The past few years have been challenging, to say the least. The label and package printing industry, in particular, has faced significant challenges such as demand spikes, raw material shortages, unique supply chain events, work stoppages, and geopolitical issues.

In many cases, these obstacles led converters and end users to over-order to mitigate supply interruptions. Paper substrates were front and center of many of these industry challenges. Even as the obstacles have dissipated recently, paper has still been top of mind for converters and suppliers alike.

 “The market saw unprecedented demand during the years of the Covid-19 pandemic,” explains Travis Rue, senior product manager, Paper, Avery Dennison. “In response, Avery Dennison worked diligently to strengthen our supply chain through the qualification of additional suppliers and introduction of alternative solutions to ensure there was no impact on product availability. We are now getting back to focusing on long-term strategies and offering materials that support sustainable initiatives.”

“In 2024, we’ve observed a recovery in raw material availability, aligning with current market demand,” states Brinder Gill, director of Paper Laminates Business, Americas, UPM Raflatac. “Customer demand has also stabilized as the industry moves past the destocking phase. While some challenges may still lie ahead, UPM Raflatac has proactively expanded our supplier base and implemented robust supply continuity plans to support our partners and ensure consistent service.”

According to AWA Alexander Watson Associates, the global label market is approximately 52% paper versus 48% film. In North America, film is slightly more prevalent – comprising 52% of label substrates compared to 48% for paper. However, in North America, nearly 70% of pressure sensitive label applications are produced on paper. Film picks up significant share in the sleeve and in-mold markets, which are nearly entirely filmic based.

From a release liner perspective, the total North American label market measured in at 80% paper in 2023. However, in the North American primary label release liner market, the percentages were much closer, as paper accounted for 55% of liners compared to 45% on film.

In the future, top suppliers have studied the events of the past four years and are prepared for future hurdles that could impact substrates.

“As a global manufacturer, Fedrigoni continuously monitors both domestic and international developments in supply chain and logistics, ensuring that we remain agile and responsive to changes in raw material availability,” states Paige Dennis, area manager, North America, East, Fedrigoni Self-Adhesives.”

Synthetic paper is also a market making strong inroads. “Paper technology has significantly evolved in recent years, as the market is demanding stronger, more durable paperstock, and synthetic papers are emerging as a competitive alternative,” states Jay Beach, marketing director, PRI Plus. “Synthetic papers offer improved tear resistance along with water, chemical, and fire resistance – with some even being comparable to films – while keeping its recyclability, biodegradability, and cost advantages.”

While there have been challenges with adhesive migration affecting printability in synthetic papers, PRI Plus is confident that solutions are on the horizon. “We are actively engaged with suppliers and industry leaders to ensure we can provide our customers with the best possible solutions,” adds Beach.

Beach notes that another area that continues to evolve in the paper market is in tamper indicating labels. “Films that leave behind a ‘VOID’ pattern have been quite popular for a long time for high-end products,” says Beach. “Now we are able to offer tamper indicating in a more cost-conscious manner, with flaking or delaminating paper options. With delivery skyrocketing in 2020, affordable paper tamper indicating stickers have been in high demand.”

Prioritizing sustainability

The biggest trend to impact paper substrates has been sustainability, especially as brands and consumers alike focus on environmental friendliness and lowering their carbon footprint.

“Sustainably sourced papers and PCW content have been some of the biggest developments in paper,” says Avery Dennison’s Rue. “There is a growing demand for sustainable paper substrates such as those made from responsibly sourced and recycled fibers. Major brands have net zero and targeted GHG emission goals as part of a push for decarbonization. In order to support those targets, lightweight papers are becoming increasingly prevalent for a variety of applications such as packaging and direct mail. This trend continues to grow in the label industry, as well.”

“Similar to other industries, paper technology has focused on improving sustainability credentials,” adds UPM Raflatac’s Gill. “For example, we are seeing the development of more fiber-efficient products that reduce environmental footprints, as well as including more recycled content in pulp products.”

Industry suppliers have also emphasized sustainability by functioning in a leadership role. These initiatives go beyond the products and often include services and training programs.

For example, UPM Raflatac has committed to contributing value chain solutions in line with US Plastic Pack targets, which help brand owners make their plastic packaging reusable, recyclable, or compostable. 

