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Gallus completes ‘digital-first’ strategic transformation

Adyasha Sinha — Wed, 29 Jul 2026 02:42:54 +0000

Digital printing 29 July 2026

Gallus completes ‘digital-first’ strategic transformation

With the launch of the Gallus Five at Labelexpo Europe 2025, Gallus completed its transition to a ‘digital first’ strategy.

The launch of the Gallus One (G1) digital press in 2022 marked a major strategic shift toward digital from a company best known for its high-end conventional presses.

The Gallus One was not Gallus’ first venture into digital, of course. The LabelFire hybrid press, built on the ECS flexo press platform, was launched in 2015. But the LabelFire was very much subsidiary to Gallus’ conventional flexo and offset
press programs.

The development of the Gallus One marked the start of the company’s move to a true ‘digital first’ strategy, a change conceptualized and driven by Dario Urbinati, CEO of Gallus Group. Urbinati became CEO in December 2022 at a defining moment for Gallus, with the conclusion of the proposed Benpac transaction and a renewed focus on strengthening Gallus’ role within the Heidelberg Group.

‘When I returned, we had to figure out how to move forward,’ recalls Urbinati. ‘Gallus was quite simply not functioning sufficiently, and not because the people were wrong, but because the system was not working anymore. My biggest concern was that Gallus had somehow become irrelevant as a company.

'The first thing that needed to change was the internal culture. ‘Gallus was very hierarchical. Today, it is a flatter structure. I do not feel like an “outside” CEO with a closed-off office. In the early days, I moved my desk to different departments to
engage with our employees.’

A key priority for Urbinati was strengthening strategic alignment within the Heidelberg Group, fostering even closer collaboration and a shared momentum. Gallus benefited from extensive support across Heidelberg, particularly in digital technologies, as the group advanced its broader digital transformation strategy.

“At a high level, I no longer want to talk about machines, but about modules, about different building blocks which can be combined”

Urbinati put together a VIP sounding board, including both large and small customers, and asked what was important to them. ‘This gave us the baseline for thinking about what technologies we needed to develop.’

Inkjet first

Urbinati saw inkjet as the ‘technology of the future’, with the greatest potential for development.

‘By 2021, inkjet was on the same point along the technology S curve as flexo in terms of productivity, print quality and speed. Now digital has surpassed flexo in terms of total cost of ownership (TCO), makeready and “coolness”.’

Urbinati points out that 80 percent of label jobs are under 10,000 linear meters, benefiting the TCO case for inkjet technology.

‘Having made the decision for inkjet, I had to reset the company, and this was at the center of the development of our new product range. We needed to become a primarily digital company. The most important thing was to explain to our employees and stakeholders why we are doing this, and to formulate it into a strategy. It has changed the whole culture of the company. People now understand the new direction and why it’s necessary, and their part within it. This alone creates its own energy.’

System to Compose

Urbinati sees inkjet as one module in a wider hybrid ecosystem, which the company calls System to Compose.

‘Digital does not solve every problem, and not everything can be, or should be, digital. There will always be a place for flexo, where there are certain color gamut requirements or where certain substrates are specified. But for most applications, a hybrid configuration between flexo and inkjet provides the most flexibility and lowest TCO.’

The System to Compose is built around the Gallus Labelmaster platform. The Gallus One was the first digital building block and was designed in compatible widths of 330mm and 430mm (13in and 17in).

The Gallus One is a 7-color UV inkjet engine (CMYK+OVW), imaging at 1,200 DPI native resolution and printing at speeds up to 70m/min (229ft/min). The Gallus One can be combined with any module from the Labelmaster range, either specified from new or retrofittable in the field.

At Labelexpo Europe 2025, Gallus extended the modular System to Compose ecosystem with the Gallus Five (G5), designed for higher-volume workflows and with a new energy-efficient LED-UV curing system.

Once again, this is built on the Labelmaster platform, allowing ‘almost limitless’ combinations of digital and analog modules.

The Gallus Five is available in 330 and 430mm (13in and 17in) widths and uses the same 1,200 DPI imaging system as the Gallus One, but increases speed to 100m/min (328ft/min) using Heidelberg’s Saphira UV05 LED-UV ink set. The 6-color configuration (CMYK+OV) covers around 95 percent of the Pantone Plus V4 color library.

Gallus One in hybrid configuration including MatteJet module

Gallus’ new SDC Pro semi-rotary die-cutter was also launched
at Labelexpo Europe 2025. It is fully compatible with System to Compose and operates at 100m/min.

The Gallus Five press at Labelexpo Europe was configured with two flexo units before and after the digital print engine, rail-mounted cold foil and lamination units and the SDC Pro die-cutting module.

Modular future

‘At a high level, I no longer want to talk about machines, but about modules, about different building blocks which can be combined,’ explains Urbinati. ‘When we asked customers about their use models, they said “we want to be able to change modules as our business changes”.’

Urbinati says most printing machines today are like ‘small
factories within a factory’, with boundaries defined by software, operator training and tooling across different machines. These ‘museums of different brands’ are complex and expensive to manage, difficult to automate and with little effective redundancy.

‘With System to Compose, the printer tells us which printing
and converting blocks they require, all with the same operating platform. If you have a digital press, you can add a compatible flexo station and go straight into production with the same operator. This is a different way to think. You then have redundancy within the plant, with the ability to move jobs between presses.

‘We have seen customers with existing Labelmaster flexo presses retrofitting digital, and customers who started with a G1 press adding Labelmaster flexo modules. In some cases, customers have used the System to Compose to build off-line processing units for standalone digital presses.’

The longest hybrid press sold by Gallus so far is 34m (111ft) long, built for special applications.

The future

In conclusion, it appears Urbinati’s vision of ‘turning round the
oil tanker’ has been a success, with around 60 percent of Gallus’ turnover now coming from inkjet-led System to Compose modular press sales, both from existing and new customers. ‘We have almost doubled turnover over the last four years,’ says Urbinati.

Urbinati says Labelexpo Europe 2025 was by far Gallus’ best show to date, despite issues with the air conditioning in Hall 3. The company sold 10 G5 presses directly off the stand.

“Digital does not solve every problem, and not everything can be, or should be, digital. And there will always be a place for flexo”

Looking to the future, Urbinati believes there are several ways
the supplier side of the industry can further reduce complexity for the label converter. For example, cutting down on the bewildering range of substrates label converters have to manage and standardizing the exchange of production data.

‘There is a lot of scope for the labels industry to agree on
standardization measures for the seamless two-way exchange of production data. As an industry, we need to sit down together and discuss standards for data exchange and open networks, so everybody uses those standards. For example, we have Bluetooth, which works as a standardized way to transfer data across multiple brands and tools. Maybe we can create a way forward for the printing industry by applying the same mindset? We also need to discuss how to transfer data in a safe and secure way to fight against cyber attacks.’

Aligned with Heidelberg’s Prinect workflow system, Gallus also supports other industry-standard MIS and workflow platforms, ensuring broad compatibility across the market.

‘Integration should be straightforward. Our aim is to make Gallus presses easy to adopt within any professional workflow environment.’

Alpha inkjet press
While System to Compose builds on long‑established in-line working models in the label-converting industry, most existing digital installations use standalone digital presses with near-line converting.

‘We believe in-line has a lot of benefits, but for those converters who want to work with off-line finishing, we developed the Alpha roll-to-roll press, which we launched in Barcelona,’ explains Urbinati.

The Gallus Alpha is only available in a 340mm-wide roll-to-roll configuration. It offers a native resolution of 1,200 DPI in five colors (CMYK+W) printing at 65m/min.

Urbinati insists this is not an ‘entry-level’ press, but rather a gateway into the wider System to Compose ecosystem. ‘It is either for a customer with an existing off-line workflow, or someone entering digital printing for the first time.’

Inkjet vs offset
One of Gallus’ most successful legacy presses was the intermittent offset TCS 250, which found a niche particularly in the short-run, high-quality wine, food and spirits sectors.

UV Inkjet has found it difficult to replace offset because of the inherent glossiness of its inks in a market that values matte design themes.

Urbinati believes that Gallus’ MatteJet technology now enables UV inkjet to compete directly in these kinds of offset applications. MatteJet changes the optical appearance of the inkjet dot, reducing direct reflections to give the appearance of a matte finish.

‘The purpose of MatteJet is to bring inkjet closer to offset in terms of print quality and perception, and we are very, very close with this module. We are now having these discussions with printers who are committed to offset.’

MatteJet is currently available only as a System to Compose module for the Gallus One.

