Finat ELF highlights market trends

Finat's European Label Forum (ELF) 2026 confirmed its role as a platform for the European label and narrow-web community at a time when the sector is moving from post-crisis recovery to strategic repositioning. Across the program, one message stood out: future success will depend less on volume growth alone and more on agility, resilience, innovation, regulatory competence and stronger collaboration across the value chain.

The event opened with a broader geopolitical and economic perspective from Dr Ilke Toygür, director of the IE Global Policy Center and professor of geopolitics of Europe at IE University in Madrid. She described Europe’s current situation not as a temporary crisis, but as a period of structural transformation in which business strategy is increasingly shaped by power, security, technology, energy and trade dependencies.

Market data from Panteia presented by Finat showed that European self-adhesive labelstock consumption reached 7.37 billion sqm in 2025, up 2 percent from the previous year, but still broadly at pre-covid levels. Within that total, paper rolls remained the largest segment but grew by only 0.9 percent, while non-paper rolls increased by 4.1 percent. Over the past two decades, the material mix has continued to shift: paper rolls have declined from 73 percent to 67 percent of demand, filmic rolls have risen from 20 percent to 30 percent, and sheets have fallen from 7 percent to 3 percent.

Finat also shared preliminary, work-in-progress findings from its ongoing research into non-European imports of self-adhesive label materials, with a particular focus on China. Early indications point to a significant increase in Chinese import volumes since 2020, especially in selected material categories. The research underlines the need for closer market monitoring and a balanced assessment of how global capacity, pricing and supply-chain dynamics may affect the competitiveness of the European label value chain.

Further preliminary market insights from Finat Radar and AWA highlighted a cautious business environment. Converter revenues in Q1 2026 were mostly static or slightly down compared with the same period last year. Finishing equipment was the most frequently mentioned capital investment priority, at 31 percent, while flexible packaging remained the most attractive adjacent growth market for converters, cited by 32 percent of respondents. Digitalization and automation were identified by 40 percent of converters as the most critical success factor for the next three years. Brand owners, meanwhile, are facing continued pressure from material and energy costs, with 42 percent reporting increases.

The program also underlined that brand-owner expectations are changing. Labels are no longer judged only on price, reliability and technical execution. They are increasingly part of a wider conversation about sustainability, recyclability, data, compliance, consumer engagement and design trade-offs. For converters and suppliers, this creates an opportunity to move upstream in the customer conversation and act as consultative partners rather than transactional suppliers.

Sustainability was addressed not as a separate topic, but as a business condition increasingly linked to market access, regulation and competitiveness. Discussions around PPWR, recyclability, circularity and carbon impact showed that brand owners expect practical support from the label value chain in balancing compliance, material choices, design impact and commercial feasibility.

Artificial Intelligence was another defining theme. The debate moved beyond general awareness to practical implementation, with examples of AI agents and workflow applications in estimating, customer service, prepress, document handling, production support and marketing. The message was clear: AI will not replace business judgement, but companies that embed it into core processes, with proper governance and human supervision, will gain speed, consistency and operational insight.

The final part of the program focused on the capabilities needed to remain competitive towards 2030. The pre-conference Industry Roundtables identified AI and automation as the strongest forces reshaping the industry, followed by sustainability and regulation. The discussions made clear that the industry is moving from AI experimentation to operational deployment, but that many companies still need stronger digital foundations, including better ERP integration, higher data quality and improved cybersecurity.

At the same time, the roundtables stressed that people, not technology, will be the decisive differentiator. The technology is increasingly available, but companies need new skills, better change management and a workforce that can use digital tools effectively. Young professionals broadly recognized the same forces shaping the industry, but tended to see them more as opportunities than threats. Bridging this generational perspective will be important for companies seeking to attract talent and accelerate transformation.

The discussions also highlighted a growing commercial tension around sustainability. Sustainability data, compliance and transparency are becoming purchasing requirements, yet the related costs are often pushed down the supply chain. Converters will therefore need to demonstrate the value of compliance, data and technical expertise more clearly, while working with customers and suppliers to make sustainability commercially viable.

Another key takeaway was that Europe cannot compete on cost alone. As competition from Asia intensifies in low-cost materials, finished labels and equipment, Europe’s strengths must lie in quality, agility, compliance, technical expertise and proximity to customers. 'Made in Europe' needs to stand for a distinctive value proposition, supported by stronger collaboration across the broader packaging ecosystem as labels increasingly connect with adjacent narrow-web applications such as sleeves, pouches and flexible packaging.

'ELF is much more than a conference,' said Jules Lejeune, managing director of Finat. 'It is where industry leaders come together to challenge assumptions, exchange perspectives and build the relationships that drive our industry forward. This year’s discussions showed that success in our industry is no longer achieved alone. Companies need trusted connections, shared intelligence and a strong collective voice to move forward.'

Building on the success of this year’s event, Finat now looks ahead to the next European Label Forum, which will take place in Warsaw, Poland, from May 19-21, 2027.