This article examines the first two stages of the label M&A lifecycle – Stage 1, buying a platform, and Stage 2, building it through add-on acquisitions – drawing on data from Blaige Industry Analytics (BIA) and Alexander Watson Associates (AWA). Global label M&A activity has grown approximately 2.3x since 2003, and AWA projects the global label market to expand at a CAGR of 3.5% through 2027 (North America: 2.7%, Europe: 3.0%, Asia: 4.3%).

Stage 1: How to Buy a Platform

Successful platform acquisitions are rarely the product of opportunistic deal flow – they are the product of a structured process executed before a single letter of intent is signed. In a market where approximately 77 (65+12)% of label transactions are driven by strategic buyers and PE-backed consolidators are actively competing for the same small-cap independent converters, reactive deal sourcing is a structural disadvantage. The buyers who close attractive platforms at defensible valuations tend to share four defining characteristics: proactive outreach to identify and engage targets ahead of a formal process; clear criteria that define the financial profile, strategic fit, and risk tolerance required before capital is committed; the discipline to filter to the right deal rather than chase volume; and the operational and relational sophistication to seal the deal on terms that reflect true platform value.

1. Create a Deal Pipeline. The most consequential structural decision any acquirer makes is to build a broad, actively-managed universe of targets, tiered by strategic fit, financial profile, and seller readiness – rather than concentrating on a single target. A buyer with one preferred target has already ceded negotiating leverage before due diligence begins. In the label sector specifically, approximately 78% of the top 50 North American converters that existed in 2001 have since been eliminated or changed ownership, and 66% have been fully absorbed through consolidation. As the universe of independent operators contracts, buyers with a live, continuously refreshed pipeline are better positioned to navigate supply constraints. Those that demonstrate selectivity and strategic conviction consistently achieve more favorable terms than those whose urgency is apparent.

2. Survey the Playing Field. Before committing capital, buyers must go well beyond financial statement review. The North American market is meaningfully segmented by technology: pressure sensitive, glue-applied, sleeve, and in-mold – and by substrate, with paper accounting for 46% and film for 54%. Each technology carries distinct production economics, capital requirements, and end-market affinities. Converters with stronger film capabilities are generally better positioned to serve the premium and regulated end-use segments – food, pharmaceutical, personal care – that command the most durable customer relationships and defensible margins. A thorough assessment also addresses customer concentration, competitive positioning, equipment age, capex requirements, and regulatory certifications. Buyers who compress this analysis in the interest of speed regularly encounter surprises post-close that erode the value thesis.

3. Establish a Target Financial Profile. The label converting segment remains highly fragmented across North America. Of the approximately 1,500 label converting operations in the region, 84% report annual sales under $100 million and 75% under $50 million – a concentration of small and mid-cap players that exceeds the broader plastics and packaging industry average (72%). The top five competitors, a mix of publicly traded companies and private equity-owned platforms, collectively account for only about 30% of total sales. This fragmentation has direct implications for how buyers should approach the market: targets vary enormously in scale, infrastructure maturity, and strategic role, and applying a single underwriting approach across all of them is a common source of capital misallocation. 

The appropriate financial profile, underwriting assumptions, risk tolerance, and integration requirements differ materially across four archetypes:

a. Products and Geography. A transaction targeted at expanding the platform’s addressable market – either by entering new geographic regions or acquiring complementary product capabilities. Underwritten on a combined-entity basis with value driven by revenue expansion potential rather than standalone financial performance. 

b. Platform / Going Concern. A well-run, profitable business with established infrastructure, customer relationships, and operational management depth – capable of serving as the foundation for a broader consolidation program. These assets are the most sought-after and the most competitively valued. Buyers should expect to pay a quality premium and resist discounting the premium on the basis of projected synergies. 

c. Add-On / Bolt-On. A smaller business acquired to extend an existing platform by geography, capability, or customer coverage. Underwritten on a synergy-adjusted, combined-entity basis. The majority of label M&A transactions fall into this category. 

d. Turnaround. A business with strategic merit but currently underperforming. Entry multiples are more attractive, but turnarounds demand significantly greater operational resources, management bandwidth, and risk tolerance. Best suited for buyers with a demonstrated track record of operational turnaround.

4. Create Multiple Options and Maintain Flexibility. In a competitive market, the ability to walk away from a deal that does not meet underwriting criteria – without losing strategic momentum – is one of the most powerful positions a buyer can occupy. That ability depends entirely on having alternatives. Multiple live processes allow buyers to respond fluidly when a seller reprices upon exclusivity, a financial finding changes the risk picture, or a competing bid resets valuation expectations. Experienced acquirers also evaluate a range of transaction structures – outright acquisitions, majority recapitalizations with management rollover, earnout arrangements, seller note components – selecting the configuration most likely to align incentives and manage risk. In the label sector, where many sellers are founders or family operators considering their first transaction, structure often matters as much as price.

Stage 2: How to Build – Executing a Disciplined Add-On Acquisition Strategy

Closing a platform acquisition marks the beginning of the build phase. The shift from Stage 1 to Stage 2 requires a corresponding shift in orientation: where platform diligence is primarily evaluative, add-on strategy is proactive. Buyers must define the specific dimensions along which they intend to scale the platform and build a pipeline that maps directly to those objectives. As established platforms compete for a contracting pool of high-quality independent converters, the window to acquire the best assets at reasonable valuations is not indefinite. Four strategic imperatives guide effective add-on programs.

1. Secure the G.O.A.T. Factor: Leadership Which Can “10x the Company.” In a sector as relationship- and execution-intensive as label converting, the quality of leadership acquired in a transaction frequently determines whether a platform consolidates or compounds. Equipment can be sourced, facilities can be leased, and customer relationships can be cultivated – but a management team with the vision, operational discipline, and commercial instincts to scale a business 10x is irreplaceable. Add-on acquisitions should be evaluated not only as financial transactions but as opportunities to bring in leaders who can accelerate the platform’s trajectory. Buyers should conduct a rigorous leadership assessment of every target – not just the CEO or owner, but the commercial, operational, and technical leaders at every level – before forming a view on acquisition value. 

The question is not whether the current team can run the existing business but whether they have the capacity to lead a significantly larger and more complex organization. Retention planning must begin before close: equity participation, performance-linked earnouts, and cultural integration are essential tools for aligning leadership incentives with platform outcomes. As consolidation accelerates and the pool of independent converters contracts, operators with the experience and ambition to drive enterprise-level growth become increasingly scarce. Platforms that identify, retain, and empower this caliber of leadership through their acquisition program build a compounding organizational advantage – one that does not just reinforce value at exit, but defines it.

2. Expand Geographic Reach. Geographic expansion is typically the most immediate add-on priority for a platform seeking to serve national brand owners more effectively. CPG companies are placing growing emphasis on supplier scale, geographic redundancy, and national supply networks. A single-site platform is inherently limited in its ability to win and retain these relationships; a multi-region platform becomes a meaningfully more strategic partner. Geographic add-ons should be evaluated against two criteria: whether the target extends customer coverage into markets where the platform lacks reach, and whether proximity to existing customers creates tangible service advantages – shorter lead times, dedicated account support, reduced freight exposure. 

3. Expand Products and Capabilities. Platforms that offer customers a broader range of products, print technologies, and substrate capabilities become progressively more difficult to displace and command correspondingly stronger pricing power. The substrate shift underway in North America – film now at 54% of label production – is creating acquisition demand for converters with specialized film capabilities, particularly those serving food (23% of global label demand) and beverage (44%). 

Digital and on-demand printing, short-run customization, and specialty finishing are increasingly table stakes for converters serving brand owners accelerating SKU proliferation. Capability-driven acquisitions should be underwritten on strategic fit rather than financial metrics alone. 

4. Realize Synergies. Synergy realization is among the most frequently cited rationales for add-on acquisitions – and among the most consistently underdelivered. Revenue synergies include cross-selling complementary products and capabilities to each organization’s existing customer base, accessing new geographies through the combined entity, and competing for larger national accounts that individual converters could not serve independently. Cost synergies include consolidated raw material purchasing across a larger combined volume base, elimination of redundant overhead and administrative functions, shared logistics and distribution infrastructure, and optimized production scheduling across multiple facilities. A disciplined approach to synergy planning begins before the sale closes. Equally important is timing: integration work should be sequenced so that synergies flow through reported financials in the 12–24 months prior to launching a sale process.

Tom Blaige is the founder and CEO of Blaige & Company, an investment bank exclusively focused on plastics, packaging, and chemicals M&A. With over 40 years of experience, he has completed more than 200 transactions and visited over 600 global manufacturing operations. He established Blaige Industry Analytics (BIA), a research affiliate that provides comprehensive global M&A insight.

LOUPE Americas will, of course, emphasize labels. But the trade show will put a spotlight on segments that serve as additional revenue opportunities for label converters. Folding cartons, flexible packaging, and shrink sleeves will see a rise in prevalence. Not only will the event see a refresh, our pages will too. 

L&NW’s LOUPE previews – published annually in our July/August and September issues – will feature content unfamiliar to the regular reader. Products that are synonymous with folding cartons and flexible packaging, among other areas, will grace our pages. In years’ past, those products may have been omitted. New exhibitors will bring their equipment to the Americas in 2026. Plus, many of the usual suspects will highlight equipment that they historically would have left back at their headquarters.

For those wondering about the shift, Duane Pekar, president and CEO at Mark Andy, offers his insight. “The definition of a label converter is expanding,” he states. “Growth is increasingly coming from adjacent applications such as shrink sleeves, pouches, cartons, and other specialty formats. That shift is driving demand for flexible production platforms that can manage greater complexity without increasing operational burden.”

In addition to extensive LOUPE Americas coverage, readers can expect information on all the latest industry trends. The annual Mid-Year Economic Report (page 46) will delve into some of the themes that will no doubt be explored in the halls of the Donald E. Stephens Convention Center in Rosemont, IL. Automation and AI have been highlighted like never before, especially as the industry grapples with a labor shortage. Digital and hybrid printing and sustainability are among the other pressing topics.

Much like Labelexpo saw a refresh, our industry could see similar. Automation and AI have the potential to reshape the landscape of label and package printing. Brands want high-quality products faster than ever before, and these technologies will play a pivotal role. 

Meanwhile, updated regulations and legislation are pushing labels further toward a circular future. Sustainability, which remains one of the industry’s most vital issues, will see an increased presence throughout label printing shops – and on the LOUPE Americas show floor. 

In the pages that follow, industry experts share their insights on what the future of labels and packaging might look like. Meanwhile, leading companies highlight what they’ll be bringing to Chicago in September. Follow along to remain in the LOUPE.

Greg Hrinya, Editor
ghrinya@rodmanmedia.com

But social – social is the thing I want to skip over every time it comes up in our internal sustainability meetings. Of course it’s important – critical, even – but in my mind, it’s a different area of focus, an HR responsibility, rather than something that’s going to help us move the needle on making this earth a better, safer, cleaner place. 

As this column forces me to reflect on being a student of the earth, I am increasingly reminded that true sustainability cannot be siloed. We can’t invest in sustainability infrastructure while ignoring the needs of our employees and guaranteeing their well-being across all aspects of their lives. Sustainability requires a foundational look at how we practice stewardship – at work, at home, and everywhere in between. 