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Andy Thomas-Emans

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Siegwerk strengthens global capabilities

Adyasha Sinha — Fri, 24 Jul 2026 07:23:28 +0000

Siegwerk has accelerated its long-term growth strategy 'Formula 2030' with a significantly increased investment program. In 2025, the company more than doubled its usual annual investment volume to expand its global presence, enhance technical capabilities and optimize processes through automation and digitalization. Over the next five years, Siegwerk plans to invest more than 300 million Euros in organic growth and operational efficiency, supported by targeted M&A activities, to strengthen its competitiveness and create greater value for customers.

'Every investment we make is guided by a clear objective: helping our customers and partners excel,' said Nicolas Wiedmann, CEO at Siegwerk. 'Whether we expand capacity, automate production, strengthen technical expertise or invest in digitalization, we aim to deliver greater speed, higher quality, reliable supply, improved efficiency and stronger local support.'

A key investment in 2025 was the acquisition of Allinova, a specialist in functional coatings. The acquisition strengthened Siegwerk’s coatings business and expanded its expertise in water-based dispersions, enhancing the company’s ability to support customers with innovative products for evolving market and sustainability requirements. Siegwerk is also building new capacities in India to support the growth of Allinova-developed functional coatings in Asia.

In parallel, Siegwerk continued to strengthen its regional footprint to provide closer customer support. The opening of a new site in Dubai expanded the company’s presence in the Middle East, while the acquisition of additional land in Indonesia paved the way for future capacity expansion. Another milestone was the groundbreaking for the reconstruction and expansion of Siegwerk’s production site in Bhiwadi, India. Once completed, the site will offer greater capacity, increased efficiency through automation and become the company’s largest Center of Excellence worldwide.

Siegwerk also modernized its global production and technology infrastructure in 2025. Investments included new in-line white production facilities in Germany and the US, warehouse extensions and major global IT projects, including new platforms for customer relationship management (CRM) and product lifecycle management (PLM). These initiatives create more standardized and efficient processes that support consistently high product quality, faster innovation and greater responsiveness to customer needs worldwide.

'Our increased investment activities demonstrate our commitment to strengthening capabilities, improving customer service and expanding our position in key growth markets,' added Wiedmann. 'By combining strategic acquisitions with targeted infrastructure, technology and digitalization initiatives, we are building a future-ready organization that creates long-term value for customers and partners.'

Siegwerk’s investment momentum continued into 2026 with the acquisition of Hi-Tech Inks in March, significantly strengthening the company’s position in India’s fast-growing flexible packaging segment. By combining manufacturing footprints and product portfolios, the two entities now command more than 20 percent of the Indian flexible packaging inks market, becoming the largest player in the region. With its continued investment pipeline, Siegwerk is laying the foundation for long-term growth and reinforcing its position as a trusted partner to the global packaging industry.

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1 week 2 days ago

Short title

Siegwerk strengthens global capabilities

Short summary

The company plans to invest more than 300 million Euros over the next five years.

First paragraph

The company plans to invest more than 300 million Euros over the next five years.

Regions

South & Central America

Southeast Asia

Africa

South Asia

Hybrid variations

Adyasha Sinha — Thu, 23 Jul 2026 11:13:46 +0000

Market trends 23 July 2026

Hybrid variations

Will automated flexo, hybrid or standalone digital be the winners as we move into an era of even shorter runs? Find out.

For this issue of Labels & Labeling, I interviewed Dario Urbinati, CEO of Gallus Group, about the extraordinary turnaround he has accomplished at the company, turning it from a conventionally-minded narrow-web production company to a ‘digital first’ mindset and production program in just a few years.

In concrete terms, this resulted in the development of the Digital One inkjet press, followed by the more recent launch of the Digital Five at Labelexpo Europe, all forming part of a modular system based around the Labelmaster flexo press platform.

Apart from being a major feat of change management, Urbinati’s future vision for Gallus shines a spotlight on the range of choices facing label converters as we move forward into a landscape of ever-shorter runs and multiplying design variants.

Urbinati does not believe conventional printing is dead, far from it. Gallus continues to develop its Labelmaster and RCS press platforms. But Urbinati believes that with 80 percent of label jobs now under 10,000 linear meters, a hybrid platform with a digital print engine provides the lowest TCO.

A different view

Contrast this with Nilpeter. In an interview in Labels & Labeling (Issue 3, 2025) last year, CTO Carsten Clemenson indicated Nilpeter has moved away from the hybrid model, focusing instead on further automating its flexo press technology to reduce the need for operator intervention and fully automating job changeovers on the run.

At Labelexpo Europe in Barcelona, the company demonstrated a ‘live’ changeover between two four-color jobs on a running FA4 press, with just a few meters of waste between them. With two die-cut units on the press, it would also be possible to change the die-cut on the fly.

Clemenson’s view is that this technology eliminates the
need for a hybrid press, allowing for a full-color change or just
a black-plate change while remaining within a converter’s
established flexo ecosystem.

This is a fascinating and energizing difference of philosophy,
presenting the label converter with different ways to organize
production for an environment where short runs, proliferation of variants and inventory reduction are unstoppable trends.

The other flexo press manufacturers take positions somewhere between Nilpeter and Gallus, choosing different points at which hybrid will be preferred over flexo and vice versa.

Finishing landscape

The increased automation of flexo technology and the
integration of flexo presses into digital networks have certainly
reshaped our understanding of where flexo fits in the shorter
run, multi-SKU environment.

At the same time, flexo automation and digital integration
have powerfully impacted the efficiency of hybrid press systems, reducing overall job setup and changeover times.

Converting technologies such as high-speed semi-rotary dies
have impacted the efficiency of both flexo and hybrid systems, as has the increasing use of sleeve technology.

What these two approaches have in common is viewing the
label converting process as an in-line operation, from the roll to a printed, embellished and die-cut piece.

This is the traditional narrow-web workflow from the days of
rotary letterpress onward, adapted in various ways to a world of ever-shorter run lengths.

Where does this leave standalone digital presses with off-line
(more accurately near-line) finishing? Will the increasing efficiency of automated flexo and hybrid overtake and eventually eclipse the two-stage digital print and converting model?

A two-stage workflow involves work in progress, generates some waste by re-registering pre-printed jobs for off-line converting processes, and, despite the depth of automation around the digital press, still requires manual operator skills on the finishing side.

It might be argued that two-stage digital print and finishing only became the dominant configuration because, in the early days, digital presses were so much slower than converting systems. Does it make sense to finish off-line now that we are approaching flexo productivity at speeds of 75-100m/min and upwards?

But separating the print and converting steps still has key
benefits compared to an in-line approach.

Flexibility is key

The most obvious advantage of a two-stage model is flexibility. The digital print engine keeps printing, no matter the complexity of the finishing steps required for each job on the roll. Also, finishing can be easily scaled to reflect increased productivity on the press.

Perhaps most exciting is the potential to automate the finishing step, where a quiet revolution is already underway. The Mercian Labels automation project (scan the QR code below to read the full story on the L&L website), demonstrates the impact this will have on the overall efficiency of the two-stage process, with the setting and operation of the converting line moved from the operator to a new programming layer within the company.

What seems clear is that each approach, automated flexo, hybrid and near-line converting, has its own unique advantages, meaning that for the foreseeable future they are likely to co-exist.

The tough question for converters is to decide how the pieces
of the jigsaw fit into the workflow architecture of their long-term strategic plans.

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Andy Thomas-Emans

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The state of private equity

Piotr Wnuk — Tue, 21 Jul 2026 21:17:08 +0000

M&A 21 July 2026

The state of private equity

In the US, multiple large PE-backed companies in the label industry have gone through changes that suggest a complex market.

Over the past year, several large private-equity-backed companies operating in the label space have undergone notable changes.

In August of 2025, Brook + Whittle secured 130 million USD as part of a refinancing transaction.

In November of 2025, plastic materials supplier Klöckner Pentaplast filed for prepackaged Chapter 11 Bankruptcy in the US Bankruptcy Court for the Southern District of Texas and entered into a restructuring support agreement, reducing its debt by about 1.51 billion USD.

In January of this year, MCC entered into a prepackaged Chapter 11 process and restructuring support agreement that eliminated 3.8 billion USD in debt.

In February, Resource Label Group appointed several new C-suite leaders and separated from much of its former senior leadership.

Analysts say these developments are not isolated incidents but part of a broader trend. They note that PE firms may have overpaid for acquisitions, while the label market growth has slowed.

PE in labels

The label industry is an attractive market for PE companies. It offers consistent, low-risk returns, and it’s highly fragmented. Additionally, many label converters are family-owned companies with second- or third-generation owners who may be looking to exit and who may lack a next generation interested in taking over the business.

Generally, when a PE company enters the label space, it buys an initial company, which it then uses as a platform to acquire further businesses, eventually building a network of label converters.

