The European label market endured a difficult 2023, characterized by a drop in demand. However, signs of recovery are visible for 2024. The International Federation of Pressure-Sensitive Label Manufacturers (Finat) provided clear data at its European Label Forum (ELF) in Athens, detailing structural changes in the market.
The figures published by Finat are unequivocal: demand for self-adhesive labelstock in Europe has fallen by 25.8%, reaching a level not seen since 2013. This drop is explained by destocking phenomena, as printers used up stocks accumulated during the 2022 disruptions. The sudden rise in demand during the Covid pandemic, followed by strikes at UPM Raflatac, had led to an over-order of materials. However, this excess was corrected, leading to the sharp drop in 2023.
Plastic laminates experienced a strong recovery in the first half of 2024, with annual increases of 29.4% and 22.7% depending on the material. This trend reflects the growing popularity of polypropylene (PP) films, which are particularly prized in the health, beauty and food sectors for their transparency. On the other hand, demand for uncoated paper has fallen drastically, reflecting a change in brand expectations, with labels now seeking greater differentiation.
At the same time, thermal labels have gained in popularity, particularly for uses requiring variable data, such as logistics or e-commerce. This transition highlights the evolution of the market towards more technical and functional solutions, adapted to new traceability and inventory management requirements.
Despite an expected recovery in 2024, the label market remains fragile. Finat anticipates an uneven recovery across regions and business sectors, with some being more reactive than others. In addition, the sector is facing growing regulatory pressures, particularly in environmental matters. Companies will have to turn to more sustainable materials, such as biodegradable substrates and recycled paper, to remain compliant with new European requirements.