I recently had my second child. While I was on maternity leave, our company restructured and I was promoted to general manager. When I left to have my baby, I was a sales manager with six direct reports and lofty revenue targets. When I returned to work eight weeks later, I had 10 direct reports, 100 employees under them, and operational responsibilities over three divisions. 

The last few months have been both the most rewarding and most stressful of my life. They’ve also brought the realities of balancing parenthood and a career into sharp focus – and opened my eyes to the naivety of assuming the “S” in ESG was just a check box. Supporting parents in the workplace is one tiny piece in the “Social” umbrella, but my personal experience combined with a recent report by the Pew Research Center has me reflecting on our broken parent support system in the US. 

A recent report by the Pew Research Center, “For Working Parents, the Boundary Between Work and Family Is Often Blurred,” highlights exactly how deep this crisis runs. Out of the 2,242 working parents surveyed, 54% of them find it difficult to balance their professional and family responsibilities, with mothers consistently bearing the heaviest mental and operational load. And 62% of full-time working mothers report struggling to find that equilibrium.

One mother captured the raw reality of this struggle in a single sentence: “I’m supposed to work like I don’t have kids and supposed to parent like I don’t have a job.”  

Can I get an AMEN?!   

But the boundaries between work and home don’t exist anymore. According to the data, 70% of parents handle parenting tasks during work, and 59% are answering work emails or managing job demands while spending time with their children. We are asking people to be in two places at once, and it is driving an entire generation of working parents toward a state of chronic burnout.

My own experience is evidence of this. It’s impossible to be the kind of parent I need to be and the employee I strive to be. Something always has to give.

Then comes the literal cost. Beyond the emotional and mental strain, the financial barrier to remaining in the workforce is astronomical. My husband and I are currently paying $48,000 a year just to keep our two children in full-time daycare. And this is no Ritz – it was the most affordable option out of the six centers we called when we moved to our neighborhood. 

For many families in our industry, $48,000 isn’t just a stretch; it’s a financial impossibility. When childcare costs equal or exceed a parent’s take-home pay, we aren’t just facing an economic challenge; we are witnessing a systemic failure that forces talented individuals – primarily women – out of the workforce entirely. 

What Can Employers Do?

We have a responsibility as employers to build family-resilient operations by creating an environment that’s as supportive of families as possible.

Here are actionable ways employers can address this issue:

1. Flexible Hours and Core Working Blocks
For office, sales, and administrative staff, rigid 9-to-5 requirements are a relic of the past. By offering flexible arrival and departure windows – or establishing core collaborative hours (such as 10:00 AM to 3:00 PM) – we give parents the breathing room to handle school drop-offs, doctors appointments, and daycare pick-up windows without feeling like they are sneaking out or failing their teams.

The people who work for me know that I don’t care what hours they work as long as they A) show up to all team meetings and B) get their work done. If they’re leaving at 3 to get their kids and picking things back up after their kids are down, more power to them. 

This requires a mindset shift of focusing on output, not hours worked. 

2. The “Parent Shift”
Flexibility with hourly employees can be much harder. One way around this is to introduce a specialized “parent shift.” This part-time or modified shift runs from, say, 9:00 AM to 2:00 PM, intended to align with school pick-up and drop-off. This unlocks an untapped pool of skilled labor in parents who want to work and have to (or want to) be home for their kids before/after school.

This shift is perfect for hourly support roles that can fit into a variety of places: think customer service and order entry, inside sales for prospecting and cold calling, spiders who help set up jobs or handle waste, QC testers to take the burden of repetitive testing off a full time QC technician, etc. 

3. Robust Parental Leave and Re-entry Support
Offering competitive, fully paid parental leave for new mothers and fathers is no longer a fringe, luxury benefit; it is a baseline, a testament to the appreciation we as employers have for the parents we employ. We recently increased our paid leave policy from six weeks to eight for mothers and one week to two for fathers. We still have work to do – two weeks of paternity leave isn’t nearly enough to support a newborn and freshly postpartum mom – but I can appreciate the incremental progress. 

Employers should also consider “ramp-up” structures for parents returning from leave. We allow moms to return to work part-time, with part-time pay, for up to a month if they decide they need to ease back into work.  

4. Lifting the Financial Burden
In an ideal world, our public education system would evolve to match the realities of modern working families, offering public school options for children before they turn five years old. Universal pre-K and early childhood public education would fundamentally shift the economic landscape for young parents.

“When childcare costs equal or exceed a parent’s take-home pay, we aren’t just facing an economic challenge; we are witnessing a systemic failure that forces talented individuals – primarily women – out of the workforce entirely.”

Short of that government intervention, the onus falls on the private sector to bridge the gap. Companies can offer a benefit that covers or subsidizes the cost of daycare. Some are even building childcare facilities themselves – see Belmark’s latest Family Center investment. Smaller businesses should consider co-sponsoring a shared daycare facility with other businesses in the area, splitting the overhead while providing a life-changing benefit to their collective workforces.

Honoring the Mother

“The earth was entrusted to us in order that it be mother for us, capable of giving to each one what is necessary to live…The earth is generous and holds nothing back from those who safeguard it. The earth, which is mother of all, asks for respect, not violence” – Pope Francis, Our Mother Earth.

Mother Earth holds nothing back from those who safeguard her. She is generous, resilient, and life-giving – but only when treated with respect. When we exploit her resources without giving her time to regenerate, the system breaks down.

The same applies to the mothers and parents in our workforce. If we don’t respect their boundaries, provide fair compensation, and build supportive workplace structures, they’ll find somewhere else that will. 

Let’s look at our operations this month with fresh eyes. What change can you implement today to ensure that the parents in your workforce aren’t forced to choose between their livelihoods and their children? 

And to the working moms out there – keep kicking ass.

Ginnie Gandy leads the Release Liner division at Channeled Resources Group. She is passionate about the liner, label, and packaging industries. She chairs TLMI’s Label Leaders of Tomorrow group and is a regular presenter at industry events. Outside of work, Ginnie can usually be found chasing after her two young kids with her husband, exploring new hiking trails, and searching for the best oat milk latte in town.

According to the Independent Commodity Intelligence Services (ICIS), some 84% of Middle Eastern PE capacity relies on this narrow passage for exports by sea. The financial pressure is still moving down the value chain. “This is impacting consumers, says ICIS, because converters will pass on price increases to brand owners, who will then pass on price increases to consumers.” 

Flint Group, Huber, and Wacker are among leading manufacturers threatening more price hikes in polymers. Fearing the future, these companies and others are buying up what they can, thereby driving prices yet higher.

Another French Press Maker Goes Under

Some readers may remember the rivalry between SMAG and Codimag. These two specialist manufacturers of narrow web presses were both based near Paris and almost close enough to glare at each other. Then SMAG got taken over and its former owner-manager went off to sell for Mark Andy. Codimag in its turn went Chapter 11. Now what is left of SMAG has acquired what is left of Codimag.  

Faster and Faster  

The label market in Spain and across Europe is being reshaped by what industry professionals refer to as the “Amazon effect:” Customers expect ever-faster delivery times, as well as flawless quality and competitive prices. For a specialist like LOC España, these pressures are a daily reality. This converter makes multi-layer labels, variable numbering booklet labels, often with reserved areas and special adhesives, or complex diecutting solutions. Orders are mostly high-volume, high value, says Zoilo López, CEO of LOC España. 

LOC’s relationship with Bobst began more than a decade ago, driven by the local Bobst team together with Feimar, the company’s official distributor in Spain. LOC started with a Bobst Master M4, which quickly proved its value in terms of versatility, reliability, and efficiency. Its intuitive operation, combined with innovative integrated tools, made an immediate difference, says López. 

When the time came for LOC to expand production capacity, they invested in an updated version of the same model to maximize tooling compatibility and seamless job transitions between production lines. The high-performance Master M5 flexo press was installed in mid-2025, with seamless integration into existing production. In June of this year, the LOC España team, in collaboration with Bobst and Avery Dennison, held several open days for other professionals in the label industry. The event provided a valuable opportunity to exchange knowledge on the latest printing technologies, self-adhesive materials, and production solutions while encouraging greater collaboration across the industry. LOC has a fully digital Bobst press already on order, to be installed before the end of the year.    

A Promising UK Partnership    

If one company excels in digital press technology and another one makes label finishing equipment, they are surely born to work together. So this is the planned partnership that will combine Konica Minolta’s AccurioLabel digital press technology with Grafisk Maskinfabrik’s finishing systems to provide an integrated workflow for label production. 

Konica Minolta will offer its AccurioLabel press alongside GM’s DC350Mini finishing system as a combined solution, aimed at gaining business in sectors such as artisan food and drink, cosmetics and private-label products, where shorter print runs and faster turnaround times are the order of the day. This will give GM broader access to commercial printers and label producers through Konica Minolta’s sales and service network.  

Are Your Labels Optimal?    

Based in the Netherlands, but with production also in Germany and Denmark, the Optimum Group makes labels and pouches mainly, but not only, for the food sector. It has just acquired not one but two new Nilpeter FA-17 flexographic presses. Once operational, the two new presses will provide additional manufacturing capacity in Denmark. 

André Prophitius, CEO of Optimum Group, says, “The addition of two new FA-17 presses gives us greater flexibility, efficiency, and capacity while supporting our ambition to deliver high-quality products and reliable service.”  

Mark Andy’s Success in the Balkans  

Cluj-Napoca is not the best-known town in Europe, nor even in Romania, but it is home to Seen Print, one of that country’s major package printing companies. By the bye, this Romanian town also has the most hair-raising road traffic, as your correspondent can witness. This has not stopped Mark Andy from successfully installing a Performance Series P7E able to convert a wide range of substrates, including unsupported film, shrink films, IML, self-adhesive stocks, and even light carton board up to 450 microns. 

A key factor in the deal was Mark Andy’s direct sales and service presence in Romania through technical sales manager Florian Stroe, whose specialist knowledge in flexo and digital hybrid technology was a key element in Seen Print’s choice.  

Siegwerk Moves Out  

Global ink supplier Siegwerk is a family-owned company in its seventh generation (it was founded in Siegburg, Germany, in 1824), so it can call upon 200 years of printing expertise. But like many European companies, it is finding high labor costs an obstacle to staying competitive.  

The company is closing its plant in Bargen, Switzerland, and production is to be relocated to an existing Siegwerk site in Turkey. The Bargen site will close in early 2027. More than 100 employees will lose their jobs, but between 35 and 40 employees are expected to remain in the Bern region of Switzerland, where the technology department will continue to be based. Switzerland, like Germany, has high labor and social costs and Siegwerk is not the only company looking to reduce costs. 

Turkey is not too far away from Europe’s heart and has a reputation for competent and industrious workers. It is ironic that Germany, in particular, used to import cheap labor from Turkey. Now the flow is going the other way.  

Durst Scores Another Hit in Poland    

Ekorol, a Polish label and flexible packaging converter based in Poznan, has installed a Durst Tau 340 RSC-E digital label press, supplied by LFP Industrial Solutions. LFP is an authorized distributor for Durst, Elitron IPM, MASSIVit, Vanguard, and Bullmer, as well as an integrator of industrial digital printing equipment. 

Ekorol’s decision to invest in the Durst platform came after several years of reflection. It first encountered Durst’s digital technology at Labelexpo Europe in Brussels a few years ago and saw that shorter run lengths and faster customer turnaround requirements were reshaping the label market. 

