A recent meeting of the European Label Forum (ELF) 2024 focused on developments along the supply chain, exploring key themes such as sustainability, recyclability, digital transformation, and the role of AI in reshaping the labeling industry.
Sustainability and Circularity
One of the major themes analyzed at the meeting was sustainability, particularly the need for a holistic approach to packaging and label design. Panelists emphasized the importance of sustainability throughout the value chain, from raw materials to the final product.
Sustainability is not just about replacing materials like plastic with alternatives, as discussed at the meeting, but about reducing overall carbon emissions and finding the right balance for each application. For example, some packaging solutions made from paper may have a higher carbon footprint than plastic, highlighting the complexity of this issue.
It was noted that brand owners are increasingly requiring end-to-end sustainability, covering suppliers, logistics, and production. These demands are pushing companies to innovate and invest in technology that improves efficiency while reducing their environmental impact.
The industry also faces regulatory pressures, such as the Packaging and Packaging Waste Regulation (PPWR). While regulation creates a level playing field, it also introduces challenges, particularly for smaller companies that may struggle to comply with complex requirements. There is a growing need for collaboration across the supply chain, with associations like FINAT playing a pivotal role in helping smaller converters adapt.
Recyclability and Material Innovation
As the market shifts toward sustainability, recyclability has become a key focus. Label producers are working on solutions like wash-off labels that improve the recyclability of containers. However, the need for continued efforts to find solutions for waste materials like matrix and liner waste was also emphasized.
Digital Transformation and AI Integration
Digital technology is revolutionizing the supply chain, enabling better tracking, process automation and efficiency. The integration of Artificial Intelligence (AI) into various aspects of the supply chain was a prominent discussion point. For example, AI could help predict supply chain disruptions and improve decision-making, which is crucial for preventing issues like the shortages experienced in recent years.
AI is also transforming consumer interaction with brands. AI-driven tools like generative AI are enhancing the personalization of consumer experiences.
Collaboration Across the Supply Chain
The future of the labeling industry depends on collaboration across the value chain. As the complexity of regulatory requirements, consumer demands, and technological advancements grows, it becomes increasingly difficult for companies to operate in isolation. Family-owned businesses, in particular, are under pressure to document and meet sustainability goals, which requires greater cooperation between stakeholders.
The importance of data sharing and standardization was also discussed, particularly in relation to sustainability metrics.
Economic Challenges and Supply Chain Resilience
The forum also addressed the broader economic challenges facing the industry. The post-COVID recovery has been uneven, with significant fluctuations in demand for labelstock. Many converters have seen sharp declines in profitability due to rising material costs, and there is a clear need for more resilient supply chains.
FINAT will host the European Label Forum on May 21-23, 2025, in Amsterdam, The Netherlands.
