Whether label converters are printing on paper or filmic substrates, the trend is clear – the material has to be sustainable. As sustainability has grown in importance, for brands and consumers alike, substrate suppliers have been tasked with engineering more environmentally-friendly materials. Sustainability has also moved from a luxury to a core necessity. Suppliers have been challenged by their customers, too. The material must perform similarly to previous substrates, and cost must be comparable. 

“One trend shaping our newest offerings is a higher recycled content without performance tradeoffs,” states Gina Roemke, senior roll product manager, Wausau Coated Products (WCP). “Customers are seeking recycled content with parity performance. They want recycled inputs – especially PCR film and higher PCW paper – without sacrificing print quality, converting speed, or durability. 

“For example, many of our sustainable solutions are made with up to 100% post-consumer recycled (PCR) content and alternative fiber papers providing press performance comparable to virgin films while substantially increasing recycled inputs,” she continues. “This directly addresses brand and converter requests to move the needle on recycled content in labels.”

New regulations are prompting substantial interest from brands, too. According to Avery Dennison, brands’ increased focus on sustainability and EPR regulations coming online are sparking converter requests for sustainability disclosures, data, and transparency on their suppliers’ sustainability practices. Avery Dennison has observed major brands with net zero and targeted GHG emission goals, as well. In order to support those targets, lightweight papers are becoming increasingly prevalent for a variety of applications, such as labels, packaging, and direct mail.

“The demand for sustainability is a story of both new and old,” says Will Martin, product manager, Consumer Label Solutions, UPM Adhesive Materials, Americas. “Aligning with the goals of brands and increasing regulations (like Extended Producer Responsibility) is giving a clearer roadmap to where the needs lie for creating a more sustainable future. Ensuring current products enable recycling is critical. And future substrates must either facilitate reduction in materials, utilize renewable raw material sources, and/or incorporate recycled content.”

In many cases, the innovation isn’t a breakthrough. However, the increased focus on sustainability has created increased demand for
these materials.

“While many of these substrates aren’t new, they’re gaining renewed focus as brands push for measurable sustainability gains,” explains Lisa Ivey, R&D technical manager, Fedrigoni Self-Adhesives. “We continue to see increased interest in films made from renewable, plant-based sources, such as PLA, as well as certified compostable constructions for applications where compostability is supported.”

Downgauging has continued as a label industry trend, as well. This process enables material reduction without sacrificing performance. Additionally, conversations around life-cycle assessments (LCA) have become more frequent, especially with larger global brands. These CPGs are evaluating not just materials, but the overall environmental footprint of their packaging decisions.

“There is also a strong move toward recycling-friendly options, materials designed to support PET bottle recycling, clean label removal, and compatibility with existing recovery infrastructure,” adds Ivey. “Collectively, these trends reflect a shift toward solutions that improve environmental impact without disrupting established converting or application processes.”

The challenges here are evident, though. “One of the ongoing challenges is balancing cost expectations with sustainability ambitions,” remarks Ivey. “Brands want solutions that lower environmental impact, but they need to do so without significant cost increases or
operational changes.”

“Material reduction often delivers both economic and environmental benefits – a true win-win,” adds Martin. “However, other sustainable options typically carry additional costs. Brands must weigh the value of EPR credits and fee reductions against the premium pricing that often accompanies more advanced solutions like PCR content or renewable materials.

“Paper labels present their own competing demands: converters and brand owners push for material reduction while simultaneously requiring wider webs and faster converting speeds for operational efficiency,” Martin continues. “For UPM, the challenge lies in continuing to innovate scalable, cost-effective sustainable solutions that bridge these competing priorities.”

Plus, continued education and clarification of industry terms are necessary moving forward. “There is also still a noticeable knowledge gap in the market regarding recyclability, compostability, and biodegradability, what the terms actually mean, and how they apply in real-world waste streams,” says Ivey. “Even as education improves, misconceptions persist. Helping customers and consumers navigate these nuances remains a critical industry responsibility.”

State-by-state fluctuations drive confusion, too. “The fragmented nature of sustainability regulations in the US, varying across states and municipalities, poses a challenge for many industries,” states Avery Dennison. “We must find ways to work together to make meaningful change while also protecting short-term growth and financial performance. Recycled and bio-based resins are in demand, and that demand is expected to increase as more state regulations start to come online. California, New Jersey, and Washington are already requiring beverage companies to include 15% PCR in their plastic containers.”

This also applies to recycling. Recycling infrastructure capability and economics can vary significantly within and across regions. “Recyclability will be impacted by all of these components, making it difficult to scale up solutions,” continues Avery Dennison. “There is also a strong need for education on the complexity of recycling, both within the industry and with end consumers. The diversity in packaging makes it very difficult since not all packaging types can be recycled using the same processes. This ties into another challenge we face, which is the limited supply of high-quality recycled content for use as input materials into label substrates.”