Piotr Modzelewski, Ekorol’s commercial manager, says, “In flexographic printing, the apparently low cost per job must be recalculated once you add the cost and lead time of the printing plate. For short runs, digital wins even where flexo appears cheaper on the surface. In our case, the new press doubled production speeds within weeks of installation.”

Interpack  

Disbelievers, including sometimes your correspondent, wondered if the 2026 Interpack show in Dusseldorf might be the last of its kind. Not so, say many leading exhibitors at the show, held over seven days in May of this year. The show’s organizers report that 2,804 exhibitors from 65 countries and trade visitors from 161 nations gathered in Düsseldorf – more than ever before. 

What was reflected in the closing statements by the show organizers was that: “The industry is working at full speed on concrete solutions for the future. High visitor numbers, in-depth discussions, and a consistently international presence defined the event. Topics such as sustainable materials, connected production, automation, and regulatory requirements – above all the European Packaging and Packaging Waste Regulation (PPWR) – dominated many discussions and exhibits.” 

However, an internet search for the number of visitors to the show throws up: “There are no resources provided with specific attendance data.” A curious omission.  

Fibre Excellence – Not so Excellent  

France has many excellent qualities – its landscapes, wines, and gastronomy, to name but a few. It also has some less attractive features. One of them is a tendency to shout loudly for more public money whenever a plant is threatened with closure.  

Fibre Excellence, France’s last remaining pulp mill, is a case in point. With 670 employees, its threatened liquidation would make headlines, particularly as its sites are close to a region that could swing either way in the forthcoming presidential elections. Enter Monsieur Matthieu Pigasse, a financier said to be close to the left wing. Promising to rescue the company (and so to earn political brownie points), Pigasse put in his bid then started to have cold feet when he saw the state of Fibre Excellence’s debts.  

The tribunal has just put back the bid deadline to the end of July. “We must use this new deadline to ask the government (what did I tell you?) to make technical adjustments to save an entire industry, two factories, and jobs,” says Matthieu Levieille, CEO of Matthieu Pigasse’s group, Combat Holding. This gives you a premonition as to where the next dollop of taxpayers’ money might be going.  

A Modest Success in Release Liner Recovery  

Let’s close on a more cheerful note. Techlan, a UK specialist in release liner recovery, has developed a patented process to clean used silicone release liner while preserving the material’s structure for reuse in certain downstream applications. The company collects used silicone papers from the label industry, and also from sectors. 

Herma UK is helping to identify where suitable liner waste originates, which material types are appropriate for recovery, and where awareness is needed in the market. Techlan then cleans and converts them into new liner reels for further use. 

Says Techlan, “Rather than breaking the material down, the process is designed to retain its value and return it to use in industrial and specialist end uses.” It sounds too good to be true. Maybe it is.

It all began in late 1998, when Diann Teague created the vision of what became the first High School Skills Competition – a hands-on showcase where young students discover flexography’s technical artistry and real-world relevance. That foundation proved transformative for decades, inspiring thousands of students to pursue careers in printing and packaging. Today, nearly 30 years later, the Phoenix Challenge High School Skills Competition continues to bring flexographic principles and skills to students across North America.

Building on that success, the Foundation would expand into higher education with the Phoenix Challenge College Competition. This semester-long challenge immerses university students in the full lifecycle of solving a real business problem through flexographic production – from small business or non-profit client acquisition and in-depth business analysis to developing package and marketing designs that address the challenge. Each team presents to clients, then carries the client’s recommendations through final design, prepress, proofing, press production, and finishing. At semester’s end, teams present their projects to a panel of industry judges for top honors. The extended format mirrors the demands of professional practice, producing graduates who enter the workforce with genuine and applied industry expertise.

Building a Flexo Education Toolbox

The Foundation’s commitment to innovation has accelerated sharply over the past five years, beginning with the launch of the Howard B. Vreeland Sr. Virtual Campus. It offers a robust curriculum covering the core principles of flexographic printing, including an introduction to flexography, prepress and platemaking, and working in color, among other topics. Courses are designed to give students a strong foundation in flexography, introducing key industry concepts and terminology. 

Produced and hosted by the Phoenix Challenge Foundation, the Virtual Campus is a state-of-the-art learning management system built specifically for students exploring careers in graphic communications, manufacturing, packaging, and print production. It was made possible by the generosity of Howard B. Vreeland, Jr., son of its namesake and chairman of Anderson & Vreeland, Inc.

Classroom Textbook Supports In-Class Student Learning

Most recently, the Foundation achieved another milestone: its Flexography in the Classroom textbook has been formally classified and copyrighted as a Technical Publication by the United States Copyright Office – a designation that recognizes its value as a rigorous, standards-aligned instructional work. The classification places the textbook among the nation’s most credentialed technical learning resources while underscoring the quality and depth of content it delivers. 

This past school year, the textbook was used across every participating high school and career center associated with the Phoenix Challenge Foundation – an achievement made possible by the dedication, time, and passion of more than a dozen high school and career tech educators, industry experts, and the Foundation itself.

The Future of Flexography Education

From competitive events to virtual platforms to formally recognized instructional literature, the Phoenix Challenge Foundation isn’t simply keeping pace with flexography education – it is defining it. As the industry continues to evolve, the Phoenix Challenge Foundation remains committed to equipping the next generation with the skills, knowledge, and hands-on experience needed to carry flexography forward for decades to come.

To learn more about the Foundation and its impact on the industry, I caught up with the chair of the organization, Bettylyn Krafft.

How would you describe what the Phoenix Challenge Foundation does for students pursuing careers?  
Bettylyn: Our programs not only expose, but give students a head start for a career in the flexographic industry.  “Learn the process. Dream the Job,” is my motto, and you can do whatever you want in the industry. For nearly 30 years, I have been privileged to see thousands of students experience flexography.  And with almost 800 people from the Foundation working in the industry, we know it’s working!   

When it comes to workforce development, describe how you and the Foundation work with schools and universities to drive flexo education? 
Bettylyn: Well, that is something that never stops, and it’s always changing.  A few things are: 1) We build and develop school programs – defining curriculum, organizing and installing presses when available, and ensuring school boards/administrations understand the career value; 2) Teacher Resources – from teacher workshops to supporting college program educators and building rubrics for student programs, I spend every single day refining programs; 3) Coordinating with industry associations and supporters to ensure the Phoenix Challenge mission is understood and stays top of mind. I love working with associations like TLMI, ICPF, FGCE, and FTA. And finally, 4) My direct involvement with students in networking with employers, finding and placing individuals for internships, discussing apprenticeships, and finding full-time employment. 

What impact has the Foundation had on the flexographic industry, in label printing and beyond?
Bettylyn: I can’t tell you how proud I am that we have helped place nearly 800 full-time print professionals across the industry at both suppliers and converters. Not to mention the thousands of students and educators that we have pursued and exposed to flexography. Without this exposure and networking opportunities, these young professionals may be working in completely different industries altogether. 

How has the Foundation’s role changed in the recent years?
Bettylyn: We have evolved by leaps and bounds. Our role has changed in the classroom, building and expanding educational resources and curriculum. One primary aspect of this is within the Career Technology Education landscape, where we have directly impacted several programs through focused development of student enrollment pipelines and direct employment prospects and career paths. 

What are some of the new educational tools that have been introduced to the Phoenix Challenge recently?
Bettylyn:  It has been an incredible year! For starters, there’s the new Howard B. Vreeland Sr. Virtual Campus that is now being used throughout the schools that participate in the Phoenix Challenge competitions. Then we received full copyright of our educator-developed Flexography in the Classroom textbook, also used in PCF-participating schools. It has been amazing to steward the progress with these new, improved tools. And finally, we have added all this information, resources and more support for students and educators on our brand-new website, which just launched this spring. I encourage everyone to check it out. 

Is there support for apprenticeships and/or internships?   
Bettylyn: This is where some of the unseen work really happens. I work with several companies, associations, and individuals to help discover or create internships and fill openings. And more specific to internships, I work with several colleges and sit on a variety of advisory boards throughout the country to support internship and apprenticeship development.  

How does a converter or supplier get involved or find talent?  
Bettylyn: We are a 100% volunteer organization, so anyone who wants to help is welcome, from events and financial donations to rolling your sleeves up and working directly with workforce development. Get in touch with me and the Phoenix Challenge Foundation. Together we can work in helping with your local efforts, planning and designing educational, intern, or apprenticeship programs, as well as drive and develop regional employment opportunities and career paths. But, at the very least, just participate in one of our events or simply donate – 100% of our proceeds go directly to our programs and educational toolbox.

What’s next?  
Bettylyn: A robust and formal scholarship program! Stay tuned as we are working on a powerful, expanded student-funding tool designed to keep flexography alive across high school, career technology, and university programs. If anyone is interested in supporting this powerful initiative, I encourage converters and suppliers to get in touch with me. We look forward to unveiling this bigger, better Phoenix Challenge program soon. 

How Can The Industry Help?

The Phoenix Challenge Foundation offers several ways for individuals and companies within the industry to support the next generation of flexographic talent. As a 100% volunteer organization, every financial contribution goes directly toward workforce development initiatives, including the Phoenix Challenge Educational Tool Box, the Virtual Campus, the Flexography in the Classroom textbook, and the Phoenix Flexo Competency Certification program. The Foundation also continues to grow its scholarship fund, helping more students pursue careers in flexography and the printing industry.

Industry members can also participate in the Phoenix Challenge Foundation’s Annual Golf Tournament & Fundraiser, scheduled for September 23, 2026, at Stonebridge Golf Club in Monroe, NC, USA. To learn more, make a donation, or stay up to date on the Foundation’s programs and events, visit phoenixchallenge.org.

Steve Katz is the former editor of Label & Narrow Web and is now a regular contributor. He is focused on helping companies in the label industry share their news and tell their stories. Follow him on X @LabelSteve.

Packaging for powder detergent must protect the product effectively against moisture and water throughout its lifecycle. Mondi’s new re/loop PillowBag demonstrates that high levels of recycled content can be successfully integrated into flexible packaging for demanding FMCG applications, without compromising performance, quality, or consumer convenience.

From January 1, 2030, the EU Packaging and Packaging Waste Regulation (PPWR) sets a target of 35% recycled content from post-consumer plastic waste for this category of plastic packaging. With 50% recycled content, the re/loop PillowBag is well-positioned to support future compliance with this target and significantly reduces the use of virgin plastics. The solution has already been launched in retailers across Germany, positioning Dreco as an early adopter of future-ready packaging, well ahead of regulatory deadlines.

In line with Mondi’s MAP2030 sustainability framework, re/loop PillowBag is designed for recycling and has been assessed according to Mondi’s Path to Circularity Scorecard and the CEFLEX D4ACE guidelines. The structure is considered compatible with established polyolefin (PO) mechanical recycling streams, supporting effective end-of-life processing.

Alongside its sustainability credentials, the packaging has been designed with end-consumer convenience in mind. The easy-opening bag supports practical handling and everyday use, while high-quality print designs ensure strong shelf presence.

Milo Drehsen, Dreco owner and managing director, says, “Reducing the environmental impact of our packaging is a key priority for us, but performance is critical for products like powder detergent. Working with Mondi has enabled us to introduce a solution that combines high recycled content with the protection our products require. Launching this packaging across retailers in Germany marks an important step in our sustainability journey.”

