In the ever-evolving landscape of printing and packaging technology, to some, direct-to-object printing is a potentially disruptive force that poses a threat to the traditional labeling industry. While I have heard from some describing adoption as slow, and data is limited, how much of a threat it poses remains to be seen. 

When it comes to direct-to-object printing, also known as direct-to-shape, direct-to-container, and direct-to-packaging – inkjet is the go-to technology. Market research firm Future Market Insights estimated the market at $3.8 billion in 2022 with projections to reach $6.6 billion by 2030, at a CAGR of 7.2% from 2022 to 2030. Notably, the firm reports the direct-to-object inkjet printer market is expected to be steered regionally by North America, which was estimated to hold a market share of 27.1% in 2022. 

The printing method enables manufacturers to print directly onto various surfaces, eliminating the need for separate labels. Advantages of direct-to-object printing are undeniable, and include:
Cost Efficiency – By eliminating the need for separate labels and the associated printing processes, manufacturers can reduce
production costs.
Enhanced Customization – Manufacturers can easily change designs, add variable data, and create unique branding for individual items.
Time Savings – Direct-to-object printing can potentially reduce production time, enabling manufacturers to meet tight deadlines and respond quickly to market demands.
Reduced Waste – Traditional labeling processes often generate waste in the form of excess labels, matrix, release liner and ink waste, thus, direct-to-object printing minimizes waste.

The aforementioned benefits coincide with challenges for the label industry. The most immediate and significant challenge is the potential reduction in demand for traditional labels.

Of course, labels have staying power, and won’t go away anytime soon. Shifting to label-free packaging requires substantial investment in new printing technologies and equipment. Also, label-free packaging may not offer the same level of customization as traditional labels – some products may require specialized labels for branding, regulatory information, or variable data that cannot be replicated with direct-to-package printing.

However, some recent headlines are putting the label industry on notice and are worth paying attention to. 

Coca-Cola strips labels from Sprite

While instances of brand owners going label-less have not really moved the needle so much as to give label manufacturers a scare, a recent initiative announced by Coca-Cola should be reason enough for converters to pause.

Last month, in the UK, Coca-Cola declared it will temporarily remove labels from Sprite and Sprite Zero on-the-go bottles in a limited trial of “label-less” packaging. The pilot will see labels temporarily removed from single 500ml Sprite and Sprite Zero bottles and replaced with an embossed logo on the front of the pack. Laser-engraved product and nutritional information will appear on the back of pack.

While existing labels are fully recyclable, removing them simplifies the recycling process. It removes the need to separate them from the bottles during recycling and reduces the amount of packaging material used overall.

Shoppers have been invited to try out the new limited design, being sold at eight Tesco Express Stores in Brighton and Hove, Bristol, London and Manchester between January and March 2024.

Like existing Sprite packaging, the clear 100% recycled PET bottles feature green and transparent attached caps identifying them as Sprite or Sprite Zero, respectively.

In recent years, Coca-Cola has introduced a number of design changes to help reduce packaging waste, including turning Sprite bottles from green to clear plastic to make them easier to recycle back into bottles. It has also introduced attached caps to its bottles, ensuring that the cap stays connected to the bottle after opening to reduce the potential for littering; and invested in new designs to reduce the amount of packaging it uses, such as creating lightweight bottles and reducing the materials used in external packaging.

Dusan Stojankic, VP of franchise operations, GB&I at Coca-Cola Great Britain, comments, “We want to help create a future where plastic drink packaging will always have more than one life. Labels contain valuable information for consumers, but with the help of technology we can now trial other ways to share this information while reducing the amount of packaging we use. Going label-less might seem like a small step, but it is one of several ways we are exploring making recycling easier, minimizing waste, and minimizing the impact of our packaging on the environment.”

According to Coca-Cola, there are two pieces of technology behind the “label-less” trial – the use of fiber lasers and laser engraving – and this trial is the first time these two technologies have been used in a pilot globally, the company says, noting, “These innovative technologies have enabled us to strip off the labels from our on-the-go 500ml Sprite bottles and replace them with an embossed logo on the front of the pack and laser-engraved product information on the back. We’ve also cleverly laser etched all the valuable information you’d expect to see on a label on to the back of the bottle, which doesn’t interfere with the recycling process.