‘Within each private equity firm, there are different cultures, different approaches they take, in terms of how much management, support they give, or how much they leave the acquired company alone, and everywhere in between,’ says Corey Reardon, president and CEO of Alexander Watson Associates, a market research firm. ‘So that varies. A lot of the private equity firms today are good stewards of a business, with the financial objectives of creating a well-positioned, strong business.’

The last 25 years have seen PE companies entering the label space, acquiring both converters and suppliers. The result has been that companies with PE ownership models dominate the pool of the largest label converters.

‘In this slightly expanding pond, the big fish are getting huge, and the small and mid-sized fish are kind of the same,’ says Thomas Blaige, founder of Blaige Industry Analytics. The analytics firm tracks and analyzes merger and acquisition activity across resins, colorants, concentrates, adhesives, sealants, inks and coatings and capital equipment in packaging and converting.

Blaige says that, in the label industry, more than 80 percent of the top 10 percent largest companies have now either sold or merged, while fewer than 20 percent of the small and mid-size companies have done so.

At the same time, consolidation among suppliers has reduced the number of supplier options for converters.

Blaige says that everyone in the industry, especially smaller companies, needs to pay attention to consolidation, as it is easier than ever to be outcompeted by larger businesses.

‘They need to be looking at their competitive landscape, who’s buying who. It’s like musical chairs,’ Blaige says. ‘They need to pay a lot more attention to their external environment in their strategy and follow a novel, creative strategy every year, not just repeat what was done in the past.’

Overvaluation

After 25 years of consolidation in the industry, some large-cap PE-backed label converters are restructuring their debt or making leadership changes.

Blaige says that acquisition prices are rising as converter companies are repeatedly bought and sold by PE firms, leading to overpaying. Blaige emphasizes that this phenomenon primarily affects large-cap companies because they command the highest multiples and take on substantial debt when making acquisitions.

‘It’s like New York real estate,’ he says. ‘Somebody buys a property. It’s a family, and you get the real estate. It’s a humble little thing. Then someone says, “Oh my gosh, it’s a diamond”, so they pay double for it and take out a big bank loan. Then someone says, “Well, it’s a double diamond”. And five years later, they take out an even bigger bank loan. Then someone says, “That’s a triple diamond”. Now, it’s a quadruple diamond. People are paying four times as much as they would have 20 years ago. They’re borrowing all this money, and it’s not working out, and they’re squeezing all the juice out of the lemon each time they buy it.’

Each time a company is acquired, it is evaluated at a higher price, but that doesn’t mean that it’s worth more, Blaige explains.

This phenomenon is not unique to labels; Blaige has seen it in other industries as well. However, plastic packaging is particularly vulnerable to this overvaluation due to the industry’s high degree of fragmentation and its age. In contrast, metal and glass packaging are older industries, so they’re less fragmented with less potential for consolidation.

‘Each private equity group holds for about five years, and then they flip it. It’s like real estate,’ Blaige says. ‘Every time it gets flipped, they’re trying to get a little more, so that by the time you get to the fourth flipper, the price is super high and it’s very risky.’

Complex landscape

Jonathan White, managing director of Mezzo Investment Banking, attributes the financial challenges to a complex array of factors, including occasional overpaying and/or poor management and integration of new acquisitions. White has been involved in investment banking in the packaging space since the mid-1990s.

“The key is that these acquirers need to maintain discipline on buying right and not overpay”

‘Acquisition models had worked very well for a long time within the label space,’ White says. ‘The key is that these acquirers need to maintain discipline on buying right and not overpay. You’ve got to manage right, do the hard work of integration to enhance growth and enhance margin, and you’ve got to be cognizant of where you are within the cycle. If you miss any one of those three things, you may have a problem.’

Some acquirers have paid amounts for label companies that make it difficult to justify the returns that a PE company would need, White notes. Others may not be making the necessary improvements to increase value.

Meanwhile, growth in the label industry has slowed recently, creating a further challenge. White attributes this slowed growth, which is primarily evident in PS and cut-and-stack labels, to the overall stress currently affecting consumer products in developed markets.

White sees PE companies holding onto businesses for longer periods of time before selling than they used to. This is a challenge because PE companies realize most of their returns when they sell businesses, so holding on to them for longer could indicate underlying issues.

‘Sometimes you have a company that’s not performing as well as you would like, so it’s not the right time to take it to market,’ White says. ‘In other cases, it could be that they’re struggling to find the right buyer. Some of the larger roll-up entities started as smaller entities and then serially traded from one private equity group to the next. It starts with a smaller-market private equity group, then trades up to a middle-market group, and finally to a larger-market group. Eventually, you end up with the largest private equity groups. At that point, to whom are you going to sell?’

Reardon emphasizes the market’s role.

‘These companies have been bought with debt, and that debt is manageable at certain market or business conditions, but if that is softer or goes down, then the debt the company has is much harder to service,’ Reardon says.

The US market

Though there has been some overvaluation in the European market, the US market is particularly vulnerable to overvaluation in mergers and acquisitions activity, given the level of PE in the US.

‘There’s more private equity here, so usually it’s more competitive,’ Blaige says. ‘It’s more prevalent in the US because the premiums are higher, so they’re stretching the companies. They’re stretching a little further on these prices. There’s more risk.’

PE interest

Reardon, Blaige and White agree that PE companies are still interested in the label industry.

‘The basic tenets that drew interest to the space are still there,’ White says. ‘It’s still a fragmented, competitive base. It’s relatively low in capital intensity compared to other forms of packaging. It’s one of the smallest percentages of the overall shelf price of a good, so because of that, you tend to make a little bit better margin, because it’s not as noticeable, it’s not worth the investment of your customers to spend a lot of time fighting with you over a half cent. Also, it’s not worth switching; customers can be very sticky, so it’s just not worth the risk of switching suppliers on that. The space is generally resistant to import competition. It’s mainly a local, regional market. None of that has changed.’

According to White, consolidation in the industry peaked around 2021 and 2022. Those years saw 40 and 49 add-ons, respectively, while 2021 saw seven new PE companies enter the label space, and 2022 saw three. Over the last two years, those numbers have dropped to 28 add-ons and four new platforms in 2024, and 23 add-ons and two new platforms in 2025.

‘A little bit of the shine has come off, but it will always be an active market, in my view,’ White says.

AWA analyzes the label market for PE companies looking to enter the space, and Reardon has noticed fewer such companies in recent years.

‘You’re not seeing as many new private equity firms buying into the sector; rather, existing platforms grow through acquisition,’ Reardon says.

Blaige expects PE to continue showing the same level of interest in the label industry, but that the valuation of converter companies will decline.

‘A few people get burned,’ Blaige says. ‘The activity is the same. They just pay less.’

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Polyprint Georgia installs Omet KFlex

Piotr Wnuk — Tue, 21 Jul 2026 21:08:47 +0000

Polyprint Georgia, one of Georgia's leading printing companies, has installed an Omet KFlex flexographic press, marking its entry into roll-fed label production and complementing its established sheet-fed offset printing capability.

The company has built its reputation over many years serving food, beverage, wine and consumer goods customers with sheet-fed offset technology. The Omet KFlex installation extends that offering into premium self-adhesive labels, aluminum foil labels and wraparound wine labels, where precise registration and decorative finishing are essential.

A key advantage of the Omet KFlex for Polyprint is its in-line production capability, combining printing, cold foil application, lamination, varnishing and die-cutting in a single pass. The integrated workflow reduces production time, minimizes material waste and improves repeatability on complex, high-value label constructions, allowing the company to produce decorative effects including metallic finishes, tactile varnishes and embossing-ready structures.

The investment targets growth in the premium label segment, where demand from wine, spirits, cosmetics and specialty food brands for high-impact shelf decoration continues to increase. Polyprint said the Omet KFlex provides a platform for continued business growth and access to higher-value markets beyond its existing offset base.

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1 week 4 days ago

Short title

Polyprint Georgia installs Omet KFlex

Short summary

Georgian converter enters roll-fed label production with premium flexo press.

First paragraph

Georgian converter enters roll-fed label production with premium flexo press.

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Europe

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Smart Labels transform brand experience

Piotr Wnuk — Mon, 20 Jul 2026 20:44:01 +0000

Interactive technology 20 July 2026

Smart Labels transform brand experience

A package that stays silent is a package with something to hide.

For decades, the ‘static’ label was the industry’s ‘silent salesman’, but in an era where regulations are tightening, a package that stays silent is a package with something to hide.

Connected packaging is no longer optional for brands; it has become an essential part of the packaging experience, providing consumers with unit-level intelligence and transparency. Packaging that utilizes QR, RFID, NFC and digital watermarks shifts the format from a one-way channel to a multidirectional digital footprint. These technologies are evolving rapidly as global regulations inch closer.

