The European label market is emerging from a period of strong economic turbulence while simultaneously facing accelerating regulatory change and rising end-customer expectations. At the European Label Forum 2025, organised by Finat in May, leaders from across the European label value chain analysed the current market situation and potential development scenarios. The main topics included demand recovery after the pandemic, consolidation and vertical integration, changing consumer attitudes, the role of labels in the circular economy and the need for close cooperation between material suppliers, printers and brand owners.
The second part of the forum coverage is based on presentations and discussions featuring Jules Lejeune (Finat), Corey Reardon (AWA), Linda Lichtmess (Euromonitor), Paul Jenkins (ThePackHub) and a panel of representatives from All4Labels, Asteria and Reckitt. The common denominator of their contributions was the need to combine innovation, collaboration and operational flexibility in order to remain competitive under uncertainty. The conclusions are directly relevant to labelstock suppliers, printers and plastics converters active in the packaging segment.
European label market after the pandemic: rebound and structural change
In his introductory presentation, Jules Lejeune provided quantitative data on the development of the European label market in recent years. He pointed out that demand for roll label materials had long been a good approximation of GDP dynamics, but this relationship broke down in 2020, which he referred to as the "COVID spaghetti" period. After strong fluctuations, volumes in 2024 remain close to 2016 levels, with the pace of recovery differing between regions and countries.
"In 2023 we were back at 2013 levels, so in one year, we caught up three years. But we’re still behind pre-COVID performance," Lejeune stressed. At the same time, he highlighted structural changes, including the exclusion of Russia and Belarus from the data set and a likely increase in sourcing from non-European countries such as China. This trend was initially driven by severe disruptions in the label materials supply chain.
Finat has initiated the commissioning of a market study aimed at assessing the impact of these changes on market and sourcing structures. These data are also important for suppliers of plastic films and laminates, for whom the label segment remains a key application area. Lejeune also pointed to increased use of direct thermal labels and polypropylene-based materials, driven by the expansion of e-commerce and new application developments.
In practice, this translates into the need to redefine growth strategies on the part of printers and converters. Demand recovery is geographically uneven, with some markets, such as Spain, standing out positively. At the same time, higher value-added applications, including e-commerce labels and thermal solutions, are gaining importance. Closely monitoring changes in the material mix, including the relationship between paper and film and the growing role of non-European sourcing, is becoming crucial for raw material planning and investments in processing capacity.
Consolidation and collaboration as a response to market pressure
Corey Reardon drew attention to the growing role of consolidation and vertical integration as characteristics of the current market phase. The pressure-sensitive label segment accounts for around 39% of the global label market, with a significant share of this volume generated by variable information printing (VIP) labels for logistics rather than prime decorative labels. This means that a large part of applications are functional information labels without extensive aesthetic requirements, but with strict demands on efficiency, readability and integration with identification systems.
"There's opportunity in being more than a converter – the winners will be those who collaborate across the value chain to offer full-service, sustainable solutions," Reardon stated. Europe currently accounts for around 22% of global label production, but competitive pressure from Asia, particularly China, is increasing. At the same time, demand is softening and inflation is forcing a rethink of operational models.
Under these conditions, cooperation gains in importance, including projects that link material manufacturers, printers and brand owners. This applies both to supply chain integration and to knowledge-sharing platforms such as Finat’s initiatives. Forum participants noted that companies which fail to adapt risk losing competitiveness, especially in view of tightening packaging regulations covering plastic and paper substrates.
Consumer attitudes: health, trust and verifiable benefits
Linda Lichtmess presented an analysis of consumer attitudes heading into 2025. Key trends include increasing health consciousness, long-term value thinking and scepticism towards vague sustainability claims. "Consumers still want sustainable options, but they demand proof. Efficiency, functionality, and real benefits are the new currency of trust," she emphasised.
Under inflationary pressure, private labels are gaining importance as they seek to offer perceived premium value at lower prices. At the same time, AI-driven solutions in personalisation are developing, although consumer trust in such tools remains fragile.
For label producers, this implies a growing importance of labels as carriers of verified information and as a component that builds packaging credibility. The increasing use of solutions such as smart labels, digital identities and QR codes means that printing capabilities, data integration and print durability are becoming critical. Printers and converters must support brand owners in translating product value into clear, easily accessible on-pack communications.
Innovation in labels and packaging: sustainability as the main driver
Paul Jenkins underlined that sustainability has become the primary driver of innovation in packaging and labels. "Think about the billions of labels produced last year. Where are they now? Incinerated? In landfills? Sustainability is not a ‘nice-to-have’—it’s a must," he said. He identified five key innovation areas: recyclability, biopackaging, paperisation, refill and reuse systems, and material reduction.
In this context, solutions that support the implementation of circular packaging systems are particularly important. These include mono-material constructions, labels designed for easier recycling and removable RFID tags. In the plastics segment, this means that label material compatibility with the target recycling stream must be taken into account, especially for polyethylene, polypropylene or PET packaging.
Regulatory packages such as the Packaging and Packaging Waste Regulation (PPWR) and extended producer responsibility (EPR) schemes will in the coming years mandate recyclability and minimum recycled content levels in packaging. For converters and printers that invest early in compliant, value-added solutions, this creates an opportunity to gain a competitive edge.
Regulation, education and value creation: industry panel perspective
In the industry panel, alongside Paul Jenkins, representatives from All4Labels, Asteria and Reckitt discussed the practical implications of regulatory change and the role label suppliers can play in designing packaging that meets future requirements. Arno Melchior from Reckitt stressed the growing impact of regulation on day-to-day design decisions. "We thought we were on track for recyclability targets until the rules changed. Suddenly, our packaging wasn't compliant anymore. Labels are a key part of that equation," he noted.
Gabriela from All4Labels pointed out the need to redefine the role of label suppliers. "We can't just be label providers. We must be strategic partners that guide brand owners through design, recyclability, and compliance," she said. In practice, this means extending the service portfolio to include consulting, testing and co-development of packaging solutions.
The panel concluded that education and proactive communication are becoming an integral part of the services offered by printing and converting plants. Companies operating in the label value chain should engage with brand owners not only at the purchasing stage but already during concept and design phases. This applies both to material selection and to designing labels for disassembly, recycling and reduced environmental impact.
The role of cooperation and adaptability in shaping the industry’s future
Summarising the European Label Forum 2025 sessions, organisers and participants emphasised that the label industry is entering a period of profound transformation. Changing demand patterns, evolving consumer expectations, regulatory pressure and rapid digital technology development are generating both challenges and new opportunities. Companies that prioritise innovation, sustainability and collaboration across the value chain have the potential to turn disruption into competitive differentiation.
Finat highlights the importance of community, knowledge-sharing and long-term planning in the label sector. Continued dialogue on market trends, regulation and material and technology solutions is also highly relevant for raw material suppliers and plastics converters contributing to the packaging industry. Organisers invite stakeholders to the next edition of the European Label Forum, to be held from 27 to 29 May 2026 in Seville.
