Market trends

Navigating PPWR: What it means for label manufacturers

Akanksha Meena — Fri, 01 Aug 2025 06:14:47 +0000

Sustainability 04 August 2025

Navigating PPWR: What it means for label manufacturers

The EU’s Packaging and Packaging Waste Regulation
(PPWR) is set to reshape the label industry, pushing
the entire supply chain.

The EU’s Packaging and Packaging Waste Regulation
(PPWR) is set to reshape the label industry, pushing
the entire supply chain toward stricter sustainability,
recyclability and reuse standards.

The EU’s Packaging and Packaging Waste Regulation (PPWR) is central to the European Commission’s circular economy agenda, impacting the entire packaging supply chain, including labels. Though labels may seem a small part of the entire package, they play a crucial role in determining packaging sustainability.

The regulation is built on five pillars: recyclability, compostability, recycled content, packaging reuse and eco-modulation, commonly known as extended producer responsibility (EPR).

These pillars will increasingly shape how packaging is designed, labeled and managed across the EU.

Before diving into the key aspects of PPWR, it is important to consider what is and is not considered packaging under this new regulation. PPWR defines packaging as any tangible item used to contain, protect, handle, deliver or present a product from one economic operator to another, including to consumers.

Pablo Englebienne, regulatory affairs and sustainability manager at Finat, discussed this in a recent Finat webinar.

‘It is clear that labels are considered packaging, particularly when they are attached to another product or piece of packaging, such as a PET bottle or a piece of clothing,’ he says. ‘Sleeves and labels applied directly to products are also classified as packaging, as are the cores used to wind flexible materials when sold as consumer units.’

Englebienne continues: ‘However, unprinted labelstock and large cores used in production machinery are not considered packaging, as they serve manufacturing, not consumer functions. RFID tags are explicitly not classified as packaging.’

Masterpress’ TINE 300g Dairy Cup Sleeve won AWA’s Environmental category award for its low-density mono-material like polyolefin shrink sleeve, enabling easier recycling

Some areas remain unclear, particularly regarding release liners. In some EU member states, release liners holding printed labels are considered packaging, but there is no universal agreement yet.

Discussions with the European Commission are ongoing to clarify this.

With this understanding, the article examines how PPWR impacts label design, material choices and compliance strategies across the packaging supply chain.

Recyclability by design

At the heart of PPWR is a commitment to design packaging that can be recycled into high-quality secondary raw materials.

PPWR requires all packaging on the market to be recyclable. It must be designed for quality material recycling, and be able to be collected, sorted and recycled at scale without affecting other waste streams.

Starting in 2030, packaging will be evaluated to ensure recycled materials can replace primary raw materials.

Each type of packaging will be judged using specific rules and measurements set by the EU. Based on this, packaging will be given a recyclability grade of A, B or C. Packaging must be at least 95 percent recyclable for Grade A. For Grade B, it must be at least 80 percent recyclable. If the packaging scores below 70 percent, it will be marked as non-recyclable and won’t be allowed on the market.

By 2035, the European Commission may review the minimum requirements based on how sorting and recycling technologies have improved. It may also consider updating the recycling thresholds.

If necessary, the Commission can suggest a new law to change these thresholds.

Material choices for labels and packaging will be key for compliance and costs. The most compatible PSL solutions are those that can be removed during grinding or wash-off recycling

From 2038, only packaging with grades A or B will be allowed, further tightening the requirements.

This has raised the stakes for label manufacturers, who must now consider how their products influence the recyclability of entire packaging systems.

Englebienne explains: ‘The label or sleeve used on packaging, the properties of closures and adhesives, the colors, material composition, presence of barriers, inks, coatings and the printing method, all of these factors will influence the final recyclability performance grade and score.

‘Another important point is that EPR fees, which manufacturers must pay to place packaging on the market, will be adjusted based on the packaging’s recyclability score. This gives manufacturers a strong incentive to maximize the recyclability of their packaging.’

These changes will have significant implications for most label and packaging types, including shrink sleeves, pressure-sensitive labels (PSL), wraparound labels, in-mold labels and flexible packaging.

Says Suvi Rasa, sustainability manager at UPM Raflatac: ‘All packaging in the EU must be designed for recycling. Plastic parts over 5 percent of the total weight must include recycled content. Material choices for labels and packaging will be key for compliance and costs. The most compatible PSL solutions can typically be removed during grinding or wash-off plastic recycling.’

Adds Gabriela Neves Ferri, All4Labels vice president of global R&D and sustainability: ‘When designing packaging, brands must ensure that labels do not compromise the recyclability of the bottle, cap or container. As a label converter, All4Labels assists brands in creating labels that adhere to recycling guidelines.’

The PPWR’s emphasis on recyclability and reusability will drive innovation in label materials and adhesives. Pressure-sensitive labels must be developed with adhesives that allow for easy removal during recycling. Wash-off labels will gain ground as it becomes crucial to separate labels in the recycling process.

Shrink-sleeve labels may require redesigning to ensure they do not hinder the recyclability of the packaging. By reducing waste, linerless labels align well with the PPWR’s goals, and we may see increased adoption as a result.

We’re also seeing more interest in mono-material flexible packaging, like all-PE or all-PP laminates, which are easier to recycle

All4Labels is investing heavily in its Starflake range to ensure label removal in PET recycling, and Starfloat for recyclable shrink sleeves. Similarly, UPM is advancing recyclability and reuse with innovations such as its Carbon Action plastic films and New Wave paper labels, designed to maintain functionality while supporting recycling goals.

Inks and adhesives

Beyond substrates, PPWR is driving a closer examination of inks, coatings and adhesives. These critical components influence the recyclability of packaging and support a circular economy.

‘PPWR emphasizes recyclability, which requires inks that can be removed during the processes without compromising the quality of the recycled material,’ explains Renee Schouten, vice president of marketing at INX International Ink. ‘This requires a balance between strong adhesion during the product’s life and easy de-inking during recycling. INX addresses this by formulating inks that adhere well to various substrates during use but can be efficiently removed during the recycling process to support a circular economy.’

UPM’s New Wave paper labels have been developed to offer enhanced recyclability, without compromising on functionality

The regulation is already inspiring broader innovation in ink systems. ‘This includes formulating inks with renewable, natural-based raw materials from ethical and sustainably managed sources and ensuring minimal environmental impact without compromising performance. There is also a focus on creating inks that facilitate recycling processes, such as washable inks which can be easily removed during recycling,’ says Schouten.

However, this dual requirement of strong performance and easy recyclability poses technical challenges, particularly in applications such as shrink sleeves.

