Best practices and Inspirations

Labels: print, paste, express

Labels are at the heart of the communication system of many products. They should inform but are also portentous marketing tools, especially in markets such as Food, Wine & Spirits and Beauty. Their role, however, is also crucial off the shelf, from e-commerce to logistics. We took stock of this structured sector with GIPEA – the Italian Group of Self-Adhesive Label Manufacturers.

By Michela Pibiri | PRINTLovers 100

If there is one sector that more than others gives the idea of being in great ferment, it is that of the production of self-adhesive labels. This is partly because the Wine & Spirits, Cosmetics & Perfumery and Food & Beverage markets - both high-end and those destined for the retail trade - are concentrating the energies of the best designers and label-makers in circulation; they are experimenting with solutions capable, on the one hand, of meeting the information requirements of each product for sale and, on the other, of seducing end consumers at first glance, especially when competition is fierce and the selling price is high. So it is easy to see a certain ostentatiousness in the research and innovation for the development of increasingly high-performance materials and printing and finishing solutions that can surprise and reach where no one had yet dared, and designers and supplier companies - from printers to paper mills to manufacturers and distributors of finishing materials and inks – are increasingly working side by side. However, the world of self-adhesive labels does not end here, and beyond the more glittering perception, it is necessary to widen our gaze to give a clear, in-depth and complete picture of the sector. This is why we took stock of the situation with GIPEA, whose institutional role is to support self-adhesive roll label manufacturers by providing assistance and updates on market developments, technological innovations and changes in the Italian and international regulatory framework, and whose latest annual conference was held in Milan on 5 December.

The role of the label in the product communication system
The label, according to GIPEA, is a real bridge connecting the production context of a product with its consumption context. In this strong role of bringing together the production chain and end users, it combines its informative and service function, which makes the product 'consultable' and therefore consumable, and its more expositive function of adding value, identity and recognisability to a product and its brand. The label makes it possible to transmit in time and space not only essential information (such as allergens and ingredients) but also the values linked to the product and the brand it represents.

The Italian sticker sector: a snapshot
In Italy, the sector is much more atomised than in the rest of Europe, with a substantial majority of tiny family-run businesses. These are currently in contrast to a few large companies that meet most market demand. In recent years, the self-adhesive market has continued to deal with unforeseen challenges at both European and national levels. Nevertheless, if we look at the latest data (relating to the third quarter of 2023) published by FINAT, the European association for the self-adhesive label industry, the situation appears to be improving, suggesting that the prolonged trend of stockpiling and subsequent de-stocking is coming to an end. This recovery seems to be mainly attributable to the resilience of end-use segments, led mainly by the food industry. Industrial segments, such as the automotive industry, are more confident in dealing with future supply chain disruptions, having reduced order backlogs. The e-commerce sector, a key driver in recent years, has decelerated steadily but remains significant. If, though, we talk about future prospects by looking at dynamics that are not strictly economic and that will develop over a more extended period, we can observe that a transition in the governance model is taking place in the sector in which there is a gradual shift from a family-run model to a more managerial one.

Traditional markets and new opportunities
The self-adhesive labels sector in Italy works mainly for the retail trade in the Food & Beverage sector, but the pharmaceutical, cosmetic and home care sectors are also critical. A vital share concerns the alcoholic beverages sector, particularly the wine sector. Among the new markets that have recently emerged, the e-commerce sector, which has developed in recent years, is crucial for label manufacturers, even if it is currently no longer travelling at the volumes of the pandemic period.

Materials, printing, and finishing: the leading market demands
These days, requests for solutions that give the label an attractive appearance are increasingly sought after. The label is the product's business card and presentation, so in more or less all areas of application aimed at the end consumer, aesthetic solutions that will attract the customer are sought. In these cases, finishing combined with good printing is the technology of choice. In other, more industrial sectors, the label has become an identification and information transfer tool for logistics management and goods handling. This is why there is a demand for labels with increasingly sophisticated codes that also reduce the risk of counterfeiting.

Innovation is driven by sustainability
Today, GIPEA concludes, a lot of attention is being paid to the environment, which is why, especially in recent years, the demand for sustainable labelling solutions has grown. So, the focus is on biodegradable labels and, more generally, recyclable and recycled media. We are seeing the emergence of new techniques for printing labels, such as linerless labels, an end-to-end process for applications without substrates.

Companies in the industry are continuously working to reduce their environmental impact. Numerous GIPEA companies have implemented solutions to reduce their environmental footprint, starting with making their plants more efficient (installing solar panels, replacing lighting and installing LEDs, geothermal systems, etc.). However, this is not the end of the story, so the Association invites entrepreneurs to educate themselves and take a proactive interest in the subject. In particular, during the last Congress, all member companies were asked to measure their all-round sustainability and produce their own Sustainability Report: you can only see where to improve if you know your strengths and weaknesses.

At the same time, the design effort by the manufacturers of label printing machines continues, and so does GIPEA's collaboration with them to achieve ever-greater savings in electricity, waste and ink usage. This process has been accompanied by research and experimentation by label manufacturers into new materials with less environmental impact, but which often still fail to guarantee the same mechanical qualities and printing performance. When we talk about labels, we are often talking about a vital identity card accompanying the product, often for a long time and under complex conditions. For entrepreneurs, designing a good label with sustainability in mind implies a strong collaboration with all partners to ensure they consider its multiple functions and the conditions in which it will operate. We have to look at the label and its support pack as objects of use and means of communication, assessing in a balanced way every responsibility and possible impact on the planet, society and the market throughout the product's entire life cycle. This is the only way to follow a systemic and ethical approach.


09/02/2024


Best practices and Inspirations