QR codes and GS1 digital links

QR or ‘Quick Response’ codes store more data than traditional barcodes and can be quickly scanned with smartphones. With fast, omnidirectional scanning and error correction, it’s widely used across industries and growing rapidly with smartphone adoption.

GS1 digital link, set to become mandatory from 2027, enables barcodes and other data carriers to serve as web links, connecting a product’s unique identity to online sources of real-time information that brands can control.

“Labels will increasingly become gateways to much larger volumes of digital information”

The adoption of QR codes is becoming the norm, as scanning a package or label has become a reflex for most consumers. Around 75 percent of consumers scan QR codes to get more information, ahead of those seeking discounts (52 percent) and making payments (35 percent), according to a 2026 research report by Uniqode. Yet only 36 percent of marketers use QR codes to deliver additional information, highlighting an opportunity for brands to better match QR code content to consumer intent.

RFID and NFC

RFID (Radio Frequency Identification) and NFC (Near Field Communication) are wireless communication technologies that use radio waves to identify objects. Unlike QR codes, these technologies don’t require a direct line of sight to be read. RFID is designed for distance and volume and is particularly useful in supply chain and inventory tracking.

While NFC is a branch of RFID. It is designed for secure, two-way communication at close range. The technology enables contactless payments and ‘tap-to-interact’ packaging.

NFC tags are increasingly being developed with sustainability in mind. For example, Tageos’ new NFC inlay lines, EOS Lite and EOS Zero Lite, feature Pragmatic Semiconductor’s ultra-thin PR1301 chip for low-carbon smart packaging. EOS-932 Zero Lite is a paper-based NFC inlay designed for scalable use in packaging and labels.

Avery Dennison also launched a flexible NFC inlay range using Pragmatic Semiconductor’s FlexIC technology. The ultra-thin inlays target retail and healthcare, with a lower-impact manufacturing process that uses less energy, water and chemicals than traditional silicon. It can also be adapted for curved packaging surfaces.

Digital watermarks

Digital watermarks are invisible codes embedded directly into a package’s artwork. Unlike a QR code, which requires a specific black-and-white square, a digital watermark is woven into the design itself, altering colors, shading and textures at a microscopic level. With digital watermarks, every surface of a package becomes scannable with smartphones or industrial scanners.

After years of development and testing, digital watermark technology is now proving it can deliver the precision needed to enable packaging recycling and sorting, as L&L reported in Issue 4, 2025. Traditional sorting technologies cannot identify crucial information, such as product applications (food, cosmetics or detergents); recycled content levels; or whether materials are bio-based or fossil-based. Digital watermarks address these gaps by encoding detailed information directly into packaging during the printing process.

Regulatory forces

Regulations such as GS1’s Sunrise 2027 initiative are driving the shift from 1D barcodes to 2D QR codes, enabling greater transparency, traceability and consumer engagement while improving inventory management, recall management and authentication. At the same time, the European Union is introducing Digital Product Passports (DPPs) under the Ecodesign for Sustainable Products Regulation (ESPR), providing detailed lifecycle data to support compliance and sustainability. Complementing this, the Packaging and Packaging Waste Regulation (PPWR) will require recyclable packaging, recycled content and waste reduction by 2030, with connected packaging playing a key role in enabling traceability, digital labeling and efficient reuse and recycling systems.

Jenny Stanley, managing director and founder of Appetite Creative, an expert in connected packaging, says that connected packaging addresses both regulatory requirements and consumer trust simultaneously.

Jenny Stanley, managing director and founder of Appetite Creative

‘We’re facing a number of transitions right now. There’s the Sunrise Project, which is driving the shift to QR codes by 2027 as part of a GS1 initiative around digital links. Then there’s the legislation around DPP and Extended Producer Responsibility (EPR).

‘All of these changes are pushing brands to find ways to meet new requirements. What’s compelling about connected packaging is that it transforms compliance from a necessity into an opportunity, one that allows brands to deliver genuine value to the consumer while staying aligned with evolving regulations.’

“Connected packaging can have a very tangible impact on sales. We typically see an increase of around 20-30 percent, which is a significant part of the value story”

Connected packaging helps brands engage directly with consumers, especially in FMCG, where end users are often unknown, while delivering detailed, compliant product information in a clear, engaging format. It also improves transparency and builds trust by replacing dense legal text with more intuitive, visual communication.

Camilla Mjelde, compliance and sustainability director at Trimco Group, a label and packaging supplier with expertise in traceability and RFID, says: ‘Labels will increasingly become gateways to much larger volumes of digital information. With DPPs, products will carry access to far more data, and often more complex information than what can realistically fit on a physical label.

‘What we see is that brands are approaching this differently. Some want to keep it simple and focus on compliance, while others are looking to capture the full potential of connected products and deliver as much value and information as possible through the digital layer.’

"For patients, particularly those self-administering complex treatments like injectables, this can mean instant access to multilingual instructions, video demonstrations, dosage reminders, or real-time adherence support, all triggered by a simple smartphone tap."

A ‘must have’

Research by Appetite Creative and Koenig & Bauer Auraveo reveals that 92.3 percent of those surveyed say that connected packaging will be increasingly important to the packaging industry in the next 12 months and beyond, up from 88.8 percent in 2025.

Adoption of connected packaging has risen strongly, with 81.2 percent of companies currently using the technology, up from 72.6 percent last year.

The shift from single technology to multi-technology implementations continues. Around 47.1 percent of brands use QR codes and NFCs combined, compared to QR codes alone (31.8 percent) and NFC tags alone (21.1 percent).

Interest in serialized QR codes increased to 73.2 percent in 2025, reflecting a strong majority in favor of more sophisticated connected packaging. Industry skepticism has dropped, with only 7.7 percent of respondents viewing connected packaging as a passing fad, down from 13.4 percent in 2025.

‘What I’ve seen from working with brands like Tetra Pak is that over 78 percent of customers agree connected packaging helps them better understand sustainability credentials. That’s a strong signal,’ Stanley adds. ‘It shows a shift away from greenwashing towards something more tangible and meaningful for consumers.’

As a result, consumer expectations of connected packaging have shifted from a ‘nice to have’ to a ‘must have’. Today’s consumers want more. They expect to understand what they’re buying, and they’re looking for experiences that are engaging, interactive and even rewarding. Consumers want the full story behind their purchase.

That’s where connected packaging becomes a gateway to deeper engagement. When a consumer scans a QR code, they’re stepping into a richer experience. The shift is redefining packaging from a static touchpoint into a dynamic, data-driven channel for engagement and connection.

What is equally valuable is the data that connected packaging creates. Brands can see where consumers spend the most time, what information they engage with and what matters most to them. This allows brands to refine both their messaging and the overall consumer experience continuously.

'Demand [for connected packaging] is growing steadily across the board, but we are seeing the strongest interest in high-risk categories; those most likely to attract counterfeiters,' says Tiffany Overstreet, global director of innovation at MM Pharma & Healthcare Packaging. 'This typically means high-value products and products where supply constraints may exist. GLP-1 obesity drugs have been a particular focal point for bad actors due to patient interest in the products.'

For pharmaceutical companies, interest in connected packaging is driven by patient safety, followed by an interest in improving patient outcomes through better communication that can provide helpful information on the drug, how to use it, and how to manage the underlying condition.

Artificial intelligence

AI is opening up a wide range of possibilities within connected packaging. For instance, it can power personalized product recommendations by analyzing consumer behavior and preferences.

There’s also predictive repurchase. By understanding consumption patterns, brands can anticipate when a product is likely to run out and proactively prompt a reorder. With messaging platforms integrations, this can be as seamless as sending a direct link to repurchase at the right moment.

“What I’ve seen from working with brands like Tetra Pak is that over 78 percent of customers agree connected packaging helps them better understand sustainability credentials. That’s a strong signal”

Another key area is content optimization. ‘Based on what we know about a consumer, we can tailor the experience, whether that’s highlighting recipes, sustainability information, promotions or interactive content. And as we gather more data, that experience continues to evolve, becoming more relevant over time,’ Stanley says.

‘That said, I think it’s important to stay grounded. The goal isn’t to use AI just because it’s the latest buzzword, much like we saw with augmented reality. The real focus should always be on delivering genuine value to the consumer. If a technology enhances the experience in a meaningful way, then it has a place. If not, it risks becoming noise rather than something truly useful.’

A major application of connected packaging is shifting toward more user-centric and personalized experiences, according to Overstreet of MM Pharma.

'NFC technology is already moving from proof of concept to commercial deployment in pharmaceutical packaging, and we will see broader adoption. Particularly so in high-growth categories like injectables, where self-administration and adherence are pressing concerns,' she says.