Demand for compostable label materials is limited and mostly tied to specific applications. Design for recycling guidelines favor recyclable mono-material labels over compostables

‘With shrink sleeves, the challenge includes creating inks that adhere during use, but also can be efficiently removed during recycling,’ Schouten adds.

There is also a growing shift toward water-based and UV inks, which emit fewer volatile organic compounds (VOCs) and better align with PPWR’s environmental focus than traditional solvent-based alternatives. This aligns with a mandate to reduce harmful substances that could impact health, the environment or recycling processes, such as microplastics or toxic emissions from disposal.

Minimum recycled content

A major shift under PPWR is the mandated use of recycled plastic content.

Any plastic packaging component should contain a minimum percentage of recycled content recovered from post-consumer plastic waste to reduce dependence on virgin materials and increase demand for high-quality recycled materials.

The minimum recycled content requirement is 30 percent for food contact-sensitive packaging primarily made from PET, excluding single-use plastic beverage bottles; 10 percent for contact-sensitive packaging made from other plastic materials, also excluding single-use plastic beverage bottles; 30 percent for single-use plastic beverage bottles; and 35 percent for all other plastic packaging not covered by the previous categories.

These requirements will increase respectively from 2040.

‘This requirement is calculated and reported based on packaging type and format, averaged annually per manufacturing plant. It does not mean that every piece of packaging must meet the threshold. Compliance is assessed annually across the plant’s total production,’ Englebienne explains.

Exemptions apply to medical, pharmaceutical and infant food packaging, compostable plastics, dangerous goods transport, and small plastic parts under 5 percent of total pack weight.

‘This raised questions about labels, which are typically lightweight but can sometimes exceed 5 percent,’ Englebienne highlights. ‘In a webinar held last December, the European Commission indicated that labels are exempt from recycled content requirements, though the legal basis remains unclear. It is also uncertain whether this exemption extends to sleeves, and further clarification from the Commission is still pending.’

Floatable shrink sleeves aid PET recycling, but requiring PCR content in all components is difficult when some polymers lack food-grade PCR versions

This presents both an opportunity and a challenge for label producers. While it boosts demand for recycled content, the market for high-quality, food-safe PCR (post-consumer recycled) materials is still limited.

‘A key challenge is using recycled materials in contact-sensitive applications due to contamination risks,’ explains UPM’s Rasa. ‘Chemical recycling offers a safer option but remains limited and costly. Ensuring a stable supply of high-quality recycled materials and gaining regulatory clarity on acceptance of chemical recycling will be crucial for scaling sustainable solutions.’

Finally, recycled material must be recovered according to EU rules, even if sourced outside the EU. Third-party auditing and full traceability of the chain of custody are required for compliance with recycled content requirements.

Additionally, specific environmental claims related to recycled content must meet separate criteria, detailed in upcoming reports, including for bio-based plastics. An environmental claim under the PPWR can only be made if it exceeds what the law already requires.

‘For example, if 30 percent recycled content is the minimum legal requirement, a company cannot promote its packaging as having “30 percent recycled content”. Additionally, any claim must clearly state what it applies to, whether it’s the entire packaging, just part of it [such as the bottle], or an average across all packaging placed on the market,’ Englebienne explains.

Mono-materials

As PPWR pushes for design for recycling, mono-material packaging is gaining momentum. These materials simplify the sorting process and reduce the risk of contamination during recycling.

While paper remains a popular choice, especially for its visual and tactile appeal, brands are increasingly turning to mono polyolefin-based materials such as polypropylene (PP) and polyethylene (PE).

These substrates are more compatible with existing recycling streams for both rigid and flexible plastics and align closely with design-for-recycling (DfR) guidelines from organizations such as RecyClass.

‘Mixed materials can cause contamination and downcycling, whereas mono-material labels enhance sorting and improve the quality of recycled materials,’ says Ferri. ‘We’re also seeing more interest in mono-material flexible packaging, like all-PE or all-PP laminates, which are easier to recycle.’

These mono-materials support closed-loop recycling and perform well in diverse packaging formats.

‘These labels can be recycled with the bottles as they are released during the recycling process. We also advocate for mono-materials in laminate tubes and flexible packaging, which improve recycling efficiency while maintaining functionality and shelf life,’ adds All4Labels’ Ferri.

UPM’s linerless labels support reuse systems by minimizing waste and optimizing efficiency

However, the shift toward mono-materials is complex and application-specific. UPM’s Rasa notes that adoption varies across markets and use cases.

‘In some applications, a mono-material approach is the preferred solution to improve recyclability. However, there is still demand for paper labels on plastic packaging. According to DfR guidelines and industry experience, recyclers can effectively process plastic packaging with paper labels. Not surprisingly, this means that while mono-materials are gaining traction, paper labels remain a viable option when designed with recycling compatibility in mind. Ultimately, the shift towards mono-material labels will depend on application requirements, the evolving recycling infrastructure and the forthcoming DfR criteria and recyclability grading.’

The transition also faces infrastructural challenges. Flexible packaging still faces collection challenges in many EU countries and often ends up in mixed waste. Without harmonized collection systems, even the most sustainable materials may not be properly recovered.

Compostable materials

While recyclability dominates the regulation, the PPWR does acknowledge compostable labels in specific cases. One standout example is fresh produce: sticky labels on fruits and vegetables must now be industrially compostable, and possibly home compostable, depending on the member state.

Countries with systems for collecting compostable packaging with food waste may require certain packaging (like non-metallic bags and other pre-approved items) to be compostable.

All other biodegradable packaging must be designed for material recycling, not composting, without affecting the recyclability of the waste stream.

The European Commission may later propose adding more packaging types to the compostable list, based on new technologies or regulations.

Still, compostable labels remain a niche and highly application specific. ‘Demand for compostable label materials is limited and mostly tied to specific applications,’ Ferri says. ‘Design for recycling guidelines favor recyclable mono-material labels over compostables. However, compostable labels are useful for organic and fresh food packaging when paired with compostable primary materials like PLA or paper wraps.’

All4Labels provides bio-based materials through its Starnature portfolio, which includes fully compostable options and bio-based materials.

Harmonized labeling

To boost consumer participation in recycling and support more consistent waste management across the EU, the PPWR is introducing harmonized labeling regulations. These labels must present information in a simple and accessible form, ensuring even individuals with disabilities can easily understand disposal instructions.

Labels must clearly indicate if the packaging is home compostable, and in cases where packaging contains substances of concern, standardized markings must be used. Businesses are encouraged to include QR codes or other digital markers to help consumers correctly sort packaging components. These technologies must be robustly applied and remain legible throughout the packaging’s lifecycle.

