Features

North American Label Market

The label industry has displayed impressive resiliency after several challenging years.

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By: Greg Hrinya

Editor

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By: Steve Katz

Associate Editor

As Labelexpo Americas returns in 2024, the industry has its sights set firmly on the newest trends poised to drive growth well into the future. Despite grappling with a tumultuous 2023 marked by overstocking, supply chain disruptions, economic concerns, and inflation, among others, the North American label market is starting to see a bounce back, with more growth on the horizon.

The industry is entering a new wave of technology – one that is much different than the label market of just 10 years ago. While the market has displayed resiliency, it has also been characterized by change and an implementation of new technologies.

“Despite recent economic fluctuations, the label market continues to experience steady growth, driven by increasing demand in various sectors, including in the variable information space related to logistics, e-commerce, QSR and in food, healthcare, and industrial applications,” comments Anh Marella, vice president of marketing, Avery Dennison. “Automation and smart labeling technologies are transforming the industry. These advancements enable greater customization, efficiency, and traceability, leading to innovative labeling solutions and improved supply chain management. Consumer preferences are evolving, too, with a growing demand for personalized, interactive, and informative labels. This trend is driving innovation in label design, materials, and functionality to meet changing consumer expectations.”

“The North American label market continues to experience ongoing momentum and growth,” adds Mas Crawford, product specialist, SurePress, Epson America. “In today’s fast-paced world, business conditions, consumer preferences and timelines change quickly. Label converters and brands have learned to pivot to meet demands, and as a result the industry continues to offer opportunities.”

While there is significant optimism about the health of the label and package printing industry, there are challenges. For example, many converters and suppliers still struggle with attracting a new workforce. Countless companies boast long tenures for their employees, but finding new ones has become an obstacle in recent years. That challenge has made the emphasis on technology all the more imperative, as converters strive to do more with less.

“We are still coming out of the aftermath of the pandemic, and I think we are ready to close the door on that chapter,” states Peal Teachout, technical marketing and content specialist, Harper Corporation of America. “After a sluggish 2023, our industry continues to prove our resiliency. We are projected to return to a 2.2% growth rate for 2024. This should lead us into the new year with positive growth and continued new opportunities. But we will continue to see the economic pressures of inflation and eroding margins. We must take the proper steps to overcome or stabilize these challenges. It can be done, but not without continued emphasis on efficiencies and cost reduction initiatives.”

One remedy to current challenges is new product design. As the saying goes, “Necessity powers innovation.” And nowhere is that more true than the label manufacturing space. “In spite – or perhaps because of – the challenges it faces, the label printing sector has become a hotbed of innovation,” states Anna Niewiadomska, global marketing manager, Narrow Web, Flint Group. “Revolutionary technologies are unlocking new applications and helping to make the sector more efficient, with great strides being made in ink and coating formulations. Such products are helping the sector reaffirm its commitment to sustainability and support it in reducing its carbon footprint by creating a more circular labeling economy, where materials can be reprocessed into new packaging.”


Epson’s Michael Nyman (L), Mas Crawford, and Mike Pruitt address demand for the newest digital label printing technologies.

These days, having a versatile printing facility is paramount in supporting growth – both in current and prospective markets. “Success in the current and future market hinges on a few key opportunities,” states Duane Pekar, CEO, Mark Andy. “Embracing a digital transformation is crucial, as companies that invest in digital and hybrid printing technologies will be well positioned to meet the demand for customization and faster turnaround times.

“It’s also important to keep in mind that flexo continues to offer significant opportunities, particularly for high-volume runs where cost efficiency and print quality are paramount,” adds Pekar. “As converters seek growth outside of traditional pressure sensitive label converting, in markets like flexible packaging, in-mold and folding cartons, wider and more sophisticated flexo press technology eliminates barriers to entry in some of these expanding markets.”

The market has responded to numerous trends. In addition to digital printing, automation, sustainability, and e-commerce are among the hottest topics in label printing. “The Covid-19 pandemic and post-pandemic years brought significant changes to many industries and drove or accelerated changes,” states Paul Edwards, Digital Division VP, INX International Ink Co. “The industry had to adapt in several ways. A simple example would be the shortages in paper, where obtaining the same materials previously was difficult. The result was a shift to a higher use of plastic materials within labelstock. Overall, the push toward increasing e-commerce often required companies to react faster, and to effectively deal with shorter runs and a greater variation in the label information contents. The industry has evolved to address the accelerated need for digital print and a greater range of labelstock materials.”   

Even with uncertainty surrounding the economy, North American label printers see the advantages of investing in new, cutting-edge technology that can help their companies mitigate some of the most recent challenges.

