Andy Thomas-Emans: Circular economy is a business opportunity

The Finat European Label Forum (ELF) held in Seville, Spain, gave attendees an excellent opportunity to take stock of where we are on the journey toward the circular materials economy, envisaged by the European Union through its various mission statements, mandates and legislative initiatives.

Discussions at ELF 2026 demonstrated that we need to be talking now with the wider supply chain and with brand customers to ensure the requirements of the PPWR can be met without the cost burden falling disproportionately on the label and package printing converter.

Indeed, label and package print converters are in a unique position to influence the successful implementation of PPWR and the wider circular materials ecosystem.

If we take, for example, the EU’s Design for Recycling (DfR)
guidelines, label converters absolutely need to be involved, using their expertise in materials selection to assist brands in making packaging recyclable from the outset.

This means in practice using single-polymer materials where
possible and avoiding combinations of materials that hinder
recycling, such as multi‑layer laminates or incompatible inks
and adhesives.

Recycled outputs must be of sufficient quality to replace primary materials in new products, so each element of the pack must be identifiable in automated materials sorting systems. At the same time, each incompatible element of the packaging must cleanly separate in a standard mechanical recycling system.

This is now urgent. Compliance with DfR guidelines becomes
mandatory in 2029. Packaging defined as below 70 percent
recyclable will be banned from the EU market from 2030, from
which date the target progressively increases to 80, then
95 percent.

Suppliers to the labels, flexible packaging and folding carton
industries have made impressive strides toward providing
sustainable options that meet the DfR requirements.

Setting the example

Label adhesives can now cleanly release from both plastics and glass containers, aiding both clean material recovery and circular reusable packaging systems; new primers allow inks to separate cleanly from shrink sleeves, avoiding contamination of the PET flakes and shrink sleeves themselves can now be floated clear of the PET container recycling stream; new barrier coatings allow multi-layer flexible packaging to be replaced by mono-material constructions in some applications; and similarly in folding cartons PE laminations can be replaced for bakery and other
food applications.

Even the tougher challenges presented by RFID labels are being tackled. This is potentially a serious issue as electronics, metals and adhesives can contaminate packaging recycling streams. Avery Dennison recently launched its AD CleanFlake RFID technology, which allows RFID labels to separate cleanly from containers.

“This is now urgent. Compliance with Design for Recycling guidelines becomes mandatory in 2029”

Suppliers are working on other areas of RFID, such as printed
electronics, biodegradable and recyclable substrates, to make the overall system more sustainable.

Label converters are in a unique position in the supply chain
to provide expertise in these areas, particularly to smaller and
mid-sized brands that do not have dedicated packaging compliance departments and will rely on their suppliers for guidance.

A fine example is Austrian label converter D.O.G. Label, which
is using the recently launched Herma digital GreenGuide tool to advise brand customers on optimal material strategies to comply with PPWR/DfR and EPR guidelines. One of the most interesting findings of AnnaCarin Speneder‑Magnet, head of business development at D.O.G. Label, who has pioneered the use of GreenGuide, is that sometimes brands are surprised to find they need to spend more on the label material to generate larger savings on EPR fees.

Then take another area where label and package print converters will be on the front line: the incorporation of post-consumer recycled (PCR) materials in plastics films and packaging. This PPWR requirement will apply starting January 1, 2030, when PCR percentages of 30-35 percent will apply depending on the packaging type, with targets ramping up over successive years.

But already we are hearing reports of potential problems
running materials with high percentages of PCR recycled materials. At a Gallus-Esko flexo masterclass in St Gallen earlier this year, Esko’s Geert De Proost drew delegates’ attention to the factors that might cause printing issues, including local variation of surface tension, contamination residues, uneven material thickness and surface roughness influencing ink laydown, all impacting dimensional stability.

Tackling potential PCR-related print quality issues will require strong partnerships with materials suppliers and with brands, who will need to understand how the increasing use of non-virgin materials might impact costs and consistency.

Overall then, label and package print converters will have a key influence on the success of the EU’s circular economy directives. They also have a major business opportunity to become trusted sources of guidance for brands, leveraging the expertise of their supply chain partners.