These requirements do not apply to transport packaging or items included in a formal deposit return system. The new harmonized labeling system will use a combination of symbols and color coding to help consumers easily identify how to dispose of or recycle the packaging properly.

‘Digital technologies like RFID and intelligent labeling can enhance

traceability and transparency in the supply chain, aiding compliance with PPWR mandates,’ says Mathieu De Backer, vice president, innovation and sustainability, Avery Dennison Smartrac. ‘These technologies enable better tracking of packaging materials, ensuring proper sorting and recycling.’

Packaging minimization and reuse

In line with PPWR’s packaging minimization mandate, labels are also being re-evaluated for size and format. The regulation forbids packaging designed to create the illusion of a larger product. False bottoms, double layers or excessive fillers are no longer allowed.

Reusable packaging placed on the market must meet specific requirements.

It should be designed for maximum use, durable under normal use, safe, hygienic and maintain product quality through reuse. It must also support labels that provide information on the properties of that product and on the packaging itself, including any relevant instructions and information for ensuring safety, adequate use, traceability and shelf-life of the product and safe handling, and be recyclable after final use.

A key point to highlight is the reuse targets for alcoholic and non-alcoholic beverages (excluding wine and dairy), such as soft drinks and bottled water.

These products must meet a 10 percent reuse target by 2030, reaching 40 percent by 2040. This will impact label requirements for reusable packaging by 2027.

Smart labels play a critical role in implementing deposit return schemes (DRS). Labels equipped with machine readable barcodes, QR codes or RFID tags allow reverse vending machines (RVMs) and sorting facilities to recognize and process returnable packaging accurately.

For refillable or returnable packaging, such as glass bottles, labels must strike a balance between durability and removability. They need to survive multiple use cycles without compromising the container while leaving zero residue when removed.

Compliance and EPR

Under this legislation, producers are responsible for the entire lifecycle of their packaging, including its design, collection and disposal. This shift is intended to remove some of the burden traditionally placed on consumers and local governments, transferring accountability to those placing packaging on the market.

To demonstrate compliance with the PPWR, responsibilities are divided across the supply chain.

Brand owners must ensure their packaging meets PPWR requirements and must prepare a declaration of conformity detailing the packaging’s design, manufacturing and markings.

Suppliers of packaging and materials must provide brand owners with the necessary information and documentation to support this compliance.

UPM’s Carbon Action plastic fi lm is designed to reduce the carbon footprint of packaging and enhance circularity throughout the value chain.

This information can be shared either on paper or electronically, with commercially sensitive details remaining confidential.

In addition, EPR rules will be harmonized. Producers must register their packaging in each EU member state where it is placed on the market and may appoint a representative for compliance purposes. Reporting requirements will be streamlined across the 27 member states to simplify the process.

EPR fees may also be adjusted based on the packaging’s recyclability performance grade and the amount of recycled content. Producers are urged to develop packaging that is easier to sort, recycle or reuse. Non-compliance with recyclability and sustainability standards may result in penalties, restricted access to markets, or increased EPR fees.

Collaboration

One of the recurring themes from industry leaders is the importance of cross-sector collaboration. Label manufacturers, ink formulators, brands, recyclers and policymakers must all work together to create a compliant, circular economy.

‘The biggest challenge in ensuring compliance with the PPWR is that proactive engagement and close collaboration are required across the entire label value chain,’ Rasa shares. ‘Many critical details, such as the Design for Recycling criteria, the eco-modulation fee calculations, and the verification method of recycled content in plastic packaging, will be defined in secondary legislation.’

The evolving regulations present potential for innovation, but the rapid implementation timeline is a concern.

‘Continuous monitoring of secondary legislation development and strong value chain collaboration will be essential to successfully meet the challenges posed by this regulation,’ Rasa adds.

The PPWR aims to drive innovation by setting ambitious targets, encouraging material testing and development, and pushing producers to rethink packaging through use of EPR measures.

Digital innovation, sustainable materials and circular design will shape the next generation of labels, supporting recyclable packaging and more efficient waste management across Europe.

How does PPWR impact label manufacturers?

Different label types face their own unique challenges under PPWR. The regulation prioritizes design for recycling, with materials minimization and facilitating effective sorting to allow allowing for clean recyclate recovery.

‘With PSL, there are two main areas of focus,’ explains Gabriel Magdaleno, strategic product management and marketing director, Masterpress. ‘One is releasable adhesives. The label should come off so as not to contaminate the recyclate. The second is moving away from fiber loss-based paper labels, which can disrupt recycling. Non-fiber-based labels (such as PP or PE labels) and “non-fiber loss” paper labels are the preferred pressure-sensitive label materials to promote cleaner recycling.’

There is also an increasing focus on minimizing material usage. In the case of PSL, preference might shift to thinner liners and face materials. The key is how the industry can downgauge material as much as possible while maintaining container functionality and efficiency in the production line.

Shrink sleeves also require careful design. A full-body sleeve could contribute to a plastic bottle to be misidentified and improperly sorted into the wrong plastic polymer stream.

For instance, on a polypropylene dairy cup, a PP-based shrink sleeve ensures compatibility with the recycling stream.

In contrast, for PET bottles, ‘you need a floatable shrink sleeve that allows for label separation and easy identification of the PET substrate. In this case, a partial-body label could help determine that it is a PET bottle,’ Magdaleno explains.

PPWR’s push for post-consumer recycled (PCR) content adds challenges, as not all plastics, especially polyolefins like PE, have readily available PCR versions.

Magdaleno explains: ‘While PET recycling is more advanced, challenges remain. Floatable shrink sleeves aid PET recycling, but requiring PCR content in all components is difficult when some polymers lack food-grade PCR versions. Even for indirect food contact, producers expect labels and inks to meet strict food-contact and low-migration standards.’

This also puts pressure on European plastic suppliers. Many materials currently come from outside the EU, and the proposed ‘mirror clause’ would require imported plastics to meet EU standards, which could further complicate supply chains.

Another pressing concern is the lack of finalized recycling guidelines under PPWR. While tools like RecyClass exist, they aren’t yet formally included in the regulation.

‘We’re still waiting for the official design-for-recycling criteria, which we expect in 2027. Until then, we have to be ready with multiple solutions, even though we don’t know which way the regulation will go,’ Magdaleno explains. ‘It creates a lot of uncertainty for us and for brand owners.’

This regulatory ambiguity also impacts discussions around whether labels will be considered part of the packaging that must include recycled content, especially since they’re often removed during the recycling process.