Smart 2D codes, carrying far more data than a traditional QR code and interacting dynamically with digital systems, will also gain traction as standardization progresses.

"Misalignment between any part of the chain can derail even the most well-conceived project"

'Perhaps most significantly, we anticipate AI-enabled technologies beginning to interact with bespoke packaging features, creating adaptive patient experiences, flagging supply chain anomalies in real time, or personalizing information based on a patient's treatment profile. The industry should be building the data infrastructure and cross-functional expertise now to make the most of these capabilities when they arrive,' Overstreet explains.

Competitive edge

Connected packaging isn’t just for large brands; smaller ones can benefit too. They’re often more agile, able to experiment quickly and act on opportunities without complex approval processes.

‘While larger brands might work on planning cycles of one to two years, smaller brands can often bring something to market in three to six months. That speed can be a real competitive edge,’ Stanley highlights.

For smaller brands, focus is key. Rather than doing everything, they should prioritize use cases that deliver the most value, such as engagement, education, loyalty, data or sustainability storytelling.

A clear objective enables more targeted campaigns and smarter execution, often by building on existing tools, such as QR codes, rather than starting from scratch.

Reusability is key. Designing experiences that can be updated over time turns one-off campaigns into long-term value and makes investments more efficient.

For smaller brands, this means meaningful consumer engagement through content or storytelling, without a large budget, as long as the approach is strategic and intentional.
Connected packaging also offers strong scalability for multilingual, adaptable content across markets without repeated redesign, making it highly efficient for global brands.
‘So ultimately, I do think smaller brands can compete with larger players when it comes to innovation. The key is having a clear strategy, strong creative thinking and a sharp focus on delivering genuine value to the consumer. That principle holds regardless of the size of the brand,’ Stanley notes. ‘Connected packaging can have a very tangible impact on sales. We typically see an increase of around 20-30 percent, which is a significant part of the value story.’

“The goal isn’t to use AI just because it’s the latest buzzword, much like we saw with augmented reality”

Beyond sales, engagement is another key metric. Stanley observes that consumers spend around two to three minutes interacting with connected packaging experiences, which is a substantial amount of time. In some cases, like the Sunny oil campaign (see box out), that engagement time has gone even further, reaching over six minutes per session on average. What’s equally interesting is repeat interaction. Consumers don’t just engage once; they often come back three to four times.

‘If you think about it, even at an average of two minutes per session across multiple visits, that quickly adds up to meaningful, sustained engagement,’ Stanley says. ‘For me, it all comes back to one core principle: genuine value. If the experience is relevant and interesting, consumers will spend time with it and, more importantly, they will return to it. That’s where you start to build trust, loyalty and deeper brand relationships.’

Tiffany Overstreet, global director of innovation at MM Pharma & Healthcare Packaging

Connected packaging can expand what packaging can do. Traditionally, the role of secondary packaging has been to protect, contain, and inform. Connected technologies turn the pack into an active communication channel that can be used for patient engagement and security.

'For patients, particularly those self-administering complex treatments like injectables, this can mean instant access to multilingual instructions, video demonstrations, dosage reminders, or real-time adherence support, all triggered by a simple smartphone tap. That has the potential to have a major impact on health outcomes,' says Overstreet.

For brand owners, it opens a direct line to the patient that was previously unavailable after the point of dispensing. Understanding how products are being used, identifying where patients drop off a treatment regimen, and providing timely interventions are genuinely valuable capabilities.

The design challenge is integrating these features in a way that feels intuitive and does not add complexity for users who may already be managing a difficult health condition.

However, to implement connected packaging successfully, collaboration between packaging manufacturers, label converters, and technology partners is crucial.

'Misalignment between any part of the chain can derail even the most well-conceived project,' notes Overstreet.

'Within a pharmaceutical business alone, the stakeholder map is significant: packaging engineering, manufacturing, quality, supply chain, brand and marketing, digital health, procurement, and legal or security teams all have legitimate input. Each brings a different lens and focus. Beyond the organisation, external partners are just as important. Packaging manufacturers and label converters who understand technical and regulatory requirements, such as GMP compliance, integration into production lines and quality protocols, are essential.

Enabler of sustainability

While connected packaging is often associated with consumer engagement, the technology is a critical enabler of sustainability, helping bridge the gap between products and recycling systems by delivering clear information that guides consumers toward better disposal and circular practices.

'The traceability infrastructure that underpins connected packaging for security purposes is also transferable to sustainability applications. That same data trail can demonstrate responsible sourcing, support EPR compliance reporting, or feed into digital product passport requirements as they develop under EU regulation,' explains Overstreet.

From a consumer-facing perspective, connected labels can also deliver targeted recycling guidance at the point of disposal. Rather than static on-pack symbols that may be confusing to consumers or may not reflect the recycling infrastructure in a specific region, a connected label could provide dynamic, location-relevant guidance.

Polytag, for example, provides brands with connected packaging technology that serves as consumer engagement and marketing tools and optimizes supply chain processes.
Alice Rackley, CEO of Polytag, says: ‘Traditionally, we have focused on the recycling and reuse opportunities unlocked with next-generation QR codes and invisible UV tags, to trace product and packaging through circular economies. However, brands that work with us are looking to unlock benefits across the entire lifecycle of a product, and DPPs are a significant area of opportunity for everyone moving into 2027 and beyond.’

Alice Rackley, CEO of Polytag

QR codes powered by GS1 enable product-level data to be delivered directly to consumers via a simple scan. The content is fully branded, easily updated and highly effective for communicating information on recycling, reuse and repair.

The use of invisible UV tags on packaging enables barcode-level tracing in recycling centers, unlocking rich, never-before-seen insights into the quantity of packaging being recycled.
‘This is helpful for many agents operating in the recycling circular economies today because what gets measured gets managed, and we need to see change in our lifetime. The introduction of EPR means that brands now have to contribute financially to the optimal end-of-life management of their packaging. Data and insights from Polytag are essential for this new legislation to be effective,’ Rackley explains.
With regulations such as DPPs and EPR evolving globally, Rackley urges brands to get started now, ‘because the opportunities are significant for brands that move first and unlock the marketing and customer communication benefits of on-pack QR codes built on global open standards.

Once the QR codes are included in your product and packaging artwork, you can evolve the content that they link to thanks to the flexible, customizable and interoperable tools available on your brand account on the Polytag platform.’

Challenges

Implementing connected packaging can bring several challenges, including high upfront costs, complex integration with legacy systems and large-scale data management. Data security and privacy risks are also significant, particularly when handling consumer data.

‘When we talk about AI in connected packaging, it has to be aligned with regulations like GDPR in Europe, alongside other global privacy standards. For me, that means ensuring clear opt-in mechanisms and being transparent about how consumer data is collected, used and managed. That trust piece is critical, especially when you’re building more personalized, data-driven experiences,’ Stanley explains.
Looking ahead, content management is also becoming a major challenge. With so many data points being generated, it quickly becomes a data problem, including organizing, updating, controlling and scaling content effectively.

‘At the same time, not every consumer is equally comfortable with technology, so it’s important to ask whether AI-led experiences are right for the audience you’re targeting,’ Stanley notes. ‘Some consumers will be highly tech-savvy and excited by these kinds of interactions, but others may feel hesitant. For example, it may not resonate with older audiences who might be less comfortable using features like opening their phone camera.’

Those are important points to consider, because the success of any connected packaging experience depends on how well it aligns with the needs and behaviors of the people it’s designed for.

As packaging and labels evolve into a true communication medium, this shift also applies to design. QR codes no longer need to be plain black-and-white squares hidden on the back of pack.

‘When they’re thoughtfully designed with a clear call to action, we can achieve scan rates of over 10 percent, which is significantly higher than typical digital click-through rates,’ Stanley says.

Overstreet of MM Pharma agrees: '"Fit for purpose" is a key challenge. A technology that works in a lab or pilot setting must be validated through real production conditions, including multiple packing processes, quality inspection systems, varying line speeds, and logistics handling. NFC tags, for example, must be embedded in a way that survives those processes without compromising functionality or the integrity of the packaging itself.'

That introduces a new kind of design challenge. Packaging needs to be designed to invite interaction while also making it easy for consumers to access and understand the product’s story and its recyclability.

One of the biggest hurdles is data management. When every unit carries a unique identifier, the volume and flow of data through the supply chain becomes complex quickly. Understanding how that data is captured, stored, transferred, and actioned at each stage, from production through to dispensing, requires careful planning upfront.

As consumer expectations and regulations evolve, the real opportunity lies in delivering meaningful, consumer-first experiences. Because in the end, the brands that win won’t be the ones using the most technology, but the ones using it most meaningfully.