“Converters are showing a strong willingness to invest in technologies that enhance efficiency, reduce costs, and improve quality,” explains Pekar. “Key areas of investment include hybrid presses that combine digital and flexo capabilities to maximize versatility, automation systems to streamline production, sustainable technologies that support eco-friendly goals, and comprehensive training programs to ensure optimal use and maintenance of new technologies. These investments reflect a commitment to staying competitive and meeting evolving market demands.”

Operational versatility

In order to respond to customer demand faster than ever before, converters require a versatile printing facility with numerous technologies at their disposal. Future investments will be characterized by speed, efficiency, automation, and sustainability.

“The biggest trends continue to be automation, sustainability, and workforce,” explains Harper’s Teachout. “This is evolving into a circular operational opportunity. When we invest in the most innovative solutions, we will inherently become more sustainable and reduce the human interactions pressuring our workforce. If managed correctly, these trends will lead us to smarter and more efficient production modeling.

“I believe these all go hand in hand, as well,” adds Teachout. “Invest in one and you will support the other. Machine learning and automation will lead the way. Third-party integrations are now providing production platforms that can autonomously produce product more sustainably and with less human resources. Combining the strength of primary functions to perform all in one pass will lead to less waste, higher output, and reduced human interactions. A new horizon of production efficiency will be driven by AI-powered systems and machine learning. The future is circularity, both in sustainability and production methods.”


Flint Group targets sustainability and efficiency with new ink products.

The challenges of the past few years have forced converters and suppliers to adapt. The concept of a “new normal” was created, and business had to be conducted in new, innovative ways. For the label industry, demand has also continued. “There was an uptick in demand,” notes Epson’s Crawford. “However, it was hampered by supply chain issues. Essential supplies, like media substrates and ink, were difficult to get. As a result, businesses across all industries changed how they operated, focusing on streamlined workflow and efficient operations, as well as building and maintaining close relationships with vendors and customers. A key takeaway is that situations can change quickly, so we must be prepared to pivot at all times.”

Part of the adaption includes going beyond single sourcing. “Often, brands, printers and converters rely upon multiple vendors to ensure continuity of supply during difficult periods,” notes Flint Group’s Niewiadomska. “Digital printing has also increased in popularity due to its print-on-demand nature and is often operated as a complementary technology to flexo to provide printers with a powerful tool to drive versatility and efficiency.”

Change will often happen in the form of new technologies. Significant investment will come in the way of new printing presses, which feature automated and sustainable features. More and more converters are adopting digital and hybrid technologies to complement their flexo fleet, too. While some print shops might feature flexo or digital capabilities by their lonesome, more converters are seeing the value in having both under their roof.

“There is a strong demand for both conventional and digital label printing solutions, driven by an increasing need for customization, shorter run lengths, and faster turnaround times,” says Mark Andy’s Pekar. “Companies are seeking to enhance production efficiencies, reduce waste, and improve the sustainability of their operations, which aligns with our ongoing innovation and support efforts.”

Much of the industry’s transformation has taken place over the last five years. While digital and hybrid were trending, the pandemic, coupled with supply chain issues and workforce challenges, have emphasized the ability to have multiple capabilities to better
serve customers.

“Converters are willing to invest in new technology to navigate ongoing business challenges such as labor, rising overhead costs, and heightened demand for quality and prompt delivery,” says Epson’s Crawford. “These pressures result in shorter lead times, multiple versioning, embellishment, and the need for real-time data. To address these needs, converters are investing in equipment that is operator-friendly, highly automated, efficient, and capable of delivering consistent output.”

“Supply chain issues highlighted the need for more flexible and resilient production processes,” adds Pekar. “Many companies have invested in hybrid printing solutions that combine the best of digital and flexo technologies, allowing for greater versatility and responsiveness to market demands.”

Versatility goes beyond the equipment, too. Substrates must feature functional performance, as there is an increasing need for label substrates that offer enhanced durability, resistance to harsh environments (temperature, chemicals, moisture), and specific functionalities like tamper-evidence or anti-counterfeiting features. Meanwhile, Avery Dennison’s Marella notes, there is a growing interest in smart labels with embedded technologies like RFID, NFC, or QR codes for enhanced product authentication, traceability,
and consumer engagement. 

Sustainable initiatives

With sustainability chief among the latest industry trends, suppliers across the value chain have prioritized environmental friendliness in their R&D. Machine manufacturers strive to produce less waste, while substrate and ink suppliers explore ways to make labels more recyclable and less harmful to their carbon footprint.

“Sustainability is arguably the most defining trend within the label and packaging market in recent years,” explains Flint Group’s Niewiadomska. “In response to evolving regulations and escalating consumer awareness about the environmental impact of labels and packaging, brands are setting ambitious goals for reducing their carbon footprint and expecting their supply partners to do the same. This has prompted a surge in innovations such as more sustainable ink technologies that prioritize bio-based formulations, as well as solutions that contribute to a more circular label printing economy.”