Magdaleno adds that label specification is often overlooked in early packaging design. ‘If we’re involved sooner, we can ensure container and label choices align for both compliance and performance.’

How does PPWR impact brands?

The last decade has seen progress on label sustainability, recyclability and waste minimization.

However, as Simona Camilli, sustainability manager at AIM – European Brands Association, notes: ‘Now we have concrete targets that we need to comply with in this new legislation. This requires urgent and deep coordination across the supply chain, from packaging manufacturers to recyclers.’

One of the biggest concerns for brand owners is the lack of clarity and predictability in how these regulations will be implemented. ‘We need to have predictability and also adequate notice of timing,’ Camilli says, stressing that packaging design changes often take up to two years to complete, making it vital for the industry to have clear, actionable guidelines upfront.

She also notes the challenge of harmonizing labeling across EU member states: ‘We need to have a pictogram system. We cannot have translation; that’s when we have the crowded packaging.’ Without harmonization, brands may face the burden of producing market-specific labels, which is costly and has its own environmental impacts.

There are also concerns around colored pictograms. ‘While appealing in theory, they present real challenges in practice, particularly in printing, where additional colors may not be compatible with existing packaging palettes,’ she adds.
Camilli highlights the growing demand for digital tools and traceability technology that can help brands comply with overlapping regulations.

‘There is a vast volume of information that brand owners are now required to manage and share across the entire value chain, as well as with consumers and market surveillance authorities. As a result, it’s crucial for them to assess whether their current tools are still fit for purpose, or if more efficient and suitable solutions are available.’

She adds that it's essential to recognize the technical and operational realities within current packaging production processes. PPWR is a flagship regulation with ambitious sustainability goals, but success depends on a realistic and workable implementation. ‘This includes allowing adequate lead times; changes cannot be expected within a year. At a minimum, the industry needs two years, if not more, to make the necessary adjustments without disruption,’ she concludes.

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Akanksha Meena

Global Brands Editor

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Folding cartons come to Labelexpo Europe

Adyasha Sinha — Fri, 01 Aug 2025 07:14:26 +0000

Folding cartons 01 August 2025

Folding cartons come to Labelexpo Europe

From 2025, Labelexpo Europe will be expanded to include folding carton technology.

Labelexpo Europe 2025, to be held in Barcelona from September 16-19, will now include folding carton technology alongside labels and flexible packaging.

This looks like a big change for the show, but it is, in fact, more of a natural evolution based on in-line and digital technologies that look to disrupt the traditional folding carton industry in much the same way they did with flexible packaging.

Throughout its history, Labelexpo has constantly adapted to new package printing technologies. The early Labelexpo shows, starting in 1980 in Brussels, focused on new technology for self-adhesive labels converted in-line on narrow web presses.

As labels expanded into new formats, such as shrink sleeves, wraparound and in-mold labels, Labelexpo adapted to showcase these technologies.

The next major evolution for Labelexpo was the addition of flexible packaging, which happened around a decade ago with the launch of the 30in wide HP Indigo 20000 digital press.

Flexo press manufacturers developed wider ‘mid-web’ presses in the 26-30in (670-800mm) range, better adapted to handling these larger packaging formats.

Label converters who diversified into flexible packaging — typically stand-up pouches —found this opened up new market opportunities, strengthening their label businesses.

We are now seeing a similar convergence of print technologies between labels and folding cartons, which has the potential to open up new markets for label converters and other market disruptors.

Converging technologies

Today, folding cartons are overwhelmingly printed sheet-fed offset, followed by creasing and die-cutting, hot stamping and embossing. These multiple process steps add lead time and create a lot of work-in-progress (WIP) as pallets are moved between workstations.

“We are now seeing a similar convergence of print technologies between labels and folding cartons with the potential to open up new markets for label converters and other market disruptors”

Core Labelexpo technologies — in-line flexo, rotary offset, digital and hybrid — could revolutionize this traditional workflow.

In-line flexo, rotary offset and hybrid presses allow the processing of folding cartons in a single pass from printing and coating to cut-crease and sheeting, eliminating the work-in-progress associated with a sheet-fed offset workflow.

Of course, additional process steps can be added in-line, such as screen printing, foiling, embossing and VDP/numbering. The finished cartons are immediately ready for shipping or further processing on folder-gluer machinery.

This workflow will be demonstrated at Labelexpo Europe 2025 by Edale, now owned by Canon. The company will bring an FL5 Carton Production Line to the show, featuring in-line semi-rotary flatbed die-cutting.

In other carton-related developments, Tec-ni-Fold launches an in-line creasing module for in-line presses, and Rotatek shows a print station from its Universal 850 rotary offset press, which is specified for folding cartons.

There is also a wide range of existing exhibitors like Bobst, Omet, Sappi and more, who also supply to the folding carton market.

Digital and hybrid

Digital printing has enormous potential for short-run and personalized folding carton production. In 2013, HP Indigo demonstrated a folding carton line built around a Tresu coater and a 30000 digital press (today the 35k), with partner Kama demonstrating half-size die-cut/creasing and Highcon demonstrating laser converting.

Recently, HP announced the sale of an HP Indigo 35k digital press to label converter Altro Industries in Canada. The company can now sell PS and shrink sleeve labels, folding cartons and packaging tapes.

Canadian label converter Altro moves into folding cartons with HP Indigo 35k

Interesting developments have also been made in water-based inkjet for folding cartons. Mark Andy’s executive vice president, Tom Cavalco, says the company is actively considering how to apply its hybrid UV inkjet platform to the folding carton market.

Labelexpo could speed the adoption of digital printing in the folding carton market, just as it did for labels and flexible packaging.

The addition of folding cartons to Labelexpo is also likely to galvanize developments in short-run converting systems and digital embellishment. For example, Prati showed during an open house event in 2022 a Digifast20000 carton converting line that allowed users of HP Indigo’s 20000/25k press to switch between flexible packaging and folding carton production on the same finishing machine. The Digifast20000 was fitted with a dual UV/hot air drying flexo coating station to handle UV or water-based coatings for the food industry.

Prati’s DigiFast 20000 adapted to handle folding cartons

We should also not forget that, by far, the biggest volumes of wet glue labels and in-mold labels are printed on sheet-fed offset presses. One result of bringing folding cartons into Labelexpo will be an increased focus on the high levels of automation on these presses and new in-line coating and foiling systems on sheet-fed offset presses.

Common themes

In addition to overlapping print technologies, wider themes unite labels, flexible packaging and folding carton converters at Labelexpo.

