Trends Shaping the Label Industry

Label suppliers and converters are adopting new techniques, aiming to increase efficiency and reduce the environmental impact of their products and operations. Image courtesy of PPG.

Label Technology Builds a Connected Consumer Experience

By Amy Donato, Global Platform Director, TESLIN® Substrate at PPG

Driven by the global trends of sustainability, labor and workforce challenges and digital transformation, label suppliers and converters are adopting new techniques that aim to increase efficiency and reduce the environmental impact of their products and operations. Manufacturing technology has changed significantly over the past decade, and innovations in both software and machinery are affecting how labels are designed, produced and applied. The latest equipment employs advanced machinery, software systems and automated processes to enhance precision, improve efficiency and reduce waste through features like automated print inspection, digital workflow management and inline finishing systems.

Consumers are also expecting more out of product labels. The rise of omnichannel retail is driving brand owners to provide multiple ways for customers to interact with their products in store and online through scannable barcodes and QR codes. Other embedded technologies make it possible for labels to provide tracking and traceability data, convey information about product freshness, and explain how a package can be recycled.

These major market trends are influencing every facet of the label industry, and they each present unique challenges and opportunities for forward-thinking companies looking to stay ahead of the curve.

Sustainability

Consumer preference and government policy are prompting brand owners, retailers, and packaging manufacturers to commit to a variety of sustainability initiatives such as using less packaging and developing reusable and refillable containers. The Sustainable Market Share Index™ reports that products with sustainability-focused marketing are responsible for nearly one-third of all growth in consumer packaged goods (CPGs), despite rising inflation.

Reducing the amount of packaging helps design out waste from the start. Source reduction efforts are directed at removing excess packaging and creating thinner packages that are lighter to transport. Downgauged label designs use less material, but thin materials can pose difficulties for some printing and converting processes. Material suppliers must strike a balance between reducing material usage and designing a label product that can run successfully on existing equipment while providing durable and high-quality print fidelity.

Digital

Digital printing technologies, such as inkjet and toner, are becoming more widespread as converters meet increased demand for variable printing and short runs while providing the highest-definition four color process printing and complex graphics. In addition, these advances are all deliverable in a fraction of the time required with analog print formats.

Packaging and food label regulations are also requiring more information to be printed legibly in micro type on a wide range of products. Digital presses offer clear, consistent printing and can also accommodate variable data and serialization requirements. This flexibility enables mass customization and personalization that offer unique ways which brands can differentiate their products on the retail shelf.

Converters can offer their customers on-demand printing and expedited lead times with digital presses and cloud-based, connected workflows. This just-in-time manufacturing approach is centered around creating the precise number of labels required at the exact time they are needed. This can reduce the need to stock large amounts of inventory and prevent wasted labels. Since not all materials that are compatible with offset and flexographic presses can run on digital presses, selecting the right substrate or label material is key.

The latest labeling systems feature automated print inspection, digital workflow management and inline finishing systems. Image courtesy of PPG.

Workforce

A top issue that label converters are facing today is workforce challenges, especially with press operators. With the average age of a press operator approaching retirement, skilled personnel are rapidly leaving their positions, creating a shortage of experienced operators. Paired with increasing demand for label production, workforce challenges are reaching a crisis level in the industry, forcing converters and printers to adjust their operations including implementing new press technologies, streamlining processes, and investing in training to develop a new generation of skilled press operators.

Automation

Increasing efficiency, press uptime and print precision is at the heart of labeling automation technology. In the new wave of Industry 4.0, the Internet, machine learning, and artificial intelligence (AI) are all being used to maximize overall equipment effectiveness (OEE) and increase throughput. Automated operations can be used in label printing and label application, reducing operators’ manual labor requirements. Advanced sensors track the production process, giving converters access to data that helps optimize material usage and reduce errors. Maintenance issues and potential problems, such as print head wear and tear, UV bulb integrity, and rotary die life can be diagnosed and corrected quickly resulting in less downtime.

Smart Labels

Smart labels provide another avenue for companies to both communicate information to consumers and collect data. QR codes and Near Field Communication (NFC) tags give customer quick access to brand and product information. Radio Frequency Identification (RFID) labels can assist with supply chain management and product security, and their use is growing thanks to projects like Amazon’s Just Walk Out stores and Walmart’s RFID Mandate. In fact, SharpEnd’s Connected Experience Report found that 85% of brands are planning to increase their investment in digital triggers and connected technologies in the coming year.

Building a connected experience at the individual product level ties into the greater trends of sustainability and automation. It requires coordination across new networks and machinery, including RFID encoding and inlay insertion equipment. As the technology continues to evolve, its uses could expand further into inventory optimization, location-based recycling information, and food safety applications.

Labeling and packaging companies across the value chain can take advantage of market trends to advance sustainable, cutting-edge solutions. New technology and sustainable processes are leading the label industry towards high performance solutions that contribute to efficient operations and connected interactive experiences.

By collaborating on material science research and equipment performance, material suppliers can help converters improve their sustainability measures, which in turn reduces downstream emissions for brand owners. Working together and sharing insights helps accelerate innovation that leads to more sustainable production models and benefits companies and consumers.

About the Author

Amy Donato is the PPG Global Platform Director, TESLIN® substrate, a synthetic facestock for printed labels. Learn more at https://www.ppg.com/en-US.