Focusing on the future

Although there are positive signs that the worst recession of recent memory is receding, and that business sectors around Europe are returning to a relative comfort zone in terms of profit margins and stability - the ramifications of the financial crisis have had a sobering effect on all future business planning. Not least in the labelling industry.

During this year's FINAT Congress in Munich in June, the trends and forecasts of the industry were discussed and analysed at length. With the emphasis on the future, the statistics regarding growth - both in 2012 and throughout the last decade - informed a realisation that current practices were evolving, and in some cases changing entirely.

Self-adhesive labelling remains the leader in terms of market share with 45%, ahead of wet-glue (40% share), sleeving (7%), in-mould (3%) and other technologies (5%). Film labelstocks now account for 25% of all roll labelstock, indicating a growth of 3.5% for the year 2012.

Sixty per cent of all labelstock demand in Europe originates primarily in the UK and Germany - along with France, Italy and Spain. While the markets to the east of Europe, including Russia, showed a growth rate of 11.4% in 2012.

Although a marginal growth of 0.4% was recorded in the first quarter of 2013, it is a sign of the ripple effect of the recession that this actually continues a yearly decline in growth. These statistics are the surest sign yet that the industry needs to be thinking innovatively in the years to come, rather than merely continuing as before.

Knock-on effects
Added to these considerations is the fact that people are living, and therefore consuming, longer. As this new demographic opens up, even more thought is being put towards sustainable labelling practices, especially when it comes to recycling. The longer people live, the more thought is given to future generations. In consumer-led industries, companies need to be instigating the type of eco-friendly practices that prove to their customers that they care just as much about the environment - not just now but for future generations to come.

This is why initiatives such as Cycle4green (C4G) are being welcomed by the labelling industry. It is a knock-on effect that can be traced directly to consumer demand. In the UK, the supermarket chain Waitrose is an example of a company that listens to its customers. Packaging and reprographics manager Karen Graley is aware of the changing trends and encourages schemes such as Waste Recources Action Programe (WRAP) and On-Pack Recycling Labels - both of which impact on their decision making when it comes to sourcing and ordering labels for their products. With its own line of 12,000 labels to consider, it is a process which is crucial to their business.

Championing British suppliers is a core pillar of the ethos at Waitrose, and as such the majority of label printing is done in the UK. Although there have been advancements in the digital workflow from concept to printing, the likes of RFID (radio frequency identification) can be an expensive choice, and though there may be seasonal variety in the printing choices made, Waitrose predominantly uses flexo technology, especially on it's own Household range.

Reduced impact
Similar considerations are applied when choosing shrink sleeves. The benefits are well known, and include decorating the whole pack, visible tamper proof seals as well as coherent, consistent branding.

There is also, in this instance, the customer to consider - as the growing population demands greater use of recyclable materials, adding to their own desire to play an active role in the recycling process, then the actual materials used in shrink sleeving come under closer scrutiny.

The most commonly used material is PVC, but this is becoming outdated, as more environmentally friendly alternatives are becoming available. PETG (polyproplyene terephthalate glycol) is a more expensive option, but because it is pasteurisable and recyclable it is emerging as a popular option in these eco-considerate times.

Another choice is EPS Foam, which although light, has a high resistance to heat, making it an excellent insulator - it is also very recyclable.

Added to these established methods, there are new corn-based materials which are now appearing on the market. Although obviously very eco-friendly, there are concerns being raised, especially in the USA, that the extra demand for the raw materials required is putting an undue strain on the agricultural industry that provides the crops.

The link between the agricultural and labelling industries doesn't end there. Aimed at tackling food loss around the world, the SAVE FOOD campaign is a global initiative started by the Food and Agriculture Organisation of the United Nations and Messe Düsseldorf GmbH. Instigating partnerships across politics, industry and research, its aim is to encourage the development of solutions along the food value chain.

It is not hyperbolic to talk of a global biodiversity crisis that could have a disastrous effect on humanity, as we risk exploiting and over-farming our natural resources to such an extent that unless methods of preservation are implemented soon, and unless there is a drastic re-thinking of our supply and demand culture, then the mid- to long-term consequences could be terminally dire.

Open to innovation
Although opportunities remain within the food and beverage segments for self-adhesive labels, there has been a distinct lack of growth in the market. As the retail landscape shifts and the need for greater sustainability increases, it is becoming more apparent that companies cannot rely on maintaining their business practices, but rather must consolidate and progress. The growing demographics are changing the retailers' marketing sensibilities, so packaging and labelling is where the battle for consumer confidence will be won or lost.

Angelo Depietri, vice president and general manager, Avery Dennison Materials Group Europe, a speaker at the FINAT Congress, was keen to dispel the potential gloom surrounding the prognosis for self-adhesives: "I am quite optimistic that young people can forge a successful career in the self adhesive-industry," he said, "as long as we as an industry focus on the keys to success in the future: sustainable innovations; international/global collaboration; being open-minded in relation to new technologies; embracing new ways of co-operating, new business models, and continuously finding new ways to support and delight our customers; maintaining an entrepreneurial spirit, and keeping the passion that has led our industry for so many years."

As long as there is no globally agreed solution to recycling, and while there remains a clouded sense of best practice within the value chain, it is up to each individual company to strive towards a greater good.

Labelling may seem like an insignificant player in the fight for global longevity, but it most certainly isn't.
The consequences of the decisions made by the packaging and labelling industries could well be felt for generations to come.