Sustainability is a key one, driven by the EU’s looming PPWR initiative. Labelexpo Europe 2025 will examine these trends at a feature area on the show floor, with daily presentations and interactive exhibits.

Sustainability issues are pushing many brands to consider moving from plastics to technical paper and fiberboard-based packaging formats. However, a major issue is barrier protection, which usually means non-recyclable laminations with aluminum or PE. This is addressed by Labelexpo exhibitors such as Actega, which will show samples of its barrier coating technology.

Automation is another common theme. Labelexpo exhibitors already demonstrate process automation software and robotics systems, focusing on end-of-line material handling. The addition of folding cartons will no doubt expand this area of the show.

The future

What might persuade a folding carton converter to visit Labelexpo? One would suspect the same reasons flexible packaging converters now visit the show: a general interest in visiting co-suppliers, and a general interest in new print and decorative technologies.

“At Labelexpo Europe 2023, over 25 percent of visitors registered expressed an interest in folding carton technology. This demonstrates that Labelexpo has transformed into a package printing show, albeit with labels at its core”

Also, with the entry of private equity finance into the packaging sector, we are seeing more large converting groups that include labels, flexible packaging and folding carton operations.

Minnesota-based Meyers is a recent example of this. The family-owned converter has added to its folding carton capacity with the acquisition of Mankato Packaging.

Michael Dillon, chief revenue officer and co-owner of Meyers, says: ‘We’ve built a strong partnership with Mankato Packaging in recent months, and we’re excited to take this next step together. We’ve long respected their contributions to the packaging industry and see this as a great opportunity to expand the value we deliver—especially in the folding cartons space. It’s a meaningful move in our continued commitment to sustainable, high-quality packaging and long-term client partnerships.’

This is reflected in a growing visitor interest in both flexible packaging and folding cartons. At Labelexpo Europe 2023, over 25 percent of visitors registered expressed an interest in folding carton technology and 40 percent in flexible packaging. This demonstrates that Labelexpo has transformed into a package printing show, albeit with labels at its core.

Labelexpo visitors registering interest in folding cartons

Labelexpo Europe 2025 will be a ‘soft launch’ for folding cartons. By 2027, we expect folding cartons to be fully integrated into the show.

Folding Carton Master Class at Labelexpo
The Label Academy will host a half-day Master Class at Labelexpo Europe 2025 in Barcelona. The Master Class is targeted at label converters who are looking at diversifying into folding cartons using in-line flexo/rotary offset, digital or hybrid presses.

The class covers an introduction to the folding carton market, production challenges and possibilities with the in-line flexo, digital and hybrid presses; developments in materials including barrier coatings, converting technology for cutting and creasing and folder gluers. The Master Class finishes with a case study of a label converter making the transition to folding cartons on an in-line flexo press.

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Andy Thomas

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UPM Adhesive Materials expands in North America

Akanksha Meena — Fri, 25 Jul 2025 10:26:05 +0000

UPM Adhesive Materials, formerly known as UPM Raflatac, has plans to increase its production capacity in the high-growth market for advanced labels with an investment in its factory in Mills River, North Carolina, USA.

UPM Adhesive Materials plans to implement new proprietary coating technology at its Mills River factory, which will significantly increase its capacity for high-value advanced label materials. This will enable the company to capture new business and increase its share of this growing market. Advanced label materials are used in markets such as wine and spirits, industrial, pharmaceuticals and postal.

‘This investment in new coating technology will enable us and our customers to benefit from new capabilities in advanced label material production,’ said Brinder Gill, senior vice president, Americas, UPM Adhesive Materials. ‘Additionally, it will bring advanced label production closer to our customers in the Americas, enabling us to service them more effectively.’

The Mills River factory has been producing pressure-sensitive label materials under the Raflatac brand for over 25 years. The factory will continue to service UPM customers with high-quality paper and film label materials, in addition to advanced label materials.

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UPM Adhesive Materials expands in North America

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The company plans to increase its capacity for high-value advanced label materials significantly in Mills River, North Carolina, USA.

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The company plans to increase its capacity for high-value advanced label materials significantly in Mills River, North Carolina, USA.

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AWA releases 2025 Specialty Papers Market Report

Piotr Wnuk — Mon, 14 Jul 2025 22:47:00 +0000

Market intelligence company AWA Alexander Watson Associates has released the 2025 edition of its Specialty Papers and Paperboards Market Report.

The 11th edition of the report has delivered updated analysis of the global specialty papers and paperboards market, highlighting the diversity of grades and applications and structural shifts occurring across the value chain.

According to the report, the specialty paper industry has faced challenges in recent years from elevated raw material and energy costs, global supply chain disruptions and short-term demand surges. A period of slower growth emerged in late 2023 and into 2024, driven by economic uncertainty, inflationary pressure and inventory adjustments downstream.

'This year's edition of the report explores how these dynamics have reshaped the market and where new opportunities are now emerging,' said the company in a statement.

The report includes market sizing and trends by segment and grade, regional developments in production and consumption, profiles of key producers and production sites worldwide, forecasts through 2027 for global specialty paper markets and analysis of structural changes.

Additional features examine the range of grades and applications, navigation of challenges and unlocking of new opportunities, plus insights into the rapidly evolving market landscape

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Adyasha Sinha — Mon, 14 Jul 2025 10:41:23 +0000

All4Labels Global Packaging Group has reorganized its internal structure to serve the evolving needs of its customers better. The new organizational model is driven by end-market and rooted in P&L accountability and market proximity.

The group has cultivated specialized and diverse expertise across regions and market sectors, enabling it to anticipate trends and respond effectively to industry-specific challenges. This foundation sets the stage for the transformation ahead, as All4Labels shifts towards a model that brings it even closer to its customers' needs.

The new organizational set-up aligns the group’s internal structure with external market dynamics, enabling faster response times, more profound industry expertise, and more reliable end-to-end delivery. By shifting to an end-market-driven approach, All4Labels is positioning itself to offer integrated market solutions tailored to each sector's unique challenges. The result is a more agile, responsive, and accountable organization, designed to deliver measurable value and long-term partnership to its customers.

The Chairman of the Advisory Board of All4Labels, Harald Schulz, underscored the need for constant innovation and organizational adaptability in an increasingly dynamic market. 'This industry is evolving faster than ever. Packaging and labels have become a strategic asset for brands, expected to embody brand values, meet regulatory demands, and elevate the consumer experience,' stated Schulz. 'In such a fast-paced environment, our role as industry pioneers is to shape an organizational model that is forward-looking and closer to our customers, capable of delivering tailored outputs with agility, speed, and precision.'

