In-Mold Labels  

The versatile label and package printing market is increasingly trending toward demands for enhanced durability, visual appeal, and design flexibility. These characteristics are ideally suited for in-mold labeling, or IML. Products featuring IML often involve continuous handling, intensive cleaning, and rigorous logistics, which makes performance imperative.

“In-mold labeling combines the label and container during the molding process, creating a durable, high-quality decoration that resists moisture, abrasion, and handling throughout the package lifecycle,” explains Rey Cabanos, technical services manager, YUPO America. “Adoption is well established in several packaging markets and continues to expand as brands look for greater durability, premium graphics, manufacturing efficiency, and opportunities to improve package recyclability.”

“IML allows crisp, beautiful label graphics that tell the story of the brand,” adds Dianna Brodine, executive director, In-Mold Decorating Association (IMDA). “And, because the label becomes a part of the container, rather than something that is attached with adhesive, that brand’s story becomes a highly durable part of the container, and it can stand up to rough handling on shelves or in daily use.”

According to AWA Alexander Watson Associates, IML is unique among the major label formats in that decoration takes place during container manufacturing itself. Here, a pre-printed label is placed in the mold and fuses with the polymer as the container is formed, whether by injection molding (IML-IM), extrusion blow molding (IML-EB), or thermoforming (IML-TF). “The result is a fully-decorated container straight out of the mold, with durable, edge-to-edge ‘no-label look’ graphics,” explains Corey Reardon, president and CEO, AWA. “In 2025, AWA estimates that the global in-mold label market grew by 2.2% to a volume of 1,562 million square meters.”

To put that in perspective, AWA estimates that the global market for labels was approximately 76,070 million square meters in 2025, which represented a growth of 2.8% over 2024 volumes. Per AWA, five label technology families account for essentially all demand: pressure sensitive labels lead with a 39% share, followed by glue-applied labels at 35%, and sleeving at 20%, with in-mold labeling (IML) holding 2%. Meanwhile, other formats comprise the remaining 4%.

“Regionally, IML has a profile quite unlike the wider label market, where Asia accounts for roughly half of global demand,” states Reardon. “In-mold labeling is instead centered on Europe, which holds a 56% share of global IML volumes and focuses on injection-molded IML-IM formats. North America follows at 22%, oriented toward blow-molded IML-EB applications, but with potential for further growth via IML-IM technology. Asia remains an underdeveloped IML region at 13%, while South America (5%) and Africa and the Middle East (4%) are early-stage, largely import-supplied markets.”

AWA’s research, which is included in the recent AWA In-Mold Label Market Report 2026, examines the most popular end uses for the technology. For a 30% discount on the report, readers can apply the code: AWAIML30. The report shows that in-mold labeling is first and foremost a food-packaging technology. 

“Food applications – the tubs, pots, and other rigid containers where IML-IM excels – account for 60% of global IML demand,” notes Reardon. “Household chemicals form the second-largest segment at 19%, ahead of industrial chemicals at 12%, with health and personal care (4%), beverage (3%), and other uses (2%) completing the picture.”

“IML is particularly well-suited for applications where durability, moisture resistance, high-quality graphics, and long-term appearance are important,” adds Cabanos. “Common opportunities include household and cleaning products, personal care, food packaging, automotive and industrial products, chemicals, and other rigid plastic containers, particularly blow-molded packaging. IML offers a step above using glue-applied labels that use more fragile label substrates.”

In the future, AWA forecasts the global IML market to grow at a CAGR of 2.3% over 2025-2028, taking volumes to approximately 1,674 million square meters by 2028. 

“Growth is expected to be led by the developing regions: South America at a 4.3% CAGR, Africa and the Middle East at 3.9%, and Asia at 3.2%, while the mature European and North American markets expand more moderately at 2% and 1.9%, respectively,” says Reardon.

IML technology has improved in recent years, with innovation contributing to increasing growth rates. “IML has evolved beyond simply providing durable decoration, with greater emphasis now being placed on material efficiency, automation, recyclability, and increasingly sophisticated graphics,” remarks Deborah Foy, technical services engineer, YUPO America. “Advances in substrates, printing, molding equipment, and label-handling technology are allowing converters and molders to achieve better consistency while addressing sustainability and productivity goals with regrind and waste reduction.”

“I spoke recently with two of our members, who produce injection molding machinery in this space, and they both pointed to advances in equipment that have changed the old model that said one molding machine had to be completely dedicated to one IML job,” says IMDA’s Brodine. “Now, automation allows easier job changeovers so that multiple jobs can be produced, allowing for a lot more flexibility.”

According to the IMDA, label separation is also a possibility now. “We used to say IML was a permanent decoration method, but we have IMDA members who are producing removable or peelable IML now,” explains Brodine. “The label – which still is applied in the mold and does not contain adhesives – can easily separate from the product or package to enable cleaner recycling. And, we’re seeing expansion in substrate types as well, with companies experimenting with IML for PET containers or molded fiber applications.”

And with sustainability top of mind for the industry, IML packages are inherently recyclable – which should contribute to increased adoption in the future. “IML is a recyclable decorating method because the label and the container are made of the same or similar resin type,” remarks Brodine. “This simplifies the automated sorting and washing that occurs at the recycling facility by eliminating the need for chemical removal of a paper or film label and adhesive. An in-mold labeled product can proceed through the recycling process to be reground into pellets that are suitable for use in plastic manufacturing applications. As a result, in-mold processes are not detrimental to the recycling stream.