Sandor Kardos, managing director, Mondi Békéscsaba, comments, “This project shows how technical expertise and shared sustainability goals can deliver practical, scalable solutions. Together with Dreco, we have developed a high-PCR packaging solution for a moisture-sensitive application that is designed for recycling, helping our customer move ahead of regulation while meeting today’s market expectations.”

Spicing Up High Barrier Paper Packaging

Mondi has also collaborated with Prymat, a Polish dried seasoning manufacturer, to create packaging that contributes to a circular economy while protecting its aromatic spices.The partnership will see Prymat transition to new paper-based packaging, created with Mondi’s re/cycle FunctionalBarrier Paper Ultimate. 

FunctionalBarrier Paper Ultimate delivers a significantly lower CO2 impact compared with conventional multi-layer plastic or aluminum-based solutions. Containing at least 80% high-quality paper and a functional barrier coating optimized for recycling, FunctionalBarrier Paper Ultimate is confirmed recyclable according to the latest CEPI recyclability laboratory test method, keeping valuable materials in circulation. It provides long-lasting protection against oxygen, water vapor and grease, with an oxygen transmission rate (OTR) below 0.5 cm3/m2d and water vapor transmission rate (WVTR) below 0.5 g/m2d, preserving the spices’ aroma and taste.

Mondi’s FunctionalBarrier Paper Ultimate also delivers high-quality printing results that present Prymat’s spice range attractively on the shelf. The level of stiffness provides a good dead fold, allowing the end user to fold the pack after first use to close it, and it will remain intact.

Adrian Goralski, managing director, Mondi Solec, says, “It is essential to understand the individual needs of each customer when creating packaging solutions. There are often several different routes to sustainability, and at Mondi, we work closely with brands to thoroughly learn about every step of their production, distribution, and end use, so that we can create and test various options and be sure we are delivering the best possible and most sustainable outcome.”

Marta Kleka-Nowa, PR manager, Prymat, adds, “Prymat, as a leading producer of spices and food additives, has consistently sought solutions to transition from multi-layer packaging to recyclable materials. Given the very high barrier requirements and the preservation of spice quality, aroma, and freshness, this posed a significant technological challenge. Thanks to our collaboration with Mondi, we were able to develop a solution that aligns our sustainability ambitions with the highest standards of product quality.”

The 2026 FINAT European Label Forum (ELF), held May 27–29 at the Hotel Barceló Renacimiento in Seville, Spain, delivered two days of discussion that felt unusually direct, unusually honest, and – in the best way – unusually useful.

FINAT, Europe’s leading label industry association, has been hosting the ELF annually for more than a decade. Over that time, it has grown into an event that serious label businesses put on the calendars – not for the big-booth spectacle of a trade show, but for the peer-level conversations you simply cannot have anywhere else. 

This year’s Seville edition carried that tradition forward. The event featured an agenda that was very much of this moment: AI, sustainability, workforce challenges, technology choices, and the pressures that are reshaping what it means to run a label business in Europe today.

FINAT president Philippe Voet and managing director Jules Lejeune have been describing the industry as standing at a strategic inflection point. And spending two days in Seville made it easy to see why. The challenges are not new, yet the urgency around them is higher. 

A live audience poll early in the program asked delegates to identify the primary drivers of industry change over the next five years. AI and automation came out on top, followed closely by sustainability and regulation. While that result was not surprising, what was striking was how little disagreement there was. The industry knows what it is dealing with. The harder conversation – which the ELF Forum does a good job of facilitating – is what to actually do about it.

Assessing AI Infrastructure

On AI, the conversation in Seville was notably grounded. Lejeune, presenting on the industry’s near-term trajectory, described the current moment as a shift from experimentation to operation. The technology has moved past the pilot phase. The question now is whether label businesses have the underlying infrastructure – machine connectivity, ERP integration, reliable data quality – to extract real value from it. The honest answer for most operations is: “not yet, but working on it.” 

What came through clearly from peer discussions was a practical consensus – build the digital foundation first: Start with focused use cases like scheduling or purchasing support, and do not let the pressure to appear innovative push you into over-investing before the basics are in place. AI, as more than one person noted, performs to the level of the data and systems beneath it. It amplifies what is already there. That makes the infrastructure work the unsexy but essential first step.

Economy Outlook

Setting the broader stage was a session from Ilke Toivo on the geopolitical and economic outlook. Her assessment was not exactly cheerful: Europe is operating in a prolonged low-growth environment, with a 1.7% forecast and sticky inflation that is proving harder to shake
than expected. The deeper structural challenge she flagged is what economists have started calling “China shock” – China’s share of global industrial output has tripled since 2001. And the label industry is feeling that directly. Imports of Chinese paper jumper rolls have grown roughly 33% annually in recent years, and China carries an estimated three billion square meters of excess label production capacity that is actively finding its way into European markets. 

Analyzing Sustainability

Sustainability generated equally engaged conversation, and the tone here was notably different from the policy-level debate most attendees encounter in the trade press. The question in Seville was not whether to comply with PPWR – everyone in the room has accepted that – but how, given the genuine difficulty of navigating fragmented recycling standards, inconsistent certification schemes across markets, and timelines that continue to shift. Add in emerging PFAS restrictions on certain inks and coatings, and the regulatory landscape starts to feel even more complex. 

There was frustration in the room about the lack of practical guidance, as well as an appetite for FINAT to take a more active role in harmonization and advocacy. The association has been working with CELAB and Afera to engage the European Commission directly, but the need from the membership is substantial and growing.The sustainability conversation also surfaced something worth noting for any converter still thinking about compliance as a cost-only exercise. The companies that can demonstrate credible, verifiable sustainability performance – including the data infrastructure to support it – are going to be better positioned as the regulatory requirements fully take hold.

Workforce Challenges

If AI and sustainability were the macro themes, workforce was the most personally felt topic in the room. A panel of leading converters that included Chris Ellison, managing director of UK-based OPM Labels & Packaging, alongside colleagues from stretch and shrink sleeve operations in France and Switzerland, and a large UK FMCG supplier addressed what amounts to a slow-moving crisis. 

Experienced workers are leaving the industry in their fifties. Plus, recruiting younger talent is hard. In the UK, Brexit has closed off a labor pipeline that used to work reliably. And the industry’s reputation as a manual trade does it no favors with a generation that has plenty of career options.

The panel was honest about what automation can and cannot solve. It can lower the skill threshold for entry-level roles, help new hires get productive faster, and free experienced operators for higher-value work. What it cannot do is bring people through the door who have never considered label converting as a career. 

That requires changing how the industry presents itself, and the Young Professionals Network (YPN), which held its own sessions alongside the main program, had sharp things to say about it. YPN participants were candid. The industry is largely invisible to most young people entering the job market. Meanwhile, the marketing language used to recruit is rarely compelling. Open-house days at converter facilities, stronger university links, a social media presence that reflects what modern label converting looks like – these are not complicated ideas, but they require consistent investment and attention.

Focusing on Technology

On the technology side, it was clear that the industry has largely moved past the flexo-versus-digital conversation. The practical consensus among converters today is hybrid. These configurations allow businesses to optimize across run lengths and application types rather than betting everything on one platform. 

What was perhaps more interesting than the hardware discussion was the point that kept coming up in parallel. The real differentiator is not the press – it is the workflow. Prepress automation, post-press integration, and the ability to use machine data to make better operational decisions are where the efficiency gains are most accessible and most impactful.

Transitioning to LOUPE

One piece of industry news that was clearly on people’s minds: Labelexpo Europe has officially rebranded as LOUPE – Labels and Outer Packaging Embellishments. The new identity was announced at the Barcelona show in September 2025 and reflects a deliberate push into folding cartons, flexible packaging, and pouches alongside traditional label products. For narrow web converters, the event is another signal that the boundaries between labeling and packaging are continuing to blur. Plus, the industry events and associations shaping the conversation are moving to reflect that reality.

Passing the Torch

After a full day of sessions, Seville delivered on its promise as a social setting. Delegates were hosted for a dinner at a beautiful farmhouse venue that included cocktails, an equestrian show, dinner, and a Flamenco performance that felt entirely right for the occasion. But the evening carried more significance than a celebration. It was also where the torch was officially passed to a new generation of FINAT leadership.

During dinner, FINAT announced the appointment of Dana Kilárska as its new president and Vito Giurazza as vice president. Kilárska, CEO of Purgina in Slovakia and a familiar face to anyone who has followed the YPN over the years, becomes the first woman ever to serve as FINAT president, a milestone worth pausing on for an industry that has spent considerable energy at this very Forum talking about the need to attract and elevate new talent. Giurazza, CEO of Tikedo in Italy and a board member since 2023, brings a background in strategy, M&A, and business growth across European converting operations.

The evening also honored the two outgoing leaders. Philippe Voet and Chris Ellison – both of whom have been central figures at recent ELF gatherings and in the broader work of shaping FINAT’s strategic direction – were named honorary members of the association in recognition of their years of service. 

Voet, who guided FINAT through the post-pandemic period and restructured the association around its four strategic pillars, closed his presidency with characteristic warmth. Ellison, who served as president from 2017 and whose voice was heard prominently in the workforce discussions at the event, has been a steady advocate for the people side of the label industry throughout his tenure.

Customer service “tells” can be obvious. A huge one is companies trying to prevent customers from talking to a live human being. Unfortunately, these companies are far outpacing those making live outreach a centerpiece of their customer service offering.

But that’s just the tip of the iceberg. Dysfunctional AI is infesting all types of automated processes, from apps to ordering portals. When the stuff works, it can be great. Unfortunately, the number of infuriating glitches is growing right along with the anger and frustration of those experiencing them.

The importance of “being earnest” typically reveals itself early in the customer service interaction process. Here are a few glaring examples of the “have nots”:

• Technology that forces customers into an automated bucket, then relegates them to other non-personal resources when there’s a problem – trying to get folks to do their own research via often-irrelevant knowledge-base articles or FAQ pages.
• Phone trees that loop endlessly because none of the menu options match the caller’s actual problem, and pressing “0” just sends you back to where you started.
• Chatbots that answer confidently and incorrectly, with no visible path to a human – you’re left hunting for a hidden phone number or a “contact us” email that nobody reads.
• “Your call is important to us,” repeated every 90 seconds for 45 minutes – especially galling when a customer is trying to address a problem. 
• Support tickets that vanish into a void – no confirmation number, no timeline, no accountability. Customers are left to follow up on their own follow-up.
• Account reps who rotate so often that there is no continuity or familiarity with a customer’s needs.

Each of these issues are annoying and erode customer service confidence. Together, they add up to a slow normalization of not caring – very costly to reputation and ultimately revenues.

What Does “Earnest” Actually Look Like?