Guenther Weymans, CEO of All4Labels, added: 'At All4Labels, we draw strength from our deep industry heritage while executing a bold, forward-looking strategy to ensure long-term success. We will further strengthen our technology and innovation leadership in the label market. Our ambition is clear: to lead with purpose, drive sustainable growth, and build an agile, future-ready organization that creates lasting value for all stakeholders. This new model is designed to accelerate decision-making and responsiveness to market dynamics, while ensuring stronger cost discipline and enhanced P&L ownership. By aligning responsibility with value creation, we reinforce our commitment to operational excellence and stakeholder impact.'

Guido Iannone, chief sales officer of All4Labels, concluded: 'This new organizational model will strengthen our ability to anticipate market shifts and to enhance proximity and cross-functional collaboration and create conditions to accelerate growth, foster innovation, and unlock new business opportunities. It is a strategic step that empowers our teams to act with greater speed, insight, and impact — always with the customer at the center of everything we do.'

All4Labels' new organizational structure is centered around four dedicated end-market segments, providing a customized approach to each industry branch: food (including beer, beverage, wine and spirits); home and personal care; healthcare; and industry (including chemicals, agrochem, automotive and tobacco).

Additionally, the scope of multinational clients (MNCs) under the leadership of Iannone has been strategically expanded to ensure cross-country business opportunities are identified and effectively converted into long-term value.

This initiative reflects All4Labels' commitment to a more agile, customer-centric, and performance-driven organization. By aligning the MNC portfolio under a unified leadership structure, the group aims to foster deeper collaboration across regions, enhance visibility on global accounts, and accelerate decision-making processes.

Furthermore, a new division focused on Specialties will be introduced to reinforce the group’s commitment to digital and sustainable alternatives. The Specialties division encompasses existing vertical competencies, including online businesses and intelligent, secure products supplied by Integritag, as well as the group’s patented sustainable labeling alternatives, such as Stardirect.

This new segmentation will strengthen the group’s capacity to offer a single, empowered point of contact within each market, streamlining communication and fostering deeper relationships. By aligning the internal teams more closely with customer industries, All4Labels will increase responsiveness and operational efficiency, ensuring that brands’ strategic objectives are met with tailored packaging innovations.

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Tariffs could force closure of 1,000 US printing companies by 2030

Piotr Wnuk — Mon, 14 Jul 2025 02:21:42 +0000

The US printing market has been projected to face a potential decline of 6.4 percent by 2030 due to tariffs, representing the closure of more than 1,000 companies, according to new research from Smithers.

The global authority on the printing industry released a white paper warning that impacts could reshape the global printing industry, with tariff collections reaching tens of billions of dollars.

'Impact of Tariffs on Printing' projected that global printing demand will reach 355.2 billion USD by 2030, but warned that growth could decline further by up to 3.1 percent in a pessimistic scenario.

Depending on the scenario, US printing consumption in 2030 could range from 78.6 billion USD to 84.7 billion USD, a swing of more than 6 billion USD driven by tariff-related uncertainty.

The research identified that segments such as commercial print and book printing face the steepest declines due to discretionary spending cuts and import reliance. Despite these pressures, packaging-related print is forecast to grow steadily, driven by the e-commerce and food sectors.

'Prices for US-manufactured paper and inks will be affected by imported raw materials, and there is not enough US capacity for printing papers, inks and plates in the short term,' the report stated.

Export of used sheetfed offset hardware will be impacted as much of this is destined for India and China, where tariffs remain high. Printers and suppliers could be forced to explore reshoring and regional hubs to mitigate future tariff risks.

The research found that brands and converters are increasingly adopting a 'Plus One' strategy, diversifying their sourcing beyond China to mitigate future trade risks, with Southeast Asia and Latin America emerging as key alternatives.

Smithers built three robust scenarios - baseline, pessimistic and optimistic - to assess the impact of tariffs on key printing end-use printing markets, print processes and geographies. Every step was assessed by the team of print and packaging subject matter experts using IMF and USITC data.

To find out more about the Impact of Tariffs on Packaging white paper, please contact Bill Allen: ballen@smithers.com

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Digital packaging print market forecast to reach 36.9 billion USD by 2030

Piotr Wnuk — Thu, 10 Jul 2025 03:28:58 +0000

The digital print market for packaging is set to grow significantly over the next five years, with new research forecasting the sector will reach 36.9 billion USD by 2030, up from 22.0 billion USD in 2025.

The research 'The Future of Digital Print for Packaging to 2030', published by Smithers, predicts 10.9 percent growth driven by the increasing attractiveness of inkjet technology for large-format presses designed to print cartons, corrugated and flexible packaging.

Digital printing currently holds an 18.6 percent share of the overall graphic and package/label printing market by value in 2025, according to Smithers' report.

The growth is being supported by converters developing major improvements in upstream processes including order processing, design, approval and prepress, as well as downstream finishing and logistics. More brands and retailers are taking advantage of the benefits offered by digital print production.

In the functional and industrial sector, screen printing has shown strong performance with 9.6 percent compound annual growth rate in value between 2020 and 2025. The technology's versatility and ability to accurately deposit precisely controlled volumes of complex fluids make it the preferred printing method for many applications in this sector.

Screen printing's capabilities are expected to continue driving growth through 2030, particularly in functional and industrial applications where precise fluid control remains critical.

The research highlights how both digital and screen printing technologies are finding distinct market segments where their specific advantages create competitive positioning for converters and brand owners.

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Hubergroup strengthens presence in France

Akanksha Meena — Tue, 08 Jul 2025 09:45:43 +0000

Hubergroup Print Solutions has commissioned a new mixing station on the economically significant Sainte-Sigolène plateau. Inaugurated on June 20, the station for solvent-based Gecko inks encompasses on-site storage, mixing, technical support and a laboratory. This marks a significant milestone for the printing and packaging industry in France.

With the investment in this new mixing station, hubergroup emphasizes the importance of the French market for the company. ‘The new site is a real game-changer for us and our customers in the region,’ said Adrien Pflieger, managing director of hubergroup France. ‘Geographical proximity, our technical expertise, and our quick response create a new level of efficiency for flexible packaging manufacturers.’

With a short-term capacity of around 100 tons per year – and potential for growth – hubergroup positions itself in the midst of one of France's most important packaging clusters: Sainte-Sigolène represents almost 50 percent of national extrusion activity. The local packaging companies benefit from shorter delivery routes, faster availability, and on-site technical service – even for malfunctions or special color requests.

The hubergroup team in Sainte-Sigolène consists of two sales engineers, a sales representative as well as a mixing station manager and is supported by a partner for logistics. In addition, it is supported by the European hubergroup network and the laboratory staff as well as product managers based at the headquarters in Germany.