Significant progress

In recent years, there has been a strong focus on substrate certification and tangibly proving to customers the sustainable benefits of specific products. For example, the Association of Plastic Recyclers (APR) offers numerous pathways to certification, which showcases the recyclable attributes of films.

“APR recognition has become central to conversations about how labels impact plastic packaging recyclability,” says UPM’s Martin. “Though APR has been established in the plastic packaging industry for years, the education curve remains surprisingly steep for many customers. Requests flood in daily seeking confirmation that both label materials and adhesives meet compliance standards.”

Meanwhile, WCP has reduced impacts in the plant, such as avoiding solvent acrylics since 1981 and segregating trim waste to channel eligible streams to fuel pelletization rather than landfill. The company’s product portfolio has grown too with the expansion of FSC-certified recycled papers, alternative fiber materials, and 90% PCR PET solutions. 

“We also participate in industry groups, like TLMI and CELAB, to advance liner recycling and circularity across the value chain,” states WCP’s Roemke.

Technology serves as a boon here. “There is an opportunity to utilize technology to better track and trace products from manufacturing all the way to consumers and through end-of-life,” states Avery Dennison. “Avery Dennison is committed to helping converters and brands reach their sustainability goals. We offer a footprinting tool to help customers see the environmental impact of the label product and compare it to alternatives that can help them reach their goals.”

While suppliers have made significant progress, there is still considerable room for growth. Some key areas for improvement include scale and consistency of recycled materials supply, and broader adoption of liner and label recovery programs.

“The good news is brand and converter engagement is higher than ever, and we’re aligned on practical steps that make a difference today,” comments Roemke.

In the future, legislation could further foster sustainable process adoption. “EPR will further accelerate recycling technology improvements as brands and retailers have a vested financial interest in more efficient recycling processes,” says Martin. “If we as an industry embrace these regulations as a catalyst for innovation rather than merely compliance obligations, we can realize tremendous advances in both environmental and economic performance.”

Comparing films and papers

While the benefits of films and papers have long been echoed, the sustainable versions of these materials offer distinct features.

“Films can offer durability, moisture resistance, and clarity at lower calipers,” explains WCP’s Roemke. “Papers offer renewable fiber content and tactile shelf appeal. Either can be a sound choice – what matters is the whole construction – the facestock, adhesive, liner – and the package’s end of life pathway.

“Recycled and renewable inputs exist for both,” adds Roemke. “With 90% PCR PET, films can carry substantial recycled content. Paper can leverage FSC-certified fiber and 100% PCW options, plus tree-free and alternative fibers such as hemp, agave, and sugarcane. The goal is to match the material to the brand story.”

According to Fedrigoni’s Ivey, making the right choice for a specific application requires an understanding of the entire system. Converters must account for the material’s manufacturing footprint; how it performs in the customer’s process; whether it protects the product for the required lifespan; how it fits into a circular economy – reuse, recyclability, or repurposing; and what its realistic end-of-life pathway looks like.  

“Ultimately, sustainability isn’t a single attribute,” notes Ivey. “It’s about aligning the packaging’s functional needs with environmental goals across the entire value chain, energy, water, materials, transportation, and people. Clear intent and defined objectives are essential to making the right choice.”

Product launches

Most recently, Avery Dennison introduced three new facestocks to its Wine and Spirits Collection. All are 30% PCW  versions of classic facestocks, including Estate 8, Bright White Felt, and Estate 17 Martele. Additionally, Avery Dennison has continued to grow its Direct Thermal Linerless portfolio of products.

Avery Dennison has also launched the first RFID label to receive APR Design for Recyclability (DfR) recognition from the APR, featuring proprietary CleanFlake adhesive technology to ensure compatibility with PET recycling streams.

“Avery Dennison is the first to offer CleanFlake Technology on all film labels, enabling and advancing rigid plastic recycling,” the company states. “Regardless of application, CleanFlake Technology offers excellent performance on all types of packaging, making sustainability the easy choice.”

Fedrigoni Self-Adhesives continues to broaden a portfolio centered on circularity and responsible material choices. The company offers APR-recognized films designed for PET recycling, certified compostable constructions, dissolvable options, bio-based films such as PLA, and a full range of FSC-certified papers.

“A key focus area is our wash-off technology for the wine, spirits, and craft beverage segments, an increasingly important category as brands explore bottle reuse programs,” says Fedrigoni’s Ivey. “Our wash-off solution pairs the FW8000 wash-off adhesive with our Sorolla H+O WS facestock on a 1.2 mil PET liner. This construction delivers the durability required for premium beverage applications, refrigeration, moisture, ice buckets, while still enabling full label removal in an alkaline bath with no adhesive residue. The material maintains the premium look and tactile quality expected in wine and spirits labeling while still enabling circular design.”