It’s easy to gripe about what’s broken. It’s more useful to name what works. Following are best practices: 
• Make the human easy to find, not the last resort. The best vendors don’t bury the phone number three menus deep. They put a real name and a direct line on the invoice, the packing slip, and the order confirmation email. 
• Let technology handle the routine, so people can handle the exceptions. Automation isn’t the enemy here – misapplied automation is the problem. An order-status portal that works flawlessly for a standard reorder is a genuine time-saver. The failure comes when that same portal has no graceful off-ramp for the customer whose order isn’t standard, or whose problem isn’t in the dropdown menu. The best systems are built with an obvious, fast exit to a human the moment a situation stops being routine.
• Give people ownership, not just tickets. A ticket number is not the same thing as accountability. What earns trust is a specific person saying, in effect, “This is mine until it’s resolved.” That might mean a dedicated account rep who stays in the seat long enough to actually know a customer’s operation. 
• Follow up proactively. Proactive communication that keeps customers in the loop can do more for customer confidence than a perfectly-worded auto-reply ever will. Silence is what erodes trust fastest.
• Train for empathy, not just for the script. Frontline reps who are empowered to actually solve a problem – not just read from an approved script – make a major difference. That means investing in training that goes beyond product knowledge into judgment: knowing when to bend a policy, when to escalate without being asked, when to just say, “I’m sorry, that’s frustrating, let me fix it” – and mean it.
• Deploy AI to support people, not replace them. Used well, AI can triage routine requests, surface account history instantly for a rep, or flag an order anomaly before it becomes a crisis, thus freeing up humans to spend their time on the interactions that actually need a human. Used poorly, it becomes one more wall between a customer and the person who could help them. 

None of this is complicated. It’s not even new – it’s the same relationship-first instinct that’s always separated earnest companies from uncaring ones. What’s changed is that in a world increasingly automated, dysfunctional, and impersonal by default, earnestness has become a genuine competitive advantage. The companies that honor it are the ones that will keep earning the loyalty the rest are busy losing.

Mark Lusky (www.markluskycommunications.com/mark-lusky-bio) is the president of Lusky Enterprises, Inc. (www.markluskycommunications.com), a 41-year-established marketing communications company dedicated to clients that live and breathe trust, likeability, and respect (thereby eschewing the “lie, cheat, steal” culture so prevalent today). Contact him at: 303-621-6136; mark@marklusky.com.

While technological advancements have never been greater in the label and package printing industry, global events are curbing growth across the board. Inflation, tariffs, and wars, to name a few factors, are impacting growth numbers in all areas of the world. 

AWA Alexander Watson Associates notices a slowdown in many markets because of these obstacles. “Due to economic headwinds, over-leveraged balance sheets, and a variety of global events, uncertainty prevails,” explains Corey Reardon, president and CEO, AWA. “This is driving further consolidation (M&A), rationalization, and financial instability with weaker enterprises.

“The market outlook for the label market remains modest overall, with growth expected to be tempered by subdued economic activity and protectionist measures,” adds Reardon. “It is anticipated that growth in RFID and other smart and intelligent technologies will be a growth driver moving forward.”

According to TLMI, there are numerous factors impacting the short- and long-term health of the industry. “Sustainability has moved from a talking point to a requirement, with brands and regulators pushing recyclable materials, linerless formats, and lower waste production,” states Dale Coates, president and CEO, TLMI. “At the same time, digital printing is fundamentally changing how work flows through converter plants with more short runs, faster turnarounds, and a lot more SKU complexity driven by e-commerce and personalization. Pressure sensitive still dominates, but the real shift is that labels are no longer just identifiers. Labels are becoming a core part of packaging strategy, tied to compliance, branding, and supply chain performance.”

There are other trends top-of-mind for brands and converters alike. For example, Sunrise 2027 calls for the transition from traditional UPC barcodes to 2D codes by the end of 2027. “Sunrise 2027 is going to impact a large majority of the labels in the market,” explains JC McKay, president, FLAG. “A lot of those codes are serialized and carry variable data, which might lead to more digital or hybrid adoption as the market changes. Between that and brands looking for shorter runs with more SKUs, digital keeps growing.”

Due to various challenges, the label and packaging printing industry is operating in what LPC, Inc. would define as a “major recalibration mode.” In its latest LPC Trendline research, 58% of converters told the firm they were proceeding cautiously with planned press and press auxiliary equipment purchases, while only 3% said they were actually pausing or canceling investments.

“Converters are still investing, they’re still buying presses and looking at new technology, but companies are applying a much more detailed diligence process to every investment decision,” says Jennifer Dochstader, founding principal, LPC, Inc. “We speak with label converters nearly every day, and we’ve seen the conversation shift from, ‘How much more capacity can we add?’ to, ‘How much more productive can we make the capacity we already have?’ Converters are looking for shorter payback periods on press investments than ever and when they buy a press, it’s either to support a clearly defined opportunity or deliver a measurable improvement in margins.”

Converters are operating in a much more complex environment than they were even five years ago, notes Duane Pekar, president and CEO, Mark Andy. “Margin pressure remains persistent, driven by fluctuations in raw materials, freight, energy, tariffs, and broader supply chain instability,” he states. “The geopolitical environment has become a more direct business factor, adding another layer of uncertainty to planning and investment decisions.

“Labor continues to be one of the most significant structural challenges facing the industry,” continues Pekar. “Skilled operators are difficult to find, and the expertise required to run modern equipment takes time to develop. This creates a gap between the increasing sophistication of press technology and the available workforce.”

“As compared to the last 5-10 years, I see the industry becoming more polarized between converters and suppliers that stay transactional and those that evolve into more integrated, higher-value partners,” adds Coates. “Growth in label is still there, but it’s not going to come as easily. Label producers are going to have to earn market share through efficiency, automation, and smarter use of technology.”

From an economic standpoint, M&A remains a hot topic in labels and packaging. Even with M&A activity slowing down recently, the impact has been felt. “One of the biggest trends is still consolidation,” remarks McKay. “Private equity has spent the last several years buying up independent converters, and every year the number of true independents gets a little bit smaller. Everything downstream feels it. How brands are buying their labels, how suppliers are selling, and how an independent converter ends up competing for the same work as a consolidator. This is an area where the independents have a substantial advantage, despite not being as large, because they can make quick decisions and personalize the customer experience, with that being the number one focus versus the bottom line.

“The roll-ups aren’t finished, even though they’ve slowed down a bit,” adds McKay. “But with those roll-ups comes opportunity, and we’re seeing this already in the market. Independent converters are winning more work and picking up customers because the ‘big guys’ are dropping the ball. Most of the time, an acquisition comes with a capital infusion and a promise that nothing will change. But things do change, and the customer feels it. We’re seeing it with our members every week. Another big company gets bigger and another layer is added between them and their customers. They feel that and the trickle down effect is happening right now and will continue to happen. So, what we’re anticipating, and betting on, is that the converter’s edge gets more valuable as the market consolidates, not less. When markets are so volatile, like they are in 2026, it’s hard to forecast longer term and being able to move quickly in the best interest of the customer is a real competitive advantage.”

Despite economic uncertainty, the label industry has entered a new era, states Pekar. “This era is being defined by productivity, not capacity,” says Pekar. “Converters are still investing, but the nature of those investments has fundamentally changed. Today, capital is being deployed with a direct focus on improving throughput, reducing waste, simplifying operations, expanding application range, and offsetting labor constraints.

“A press no longer earns its place on the floor simply because it can print well,” continues Pekar. “It has to make the entire operation better. It has to reduce make-ready time, eliminate bottlenecks, improve repeatability, and allow more jobs to move through the plant with fewer manual touchpoints. Productivity is no longer an outcome. It is the strategy.”

As evidenced by Labelexpo’s transition to LOUPE, label and package printing converters are increasingly expanding their book of business. Formats such as flexible packaging and folding cartons are making more of an impact than ever before. This trend will not slow down, either. “The definition of a label converter is expanding,” remarks Pekar. “Growth is increasingly coming from adjacent applications such as shrink sleeves, pouches, cartons, and other specialty formats. That shift is driving demand for flexible production platforms that can manage greater complexity without increasing operational burden.”

Global Factors

There are numerous factors impacting label and package printing across the globe. “Sustained geopolitical challenges, tariff uncertainty, and cautious capital investment continue to create a difficult backdrop,” states Danny Scales, technical support and sales manager, Heaford US. “Economic pressures are reinforcing a more cautious and pragmatic approach to investment. Converters are under pressure to protect margins while still increasing throughput.”

“It feels like we’ve moved from a pretty predictable environment with steady growth pre-Covid into one that’s a lot more dynamic and pressured from all sides,” adds TLMI’s Coates. “Cost structures are simply less stable now. Raw materials, labor, and financing have all gotten more expensive, and you can’t expect those inputs to behave the way they did even a few years ago. At the same time, demand hasn’t gone away, but it’s becoming more fragmented with shorter runs, less predictable ordering patterns, and more SKU complexity. Layer on top of that the lingering effects of supply chain disruption and tariffs, and you’ve got an operating environment where volatility is just part of day-to-day business.”

According to AWA, Asia is the fastest growing region. This growth has been fueled by expanding label markets in India, China, and Southeast Asia, although growth has slowed down in China in particular, impacting regional growth rates. 

“Growth in the region overall has moderated in recent years due to an economic slowdown in China and overcapacity across the region,” explains AWA’s Reardon. “The growth of e-commerce and parcel delivery in Asia, like Shopee in Southeast Asia and Blink-It in India, is a major driver for the growth of VIP labels used in shipping and distribution.”

“Economic and global factors aren’t freezing the market, but they’re changing the pace and rigor of decision-making,” notes LPC’s Dochstader. “Converters are demanding stronger justification before committing capital or moving into a new application segment. The underlying demand for labels remains resilient, but forecasting has become more difficult and label buyers have become even more price sensitive. I think the important distinction is that economic uncertainty is certainly influencing investment but not stopping it entirely. Converters will continue to spend and invest where the operational case is strong. What we’re seeing less of is speculative investment based on the assumption that new job volumes will automatically materialize.”

Turning to Technology

To combat the current market slowdown, there are multiple technologies that are expected to drive future growth. Automation, AI, digital printing, and sustainability, among others, are hallmarks of the label industry of the future.

“Every converter in the market knows they need to bring automation and AI into their business, unless they operate under a rock,” states FLAG’s McKay. “There isn’t much argument anymore about whether automation and AI are optional, so most of the converters and suppliers are exploring it. 

“Margin pressure remains persistent, driven by fluctuations in raw materials, freight, energy, tariffs, and broader supply chain instability,” says Mark Andy’s Duane Pekar. “The geopolitical environment has become a more direct business factor, adding another layer of uncertainty to planning and investment decisions.”

“AI is where it gets interesting,” he continues. “More and more businesses are leaning on their people to do more with the same headcount, And used the right way, AI is what makes that realistic. The problem is knowing where to start. There are thousands of shiny objects out there and every one of them claims to be the answer, so a converter can get overwhelmed, or pushed into the wrong solution that sets them back even further.

“What actually works is picking one problem and solving it,” adds McKay. “Especially now with AI employees (or agentic AI). You can create an AI employee to solve a specific problem in the business, give your people a way to get more done in less time, be more profitable, all while keeping your company values and customer experiences intact. The focused approach is exactly why I built LabelConverter.ai. Plenty of general AI tools exist, but this industry has its own problems, its own workflows, and its own way of operating. LabelConverter.ai is built specifically for label converters, so instead of chasing another tool that was never made for them to begin with, a converter can start with something built for exactly what they do.”

Digital and hybrid printing are more advanced than ever, too, as are the newest flexo presses. These platforms have been optimized to meet the individual needs of the converter.