“While we’ve run label-less trials in other key markets around the world – with Sprite in South Korea, Coca-Cola in Japan, and Valser water in Switzerland, this trial is the first in Great Britain and is the first time we’ve trialed label-less on a single-unit bottle sold in-store for any of our core brands.”

Javier Meza, VP of marketing, Coca-Cola Europe, says, “The trial is a milestone for the industry. It’s the first time these two technologies have been used in a pilot globally, where a Coca-Cola product will appear in a label-less, single-unit bottle sold in-store. Although the design change may sound simple, this is a big shift from a marketing perspective. This trial could contribute to longer-term changes to the way brands communicate with their consumers.”

James Bull, head of packaging and food waste strategy at Tesco, says, “We want to help our customers minimize the environmental impact of the products they buy, including removing plastic and packaging when possible. This trial of label-less packaging by Sprite is a great example of how brands are innovating to provide those solutions.”

Just how much less packaging do the new label-less bottles use? Coca-Cola says the trial of label-less on-the-go 500ml bottles of Sprite Regular and Sprite Zero will be made with 100% rPET (excluding cap) – which represents a 32% reduction in CO2e use, vs. virgin plastic (94gr CO2e vs. 64gr CO2e per bottle). The removal of the recyclable plastic label also equates to a savings of 2.8 kg of CO2e for every 1,000 label-less bottles produced.

The company says, “This trial innovation represents a small plastic reduction of about 2% – by weight, per bottle. This reduction accounts for the bottle, cap and the label. Although this reduction may seem modest, we’ve tested and launched many packaging innovations to help reduce waste and simplify the recycling process. We are also investing in new designs to reduce the amount of packaging we use; creating lightweight bottles and cutting the materials we use when we’re packing our products up and sending them out to stores. And, in the longer term, we are looking at different ways of delivering our drinks to consumers – such as with refillable packaging and dispense systems.”

Keep Britain Tidy is an independent environmental charity that works to inspire, educate and enable everyone in the UK to value the environment on their doorstep. Allison Ogden-Newton, Keep Britain Tidy’s chief executive, says, “It’s clear that, as a society, we need to reduce, reuse and recycle more, and waste less. Everyone, including businesses, needs to be part of the solution. We welcome this exciting and innovative trial.”

Eastgate embraces direct screen printing for plastic bottle labeling

Eastgate Group, based in Lebanon, OH, USA, is one of the nation’s largest providers of contract package labeling and decorating services. The company has announced an expansion of its screen printing capabilities, investing in two additional production lines installed at the Southwest Ohio facility.

“Direct screen printing continues to be a compelling option for brands looking to achieve clean and attractive packaging without the need for a secondary label on the container. We’ve seen increased demand for this type of package decoration in recent years as companies seek to build a more sustainable and recyclable product. This investment will broaden our single and multiple color print capabilities and is in line with our commitment to provide customers with the highest quality packaging in the market,” states Kyle Ludeke, president of Eastgate Group.

The two production lines will be focused on labeling plastic cylindrical containers using UV-curable inks and will be supported by Eastgate Group’s in-house prepress and graphics department. “While many of our peers have started to outsource the crafting of their silk screens, we believe that keeping the entire process in-house allows us to provide our customers with a superior product and quicker turnaround,” adds Ludeke. Eastgate Group expects the production lines to be installed and operational by March 2024.

Something to keep an eye on

Time will tell if and how the rise of packaging without traditional labels – whether pressure sensitive, shrink or glue-applied – presents a threat to the industry and challenging its traditional role in the supply chain. While the future is unknown, label manufacturers would be wise to monitor the situation and prepare to be proactive. They can do so by investing in new technologies, exploring ever more innovative solutions, and finding ways to adapt to the changing preferences of brand owners and consumers alike. Navigating this evolving landscape is essential for the label industry to not only survive but thrive in an environment that may be increasingly influenced by label-free packaging.

Steve Katz is the former editor of Label & Narrow Web and is now a regular contributor. He is focused on helping companies in the label industry share their news and tell their stories. Follow him on twitter @LabelSteve.