UPM’s most direct impact on carbon reduction comes through renewable, bio-based solutions like Forest Film – the industry’s first film label material made from wood-based raw materials. Linerless paper labels are also available for quick-service restaurants and weigh scale applications.

“Beyond innovative products themselves, there’s critical need for transparency and data that support increased reporting requirements under new and upcoming regulations,” says Martin. “Our Label Life LCA service addresses this by providing quantifiable metrics customers need for compliance and substantiation.”

Finally, WCP has expanded its portfolio of FSC-certified, recycled, and alternative fiber papers such as 60# Recycled Black Vellum (100% PCW), 60# Estate Label #12 (100% PCW), 60# Sugar Cane Paper (tree free), 4 mil White Stone Paper (tree-free), and 60# 420 Vellum (50% Hemp / 50% PCW). 

Wausau Coated Products has prioritized premium aesthetics with verifiable environmental attributes. On the films side, WCP has engineered a 1.2 mil clear r PET film liner featuring 90% post-consumer recycled content. The product has been developed to maintain converting performance while dramatically increasing recycled inputs in label constructions.  

“In 2026, Wausau Coated Products will see the launch of additional ecofriendly, sustainable components and pressure sensitive constructions,” concludes Roemke. 

Focusing on liners

The liner might not emerge as the biggest concern in the label’s construction, but it plays a pivotal role in sustainability. Many customers are less concerned about the liner itself from a carbon-impact perspective because it’s such a small portion of the total construction. But when sustainability initiatives roll out company-wide, the liner becomes part of the conversation. 

“One of the biggest shifts we’re seeing is the move from poly-coated kraft (PCK) to barrier-coated kraft (BCK),” explains Ginnie Gandy, sales manager, Release Liner, Channeled Resources Group (CRG). “For years, PCK has been the workhorse of the industry, but it comes with a downside: the polyethylene layer makes the liner non-recyclable. BCK solves that problem. It’s fully recyclable in standard paper liner streams and carries a noticeably lower carbon footprint, around a 30% reduction compared to traditional PCK. For customers trying to hit sustainability goals without completely changing their process, BCK has become a very real option.”

Downgauging is a trend with liners, as well. Often, converters want to see if they can get the same performance while using less substrate. “In many cases, the answer to that question is, ‘Yes,’” notes Gandy. “When the application allows for it, dropping caliper is a straightforward way to cut material use without rewriting the entire construction.”

On the silicone side, suppliers have been working hard to reduce misting and coat weights. Using less silicone on every run adds up. These incremental improvements matter, especially when customers are looking for ways to make progress without disrupting their operations.

Customers often come to CRG with a range of requests. The two most popular requests are FSC-certified liners and PFAS-free options. “FSC is almost a box to check at this point, especially for consumer-facing brands,” says Gandy. “PFAS-free has accelerated quickly, as more companies take a hard look at what’s in their materials and where potential risks might be. Customers are also paying attention to supplier ratings like EcoVadis, which helps them evaluate their overall supply chain. CRG’s EcoVadis ranking is something that comes up more often than it did even two years ago.”

Just like with facestocks, there are several significant concerns. Recycling and price head the list.

“The hardest challenge, by far, is collection and recycling,” states Gandy. “Even when the liner is recyclable, it doesn’t necessarily mean the customer has a practical way to separate and store it. In busy plants, liner waste usually ends up mixed with everything else because pulling it out requires time and space. Until collection gets easier, recycling rates will stay lower.

“Cost is the other sticking point,” she continues. “Sustainable options still carry a premium in many cases, whether it’s the base paper or the added certifications. Customers want to make the right choice, but they also have budgets to manage. Getting sustainable substrates to true cost parity is going to take broader industry buy-in and scale, both of which are happening, just not as fast as customers would like.”

Despite these challenges, there has been momentum for change. Programs through TLMI and the Liner Recycling Initiative, along with brand-driven efforts, are proving that liner recycling works when enough participants commit to the process.

“These programs are identifying paper mills willing to take the material and helping build the playbook for collection and logistics,” comments Gandy. “The next leap forward will come when more companies participate. The infrastructure is improving, but we need more people willing to contribute liner byproduct to pilot programs. We also need customers to be willing to try alternatives. Liner users need to be willing to try a different kind of product instead of the status quo. PCK liners work great, but can a BCK get you close enough?”

Collaboration will also play a key role in overcoming obstacles in the future. CRG is currently deep into testing a fluoro-silicone alternative for customers running silicone adhesives. 

“Today, fluoro-silicone liners are the only option for those adhesives, but they often contain PFAS,” remarks Gandy. “Working alongside silicone suppliers, we’re making good progress evaluating chemistries that could eliminate PFAS from these constructions. It’s not commercial yet, but it’s coming, and it’s going to be an important shift for any customer using silicone-adhesive systems.”