“Sustainability affects all areas of the organization,” notes Gill. “We also serve our customers with a leading label life cycle assessment service, Label Life, providing essential information on the environmental impacts of different label products and cradle-to-grave assessments, including different end-of-life scenarios.”

PRI Plus touts a line of destructible paper substrates.

Meanwhile, Avery Dennison has committed to ambitious 2030 sustainability goals, which is core to all current and future innovation.  These innovations include both reducing the carbon footprint of its materials and also enabling recyclability of the substrates the labels are applied to. Avery Dennison employees are actively engaged with several different associations to uncover the challenges and drive innovation to enable greater recycling.
Sustainability has gone beyond the substrate, too. In many cases, paper machines are becoming increasingly water and energy efficient, contributing to carbon footprint reduction. This has been an emphasis for UPM Raflatac, both from its customers’ scope 3 emissions reduction and to the substrate supplier’s overall climate ambitions. 

Recycling has been a focal point for suppliers, too. Even the best intentions with sustainable substrates can fail if the item is not properly recycled.

“If you want to optimize the recyclability of packaging, you need to match the label to the package substrate with the recycling process in mind,” explains Gill. “The primary packaging material determines the recycling process. The better the recycling compatibility between the label and the packaging, the better the recyclability and recycling yield of the entire packaging tends to be. Recommendations and regulations for recyclable solutions vary based on location, thus we encourage customers to contact our experts for further guidance.”

The public often receives conflicting information, which can make recycling a tricky landscape to navigate. “We can’t just offer solutions; we have to be able to explain the ‘how’ and ‘why,’ as well,” states PRI Plus’ Beach. “A lot of the reasoning for this is the vast amount of greenwashing that takes place. We’ve all heard the benefits of recycling and have seen the different colored bins to separate everything into. But then we hear conflicting stats that say less than 10% of plastics are recycled, and 60% are recycled, and 97% are recyclable. But which is it?

“The truth is, all those claims are accurate, and none of the claims are accurate,” continues Beach. “Statistics don’t lie but people do. There’s a lot that goes into determining whether or not something can be recycled, and one of the factors is the label. The adhesive, face, coatings, ink, embellishments, and overlaminate can each by itself affect the recyclability of a product. One of the easiest ways to ensure a product can be recycled is to remove the label. That’s where things get tricky for us, because at PRI Plus we pride ourselves in label constructions that stick to anything and that stay stuck.

“Something that we do really well is integrating sustainability as a holistic approach with our overall operations. PRI Plus has never looked at sustainability for the sake of sustainability, but we take it very seriously to look at sustainability in ways to provide superior products, minimize waste to control costs, use non-volatile materials for safer and healthier working conditions, and to look for ways to cut energy consumption. This includes sourcing from suppliers that are dedicated to promoting responsible management of the world’s forests, using only solvent-free materials in our adhesives and facestock, and having controls in place that result in far less scrap at the start of a run,” concludes Beach.

Paper or film?

As the numbers illustrate, North America has seen the gap close in paper and filmic substrate usage. There are clearly advantages and disadvantages – depending on the application – of using one over the other.

“The decision to use a film or paper substrate largely depends on the specific application requirements,” says Fedrigoni’s Dennis. “Films are often favored for their cost-effectiveness and durability, making them ideal for applications in the food, beverage, and home and personal care sectors, where resistance to moisture and wear is crucial. On the other hand, uncoated fine papers offer a tactile and aesthetic quality that films cannot replicate, providing a sense of luxury and sophistication that is highly valued in premium branding. For brands looking to convey elegance and quality, fine papers can deliver a look and feel of luxury that enhances the overall brand experience, making them a preferred choice for high-end products and specialty applications.”

Fedrigoni’s paper substrates deliver a high-end look for spirits.

Considerations often also include the labeling environment, packaging substrate, environmental footprint and packaging end-of-life scenario, not to mention the aesthetic appeal on-shelf.

“Paper labels are made from renewable resources, and all fibers UPM Raflatac uses originate from sustainable and controlled sources,” explains Gill. “They offer excellent print quality with high-resolution graphics and vibrant colors, ideal for branding and marketing. Additionally, paper labels provide a natural, tactile feel that can enhance the consumer experience and support high-speed labeling.      

