As the label industry gathers momentum after a turbulent economic cycle, business leaders across the European label value chain convened at the FINAT European Label Forum (ELF) 2025 last May to chart a course for the future. In a rapidly evolving landscape shaped by global pressures, shifting consumer attitudes, and tightening sustainability regulations, the Forum has become an indispensable platform for insight, collaboration, and strategic direction.

In its ELF coverage, FINAT draws on expert perspectives from Jules Lejeune (FINAT), Corey Reardon (AWA), Linda Lichtmess (Euromonitor), Paul Jenkins (ThePackHub), and a dynamic panel of industry leaders. Their shared vision? To empower label printers and suppliers to thrive amid uncertainty by embracing innovation, collaboration, and adaptability.

1. The European Label Business Landscape: Post-COVID Recovery and Structural Shifts

In his opening report of the session, Jules Lejeune painted a data-driven picture of the European label industry’s journey through post-COVID volatility. While roll label stock demand was once a strong proxy for GDP growth, the correlation collapsed in 2020, giving rise to what he dubbed the “COVID spaghetti” era. Despite some recovery, overall volumes in 2024 remain at 2016 levels, but recovery varies across regions and countries depending on differences in underlying economic fundamentals).

“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 emphasised that structural changes, such as the exclusion of Russia and Belarus from data and possibly the increased sourcing from countries outside Europe such as China (originally driven by the severe label materials supply chain disruptions a few years back), are reshaping the market, and FINAT was in the process of commissioning a market research to assess the impact and implications of these changes.

He also pointed to a rise in direct thermal and PP materials driven by e-commerce and innovation.

Why this matters: Label printers must rethink growth strategies. Recovery is uneven across regions (Spain stands out positively), and premium or diversified applications (e.g. e-commerce, thermal labels) offer pockets of resilience. Understanding shifts in material mix and sourcing dynamics will be critical for planning and procurement.

2. Business Trends: Consolidation, Collaboration, and New Growth Frontiers

Corey Reardon highlighted consolidation and vertical integration as defining features of today’s market. The pressure-sensitive (self-adhesive) segment represents 39% of the global label market, but much of that is driven by VIP (variable information printing) labels for logistics, not prime decorative applications.

“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 said.

Europe accounts for 22% of global label production, but the competitive pressure from Asia, particularly China, is intensifying. Meanwhile, demand is softening and inflationary headwinds are forcing a rethink of operational models.

Implication for business owners: Embrace partnerships to stay competitive. Whether through supply chain integration or knowledge-sharing platforms like FINAT, collaboration is becoming a growth enabler. Companies that remain stagnant still risk falling behind.

3. Consumer Attitudes: Health, Trust, and Tangible Value

Linda Lichtmess provided a clear-eyed analysis of consumer mindsets heading into 2025. Health consciousness, long-term value thinking, and skepticism toward vague sustainability claims dominate consumer behaviour.

“Consumers still want sustainable options, but they demand proof. Efficiency, functionality, and real benefits are the new currency of trust.”

Amidst inflationary concerns, private labels are gaining traction by delivering premium value at affordable prices. AI-driven personalisation is gaining ground, but trust remains fragile.

Why it matters to label companies: Brands will rely more heavily on labels to communicate verified claims and engage consumers quickly. Smart labels, digital identities, and QR integration are no longer optional but strategic assets. Label converters must help brand owners translate value into visible, trusted packaging cues.

4. Innovation in Label & Packaging Design: Sustainability as the Core Driver

Paul Jenkins drove home a powerful point: sustainability is no longer a trend; it’s the engine of all innovation.

“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,” said Jenkins.

He mapped five dominant innovation areas: recyclability, biopackaging, paperisation, refill/reuse, and reduction. Label innovations like mono-material constructions and removable RFID tags are crucial for enabling circular packaging systems.

Opportunity for converters: Packaging legislation (e.g. PPWR, EPR) will soon mandate recyclability and minimum recycled content. Forward-thinking label printers who invest now in compliant, value-added solutions will gain a competitive edge.

5. Industry Challenges: Regulation, Education, and Value Creation

The industry panel, apart from Paul Jenkins featuring voices from All4Labels, Asteria and Reckitt, reiterated that compliance and innovation must go hand-in-hand. Arno Melchior (Reckitt) underscored the growing impact of regulation:

“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.”

Gabriela from All4Labels stressed the importance of label suppliers stepping up: “We can’t just be label providers. We must be strategic partners that guide brand owners through design, recyclability, and compliance.”

Actionable takeaway: Education and proactive communication are now essential services. Label businesses must engage brand owners beyond procurement – offering insight, testing, and co-development to co-create sustainable, compliant packaging.

Conclusion: Empowering the Industry Through Collaboration and Adaptability

From shifting demand patterns and evolving consumer preferences to regulatory pressure and technological disruption, the label industry is in transformation. But amidst uncertainty lies opportunity. By leaning into innovation, prioritising sustainability, and fostering industry-wide collaboration, label businesses can turn disruption into differentiation.

At FINAT, we believe that community, knowledge-sharing, and foresight are key to navigating this change. Together, we can lead the industry forward.

The European Label Forum 2026 will take place May 27-29, 2026 in Seville, Spain. For more info, visit https://www.europeanlabelforum.com/.