Label industry must adapt to geopolitical shifts, Finat warns

Finat has warned that geopolitical tensions and socio-economic changes are reshaping supply chains, sustainability demands and regulatory frameworks across the label industry during the opening keynote of European Label Forum 2025.

Ron Keller, delivering the keynote, highlighted how regional conflicts, export controls and raw material bottlenecks are forcing label printers and converters to rethink their sourcing strategies. 'Companies must treat regulation no longer as a cost of doing business but as a strategic terrain in which influence must be exerted,' Keller explained.

The keynote emphasized that many specialty inks, adhesives and films are produced in geopolitically sensitive regions, creating material sourcing risks when export licensing or trade sanctions interrupt supply. Keller urged companies to map their supply chains and identify single-source or high-risk suppliers, recommending strategic reserves of critical components rather than lean inventories.

On sustainability, Keller noted that brands are scrutinizing their entire value chain, including labels, adhesives and film waste, as part of their environmental story. 'We see brands are scrutinizing their entire value chain, labels, adhesives, film waste, as part of their environmental story, not just the main packaging,' he stated.

The speaker also addressed the increasing role of technology in geopolitical competition, arguing that AI, automation and digital platforms have become battlegrounds in national sovereignty. Keller warned that countries striving for control over data, semiconductor supply and high-end manufacturing tools could reshape which geographies lead in label innovation.

Finat emphasized that tariff and trade policy changes affecting raw materials from the EU, UK, US and China could impact margins. At the same time, local content requirements may unlock new contract opportunities for regionally positioned suppliers.

Read the full article on Finat’s website.