“Film labels provide superior durability, resisting tearing, moisture, and chemicals, making them suitable for a wide range of environments, including outdoor and industrial applications,” adds Gill. “They conform well to irregular shapes and surfaces, maintaining their appearance over time. While film labels are typically made from fossil-based resources, advancements are being made in developing more renewable alternatives such as UPM Raflatac Forest Film.”

Product Innovation

The industry has seen an influx of new paper materials in preparation for Labelexpo Americas. The latest product innovations will be on display, often targeting sustainability and efficiency. (For a Labelexpo product preview, head to page 80.)

Avery Dennison has prioritized a selection of label solutions engineered to improve productivity, lower costs, and lower sustainability impact. These eco constructions are prevalent in numerous portfolios. The company has also invested significantly in linerless solutions.

“Our direct thermal blank linerless labeling solutions add efficiency, sustainability and convenience, seamless operations, eliminating liner waste, and reducing downtime,” comments Rue. “Eliminating the liner on direct thermal blanks allows customers to get up to 50% more labels per roll. This leads to fewer roll changes, speeding operations, and improving warehouse utilization. The Avery Dennison blank linerless labeling solutions offer productivity, sustainability, and safety benefits.”

Sustainability is at the core of Fedrigoni’s operations, with a strong commitment to ESG principles. The company is platinum-rated by EcoVadis, placing it in the top 1% of companies globally for ESG performance, notes Dennis.

“Our 2030 ESG goals are ambitious, including a 10% reduction in freshwater withdrawal, ensuring 100% of waste is sent for recovery, achieving 35% women in managerial positions globally, and reducing absolute carbon dioxide emissions by 30%,” she says. “These initiatives are designed to integrate sustainability deeply into our business practices, making our products an ideal choice for brands looking to enhance their sustainability strategy.

Avery Dennison promotes sustainably sourced paper substrates.

“We offer paper substrates that are recyclable, have APR wash-off certifications, or are commercially compostable, supporting a circular economy and helping brands meet their environmental goals,” adds Dennis.

Fedrigoni has emphasized the incorporation of alternative fibers. These fibers are increasingly seen as a step forward in sustainability, offering a way for brands to stand out on the shelf.

“For example, our Cotone Bianco and Cotone Black Pepper papers are made entirely from 100% cotton fibers, providing a distinct tactile and visual appeal that differentiates products,” explains Dennis. “The interest in such innovative materials is significant, as they align with both sustainability goals and the desire for premium branding.”

PRI Plus has unveiled a new line of constructions coated with UV acrylics. “We love that we will be offering products with the benefits of acrylics while also staying true to who we are with environmental sustainability,” says Beach. “This new line is going to have even more bite, increased durability, higher resistance to heat and chemicals, and less wear from the sun. The part that allows us to move into the acrylic arena  – these UV acrylics will be solvent-free with zero VOC emissions, reduce our energy consumption an estimated 30-70% over our hot-melts and other acrylic adhesives, and provide us with more recyclable options.”

PRI Plus’ adhesives will soon be ready for toll coating, and in the first quarter of 2025 the company will be adding another premium coater equipped with an ultrasonic sensor to ensure an even more consistent thickness gauge band.

Meanwhile, all papers sourced by UPM Raflatac, whether used as a facestock or a release liner, are certified under a credible third-party verified forest certification scheme.

Having all papers certified is one of UPM Raflatac’s 2030 responsible sourcing and climate targets.

UPM Raflatac’s RAFNXT+ range has been developed as a future-proof, lower carbon alternative to traditional labeling materials. “By making a smarter choice and use of renewable materials, RAFNXT+ products have lower carbon footprints than our standard labeling materials,” remarks Gill. “In addition to carbon benefits, the RAFNXT+ range offers efficiencies in terms of reel change reduction and increased quantity of labels per roll.”

Plus, UPM Raflatac’s Direct Thermal (DT) Linerless materials have been optimized for applications that require optimal thermal printability and adhesion, as well as a clean cut. UPM Raflatac Linerless OptiCut is a new product that combines excellent adhesion with minimum adhesive build-up to an automatic cutting knife in linerless printers and application lines.

This UPM Raflatac product prevents paper jamming and improves print quality, offering efficient labeling solutions for weigh scales in groceries, kitchens in fast casual and quick service restaurants, and serves both automatic and manual dispensing of labels.