Sunny leverages AI and connected packaging for consumer engagement

Cooking oil brand Sunny in the United Arab Emirates (UAE), owned by IFFCO, in partnership with Appetite Creative, launched a new AI-driven interactive smart packaging experience.

In a new campaign, ‘Keep it Smart, Keep it Sunny’, the brand highlights the benefits of using quality cooking oil. It shows customers how the product can save time in the kitchen, freeing them up to spend time with their family and friends.

The web app-based connected experience offers users the opportunity to play games to win prizes, learn new cooking hacks and take part in fun daily activities. The smart packaging campaign, accessed via QR codes, runs across three Sunny products, including Everyday, Crunch Lite and Sunflower.

‘With Sunny cooking oil in the UAE, consumers don’t just access nutritional information, they can explore AI-powered recipe suggestions based on ingredients they already have at home. They also get cooking tips, interactive content like games and a more immersive brand experience overall,’ Stanley explains.

The web app tracks real-time interaction, such as buying habits, product preferences, average engagement time, age, location, scan rate, page views, number of users, return users and social media shares, including GDPR-compliant personal data to enable the brand to optimize its marketing and better understand consumers.

The Sunny oil campaign delivered strong results, with 10.7k total pageviews and high engagement reflected in 11.43 views per visit. The bounce rate was a low 21 percent, indicating excellent retention, while the average visit duration reached 6 minutes and 46 seconds, one of the best recorded.

Connected packaging for accessibility

Connected packaging can unlock new applications and address everyday challenges in ways that were previously not considered.

For example, as QR codes evolve and become mainstream, applications are expanding across industries. Trimco Group partnered with Zappar to bring Zapvision Accessible QR codes to the apparel and footwear industry for people who are blind or have low vision.

Zappar provides the technology to create and manage accessible QR codes and product data, while Trimco integrates them directly into garment labels during manufacturing. For brands, it’s a low-friction shift: use QR codes as usual, with accessibility built in, without separate labels or symbols.

Accessibility entered the conversation through discussions on the upcoming Textile Labeling Regulation (TLR) revision. A key concern about digital labeling is that it may exclude certain consumers, such as the aging population in Europe, who are not comfortable with fully digital formats.

‘Traditional QR codes were designed for sighted users, so they assume you can see, align and scan the code precisely,’ says Max Dawes, chief operating officer at Zappar. For people who are blind or have low vision, QR codes create multiple barriers. There’s no guidance to locate them, limited scanning flexibility and no accessible way to deliver structured information. Accessible QR codes address this by improving scanability and linking to content that works seamlessly with VoiceOver and TalkBack via assistive apps.

As QR codes become a likely carrier for DPPs, these systems must be designed to work for all consumers from the start.
‘If accessibility isn’t built in at that stage, we risk recreating the same exclusion we see today with physical labels, just in a digital format. The opportunity right now is that the industry is still in transition. QR codes are being adopted at scale, so there’s a window to make them accessible by design before they become standard across billions of products,’ Dawes days.

Mjelde from Trimco Group, adds that the biggest challenge for accessible QR codes is awareness. ‘In the apparel and footwear industry, accessibility in connected packaging is still almost unknown. Other industries, such as food, are further ahead in this area. In fashion, the first step is really about socializing the concept, communicating that accessible QR technology exists and educating the industry on why it matters.’

Mjelde adds that Trimco sees interest in accessibility from some of the largest brands, particularly those with strong resources dedicated to digital product development, traceability and on-product digitalization. However, most brands are not yet requesting accessibility features, largely because many are still unaware that such technologies exist.

‘That is why Trimco is actively bringing this conversation to the industry together with Zappar, because we believe it is an important step as connected packaging evolves,’ Mjelde says. ‘We see two distinct mindsets emerging. Some brands view DPPs mainly as a regulatory cost, while others see the potential to elevate the consumer experience.’

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Akanksha Meena

Global Brands Editor

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Ocean plastics: From crisis to circularity

Piotr Wnuk — Mon, 20 Jul 2026 03:14:09 +0000

Sustainability 20 July 2026

Ocean plastics: From crisis to circularity

Plastic waste has long been an issue, but with increasing regulatory pressure, converters are being forced to adapt their sustainability strategies rather than ignore them.

Plastic has been shaping the world for more than 160 years. When British inventor Alexander Parkes patented the first artificial plastic in 1862, it was developed as a substitute for scarce natural materials such as tortoiseshell and ivory during the late Victorian period. At the time, it was seen as a solution that would preserve natural resources while enabling industrial progress.

In 1907, Leo Baekeland combined phenol and formaldehyde to create Bakelite, the first fully synthetic plastic. It was durable, heat-resistant and could be mass-produced. This marked the beginning of plastics as a cornerstone material of the modern economy.

Over the following decades, plastics became embedded in almost every industry, from automotive and electronics to healthcare and, crucially, packaging. The versatility, low cost and durability made it indispensable; however, those same properties have also made plastics one of the most persistent environmental challenges facing the planet today.

Just nine percent of all plastic ever produced has been recycled

Plastic waste is now being found at some of the deepest points in the ocean and even on the highest peaks on Earth. What was once considered a miracle material has become a symbol of poor waste management.

According to the Ellen MacArthur Foundation, the ocean could contain more plastic than fish by 2050 if current trends continue, as an estimated 13 million tons of plastic enter marine environments each year. This represents only a portion of the total plastic waste generated globally, with packaging accounting for a significant share.

Crucially, much of this plastic is not visible. Research from the European Investment Bank (EIB) suggests that around 95 percent of ocean plastics sink below the surface, settling on the seabed. This means the problem is far larger than what is visible on the surface and far more difficult to address once it reaches this stage.

A structural challenge

Despite growing awareness and increasing public concern, the global plastics system continues to favor the production of virgin material.

According to the EIB, around 95 percent of plastics are still made from fossil-based feedstocks, primarily because of cost. Producing virgin plastic remains cheaper and more efficient than collecting, sorting and recycling waste.

‘The structural cost premium and low recycling rates greatly influence the cost of collecting, sorting and recycling plastics,’ the EIB states. ‘The problem is aggravated by most recycling systems being small and decentralized.’

For the label and packaging industry, this creates a fundamental challenge. As one of the largest users of plastic materials, the sector is under increasing scrutiny from regulators, brands and consumers. At the same time, it must operate within tight cost margins and highly competitive markets.

Progress in recycling has been slow, though. Surfers Against Sewage estimates that just 9 percent of all plastic ever produced has been recycled. The rest has either been incinerated, sent to landfill or leaked into the environment.

While charitable organizations continue to play an important role in removing plastic from oceans, it is increasingly clear that clean-up efforts alone will not solve the problem. The focus is shifting toward preventing plastic from entering the environment in the first place and creating systems that enable materials to be reused effectively.

Turning waste to material

One company attempting to address this issue is UPM Raflatac. Its Ocean Action label range is designed to convert ocean-bound plastic waste into usable label material. Rather than retrieving plastic from the ocean itself, a process that is both costly and technically challenging, the company focuses on intercepting waste before it reaches marine environments.

The material is sourced from Asia, where waste management infrastructure is limited, and the risk of plastic entering waterways is high. This approach aims to tackle the problem at its source while also creating value from materials that would otherwise be lost.

The Ocean Action label can be used across a range of applications, including food, beverage and cosmetics packaging. However, there are some limitations. Currently, the labels are available only in white or clear top-coated polypropylene (PP) films, which may restrict their use in certain design applications.

Despite this, the benefits are significant. By using chemically-recycled material, the labels reduce reliance on virgin fossil-based materials. The products are also certified under the International Sustainability and Carbon Certification (ISCC) scheme, providing traceability and assurance for brand owners.

A4 Labels ocean clean up project

UPM Raflatac states that the recycled material is ‘identical to virgin plastic’ after processing. This involves a multi-step system that begins with collection and sorting, followed by chemical breakdown and rebuilding into a new polymer.

However, the wider sustainability picture is more complex. Plastics are not infinitely recyclable. Most polymers degrade after repeated processing, meaning they can typically be recycled only two or three times before quality declines.

To address this, recycled material is often blended with virgin polymer or additional recovered plastic. While this helps maintain performance, it raises questions about how ‘recycled’ a product truly is.

This brings transparency into focus. As brands increasingly promote the use of recycled materials, there is growing pressure to communicate the amount of recycled content in a product clearly.

Recycled PP

Across Europe, CCL Industries is taking a different approach: Focus on mechanically-recycled polypropylene (PP).

In collaboration with Innovia Films, Spectra Packaging, Bantam Materials UK and Petman, the company has helped develop what is described as the world’s first EU-approved food-safe recycled PP material.