“IML processes can impact sustainable operations, too,” she continues. “For instance, IML can help to reduce the overall manufacturing costs and carbon footprint by eliminating the need for a secondary decorating process – this reduces equipment costs, employee labor and (if shipping product to a decorator) packaging material, transportation costs, and vehicle emissions.”

IML Gets Smart

IML has also evolved with the presence of smart technology. Avery Dennison has launched a dedicated RFID-enabled IML portfolio to be embedded into plastic items during the injection molding process, offering high durability, excellent RFID performance, and support for circularity and reuse systems across multiple sectors. Each RFID inlay is specially designed to withstand the high heat and pressure of injection molding, ensuring consistent performance throughout the manufacturing process.

“The result is a label that’s durable enough for repeated washing and handling, with integrated features that enable fast, accurate item-level scanning to reduce manual effort and improve efficiency,” says Tiffany Howe, product manager, Intelligent Labels, Avery Dennison. “The labels work with standard in-mold labeling equipment and materials. By supporting longer product lifespans and providing greater visibility across operations, the IML portfolio helps reduce waste and contributes to more sustainable, closed-loop systems.”

According to Avery Dennison, RFID functionality embedded within the labels helps reduce human error in inventory handling, provides real-time visibility into item movement, and enables more accurate invoicing based on actual returns. This is particularly useful in high-volume environments such as event services or closed-loop logistics. The technology is particularly suitable for automotive, food and beverage, industrial applications, and logistics.

For brands and operators managing reusable assets, these features help improve accountability, streamline operations, and better align with regulatory and sustainability targets. Currently, the technology is only applicable for PP vessels, and vacuum placement is recommended. Howe notes that electrostatic placement needs to be tested to prevent IC damage and to create sufficient static force.

Avery Dennison’s portfolio is comprised of three inlays: AD Anchor U9 IML, AD Line U9 IML, and  AD Spiral U9 IML. AD Anchor U9 IML (UHF) has been engineered for general industry, supply chain, and logistics applications, while AD Line U9XE IML (UHF) has been tailored for industrial applications requiring thinner label construction, such as container tracking and waste management systems. 

Getting IML Right

While advantageous for brands, IML provides several challenges for manufacturers producing the containers. Utilizing the right equipment and materials is paramount, as is partnering with supportive suppliers.

“IML requires precise control of printing, diecutting, static behavior, label feeding, and dimensional consistency because the label must perform reliably in a highly automated molding environment,” says YUPO America’s Foy. “Selecting a substrate engineered specifically for the molding process is therefore critical.”

Today, with IML it’s possible to do more now than ever before, and IMDA sees companies pushing the envelope with new substrate possibilities, removable IML, and scannable technology integration.

“With NPE2027 on the horizon, we will see new equipment introductions and product capabilities announced over the next 8-10 months as everyone gears up for the once-every-three-years international show,” says IMDA’s Brodine. “Thinner labels and containers, faster equipment cycle times, and unique product applications will be on tap.”

YUPO America offers a portfolio of premium in-mold label substrates engineered to deliver excellent print quality, durability, moisture resistance, strength, and reliable performance in demanding blow-molding applications. The company is also advancing solutions such as CleanSort IML, which has been designed to separate during recycling and help manufacturers recover more process scrap while supporting a cleaner plastic recycling stream. 

Understanding the process is critical, as well, as is working with supportive partners who are experts in the sector. For example, it’s not just brands that are looking at IML. The IMDA receives significant inquiries from label printers and molders that are looking to add in-mold technologies to their offerings. “One of the first things I tell them is that IML isn’t a ‘shoot and ship’ process,” states  Brodine. “It requires experts at every level – from film and ink suppliers to label printing to automation to molding. Printing labels on plastic isn’t quite the same as printing on paper, and the IMDA is always happy to help those exploring IML find the right people to help them succeed.”

MCC, Polytag team to expand traceable IML solutions

UK-based Polytag has partnered with Multi-Color Corporation’s (MCC) Global IML business unit to integrate UV tag technology into in-mold labeled (IML) packaging, expanding packaging traceability capabilities and supporting the next generation of connected packaging and recycling.

The partnership enables brands to embed Polytag’s invisible UV tag technology directly into IML packaging for the first time, extending digital traceability to applications where conventional labels may not be practical, including frozen food packaging and other demanding retail environments.

Readable by specialized detection units at material recovery facilities (MRFs), the UV tags function as a digital fingerprint, carrying packaging-specific data such as material composition, recycled content, manufacturing information, and material origin. The technology enables packaging to be identified and sorted based on attributes that improve recycling efficiency and produce higher-quality recycled material streams.

The companies recently demonstrated the technology on Happy Cow branded IML tubs during an event hosted by GS1 and optical sorting specialist Pellenc ST, illustrating how connected packaging and advanced sorting technologies can improve material recovery and traceability for IML packaging.

In addition to supporting advanced recycling, the data collected through the Polytag platform provides brands with insights into post-consumer packaging recovery, helping inform packaging design, improve recyclability, and potentially offset Extended Producer Responsibility (EPR) costs. The technology has already been deployed on milk bottles for retailers including Waitrose and Ocado.

“Working with MCC allows us to extend the reach of our technology and scale into new packaging formats, helping brands access valuable recycling data while preparing for the future of connected packaging and digital product information,” says Alice Rackley, CEO of Polytag.

MCC says the partnership reflects the growing demand for greater packaging transparency and digital product information as brands prepare for evolving sustainability and regulatory requirements.