The global label and packaging value chain is entering a phase of moderated, more mature growth shaped by macroeconomic conditions, rising sustainability expectations and recent supply chain constraints. According to Corey Reardon, president and CEO of AWA Alexander Watson Associates and Labelexpo’s materials ambassador, the sector continues to demonstrate resilience while accelerating material innovation. Market demand is increasingly filtered through environmental criteria, with brand owners and converters seeking lower‑impact options that support circularity without compromising performance. At the same time, the industry is addressing raw material availability, logistics complexity and geopolitical frictions that have tested suppliers and customers in recent years. Within this context, Labelexpo 2025 in Barcelona is positioned as a focal point for the latest substrate, adhesive and converting developments, with an emphasis on solutions that advance sustainability, enable digital interactivity and optimize resource use. Emerging trends span biobased and recycled inputs, water‑based chemistries, lightweighting and the integration of smart features that connect physical labels with digital systems.
Market outlook and sustainability drivers
Growth in labels across formats is expected to continue, but with tempered demand patterns. The sector faces intensified pressure to meet stricter sustainability and circularity goals as consumer preferences shift toward demonstrably responsible materials and processes. Supply chain challenges experienced in recent years, including shortages of key inputs, shipping complexities and geopolitical tension, have added further constraints. In response, material suppliers are prioritizing next‑generation solutions that combine environmental performance with reliable availability and processing consistency.
Material and format landscape
The label industry draws on a broad set of inputs and application formats. The materials and formats highlighted include:
- Papers (pulp)
- Films (resins)
- Adhesives
- Inks
- Silicones
- Pressure‑sensitive
- Glue applied (cut and stack, and wrap around)
- Shrink sleeve
- In‑mold
Innovation focus at Labelexpo
At Labelexpo Europe, developments will center on eco‑focused materials incorporating biodegradable and recycled content. In parallel, technologies that reinforce sustainability while enabling consumer engagement, transparency and interactivity are gaining ground. Smart materials, including RFID, are identified as a key vector for future growth, especially as they are linked with artificial intelligence and supporting digital platforms.
Bioplastics and paper developments
Bioplastics derived from renewable plant sources are set to expand, offering options that degrade more quickly than conventional plastics and support waste reduction strategies. Paper substrates with higher recycled content, combined with eco‑friendly coatings that elevate performance and circularity, are proposed as both sustainable and economic pathways.
Adhesives, inks and related chemistries
Water‑based adhesives, inks and other materials are being advanced as lower‑impact alternatives. Ongoing work focuses on improving functional performance while minimizing environmental footprint, supporting adoption across pressure‑sensitive and glue‑applied applications as well as sleeve and in‑mold formats.
Lightweighting and advanced structures
Material science efforts are driving thinner, lighter constructions that maintain required properties while reducing overall usage and waste. Additional innovation vectors include nanotechnology, regenerative materials and hybrid laminates, which are expected to further reshape the label materials landscape over the coming years.
Outlook
The label industry is positioning itself at the forefront of material innovation, balancing regulatory evolution and shifting consumer expectations with practical advances in substrates, chemistries and smart functionality. With continued investment in eco‑oriented materials and digital‑ready features, and by addressing persistent supply chain obstacles, the sector remains on a growth trajectory and well placed to capture near‑ and longer‑term opportunities.
Based on the article by Corey Reardon, President & CEO of AWA Alexander Watson Associates and Labelexpo’s materials ambassador.
