Perspectives on the European Label Industry – 10 pending questions

Labelexpo Europe, the global trade show for the labels and packaging sector in Barcelona, comes at a time of geopolitical, business and technological changes. We scanned FINAT’s recent reports to gain insights into some of the pending questions for the European label industry.

The global label market is slowly recovering after a sharp contraction in 2023, when volumes fell back to pre-Covid levels due to destocking and inflation. The self-adhesive segment remains the leading format in Europe, accounting for around 40% of total label consumption globally and over 50% in Europe. Although the market picked up in early 2024, the second half was more subdued. Full recovery is still hindered by macroeconomic, political, and trade uncertainty. Nevertheless, self-adhesive labels remain the most flexible and widely adopted solution for both branding and variable information printing.

2. What are the main trends you are observing in Europe regarding label demand?

Based on FINAT’s quarterly labelstock RADAR reports, we observe a structural shift in material demand, including a rise in direct thermal and PP roll materials, largely driven by e-commerce, logistics, and personalisation. At the same time, labour shortages and regulatory requirements are pushing converters to automate. Digital label printing is gaining ground, especially in short-run and versioned jobs, though flexo remains dominant in long runs. The top 5 European markets (UK, Germany, France, Italy, Spain) have increased their share of total consumption to 60%.

3. Which industrial sectors are currently driving the most growth in the label market?

Growth is strongest in sectors like transport and logistics – driven by e-commerce and the need for traceability – as well as healthcare and pharmaceuticals, which demand secure and compliant labelling. Food and beverage continues to dominate in volume, though often with alternative label formats. The cosmetics and personal care segment remains a dynamic space for short runs and high-end embellishments.

4. What are the key technological innovations currently influencing the label industry?

Hybrid presses (digital + flexo), AI-powered prepress and production automation, and smart MIS integration are transforming operations. Inkjet printing is evolving rapidly with improvements in speed and substrate flexibility. Edge computing and distributed AI are emerging as enablers of intelligent production environments. The convergence of narrow and mid-web with flexible packaging is also opening new opportunities for label converters.

5. How is the integration between printing and smart systems (e.g., smart labels, RFID, NFC) evolving?

Smart label integration is steadily expanding, especially in pharma, industrial logistics, and brand protection. Digital print enables serialisation and unique identification, critical to applications involving traceability or consumer engagement. There is increasing attention on digital watermarking (e.g., via the Holy Grail project) for enabling intelligent recycling. The main challenges remain cost, standardisation, and integration with packaging lines.

6. What are the main initiatives that FINAT is promoting in the area of sustainability?

FINAT is driving initiatives such as CELAB-Europe (for liner and matrix circularity), promoting harmonised Design for Recycling guidelines, and advocating on behalf of the industry in the development of EU regulations like the Packaging and Packaging Waste Regulation (PPWR). We also support measurement tools like environmental assessments and product carbon footprint calculation to enable evidence-based sustainability strategies.

7. How are FINAT members responding to European regulations such as the Packaging and Packaging Waste Regulation (PPWR)?

There is strong engagement across the FINAT community. Members are rethinking label designs, substrates, and production processes to align with recyclability, reuse, and recycled content requirements. However, there are concerns about the complexity and feasibility of PPWR implementation, especially in its current form. FINAT plays a proactive liaison role with policymakers, advocating for practical, innovation-friendly solutions.

8. Is there real progress in the recyclability of labels and liners? What are the main obstacles that still need to be overcome?

Yes, progress is visible – PET and paper liner recycling is expanding, and wash-off adhesives and mono-material facestocks are becoming more widely available. Still, the uptake is limited by fragmented collection infrastructures, a lack of harmonisation, and technical challenges in adhesive separation and multilayer packaging. Improved collaboration and investment across the value chain are essential, such as the CELAB-Europe consortium mentioned above.

9. What are FINAT’s main goals in supporting its members in the current market landscape?

FINAT aims to connect and empower the label community through knowledge exchange, regulatory guidance, and innovation promotion. We facilitate collaboration across the value chain, provide market intelligence (e.g., via the FINAT RADAR), and advocate on behalf of our members. In addition, we are launching new learning platforms to attract and develop young talent and support long-term industry competitiveness, as well as a carbon footprint calculation tool that harmonizes the measurements of the label industry.

10. Finally, what will be on display at FINAT’s stand during Labelexpo Europe 2025?

As the proud and longest-standing association partner of Labelexpo Europe, FINAT invites you to visit our stand (4E49) for an engaging and informative experience. Highlights at the FINAT stand include opportunities to engage with industry experts, discover FINAT’s workstreams, explore the latest reports and whitepapers, and learn about circular solutions in the label industry offered via CELAB-Europe. Visitors can also admire the winning entries of the 2025 FINAT Label Competition and enjoy networking opportunities with complimentary drinks. At a press conference on 17 September, FINAT will be revealing some of its new programmes under construction, such as an eLearning Platform to be launched in 2026, a study into the dynamics of imports of label materials from outside Europe, as well as FINAT’s project to promote the harmonisation of product carbon footprint calculations.