Dual-curing UV LED inks like Flint Group’s EkoCure and EkoCure ANCORA offer one such solution as these high-performance inks offer faster, consistent curing with low energy consumption. In addition, their dual-curing formulation enables converters to invest in UV LED curing technology press by press rather than replacing equipment all at once.


Renee Schouten and Paul Edwards tout new ink trends affecting labels.

Meanwhile, Avery Dennison has seen growing demand for eco-friendly label materials with recycled content, reduced environmental impact, and improved end-of-life options.

“Sustainability is a very strong theme that the industry is adapting to,” says INX’s Edwards. “Within the sustainability umbrella, there are many key factors the industry is responding to. There is the reduction of waste and energy usage, and the implementation of new recyclability technologies – both with the labelstock and how it relates to the ink. INX is at the forefront of some developments in this area with the Genesis washable ink, which improves the efficiency of de-inking and the recyclability process.”

In general, ink technology has evolved to address numerous sustainability objectives. This includes the use of a higher proportion of bio-renewable components within the ink, the ability for materials to show improved recyclability, and de-inking to improve the efficiency of the process. 

“Embracing the challenges of sustainability and the circular economy will be critical for success, both today and in the future,” remarks Edwards. “We expect increased demand from brand owners to show progress within the sustainability arena. Understanding where technology is moving, in terms of materials used and the printing process in general, is going to be critical in order to meet customer demands.” 

Sustainability is not a clearcut initiative, as there are barriers throughout the supply chain.

“The fragmented nature of sustainability regulations in the US, varying across states and municipalities, poses a challenge for many industries,” says Avery Dennison’s Marella. “We must find ways to work together to make sustainable change while also protecting short-term growth and financials. Additionally, this is an election year – with potential changes to policy and economics coming. But success in the North American labeling industry will depend on companies’ ability to adapt to evolving regulations and market demands while exploring innovation and automation. Avery Dennison is leading the way by offering market-driven solutions to address the industry’s key challenges.”

An opportunistic future

Even though there is much uncertainty around the economy and several significant industry challenges – namely the workforce – there are still opportunities to grow and thrive in labels and packaging. The North American label market saw those challenges and remedies first-hand during the pandemic, and the host of obstacles that ensued.

“Business is always going to be challenging, but these challenges lead to evolution and invention,” states Epson’s Crawford. “Going forward, I believe the door to possibilities is wide open. We can’t predict the future, but Epson will continue to listen to its customers and evolve and innovate technology to meet industry needs. Opportunities exist in every market and situation. Converters should look for and partner with manufacturers that address these needs.”

As the workforce continues to pose challenges for suppliers and converters alike, automation will be relied upon to help mitigate the absence or retirement of key employees.


Mark Andy has developed a versatile product portfolio of printing presses to meet the ever-changing requirements of label converters.

“Label printing is an industry that requires specialist knowledge,” states Flint Group’s Niewiadomska. “Compared with other industries, this has led to the sector relying on a highly skilled cadre of long-standing employees. However, as these experienced workers age out of the market, the gap they leave is not being filled at the same rate. As a result, strategies for attracting and retaining talent have become a leading consideration for printers and converters everywhere. This challenge is one of the reasons for the rising interest in press automation. Faced with a declining workforce, investing in modernized, automated equipment can help printers remain competitive.”

Automation can come in multiple forms, too. Digital platforms are another tool through which suppliers can assist their customers. For example, Flint Group’s FlintLink B2B customer portal offers customers a single gateway to accessing critical information at the click of a button. From order data to consignment usage reporting, SDS, technical information, and industry intelligence, platforms like this can provide services that help printers continue thriving in the face of ongoing challenges.

Other opportunities will come by way of R&D. As automation, digital printing, sustainability, etc. are required by converters and brands, suppliers will be tasked with innovating the newest products to meet demand.

“The growth toward digital print – and the more recent acceleration of digital label printing as part of the overall growth of the label industry – has led to a more urgent need to address new technical requirements,” states INX’s Edwards. “There is an accelerated interest in the development of water-based inks for inkjet systems. When you combine it with the interest in water-based digital, there is more development on the UV side of products, which are considered low migration for use on food packaging applications. Other ink technologies quite advanced in the analog world are gaining interest in the digital arena. This includes shrink sleeve applications and embellishments, which can be delivered digitally such as hot foil applications.”

According to Edwards, hybrid technology will continue to see market acceptance, as well.

“The increasing use of hybrid technologies, where there is a mix of digital and analog processes utilizing the best of both worlds, is a consideration to help meet customer demand. Having the ability to create fully variable data, QR codes, and other methods to enhance the customer experience, as well as the ability to economically deliver short run and fast turnaround capability, is a secular trend that must be addressed.”

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