“This is why the traditional debate of flexo versus digital is largely outdated,” explains Mark Andy’s Pekar. “The real opportunity is in building a connected production ecosystem where flexo, digital, hybrid, finishing, and workflow tools work together seamlessly. The most successful converters will be those who can put the right job on the right asset at the right time, with the clearest economics.”

Even though all printing technologies remain relevant, Heaford has noticed several challenges with flexo, specifically. “Flexo printers are being squeezed from two sides: rising input costs and margin pressure, and growing competition from digital for shorter runs and customization,” remarks Scales. “Flexo remains the dominant technology in North America, and maintaining that position increasingly depends on how efficiently operations are run. The focus is shifting toward simplifying workflows, reducing touchpoints, and ensuring jobs are produced right the first time.”

Given press advancements, converters should analyze their fleet and see where they can make improvements – both internally and delivering for customers. “There is also a more subtle obstacle emerging in the market, and it is one that requires leadership honesty,” says Pekar. “Too many converters are holding onto older, fully depreciated equipment under the assumption that it represents a competitive advantage. In reality, that mindset can create a false sense of security in a market that is increasingly defined by speed, efficiency, and total cost of production. Just because a press can run for 20 years does not mean it should. Fleet strategy has become a strategic decision, not just a capital one. The converters that recognize this and act decisively will not just adapt to the future of this industry – they will define it.”

This technology will further shape the future of the industry. “Technology will play a central role in addressing the workforce challenge, but its purpose needs to be clearly understood,” states Pekar. “Automation is not about replacing people. It is about reducing variability, simplifying operation, and making the pressroom more consistent and efficient. In flexo environments, automation around registration, color control, job save and recall, setup, and waste reduction can significantly lower the burden on operators and reduce the dependency on highly specialized skill levels. In digital and hybrid environments, automation streamlines changeovers, versioning, and inline converting.”

As Scales notes, though, automation must come with a purpose. “The priority is not automation for automation’s sake, but automation that simplifies processes, reduces waste, and improves consistency without disrupting existing workflows,” he says. “In this environment, solutions that support gradual improvement, rather than large, complex overhauls, are resonating more strongly.”

Smart and intelligent labeling solutions are also gaining traction. Tied in with automation and AI, the possibilities of a connected ecosystem could influence label manufacturing for years to come. 

“Smart labels (RFID, NFC, QR) are turning packaging into a data layer that enables real-time tracking, authentication, and consumer engagement,” says TLMI’s Coates. “Converters are investing in automation, hybrid print platforms, and workflow software to keep up, while consolidation continues to increase scale and capability for some. When you add in stricter global regulations and more complex content requirements, you’ve got a market that’s moving from traditional print manufacturing to a more connected, tech-driven packaging ecosystem.”

According to AWA, sustainability continues to be an overriding trend. Sustainability pressures, of course, are reshaping the global label market, driven by stricter regulations, brand commitments to ESG goals, and waste concerns.  

“Europe is spearheading the transition to a more sustainable future, with regulations like the Packaging and Packaging Waste Regulation (PPWR) and the European Union Deforestation Regulation (EUDR),” notes AWA’s Reardon. “Both require manufacturers to be transparent about their sourcing and design practices, ensuring sustainability in the upstream value chain. In response to this, manufacturers are investing in recyclable, bio-based, and lower-carbon liner solutions, although technical challenges persist. At the same time, these directives are encouraging alternative solutions, especially linerless labels.”

Looking to the Future

While uncertainty abounds, suppliers and converters are preparing for the technologies and trends that will dictate their future success.

“Looking ahead, the direction is clear,” states Mark Andy’s Pekar. “The most successful converters will be those who build flexible, data-driven production environments that allow them to move work intelligently across flexo, digital, hybrid, and finishing assets. Real-time performance visibility will become central to how these businesses operate. Pressroom performance can no longer be evaluated after the fact. Converters need immediate insight into downtime, waste, energy usage, and overall efficiency so they can respond faster and continuously improve.”

Plus, several of the key trends will only intensify in the coming years. Sustainability, for example, will impact labels and packaging more than it ever has. “Brands are focused on their environmental impact with their products, and that pressure lands right on the suppliers and converters who have to sell, produce, and engineer the labels to match,” notes FLAG’s McKay.

LPC, meanwhile, anticipates continued growth in the label market, but the firm expects it to be moderate, uneven, and increasingly concentrated among converters that can demonstrate superior execution. “We don’t foresee a return to the broad, capacity-led expansion we witnessed during the pandemic years,” says Dochstader. “Press investment will continue, but replacement, automation, and productivity will drive more purchases than the need for incremental capacity alone. Flexo will remain fundamental to the North American label market, while digital and hybrid adoption will continue to expand where the application mix and production economics justify it.

“We don’t see one print format completely displacing the others across the market,” she continues. “Converters have become extremely disciplined about assigning work to the press format that produces it most profitably.”

As time goes on, the role of the label will continue to expand, as well. “Between sustainability mandates, regulatory requirements, and the rise of connected packaging, labels are becoming a much more strategic part of the product and supply chain,” states TLMI’s Coates. “That opens the door for companies to move up the value chain into material innovation, traceability, and even data services. The next decade isn’t just about surviving tougher economics. It’s about deciding whether you stay in a commodity position or evolve into something more differentiated.” 

Converters will also need to remain opportunistic, especially as trends change. Markets that were booming five years ago could see a downturn, while new and emerging segments thrive. For example, alcohol has seen less consumption, while the cannabis market has seen increased growth.

“Another future trend to watch for is demand shifting under categories that used to be foundational markets,” remarks McKay. “Look at alcohol, for example. Younger generations aren’t drinking the way past ones did, so consumption is way down, and if a big piece of your business is beer, wine, or spirits, that shows up in your numbers whether you did something wrong or not. Finding new markets of demand and moving into new categories is a big part of what converters will have to do to keep growing. If you’re a converter in the market, you must be proactive about this market to keep growing. We’re at a point where a converter has to see where demand is moving and get there first.”

Converters will need to make these decisions with a much smaller margin for error. Even in recent years, there was more forgiveness in the market. However, the drive for quality and efficiency will continue – with every decision proving pivotal.

“The industry has been resetting from those conditions since 2023,” notes Dochstader. “Demand hasn’t disappeared, but it has normalized and become more uneven. Printed packaging buyers are scrutinizing price more than ever. Raw materials and operating costs remain elevated, and skilled labor remains extremely difficult to find. 

“At the same time, delivery expectations haven’t let up,” she adds. “Converters today are expected to provide faster turnaround times, more extensive application capabilities, greater transparency, and higher job-to-job repeatability levels, often with fewer people and less room to pass through costs. The differences between highly efficient and less efficient converters are becoming much more consequential.”

From the supplier’s point of view, Mark Andy is trying to provide customers with confidence and support to deal with their future challenges. 

“At Mark Andy, our focus is on helping converters grow with confidence by delivering the technology, service, training, and support required to operate in this new environment,” states Pekar. “The expectation is no longer simply reliable equipment. It is complete solutions that enable better performance across the entire production ecosystem. 

“And as the industry moves further into this productivity era, there is one reality that will separate leaders from followers. Being satisfied with older, fully paid-off equipment is not a strategy. It is a risk,” he continues. “If a converter is relying on a 20-plus-year-old flexo asset and feeling confident because it carries no debt, they should also be asking a more critical question: Are they still the lowest cost producer? If the answer is no, then that asset may be quietly eroding competitiveness every day through longer setup times, higher waste, lower throughput, and increased labor dependency.”

Durst Tau G3 Technology: The Flexibility to Do More

For many label converters, growth isn’t limited by demand, it’s limited by flexibility. New applications, changing run lengths, and evolving customer expectations require equipment that can adapt without forcing another capital investment. That’s where a scalable digital platform changes the equation.

The Durst Tau G3 Platform is designed around a simple idea: invest in the capabilities you need today, with a clear path to expand tomorrow. Whether entering digital production for the first time or increasing existing capacity, converters can choose the configuration that best fits their business, then scale print width, productivity, automation, and application capabilities as demand grows. Rather than replacing equipment to keep pace with new opportunities, the platform grows alongside the business.

Beyond scalability, the Tau G3 Platform is engineered to simplify production while maintaining consistent quality. Intelligent automation, including Automatic Register Control (ARC), Material Edge Protection (MEP), automatic nozzle compensation, and optional HAWK AI, reduces manual intervention, minimizes waste, and helps maximize uptime. The result is a press that spends more time producing exceptional labels and less time on setup, adjustments, and maintenance.

The platform also delivers the application versatility converters increasingly need. With native 1200 dpi resolution, variable drop sizes, support for a variety of substrates, variable data printing at full production speed, and configurable color options including white and expanded gamut colors, the Tau G3 platform enables producers to confidently create everything from premium consumer labels to industrial, chemical, and flexible packaging applications, all from a single press platform.

In a market where customer requirements evolve faster than equipment replacement cycles, flexibility isn’t simply a competitive advantage. It’s a necessary long-term growth strategy.

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TLMI Explores Geopolitical Impact on Label Economy

For North American label converters large and small, the daily occurrences across the globe will play a large role in impacting their businesses. According to Alex Chausovsky, president, 3DM Consulting, and his brother, Eugene Chausovsky, senior director for Analytical Development & Training, New Lines Institute, the international upheaval we’re experiencing now is the new reality – and it’s here to stay.

The best advice for label converters – have a plan in place. The industry has adapted quite well to numerous challenges over the better part of the last decade. However, uncertainty necessitates having more plans in place. The brothers discussed this strategy at the 2026 TLMI Converter Leadership Meeting.

“From a strategic decision-making perspective, the game has changed in a very meaningful way,” remarked Alex. “In this complex landscape, you have to have a variety of plans ready to go to depending on what’s happening in the world around you.”

Alex said that statistics show corporate attention to geopolitics has waned somewhat since peaking in early 2022. However, the global political risk remains elevated.

Eugene Chausovsky described increasing competitiveness with China, although the United States boasts several key advantages. “The US is most focused on China as a geopolitical adversary, looking to overtake the US as a leading global power,” said Eugene. “But China doesn’t have beneficial geography – it borders over a dozen countries – and its competing countries have been India and Russia, historically. China does have a large population, but from a GDP per capita standpoint, China is far behind US. China has to import a lot of its energy resources. It’s one of the most vulnerable to geopolitical disruptions.”

Meanwhile, Russia is far below both the US and China as a world power, the brothers noted. Russia contends with open land borders with many countries that have historically been their adversaries.

From a European perspective, it collectively boasts the largest economy with 27 members. The EU has a lot of influence over regulatory process because of large size of market. However, there are no individual leaders like there are in the US, China, and Russia. Europe is less active in key geopolitical issues because there is no central force. Plus, 27 member companies have to agree on a given issue.

War in the Middle East and a continued emphasis on tariffs will drive major price increases in the future, Alex remarked. When comparing the US and China, the former boasts a $31.8 trillion GDP. On the contrary, China sits at $20.71 trillion. 

“We are the dominant economic force. Even after decades of double-digit growth, China is nowhere near surpassing the US,” stated Alex. “Those are the two leading economic players, comprising close to 50% of global GDP. Europe, combined, has a similar sized economy to the US. These are the countries that matter and set policy for the global economy. For example, Russia, at $2.5 trillion, is smaller than the economy of the greater NYC area.”

