The US is a major market for Germany’s printing and converting machinery. Not surprisingly, its exporters are wearing a worried frown, and the industry association VDMA has given a rather feeble storm-warning: “Despite Trump’s rhetoric toward Europe and Germany, our industry was able to expand its business on the US market during Trump’s first term in office,” explained Ulrich Ackermann, head of the VDMA’s foreign trade department. “But this may probably change. We are, therefore, calling on our member companies to take the tariff threats seriously.” For January-September 2024, domestic packaging manufacturing in Germany was up 6.6% year-on-year. That sounds fairly good, but it’s only because 2023 was such a catastrophe, with a fall of 27% all grades combined.

Not much more helpful, either

Demand for label papers in Europe was “rather weak” at the end of 2024, with prices remaining stable. FINAT reports that orders were up in Q1 of 2024, but the improvement didn’t last. High interest rates, feeble economic growth, and difficulties in recruiting combined to make 2024 a year most label converters would like to forget. An industry expert says, “Forecasts for 2025 are highly uncertain. Lack of visibility continues to dominate.”

Come wind, come weather

For big trade exhibitions, it seems as if the bonanza years are over. Drupa, the flagship of all print shows, looked for a while as if it had taken its last breath (it hasn’t). All4Pack was held in Paris in November 2024, and exhibitors’ comments were not always good. Press manufacturer Screen had a good show, but others, like Hybrid Software and Esko, found that there were simply not enough visitors. The timing of the show was unfortunate, coinciding with two French holidays (we have lots of them). The announcement of the results of the American presidential election, falling on the third day of the show, did not seem to lift spirits markedly. Visitors from French-speaking African countries failed to show up at the show. Perhaps they have other things to worry about. The spat between France and Algeria, each making it difficult to get visas for the other, is not All4Pack’s fault, but it didn’t help. France has long been an exporter of luxury goods, with associated luxury packaging, and the word “tariffs” makes many an export manager’s heart run cold. France’s Aquitaine region rises or falls by its exports of Cognac and Armagnac, and China has now slapped a 38% surtax on these elixirs. The other major market is, you’ve guessed it, the United States. Draw your own conclusions. 

A spark of light in a dark region

The family-owned Marzek company, based in Austria, has plants in both Hungary and Ukraine. The Ukrainian plant, set up in 2009, is in Dnipro, within easy shelling distance of the front line. CEO Michael Wareka confirms that the Dnipro plant is still operating but, “Under challenging circumstances,” which must be the understatement of the year. To give employees’ children a break from the incessant bombing and air raids, Marzek organizes an annual two-week holiday for 24 of the Ukrainian kids in Hungary (where the group also has a plant). The Marzek Kner (Hungary) Packaging team put together a varied vacation program with enthusiasm, allowing the children to forget the daily horrors of war in their home country. The Marzek group employs 700 and has sales of €80 million. Its range of services covers the entire spectrum of highly-refined specialty labels using hybrid and offset processes.

Alliance by name – and by nature

Alliance Etiquettes is a useful antidote to the gloom pervading so much of Europe’s label industry. Just a few weeks after taking over France’s Berjon, Alliance acquired L’Eperon, a company that mainly processes labels for food and industrial markets. Eperon is a medium-sized printing company (69 employees and 10 million euros turnover), which became known as the market leader in the production of ski passes, and today produces a wide range of labels and POS products. Alliance Etiquettes has grown rapidly under its managing director, Olivier Laulan, and is today one of France’s leading label converters with an annual turnover of 120 million euros and almost 600 employees. The company is primarily active in the wine label sector but also in cosmetics labeling.  After this series of acquisitions, Alliance announced in December 2024 that it had acquired the three companies of the Samorani Group, based in northern Italy’s Emilia Romagna region. Said Alliance’ Olivier Laulan, “This acquisition will enable our group to diversify into fields complementary to labels (with packaging, merchandising and brand communication) and to take a new step in our international development.”

Label converter Labelys, headquartered in Paris, is also looking for M&A opportunities and has acquired Peruccio, a label converter based in southern Italy. With this acquisition, Labelys is targeting a highly specialized market: wine and spirits labeling, a fast-growing sector in the Puglia region. Perruccio focuses primarily on high-quality PS labels and offers a variety of aesthetic solutions using offset, screen printing, digital, and flexographic printing. These technologies enable it to offer personalization to meet the expectations of local winegrowers, for whom label design is a key lever of differentiation. This strategic decision by Labelys underlines the importance of technical expertise in high-end finishes for the wine sector. It sees this acquisition as an entry point to establish itself in Italy. The group, which was not previously present on the Italian market (but has subsidiaries in Spain, Switzerland, and Portugal), now benefits from a solid local position and the experience of Perruccio. 

Also in Italy, press manufacturer Lombardi is making a name for itself with its hybrid digital-flexo lines, one of which was installed two years ago at the Etikmar plant in Mantua. Now the same customer has installed a similar but 7-color hybrid press. Alessandro Marani, Etikmar’s sales manager, particularly appreciates the savings made by eliminating the need for plates and setups. 

SMAG/SRAMAG signs contract with MPS

SMAG is one of the few French manufacturers of narrow web finishing systems. Unfortunately for French flag-wavers, the company is no longer financially in French hands. A year ago, its owners sold the majority of their shares to Rhyguan, a Chinese competitor. However, the French company has retained its logo and management, and it has now signed an exclusive distribution agreement with MPS, the Dutch manufacturer of flexographic and digital printing machines for labels.

FINAT on sustainability

The FINAT Label Forum was several months ago, but some of the presentations at the Forum can give North American readers a glimpse into the arcane byways opened up by the EU Corporate Sustainability Reporting Directive (CSRD). 

At the Forum, Michel Scholte, co-founder of the Impact Institute and True Price, delved into the CSRD, which he described as a milestone in the journey toward a sustainable economy, aiming to integrate social and environmental impact into corporate financial reporting. He highlighted the “True Pricing” movement, which wants prices to reflect social and environmental costs. By requiring companies to report on the social and environmental impact of its products, CSRD challenges businesses “to go beyond transparency.”

A changing role for self-adhesives in Spain

Lecta has taken a further step in its strategy of specialization with the creation of Lecta Self-Adhesives España, based in Barcelona. This new entity, operational from January 1, 2025, will take over the self-adhesive activities hitherto handled by Torraspapel, one of the Group’s
historic divisions. 

This choice reflects a desire to optimize and adapt to the growing demands of the label market. By transferring all assets and commercial agreements to Lecta Self-Adhesives España, it hopes to improve profitability and enhance production and management efficiency. 

Take Leef out of their book

Some readers of L&NW may not know about LEEF, a German company that uses carbon-free and compostable palm leaves to develop innovative solutions for tableware and takeaway packaging. LEEF is the largest patent holder worldwide for leaf-based packaging and has just acquired Wisefood, a rapidly expanding specialist for sustainable to-go packaging for restaurants and consumers. Germany is a major market for all kinds of sustainable packaging. It is not quite clear how LEEF can continue to expand if it limits itself to palm leaves. It may have to branch out.