Pflieger added: ‘The responsiveness of our team in France, but also of the international hubergroup network, combined with a solid understanding of the specific challenges of the French market, will enable us to meet the needs of local customers and support the growth of the sustainable packaging market in France.’

Dedicated to hubergroup’s solvent-based Gecko products, the new mixing station is specifically targeted at flexible packaging manufacturers. The portfolio thus offers various options for designing smart, eco-friendly packaging products. This includes the NC-free, PU-based series Gecko Platinum and deinking solutions as well as support in complying with thresholds for printing with NC-based inks. In an effort to provide customers with everything they need to produce sustainable flexible packaging, hubergroup additionally offers a broad range of varnishes, barrier coatings, primers, whites, additives, and laminating adhesives.

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Smarter selling: How to leverage AI to win more

Piotr Wnuk — Thu, 03 Jul 2025 01:49:39 +0000

Market trends 03 July 2025

Smarter selling: How to leverage AI to win more

AI-powered tools can revolutionize sales processes to boost conversion rates, personalize customer interactions and drive revenue growth.

In today’s competitive and ever-changing sales environment, the pressure is always on to move faster, respond smarter, and deliver more value to customers. Customers expect tailored solutions from suppliers that are easy to work with. Artificial intelligence (AI) isn’t just hype; it’s becoming a vital tool that B2B sales professionals can use to sharpen their strategy, focus their efforts, and accelerate results. Forward-thinking sales teams are using AI to work smarter and faster and deliver better results.

Here are five AI strategies to improve sales effectiveness.

1. Know your buyers’ motivations

Great salespeople sell solutions, not products, and that starts with understanding what your buyers truly care about. AI research can help you uncover those motivations more quickly and accurately.

• Use AI-powered intent data to track which companies are actively researching sustainability, speed-to-market, cost efficiency or other key drivers in the labeling and packaging space.

• Segment your customers with AI tools that analyze purchase patterns, vertical-specific challenges or trigger events like product launches.

Buyers’ motivations are changing quickly. When you understand what’s driving the buyer and key influencers for a project, you can align your message with what matters most.

2. Create compelling sales content

Your emails, presentations and proposals need to break through the clutter and content overload. Buyers expect highly personalized and relevant content. Your content must resonate and demonstrate how your solution will impact their goals. AI can help you generate, edit and improve content quickly.

• Use generative AI platforms like ChatGPT and Gemini to improve emails and proposals tailored to customer concerns or buyer personas.

• Optimize your sales materials with AI-driven writing tools that enhance clarity and engagement.

Better content that is relevant, anticipates objections, gets noticed, and generates a better response. By making content specific and concise, you improve the odds of breaking through and sparking meaningful conversations with prospects and decision makers. Always validate, proofread and edit before sending.

3. Summarize content to save time

Sales professionals are bombarded with RFPs, call notes and technical specs. AI can do the heavy lifting, giving you more time to sell.

• Use AI tools to summarize lengthy documents like RFPs or product compliance sheets.

• Automate meeting summaries with platforms like Teams, Zoom, Gong or Fireflies that capture key takeaways, objections and action items from calls.

• Translate technical product data into business-friendly language using AI, making it easier to engage non-technical decision-makers.

With AI as your note taker and assistant, you’ll spend less time digging through documents and more time moving deals forward.

4. Make better data-driven decisions

Gut instinct has its place, but smart sales teams are supplementing intuition with insights from AI.

• Forecast pipeline health using AI-enhanced CRMs that consider trends, deal velocity and historical close rates.

• Rank deals with AI tools that calculate lead and opportunity scoring.

AI turns your sales data into actionable information. Many tools like Salesforce and HubSpot have built-in AI functions that help sales teams prioritize which deals are most likely to close.

5. Free up time for high-value activities

Perhaps the biggest benefit of AI is giving sales team more time. It handles the tasks that distract from selling, so you can focus on strategy, relationships and closing.

• Automate early-stage lead nurturing with AI-based email workflows that educate and warm up prospects.

• Delegate scheduling, data entry and follow-ups to virtual AI assistants integrated into your CRM.

The result? More conversations, better pipeline momentum and stronger customer relationships.

The bottom line

In Issue 1 of Labels & Labeling, I wrote about sales success by knowing each customers’ ‘why’. AI isn’t about replacing salespeople; it’s about amplifying their value. In the label and packaging space, where every order is unique and the stakes are high, sales professionals who embrace AI are better equipped to deliver personalized experiences, build trust faster and win more deals.

The tools are here, and the time is now. Smart sellers are already making the shift. Are you?

Lois Ritarossi is a certified management consultant and president of High Rock Strategies, an independent management consulting firm focused on sales and marketing strategies and business growth for firms in the print, mail, communications and B2B sectors. You can read more about sales strategies at www.highrockstrategies.com. Email Lois at Lritarossi@highrockstrategies.com

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Fluctuating tariff policies create uncertainty for labeling industry

Selah Zighelboim — Tue, 01 Jul 2025 22:19:20 +0000

Market trends 01 July 2025

Fluctuating tariff policies create uncertainty for labeling industry

The Trump administration’s ‘Liberation Day’ tariffs have been delayed and are now scheduled to resume Aug 1.

Update: On Sunday, July 6, the Trump administration announced that 'Liberation Day' tariffs will be delayed until Aug 1.

The next day, on July 7, President Donald Trump began sharing letters announcing the tariff rates for different countries.

Numerous industries are in limbo as they await the July 9 resumption of the ‘Liberation Day’ tariffs — the ‘reciprocal’ US duties on goods from nearly every country in the world that were in place for a week in April.

But with the Trump administration working on negotiating trade deals, and the legality of those tariffs still being reviewed by the US court system, there is a chance they may not actually be reimposed.

Meanwhile, a 10 percent tariff on imported goods from most countries remains in effect. Products from China are currently subject to a tariff of 55 percent. USMCA-compliant goods from Canada and Mexico are exempted from tariffs, while most noncompliant goods from those countries face a 25 percent tariff.

The US tariff situation has been in a constant state of fluctuation since the start of the second Trump administration earlier this year. Frequent changes to which countries and products are subject to tariffs, as well as the amounts of those tariffs, have created a challenging and uncertain landscape for companies to navigate.

Bryan Vickers, a partner at Pace, TLMI’s government relations consultant, thinks that the Liberation Day tariffs may be delayed again unless the Trump administration finalizes a multitude of trade agreements soon. Vickers has been supporting TLMI members by answering questions and providing information about tariffs, such as at the recent TLMI printThink virtual summit.