The US has maintained market share of the economy over the last 50 years – 26% of global economy. Japan, for example, peaked at 18% in the mid-1990s and now sits at 4%. “President Trump is looking for concessions from trade partners and to take advantage of the fact the US is the dominant market share player,” said Alex. “Future growth of US market share is top-of-mind for Trump’s agenda right now.”

From a military perspective, the US remains dominant in this area. US military spending grew by 5.7% annually in 2024, while China’s grew an estimated 7%. US military spending sits at $997 billion compared to China’s $314 billion. Russia ranks behind them at $149 billion.

In the future, other countries will continue to look to the US. “While it is true the dollar’s dominance has been somewhat eroded over the last 20-30 years, the other currencies are not benefiting,” stated Alex. “Other countries are benefiting because they want to trade in their own currency. Countries rush to the dollar and we are still the safe haven in the world in terms of geopolitical risk. I do believe the devaluation of the dollar vs. other foreign currencies will continue in the future, simply because of the change in currency valuation over time.”

The US is still dealing with unpredictability due to tariffs, which take time to make an impact. “Tariffs are still not fully baked into the system,” said Alex. “Increasingly, companies will look to pass on the impact of tariffs to end customers. On average, tariffs take 9-18 months to work their way through the system. Tariffs are not going away. They will evolve and even accelerate over the course of 2026. You need to look at the cost of goods sold and see what levers are available to you and how you can deal with that. The profit line is being eroded over several pressure points, with tariffs being in the lead.”

Inflation is expected to trend higher, too – likely in the 3-4% range. This is likely not the last price increase you’re going to see, either. 

“Even if the war were to end today, we’d still have two years of impact that would still be felt from that,” explained Alex. “There will be upside pressure from inflation into 2027. But there is upside potential driven by tariffs and the war. If the war ends soon, the impact will be limited. Inflation could rise to the 5-6% range if they can’t agree at the negotiating table.”

Unlike many other labels, pharmaceutical labels carry critical information such as dosage instructions, warnings, lot numbers, and expiration dates. The information contained on the label must remain accurate and legible throughout the product’s lifecycle to be successful.

“At its core, a pharmaceutical label needs to do three things well: protect patient safety, remain compliant, and communicate clearly,” explains Stacy Falconer, VP, Healthcare and Commercial Strategy, Premium Label & Packaging Solutions (PLPS). “The label also has to perform. Whether it’s exposed to refrigeration, moisture, sterilization, frequent handling, or even cryogenic storage conditions, it needs to maintain its integrity from production through end use. At PLPS, we view the label as an extension of the product itself. If the label fails, the product experience fails.”

“Given the pivotal role pharmaceutical labels play in patient safety, accuracy and legibility are non-negotiable,” adds Simon Halsey, product development manager, MM Pharma & HC Packaging. “The label must clearly communicate the product name, dosage, ingredients, and instructions for use, often across multiple languages, in a way that leaves absolutely no room for misinterpretation.”

With patient safety at a premium, security is one of the key functions of this labeling segment. “Security is an important consideration,” comments Lisa Ivey, R&D manager, Fedrigoni Self-Adhesives. “For many pharmaceutical applications, the label can help provide evidence of tampering, support authentication, and protect against counterfeiting. In this market, the label is part of a larger system of protection. It needs to perform reliably while also supporting the integrity of the product and the confidence of the patient, provider, and brand owner.”

“As regulatory scrutiny intensifies and serialization requirements expand, organizations are recognizing that control over labeling is effectively control over risk,” adds Laura Johnson, senior sales director, Life Sciences, Loftware. “What once might have been a localized issue can now ripple across the entire system, putting patient safety and business continuity at risk.”

Compliance and regulatory requirements can be complex, though. There are numerous tasks the label – and overall packaging – must achieve. “At a minimum, pharmaceutical label materials must comply with food safety regulations, however, the requirements extend well beyond that,” says Yasmine Pierre, product manager, Pharma and Healthcare Label Solutions, UPM Adhesive Materials. “For plastic packaging, it is essential to ensure that no harmful substances from the label can migrate into the primary package. This creates a strong focus on low migration inks, varnishes, and especially adhesives, since the adhesive is in direct contact with the container. This is particularly important for liquid pharmaceuticals in plastic containers, although concerns have also been raised regarding potential migration into solid dose products.”

When it comes to developing new products, a pharmaceutical label should be tailored exactly to the requirements of the specific customer application. “Ideally, the label should feature additional functionalities that enhance product and patient safety while improving processes in healthcare settings,” remarks Stefan Wiedemann, senior director, Strategic Marketing and Business Development, Schreiner MediPharm. “Examples here include integrated hangers for infusion bottles, detachable documentation labels or multi-layer designs for extended product information. Ultimately, the pharmaceutical label’s design must ensure smooth processability for the pharma manufacturer.”

According to PLPS, a converter that specializes in pharmaceutical labeling, this sector requires significant traceability, change control, documentation, and quality assurance oversight throughout the labeling process. Artwork revisions, multilingual content requirements, serialization data management, and strict approval workflows also add additional layers of complexity that must be carefully managed while maintaining production efficiency and speed to market.

The industry must also adapt incredibly well to rapid change. According to Avery Dennison, bringing a new drug product to market takes on average 10-15 years, with a development cost between $1.3 to $2.8 billion. 

“In addition to being purpose-built for pharmaceutical applications, pharma labels differ from standard label materials by providing more robust change management,” notes Cory Keller, senior product manager, Pharmaceuticals, Avery Dennison. “In the case of Avery Dennison, we minimize component changes in the pharma label portfolio, and when we do, we provide advance notification (typically 12 months) to facilitate end-user qualification.”

“A formal change management process protects business continuity,” adds Pierre. “This process ensures that any modifications to the material are controlled and communicated in advance in an agreed timeframe. Standard label materials, in comparison, are not pretested for pharmaceutical applications and are not included in such change control frameworks, making them unsuitable for regulated pharma use. 

“Converters expanding into the pharma and healthcare end-use sectors must consider that standard materials they currently run for other applications, although may seem adequate, are not likely suited for pharma applications,” continues Pierre. “Most dedicated pharmaceutical label solutions carry a higher price tag, but they lower the risk of regulatory non-compliance and their change management process will help to avoid unannounced changes that could result in costly and time consuming requalification.”

Pharmaceutical labels also carry several inherent challenges not evident in other segments. “The physical constraints of the application add further challenges, as many containers, vials, syringes, and devices are small with very limited surface area, yet with substantial information requirements,” states Halsey. “Solutions such as extended content labels (ECL) are essential in addressing this, but they require real expertise to execute well.”

“Pharma labels face a much lower tolerance for error than many other labeling applications, because an incorrect or unreadable label can affect patient safety,” adds Wiedemann. “There is no tolerance for mix-ups, print defects, unreadable codes, or material failures. The level of performance is what separates true pharma packaging expertise from standard label production: every detail must be designed and controlled with product and patient safety in mind.”

Environmental demands are equally stringent. “Labels must perform through cold-chain storage down to -196°C for cryogenic applications, sterilization processes, extended product service life, and where required, must incorporate tamper-evident or anti-harvest properties,” notes Halsey. “Moreover, the materials themselves must frequently meet pharma-grade standards. With all this in consideration, fitness for purpose in the application is only the starting point.”

When designing pharma labels, disconnected labeling systems introduce fragmentation across product data, processes, and governance. This could inevitably lead to inconsistency and operational risk.

“When artwork management, regulatory content, and production labeling operate in silos, organizations lose the ability to ensure version integrity and real-time accuracy,” states Johnson. “This often results in manual interventions, delayed change implementation, and avoidable errors that can escalate into recalls or compliance breaches. For example, analysis of FDA drug recall data from 2012-2023 shows that labeling and packaging issues account for approximately 19% of all drug recall events, making it one of the leading root causes of recalls in the pharmaceutical industry. The broader implication is that disconnected systems undermine trust – not just in the label but in the entire downstream supply chain that depends on it.”

There is also a significant demand for risk management in pharma labeling. Managing risk associated with drug package system approvals and/or changes is of utmost concern for pharmaceutical companies since ensuring efficacy and safety is the number one priority.  

“Sometimes, changes to label materials will trigger stability testing at the pharmaceutical company, which can take many months,” says Keller. “Avery Dennison is mindful of these unique qualification requirements, which is why we minimize component changes and provide extended change notification when elective changes are made. Additionally, Avery Dennison’s ISO 17025 certified analytical lab can be leveraged to support converters and end users to test pharma label materials in real-world conditions to provide support data to facilitate packaging qualification testing.”

Ultimately, the most successful pharmaceutical label accomplishes multiples tasks. 

“For converters serving this market, the strongest label constructions are those that balance several requirements at once: print clarity, durability, dimensional stability, adhesion performance, conformability, and compatibility with the intended print platform,” says Diane Merzbach, PPG strategic market manager, PPG Teslin Substrate Products. “Pharmaceutical labels leave very little room for variability, so materials must deliver consistent performance, from production through end use.”

A Changing Industry

Security is critical in pharmaceutical labeling, especially as counterfeit products are more prevalent than ever before. Changing legislation and regulations also significantly impact companies’ operations.

Regulations are an important aspect of pharmaceutical labeling because labels are not only branding or identification tools, they are part of the product’s safety and quality system. 

“In the EU, the Falsified Medicines Directive requires safety features such as a unique identifier and an anti-tampering device on all prescription drug packs, while the US DSCSA continues to push unit-level traceability and interoperable verification across the supply chain,” explains Schreiner MediPharm’s Wiedemann. “These rules are evolving toward more digital, data-driven requirements. For a specialist such as Schreiner MediPharm, this means developing customized security labels that combine clear tamper evidence with analog and digital authentication features. We recommend a comprehensive, multi-level approach involving different stakeholders within the pharma supply chain to ensure product integrity and anti-counterfeit protection.

“These requirements are helping drive the need for labels that can carry durable, scannable data throughout the entire product supply chain,” adds PPG’s Merzbach. “At the same time, growth in biologics, specialty medications, clinical trials, home healthcare, and at-home testing is expanding the types of containers, environments, and use conditions labels must support.”

In addition, smart labeling technologies are impacting the pharmaceutical market like never before. “Digitalization is transforming what labels are expected to do,” comments MM Pharma & HC Packaging’s Halsey. “The increasing use of electronic labeling, from e-leaflets to smart packaging, means that today’s label is no longer a static or passive information carrier. It is an active component in a broader digital ecosystem, and the regulatory landscape is evolving to reflect that. Perhaps most significantly, the integration of smart packaging technologies, such as NFC and UHF RFID, has opened up new possibilities for traceability, inventory control, authentication, and direct patient engagement.”

“Regulatory requirements have helped drive broader adoption of serialization and 2D DataMatrix codes, while QR codes, RFID, and other smart label technologies are becoming more important for traceability, authentication, inventory management, and access to digital product information,” adds PPG’s Merzbach. “This added functionality places new demands on print quality and durability.”

According to MM Pharma & HC Packaging, the changing nature of popular pharmaceuticals is impacting the industry, as well. For example, the rapid growth of GLP-1 therapies and other injectables has driven a corresponding increase in the volume of supporting secondary packaging, including labels, cartons, and patient information leaflets alike.