Using Starlinger Viscotec technology, the process focuses on recovering post-consumer PP, particularly from used cups collected near coastal regions. The partners estimate that this technology could prevent up to 500 million PP cups from entering the ocean each year.

Marika Knorr, head of sustainability and communication at CCL, says: ‘These are not plastics that have been recovered from the ocean,’ she explains. ‘Controlled collection centers pay for used cups sourced from population centers near at-risk coastlines. Trained and registered collectors are paid, which provides local employment and prevents waste from being discarded into the environment.’

Ocean plastics

This model not only reduces environmental leakage but also creates economic opportunities in regions where waste collection infrastructure may be limited.

Initial testing showed that the recycled polymer performed well within Innovia’s production processes. Early batches of film contained around 35 percent recycled content, with further optimization underway.

‘Once we had the polymer, it was a matter of time to formulate films, run production trials and optimize our processes,’ Knorr says.

The partners believe the material has potential across a wide range of applications, including bottles, caps and food trays. However, challenges remain, particularly regarding visual appearance.

In transparent applications, minor imperfections can be visible, potentially affecting acceptance among brand owners.

Food safety and regulation

In the UK, regulatory bodies are taking a cautious approach. The Food Standards Agency (FSA) has stated that there is currently insufficient evidence to confirm the safety of certain recycled plastics derived from environmental waste when used in food packaging.

Dr James Cooper, deputy director of food policy at the FSA, notes: ‘Such initiatives, if carried out appropriately, can protect the environment while supporting innovation and economic growth.’ He further says: ‘However, our role is to ensure food is safe, and we have concerns over the safety of these plastics in their recycled form.’

Despite this, industry players remain confident that ongoing research and development will address these concerns over time.

Neil Hudson, technology expert at Innovia Films, describes access to EU-approved food-contact recycled PP as a ‘game changer’, enabling greater circularity in the food and beverage packaging sector.

The cost and adoption challenge

Cost remains one of the most significant barriers to the widespread adoption of recycled materials.

‘High-quality, mechanically recovered polymer is currently more expensive than virgin polymers made from fossil-based oil,’ says Knorr. However, she argues that this additional cost delivers environmental benefits, including reduced carbon emissions.

She describes the price increase as a ‘fractional’ uplift that offers good value in the context of sustainability.

Around 95 percent of plastics are still made from fossil-based feedstocks, primarily because of cost

Adoption across the industry remains uneven, though, and some companies are investing heavily in recycled materials and processes, while others are taking a more cautious approach.

‘Like any innovation, there are early adopters, and there are others who prefer to follow,’ Knorr says.

With the EU’s Packaging and Packaging Waste Regulation (PPWR) approaching,

this dynamic is expected to change. Companies that delay may face challenges in securing high-quality recycled materials as demand increases.

Designing for recyclability

In addition to material innovation, there is a growing focus on designing packaging for recyclability. This includes simplifying structures, reducing material combinations and moving towards mono-material options. By designing products with end-of-life considerations in mind, companies can improve the efficiency and effectiveness of recycling systems.

‘These initiatives throughout the value chain will increase the quality of recycled polymer,’ Knorr says.

For the label industry, this presents both challenges and opportunities, requiring new approaches to product design and material selection.

What experts say

It is not just consumer confusion about what plastic can and can’t be recycled, but also companies struggling due to an ever-changing regulatory landscape.

Martin Davis, former president of business unit films at Coveris, who now runs his own consultancy focused on sustainability strategy, highlights that it is a constant challenge to stay on top of the legislative framework and to integrate it into strategic decision-making.

‘The packaging industry has always been conscious of its sustainability responsibilities, but progress towards true circularity and the elimination of waste leaving the sector has been inconsistent,’ says Davis.

The introduction of Packaging Extended Producer Responsibility (PEPR) in the UK has, at its heart, the principle that the company that places packaging material on the market is responsible for covering the costs of collection, recycling and disposal of these materials. ‘This new and highly complex framework will understandably adapt and evolve over time. It should not be underestimated just how much time and resources businesses require to interpret and comply with its requirements. This is particularly challenging for SMEs,’ explains Davis.

PPP cups recycled to be converted to labels and packaging

There are also concerns about unintended consequences from the legislation in its current form, according to Davis. ‘An example would be fiber-rich products with a small element of non-fiber material below 15 percent of total product weight. These fiber-based composite materials, including some types of labels, are recyclable within existing mechanical facilities but have a much higher burden of EPR fees than equivalent harder-to-recycle alternatives, potentially risking non-optimal packaging material choices.’

Davis highlighted that a combination of stakeholder pressure, government legislation and the understanding that improving financial performance and driving sustainability are not mutually exclusive has accelerated progress here, notably post-Covid. An example of this is the Coveris ReCover dedicated recycling business, which includes a significant investment in a bespoke printed-film de-inking line.

‘The packaging sector is willing to step up regarding increasing recycling rates, and Coveris’ ReCover business is a great example,’ Davis says. ‘For example, the majority of end-of-life printed polyethylene packaging has either been incinerated, sent to landfill or downcycled into low-grade single-use applications. Coveris has invested in ground-breaking de-inking technology, which allows printed flexible PE film to be cleaned and reused, keeping it in the circular economy.’

Specifically, regarding plastic waste entering the marine environment, Davis highlights initiatives such as Operation Clean Sweep (OCS), the Ocean Plastics Charter and individual business activities such as ‘owning’ sections of UK beaches for cleaning as clear and positive steps forward.

As part of Operation Clean Sweep, packaging manufacturers are helping address ocean plastic pollution. This global initiative to prevent plastic resin loss into the environment is led in the UK by the British Plastics Federation (BPF). ‘Whilst a voluntary scheme, OCS has over 300 participating signatories in the UK. By joining the scheme, businesses are given tools and support to improve management of their pellet-form raw material and, in particular, provide practical ways of avoiding pellets finding their way into the environment in general and water courses in particular,’ explains Davis.

UK capacity for recycling

Davis also highlighted the importance of growing recycling capacity in the UK. ‘A key element of the EPR legislation is the aim to increase curbside collection of packaging waste significantly, managed under the ‘Simpler Recycling’ initiative. However, there is a misalignment between the planned growth in waste collection rates and the current UK recycling capacity. There simply isn’t enough capacity to recycle the collected waste at the levels planned, particularly regarding flexible plastic packaging.’

He highlights that, for several reasons, including adverse financial conditions for recycling businesses, 17 plastic reprocessing sites, with a combined capacity of 400,000 tons, have become nonoperational in the last three years (according to BPF estimates).

‘It is vital that this issue is acknowledged and addressed, and there are levers available such as targeted energy cost support, toughening enforcement against fraudulent actors in the space and directing elements of the income from areas such as EPR fees and the UK Plastics Packaging Tax into recycling.’

The penny has really dropped with packaging users and producers that improving financial performance, creating value for shareholders and driving true sustainability within their business model are no longer mutually exclusive

The risk is that, without sufficient UK recycling capacity, UK packaging waste will continue to be exported in large quantities for reprocessing, and with it comes the risk that this waste will not be reprocessed in an environmentally responsible manner. ‘Licenses for export reprocessing are meant to safeguard the outcome for UK packaging waste and avoid it causing environmental damage overseas. Practical oversight and auditing of overseas reprocessors is difficult and limited, says Davis.

‘The current system makes it too easy and attractive for waste to be exported without the necessary checks and balances to ensure the waste is reprocessed in an environmentally responsible manner. Reform of this system is a key element of ensuring UK recycling businesses are given a fair playing field, which in turn will assist the growth of UK recycling capacity.’

This is not just a UK problem. In 2023, 1.3 million tons of recyclable plastic waste were exported from the EU, a significant figure but accounting for just 15.3 percent of the total recyclable waste exported. The UK is considered the largest contributor to this in Europe, followed by Germany.

Recycled ocean plastics

Recycled plastic packaging and labels sound great in theory, but they have some practical drawbacks.

When recycling flexible plastic materials, the recyclate often shows slight discoloration.

While this doesn’t affect the product’s mechanical properties, it can affect the material’s visual appearance.

‘Recycled polyethylene can, in its flat film format, appear to have a deeper haze than material made exclusively from virgin materials,’ explains Davis. ‘Other traits can be a light discoloration, often shown as a green tinge. When major brand teams see this effect, they often assume it indicates a quality defect and are sometimes reluctant to use the material.’

Through multiple mechanical recycling cycles, this effect can become more pronounced.

‘If materials meet all technical, safety and performance requirements, the next step is a shift in mindset, from brands and retailers to consumers, with a willingness to accept small aesthetic deviations to continue to grow the use of recycled content.’

The big shift in business mindset is that sustainability is no longer considered a cost of doing business. Now it is an existential business driver.

