European Label Forum to be held in Amsterdam from 21-23 May, and during the world’s leading trade show for our industry, Labelexpo Europe, at its new location the Fira Expo in Barcelona from 16-19 September.

See you all there!

Jules Lejeune

Managing Director