“Pharmaceutical packaging is becoming more varied,” says Fedrigoni’s Ivey. “Applications can range from OTC and prescription bottles to injectables, vials, syringes, refrigerated products, blood bag labeling, hang tags, and secondary packaging. Each of these applications can require a different balance of adhesion, flexibility, durability, printability, and security. That has pushed the industry toward more application-specific solutions rather than one-size-fits-all material choices.

“There is rarely a one-size-fits-all solution,” she adds. The container, diameter, surface energy, storage environment, sterilization or handling process, print method, converting requirements, and security needs can all influence the right construction.”

There are other considerations to take into account such as issues with light sensitivity. Drugs requiring labels that address this have been a key innovation area for Avery Dennison. “Exposure to light is an increasing concern with numerous medications due to the potential for photodegradation or other chemical reactions that affect drug stability (effectiveness),” states Keller. “This is driven by the growth of biologic drugs, a global market that Grandview Research values between $400 and $600 billion, with projections estimating it to exceed $1 trillion by 2030. Additionally, many synthetic drugs, like the newly introduced oral GLP-1 medications, are also light sensitive.”

To address the growth of light sensitive drug products, Avery Dennison recently introduced a new UV Barrier Label Portfolio, which includes high opacity materials that block over 99% of UV light. This portfolio also features a clear overlamination film with a greater-than 95% UV light blocking feature.  

“These barrier materials help maintain the effectiveness and shelf life of medications that are sensitive to UV light,” comments Keller. “The clear overlamination film provides the added benefit of visual inspection, an important quality step in the manufacturing of many injectable drug products.”

Sustainability is making its mark here, too. While patient safety will always be the top priority, pharmaceutical companies are starting to adopt sustainable packaging design concepts in new drug launches and redesigns.  

“Early implementation has been focused on secondary packaging such as moving from plastic to paper trays/inserts,” says Keller. “There is also a movement from single use to multi-dose auto injectors, which will help reduce the number of devices going to landfill. 

“With respect to sustainable pharma label materials, Avery Dennison recognizes there is no one-size-fits-all approach,” adds Keller. “Instead, our pharma label portfolio provides a ‘menu’ of options depending on each end user’s specific goals.”

In Compliance with Regulations

There are numerous regulations that impact the pharmaceutical labeling space, and they’re ever-changing. Regulations influence nearly every aspect of this critical converting market – from FDA requirements to global serialization mandates, compliance is built into the process from the beginning.

“Requirements can influence what information must appear on the package, how that information is presented, how products are identified through the supply chain and, in certain cases, how tampering or product authentication is addressed,” states Fedrigoni’s Ivey. “These requirements continue to evolve as the pharmaceutical supply chain becomes more digital, more global, and more focused on end-to-end traceability. Serialization, product tracing, and machine-readable codes have increased the need for labels that can support consistent print quality and reliable scanning. 

“Regulations, guidance, and customer expectations continue to shift, so material selection has to account not only for today’s package, but also for the way that package moves through the supply chain and how information may need to be verified, scanned, or protected at different points,” continues Ivey.  

As regulations continue to evolve, there are several mainstays in this arena. “What we’ve seen over the past several years is a growing focus on traceability, product security, and patient communication,” says PLPS’ Falconer. “Requirements continue to evolve as supply chains become more global and products become more specialized. As a result, pharmaceutical manufacturers need greater visibility and control over variable data, serialization, and label verification than ever before.

“The industry continues to evolve,” Falconer says. “New regulations, emerging therapies, global supply chains, and increasing security requirements are driving greater demand for flexible labeling solutions that can adapt quickly while maintaining compliance.”

According to UPM, pharma labels require increased scrutiny on chemical composition. “PFAS is one recent area of focus,” states Pierre. “Medical device regulations also require biocompatibility of materials, which applies to labels as well. It’s worth noting that there’s a growing regulatory focus on packaging efficiency and environmental considerations, driven by regulations such as PPWR in Europe and EPR laws in various US states, although pharmaceutical labeling remains partially exempt from these laws.”

Regulatory expectations are also influencing how converters and brand owners think about label performance over time. “It is no longer enough for a label to look good when it leaves the press,” says PPG’s Merzbach. “The printed information must remain readable and the label construction must remain intact throughout the product’s expected life. As regulations continue to advance, converters need materials that can help reduce uncertainty and regulatory risk. A label can contain the correct information when it is printed, but if barcode readability degrades, variable data becomes compromised, or the label fails during distribution or use, the result can still be a compliance concern.”

Utilizing the Right Technology

Due to the critical nature of patient safety involved with pharmaceutical labeling, utilizing the right technology is paramount. The right formula involves the combination of printing capabilities, inspection systems, and quality processes working together.

“Substrate, adhesive, and ink selection also play a critical role because pharmaceutical labels may be exposed to refrigeration, sterilization, frequent handling, and even cryogenic storage conditions,” notes Falconer. “Selecting the right materials helps ensure the label remains legible and functional throughout the product’s lifecycle.”

UPM Adhesive Materials has developed PharmaSure adhesives and products to drive converter confidence when choosing label materials for prescription, OTC, and healthcare applications. This portfolio has also been optimized for digital printing, supporting this shift without compromising performance.

“At UPM, we have focused on addressing pharma labeling requirements, such as migration risk, by developing our UPM PharmaSure adhesives, which enable compliance with strict pharmaceutical standards,” explains Pierre. “Tamper evidence, brand protection, and track-and-trace have become increasingly important. Material solutions within the UPM PharmaSure portfolio are designed to support these needs with reliable, compliant constructions that offer the aforementioned security features.”

Meanwhile, PPG Teslin facestock has been engineered for demanding applications where printed information needs to remain clear, durable and secure, adds PPG’s Merzbach. “Its microporous structure absorbs inks, toners, adhesives and coatings, helping lock them into the material structure for long-lasting performance. For pharmaceutical applications, where barcodes, GS1 DataMatrix codes and variable data must remain readable throughout the product lifecycle, this embedded print anchorage can help reduce compliance risk while supporting traceability and patient safety.”

Schreiner MediPharm’s highly functional solutions show how much added value can be included in a label, notes Wiedemann. “These include Needle-Trap labels with integrated needle protection for prefilled syringes, and smart RFID/NFC labels enabling a wide range of digital applications, including automated inventory management in hospitals, NFC labels for digital tamper evidence and authentication, and patient support via smartphone,” he says. “Other recent developments include special labels with integrated UV/light protection or gas barrier properties for novel sensitive drugs. In addition, sustainable label solutions have been playing a growing role in reducing environmental footprint along the pharma supply chain.”

Software plays a vital role in the process, as well. Organizations are moving away from standalone tools toward integrated ecosystems that unify labeling, artwork, and product data within a single controlled framework. This enables real-time synchronization of regulatory updates, reduces duplication of effort, and ensures consistency across manufacturing sites and trading partners.   

“At Loftware, we see this evolution as essential to modern supply chain resilience, where connected data flows are as critical as physical product flows – an approach that has directly informed the development of Loftware Connect through ongoing customer feedback and evolving industry requirements,” states Loftware’s Johnson.

Flexibility is one of the most significant advantages a label supplier can offer the pharmaceutical sector. “At MM Pharma & HC Packaging, our label capabilities span traditional printing techniques, such as flexographic and screen printing, as well as digital and hybrid options,” says Halsey. “This flexibility enables us to meet a genuinely wide range of customer requirements and is particularly valuable when developing label solutions at the forefront of what the technology can currently achieve.”

As in other markets, collaboration is paramount in the pharma space. “This is where Fedrigoni Self-Adhesives brings real value,” says Ivey. “Our Applications Development team works closely with converters to evaluate the specific requirements of the application and engineer the right material solution for the package, process, and performance demands. That may include tamper-evident and anti-counterfeiting labels, tight mandrel applications, OTC and prescription packaging, refrigerated storage or a custom construction developed for a specific pharmaceutical use. The goal is not simply to choose a material from a list, but to create a solution that is built for the application.”

Inspection tools go a long way in guaranteeing efficacy in this market. “To support these requirements, PLPS utilizes advanced vision inspection systems that not only verify print quality and label construction but also inspect and validate variable data printing for accuracy,” remarks PLPS’ Falconer. “This enables our quality team to identify and replace non-conforming labels while maintaining complete traceability throughout the manufacturing process, effectively providing a 200% inspection process for variable data pharmaceutical applications.

“Ultimately, technology is only part of the equation. The real advantage comes from pairing the right equipment with experienced people, strong quality systems, and a deep understanding of pharmaceutical requirements,” states Falconer. “That’s what ensures consistency, compliance, and patient safety.”

PLPS Launches MyClinicalSuite

Premium Label & Packaging Solutions (PLPS) has announced the launch of MyClinicalSuite, a clinical-only label and packaging production environment designed to help clinical research organizations maintain the highest standards of quality, compliance, and data integrity while providing faster turnaround times.

Operating from PLPS’ Lakewood, NJ, facility, MyClinicalSuite combines in-house variable data printing (VDP), robust quality procedures, including inline vision inspection systems, and a dedicated team of clinical packaging experts to create a more agile and responsive production model.

The launch of MyClinicalSuite reflects the continued growth of PLPS’ healthcare segment. It includes the addition of industry veterans Stacy Falconer, Bill Kougelis, and Stephanie Wydra. Together, the team brings decades of healthcare experience across clinical trial labeling, packaging operations, commercial strategy, variable-data management, specialty applications, and regulated pharmaceutical environments. 

Their combined experience supporting national and global market leaders and managing large-scale healthcare packaging programs helped shape the development of MyClinicalSuite. The environment addresses the increasing demand for speed and flexibility in clinical markets.

“Healthcare label and packaging programs require specialized expertise, operational precision, and rapid responsiveness,” says Chris Payne, CEO of PLPS. “Our investment in this clinical-first operating structure and our growing healthcare team reflects the increasing importance of PLPS’ capabilities across regulated healthcare markets.”

Unlike traditional production environments, where clinical work competes with larger commercial production schedules, MyClinicalSuite supports the unique demands of clinical trial programs. By separating clinical production workflows from commercial operations, PLPS can shorten timelines, offer greater operational flexibility, and ensure smaller-batch clinical programs receive the same level of responsiveness and priority as larger production runs.

“Sponsors are under enormous pressure to move faster while navigating increasing complexity, tighter timelines, evolving trial designs, and heightened regulatory expectations,” says Falconer. “MyClinicalSuite was built to address those realities directly. The unique production environment is managed by an experienced team focused solely on clinical trials, allowing us to deliver speed without compromising quality, compliance, or control.”

“MyClinicalSuite reduces risk, improves patient-level tracking accuracy, and secures trial administration,” adds Bill Kougelis, Clinical Product Line director, PLPS. “By managing in-house VDP and label/booklet production within a clinical-focused environment, we can execute late-stage changes more efficiently, improve turnaround performance, and help sponsors maintain complete data integrity and patient control throughout the trial process.”

PLPS’ Lakewood ISO-certified facility follows cGMP standards and has been producing clinical trial labels and packaging since 2008. The site offers a wide range of clinical trial labels and packaging applications. These include booklets, extended content, and specialty labels such as cryogenic and pattern adhesive. Integrated vision systems and 200% inspection processes validate both bar codes and human-readable data throughout production.