Davis concludes: ‘The penny has really dropped with packaging users and producers that improving financial performance, creating value for shareholders and driving true sustainability within their business model are no longer mutually exclusive. They are inextricably linked now.’

As the pressure on PPWR and EPR in the UK increases, converters must become proactive sooner rather than later. Those who delay may be left behind.

The number of options for creating labels and packaging from sustainable materials like ocean plastics is growing, and even if the finished product has flaws, it might be time to overlook them and educate consumers about why a product’s branding has changed slightly due to recycled material and encourage them to embrace it instead of avoiding it.

Charitable efforts from UK converter

UK-based A4 Labels has pitched in over the past year to help tackle ocean plastics on the South coast of Britain and has also been testing UPM Raflatac’s Ocean Action labels. Charlie Hawker, managing director of A4 Labels, shares that the samples A4 Labels received had curled too much during the glassine liner process, and UPM was looking at kraft liner alternatives for them.

Although Hawker did share that this is common with glassine liners, as the ‘heat from the press just rolls it up like a telescope and makes application fiddly and difficult.’ He intends to use the labels on the company’s roll-label digital printers later this year.

During the 2025 cricket season, the company sponsored Portslade Cricket Club and incentivized batters to score more runs by clearing 1kg of plastic waste from the shores of Brighton and Hove for every 20 runs scored.

Hawker shares: ‘We wanted to bring something different to a traditional sponsorship.

A4 Labels with Portslade Cricket Clubs

‘Supporting Portslade Cricket Club meant we could back a fantastic local team while making a measurable difference to our oceans. Every boundary hit took us one step closer to a cleaner planet.’

This wasn’t the only recycling project A4 Labels focused on through 2025, though, as the business collected more than 2.25 tons in total.

Alongside charity Seven Clean Seas, the total amount of plastic removed from the ocean rose to 409kg, collected along 4.4km of the coastline, which is almost equivalent to 50 full-sized football (soccer) pitches.

A4 labels was founded in 2010 on the principle of sustainability by Hawker’s father, Colin Hawker, who saw an opportunity in a wasted sheet of labels. Now, the company provides labels worldwide. It also supplied labels to the NHS during the pandemic.

Charlie Hawker feels the issue of ocean plastics is close to his heart, as the A4 labels factory is situated a stone’s throw from the ocean in Brighton, and he can see the beach from his office, which is one reason the company feels so passionately about cleaning the ocean.

Charlie Hawker notes: ‘I thought it would be the perfect kind of partnership and cause to have that eco-effect that we were looking for, but something that actually is quite close to us, not just as a business, but as the individuals within the business as well.’

He further notes: ‘We try to have fun with social media, involving our customers with their designs so they can shout about it. We’ll give them a shout out, and they can see from every order, they’ll get an email from me of what percentage was donated from their order. How many kilos were collected and how many plastic bottles would that equate to?’

For this project, A4 labels worked with Seven Clean Seas but had previously worked with the Ocean Cleanup Project.

When asked about the ever‑encroaching PPWR, Charlie Hawker comments that he has not been focusing on this too much yet, but it is ‘on his radar,’ as he exports labels to the EU.

In the long run, Charlie Hawker hopes his company’s charitable escapade will inspire other label converters to play their part in tackling the issue of ocean plastics and intends to publish personalized stats for each of A4 Label’s clients to share with them how much of an impact their custom is having on the clean-up with Seven Clean Seas.

Despite the honorable effort from A4 Labels, Portslade Cricket Club and Seven Clean Seas, there are still millions of tons of plastic waste in the ocean, causing damage not only to the aquatic ecosystems but also to the human population, as microplastics are being found within seafood and other areas of the food chain.

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Will Drysdale

Europe Editor

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EcoVadis flags supply chain sustainability gap

Piotr Wnuk — Sun, 19 Jul 2026 23:27:37 +0000

Four out of five companies rated by EcoVadis have no documented process for identifying or managing sustainability risks within their own supply chains, according to the tenth edition of the EcoVadis Sustainability Ratings Index, drawn from nearly 200,000 scorecards of more than 100,000 companies rated globally between 2021 and 2025.

The report finds 73 percent of rated companies have no scope 3 upstream emissions reporting and 77 percent have no downstream tracking, while fewer than 1 percent report granular sustainability data to buyer organizations. Only 2 percent have an external grievance mechanism allowing workers deeper in the supply chain to flag human rights violations.

Within their own operations, rated companies are making progress. Environmental scores rose 9.6 points on average over four years, with the share of companies reaching Advanced+ status more than doubling from 17 percent in 2021 to 38 percent in 2025. Some 46 percent of rated suppliers now purchase or generate renewable energy. However, 78 percent have no science-based carbon reduction targets.

The report also highlights a data readiness problem for AI-powered procurement tools: 68 percent of corporate buyers have deployed AI in sustainable procurement programs, but 30 percent of suppliers provide no carbon data and 26 percent supply only aggregated estimates.

'Better software does not close that gap,' said Sylvain Guyoton, chief rating officer at EcoVadis. 'The measurement problem lives in the supply base itself, and closing it requires sustained engagement over time: structured assessment, scored performance, and documented follow-through.'

Companies with multiple EcoVadis ratings outperform first-time rated companies by 12 points on average, suggesting repeated engagement drives measurable improvement.

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Eighty percent of tier 1 suppliers have no process for managing sustainability risks downstream.

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Eighty percent of tier 1 suppliers have no process for managing sustainability risks downstream.

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Kanematsu launches Canon tech in Europe and MidEast

Selah Zighelboim — Tue, 14 Jul 2026 18:27:03 +0000

Kanematsu has launched Canon’s new color label printer models, the LG-P800 and the LX-D400, in the European and Middle Eastern markets via its network of distributors and partners.

The LG-P800 is an 8in, high-quality color label printer featuring new pigment ink and support for a variety of media. The LX-D400 is a 4in, high-speed model capable of printing at up to 330mm/sec. It offers enhanced usability through a 4.3in touch panel and an adjustable TOF sensor for various shapes of die-cut labels. These two new models are expected to be available beginning August 2026.

For Kanematsu, these products build on the company's market presence previously established with the Swiftcolor brand. Through its established distributor relationships and market development activities, Kanematsu will support the expansion of these new technologies across Europe and the Middle East.

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Kanematsu launches Canon tech in Europe and MidEast

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Kanematsu has launched Canon’s new color label printer models, the LG-P800 and the LX-D400.

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Kanematsu has launched Canon’s new color label printer models, the LG-P800 and the LX-D400.

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All Pack Yemen for Printing invests in Lombardi

Adyasha Sinha — Tue, 14 Jul 2026 12:12:30 +0000

All Pack Yemen for Printing has invested in a Lombardi Invicta i1 800. The installation marks another milestone in Lombardi's international expansion within the flexible packaging sector.

Beyond the commercial achievement, this installation carries a deeper meaning. In a region where geopolitical instability, supply chain challenges and uncertainty continue to influence industrial activities, investing in advanced manufacturing technology represents a clear commitment to resilience, long-term vision and business continuity.

Recent events affecting the Middle East and the strategic Strait of Hormuz have once again highlighted how global logistics and industrial supply chains can rapidly become more complex. Against this backdrop, the decision by All Pack Yemen for Printing to invest in Lombardi technology demonstrates the determination of converters to continue innovating despite an increasingly challenging international environment.

The Invicta i1 800 has been developed to meet the growing demands of modern flexible packaging production. Fully servo-driven and engineered for maximum precision and repeatability, the press combines high productivity with good print quality across a wide range of substrates. Its modular architecture allows converters to configure the machine according to evolving market requirements while maintaining the flexibility needed for increasingly diversified production.

'Every machine we deliver tells a story,' said Nicola Lombardi, marketing manager at Lombardi Converting Machinery. 'This installation is about much more than a new production line. It reflects the confidence our customers place in Italian engineering and their willingness to continue investing, innovating, and looking ahead even during periods of global uncertainty. This is precisely the kind of resilience that continues to move our industry forward.'

Designed and manufactured in Italy, the Invicta i1 platform has established itself as one of Lombardi's flagship technologies for the flexible packaging market, combining robust engineering, automation, fast job changeovers and outstanding production consistency.

The new installation further strengthens Lombardi's footprint across the Middle East, confirming the company's commitment to supporting converters worldwide with advanced printing solutions capable of delivering both productivity and long-term competitiveness.

As global markets continue to evolve, Lombardi remains focused on developing technologies that enable customers not only to overcome today's challenges but also to seize tomorrow's opportunities.

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All Pack Yemen for Printing invests in Lombardi

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The new installation further strengthens Lombardi's footprint across the Middle East.

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