‘We’re looking for finalization on agreements with all of the countries,’ Vickers says. ‘We know that they’re in talks with representatives from dozens of countries. I know for certain they’re meeting with the top trade officials from the EU, from China, from India, from the UK, and from some of the larger Southeast Asian countries. Vietnam would be among them, and Malaysia and Thailand and Taiwan.

‘Things are happening behind the scenes that will absolutely adjust the tariffs with some certainty.'

Tariff landscape

The first Trump administration did implement tariffs, but those tariffs were smaller, less widespread and more product-specific than the ones implemented this year.

Those tariffs prompted TLMI in 2019 to issue its current stance on the matter.

In May of 2025, TLMI reiterated that stance to its membership: ‘It is imperative that the economic playing field is level across the globe for all manufacturers. Implementation of broad-based tariffs has added to the cost and availability of many products and raw materials throughout the tag and label industry supply chains. Tariffs should be individual, product-specific and justified with the effects to US manufacturing well understood.’

TLMI’s statement continues by expressing its opposition to ‘arbitrary and undefined tariff rate schedule increases for imported products’. The statement also conveys TLMI's support for an exemption process being made available for stakeholders, with the association highlighting what that process should entail.

Tariffs most significantly impact TLMI members in two ways, says Vickers.

Firstly, many TLMI members buy machinery and equipment from Europe. That machinery is now subject to a 10 percent tariff. Because this machinery can be very expensive, even a 10 percent tariff can be significant.

Secondly, the US imports millions of rolls and sheets of labelstock material annually, much of it from Canada, China and Mexico. In 2024, the US imported 25.5m rolls and sheets of self-adhesive paper from Canada, 5.4m from China, and 1.4m from Mexico.

In the first quarter of 2025, imports of self-adhesive paper from China decreased by about 24 percent, compared to the first quarter of 2024. Meanwhile, imports from Canada increased by approximately 10 percent and those from Mexico by about 26 percent during the same time.

In April of this year, when tariffs on goods from China were at 145 percent, imports of label materials were higher than they were in April of last year. Label material imports from Canada and Mexico were about the same as in April of last year. Vickers thinks this may have been caused by an increase in rush orders that didn’t reach the US in time to avoid tariffs. May import data, which will become available the first week of July, may reveal more.

Jennifer Dochstader, owner of LPC, a marketing and research firm in the print and packaging space, noted that the labeling industry will also be impacted by tariffs’ effects on consumer goods. Container bookings from China to the US declined by as much as 60 percent in April, according to supply chain management company Flexport, indicating that brands are ordering fewer goods. The downstream effect of those decisions will be that they need fewer labels and packaging, Dochstader says.

Shipping containers, Dochstader says, are ‘the red blood cells of the consumer economy’.

After the US and China declared a truce in May and lowered their tariffs to current rates, container bookings soared by nearly 300 percent, according to container-tracking software company Vizion.

Impact on businesses

For companies that import and export goods to and from the US, tariffs are an additional cost they must either pay themselves or pass on to their customers. Changing tariff policies makes it more difficult for companies to determine the best way to handle the tariffs.

Dochstader believes some companies are making fewer capital expenditure investments, as they wait and see what happens with tariffs.

Channeled Resources Group is an American company that sells siliconized release liners, pressure-sensitive materials and blank labels. The company produces silicone release liner in Canada, which is imported to the US. The months of fluctuating tariffs on Canadian imports were difficult for the company, says president and CEO Cindy White.

These fluctuating tariffs include a 25 percent tariff announced on February 1, then paused two days later. That tariff resumed on March 4, then received a 30-day pause two days later. In April, the Trump administration clarified that USMCA-compliant goods are exempt from tariffs. There have also been product-specific fluctuating tariffs on aluminum, steel, potash, automobiles and more that have impacted US-Canada trade.

White says that CRG’s Canadian business could not have sustained the 25 percent tariff and would have been forced to close.

‘I don’t know how many companies can take a 25 percent increase,’ she says.

CRG’s Wisconsin facility also produces silicone release liner, White notes. However, the release liner is manufactured on wider equipment than in Canada, making the Canadian product more suitable for smaller-sized companies. To move that business to the US would have been inefficient and financially detrimental.

Additionally, CRG purchases base paper for its release liner globally, much of which is now subject to a 10 percent tariff. The company has passed half of this tariff on to its customers.

The company also brokers materials from India and Thailand. CRG is not passing this tariff on to customers. White is concerned about the tariffs on this material increasing to 27 percent and 36 percent, respectively, on July 9.

‘On July 9, will we go back to that?’ White says. ‘Will it stay at 10 percent? There’s just so much uncertainty. It’s very, very, very hard to plan.’

John McDowell, president of converter McDowell Label, a Resource Label Group company, states that McDowell and Resource Label Group are closely monitoring the tariff situation and acting preemptively to mitigate its impact.

For instance, Resource Label Group, which has facilities across the US and Canada, moved its business for one of its customers, a large national brand, from Canada to the US.

‘We've been actively and intrinsically engaged with brand owners and supply chains to make certain that we are still a customer-first, customer-forward company,’ McDowell says.

McDowell notes that the labeling industry’s supply chains are global, with materials, inks, resins and more coming from all over the world. Resource Label Group is a large and growing company, which gives them leverage in negotiating tariff responsibility with supply chain partners. As a result, McDowell says that the company has been able to mitigate or eliminate the cost of tariffs coming through the supply chain.

McDowell says that, in a perfect world, there would be fair and open trade. He believes that tariffs are a ‘long overdue conversation’ and a short-term tool to achieve the longer-term goal of fairer and more open trade.

‘There's a lot of negotiation, a lot of excitement, a lot of anticipation, probably fair to say some level of anxiety,’ McDowell says. ‘But since day one, I personally looked at this as a long play.’

Staying ahead in challenging times

Relationships are key to overcoming these types of economic obstacles.

McDowell says that the company’s relationships with customers and supply chain partners will help it steer through any potential challenges caused by tariffs.

‘We’re customer-driven,’ he says. ‘That is the impetus of who we are and what we are, the old proverbial saying “KYC” — “know your customer”. It’s important for our supply chain to parrot the same esprit de corps and ethos of business operations that we employ because all customers ultimately have a choice.’

Dochstader also notes the importance of relationship-building: ‘Converters are going to have to really figure out ways to make sure that their customer base understands their value as a supplier. In turn, suppliers to the industry have to figure out ways to ensure and reinforce to their converter customers that they can help them create and build value as a customer.’

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