Live from Labelexpo: keynote presentation

Labelexpo Europe began this morning with an opening press conference by Roger Pellow, MD of Labelexpo; Mike Fairley, director of strategic development for Tarsus’ Label and Packaging Group; Kurt Walker, president of Finat; and a keynote presentation from Jussi Vanhanen, CEO of UPM Raflatac.

Jussi Vanhanen – CEO of UPM Raflatac

Jussi Vanhanen, CEO of UPM Raflatac, addressed the threats and opportunities for self-adhesive labels in his keynote presentation.

In the last 10 years, said Vanhanen, there has been some ‘trending down’ of self-adhesive labels in Europe and North America, as the technology is caught between cut & stack and wrap-around film as well as ROSO and shrink sleeves. Vanhanen said the technology will ‘continue to gain market share, but modestly’. Globally, he expects ‘robust growth’ but 80 percent of that will be from emerging markets. The western world will experience challenges from raw material inflation, he said, which is expected to continue for the next 10 years.

Growth rates are around one percent in Western Europe and North America, while larger growth is expected in Eastern Europe – nearly three percent – due to a rapid technology shift. This figure relates to end user consumption, considering that most exports will be from Eastern to Western Europe.

Vanhanen fears inflation will continue to rise as ‘the world is running out of inexpensive raw materials’, making it important to use cost-cutting opportunities such as introducing thinner raw materials, consolidation/M&A and ensuring products are not over-engineered. ‘The label needs to be taken to its limits.’  To eliminate the risk of losing out to other technologies, companies must make the most of recycling opportunities as well as offering a wide product portfolio. It is also important to demonstrate the potential of the self-adhesive label; versatility, excellent visual appeal and short runs, whilst developing ever-more specialized applications.

Self-adhesive technology currently accounts for 33 percent of the total market. The opportunities lie within the food and beverage markets where penetration is currently low. So, does the potential of self-adhesive labels need defending? According to Vanhanen, ‘Yes it does. Business won’t come automatically but it can. The tools are there but they need to be pushed.’

Roger Pellow, Mike Fairley, Kurt Walker

Roger Pellow began with some statistics about the event, which is due to be the largest Labelexpo ever – and therefore the largest ever dedicated label exhibition – at 30,000 sqm net. The event hosts 550 exhibitors, with more than 25,000 visitors expected. Pre-registration for attendees was up by 21 percent before the show, with 125 countries represented. Over 150 new products will be launched at the show. Sixty-three exhibitors have come from Asia; 75 digital printing and converting machines are on display. Large delegations have arrived from Brazil and Japan, among other countries.

Pellow outlined the new features at the show, which include the Technology Print Workshops – where three printing technologies (dry toner, liquid toner and inkjet) will be compared against each other during live machine demonstrations run by an independent moderator. The technologies will be represented by Xeikon, HP and EFI Jetrion respectively. There will be four sessions per day, three of which will see the different companies printing the same job – a food, pharmaceutical or personal care label – on the same substrate. The fourth session will allow participants to print a label of their choice. Another new feature is dedicated to package printing. The Package Printing Zone will consist out of seminar sessions and working machinery demonstrations. The aim of this feature is to introduce label printers to opportunities in short-run package printing (including flexible packaging, folding cartons, pouches and sachets).

Mike Fairley, director of strategic development for Tarsus’ Label and Packaging Group, provided an outline of the key trends in the global label market, including environmental sustainability, changing brand owner requirements and digital technology. Fairley reported that by the end of 2010 there had been more than 1,400 installations of digital printing machines in the label sector. He forecast that by the end of this year, some 19 percent of all new press installations will have been of digital technology.

Kurt Walker, Finat president, highlighted the organizations’ current movements, with a clear emphasis on sustainability. He identified ‘the market needs to develop a complete solution for the self-adhesive industry’.

Pictured: Jussi Vanhanen, CEO of UPM Raflatac, delivers his keynote presentation

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Labelexpo Europe: news and technology round-up