Already being experienced are rising costs ̶ in materials, in energy, in labor, in shipping and in distribution. This in turn will put pressure on converters to look at trying to increase their prices. This will not be easy as label buyers will probably be looking to contain or even reduce the price they pay for their labels. No doubt the industry will be in for some interesting discussions on this with customers. It’s worth thinking how the converter can better add value so as to justify any increases.
To combat rising costs converters should also be looking at how they can improve production efficiency and flexibility, enhance workflow automation, reduce downtime and minimize wastage. This may mean further investment in MIS, in advanced web inspection and control systems, as well as faster and wider flexo or digital presses.
If the experience of other industries coming out of lockdown is anything to go by then the label industry may additionally be faced with labor and skills shortages in the coming year. Look to enhance recruitment, training and, particularly, job retention to ensure that employees are not tempted to move to a competitor or even another industry.
Finally, the label industry should expect to see increasing pressures from governments, brand owners and pressure groups on just about everything that can placed at the door of ‘climate change’, whether this is environmental issues, energy consumption, factory heating, carbon reduction, the use of sustainable materials, minimizing waste and increasing recycling, and rising pressures on the use of plastics.
Ideally, companies in the label industry should perhaps appoint a member of the management team to look at each of these four key areas ̶̶ cost reduction, efficiency and automation, recruitment and training, and climate change and the environment ̶ and make recommendations for implementation and growth.
Bob Cronin, managing partner, The Open Approach
This past year was quite favorable for labels and packaging, but entrepreneurs must navigate 2022 dynamics to stay ahead. First, consolidation will continue, and may speed up as investors – especially private equity – seek to dominate in our highly fragmented industry. Larger geographic footprints will be essential to avert material shortages and supply chain issues which will likely accelerate as more laborers leave in the ‘great resignation’. Smart companies will expand warehousing/inventory and extend supplier networks. Some will begin producing their own stocks to avoid price and availability issues. Customers are still adjusting/rebuilding from Covid-19 and will seek new partners who can offer more capabilities — and more confidence that they can get their products without delay.
This spells out great opportunity for 2022. Strong marketing, prospecting and follow-through are imperative. And initiatives to retain your existing base shouldn’t be missed. Your top customers may be the ones mentioned above. Many companies will gain ground through strategic partnerships, alliances, and perhaps an M&A venture. This spirit of the marketplace is still a little shaky. Make the moves to give your customers more control and assurances. With proper adjustments, you’ll be positioning your company for 2022 and beyond.
Vicki Strull, brand strategist, Vicki Strull Design
Sustainability will continue to evolve – not as a trend, but as a true change in corporate mindset. It must become intrinsic to the brand itself; part of its DNA. Not just because consumers care about it, but because brands are taking responsibility for the sustainability of every aspect of their business. And by the way, sustainability won’t just be about the environment; the mindset will expand to include a sustainable workforce, fair trade and fair labor practices.
Another development we’ll see regards how brands will lure consumers back to retail stores, since all of us have become so comfortable ordering online. I see this as an opportunity for point-of-purchase and packaging to embrace the combination of experience and convenience in the store – what I’m calling ‘experiential retail’. It might be through QR codes, for example; maybe you scan for more information about the product, or to self-checkout, or to see an inventory or get fashion tips. It’s an opportunity for converters to use what they already know about engaging print to help brands connect; that is, they already know how to make packaging experiential with shapes, haptics and special effects, to name a few. Experiences are going to lure people back to retail stores, not transactions.
Hassan Rmaile, GM/VP EMENA, Avery Dennison
While 2021 brought with it significant disruption for us all, encouraging signs such as the success of vaccine rollouts and people slowly returning to semi-normal or the ‘new normal’ social interactions give cause for optimism that 2022 will bring us another step closer to a familiar business environment.
We recognize that strong consumer sentiments center around the need to deliver sustainable packaging and continue to grow. Our industry must see this as a call to action for collaboration, promoting regenerative solutions and stepping out of our collective comfort zones to deliver meaningful change for packaging designers, converters, brand owners and consumers.
In regard to trends, we see the further implementation of RFID technology and E2E Digital ID solutions offering exciting possibilities at every step of the value chain across industries. Another important and welcome trend we hope will come to fruition is the resumption of large industry events such as Labelexpo. These events give us the opportunity to engage with our ecosystem in person which will be welcomed by all after the past 20+ months.
Matt Francklow, managing director, Creation Reprographics
In a year marked by instability and uncertainty, we’re all looking to regain normalcy in the industry. It’s clear that a major part of this is a strong re-focus on supply chain sustainability, which remains critical to the consumer. The coming year is set to mark real change for printers, not least when it comes to meeting environmental commitments.
We’re anticipating that solvent-free plate technology will play a significant role in flexo in 2022. From our unique perspective as a pre-press partner, we are seeing printers explore new ways to bring ‘green’ technology earlier into their supply chain, which is where water-washable flexo plates drive real value. The volatile cost of solvent through the global pandemic has only strengthened the case for solvent-free printing.
In the label and packaging sector, we’re always looking for signs of what that next major step-change for the industry will be, and how we can move the sustainability conversation forward. There’s clear environmental, social and governance (ESG) commitments from brands and retailers, and the packaging pre-press sector has the opportunity to make harmful pre-press VOC washout a thing of the past. As such, water washable plate solutions have to part of that trend and ultimately, we believe that solvent-free plates will be the standard, not the exception.
The biggest message for printers is that we need to get past this archaic idea that sustainable technology is a compromise or just marketing buzz. Today’s water washable flexo plates, like the selection we supply at Creation, actually boost quality, ink registration and consistency, as well as being faster to produce and to dry – freeing up print operators to do more. There are real commercial advantages to going solvent-free, which is why we’re expecting success in 2022.
Félix Prieto, general manager, Wanjie Europe
Needless to say, 2020 was unpredictable, especially during the second half of the year. We were not able to develop our sales work in the EU due to the travel restrictions. In addition, those customers that decided to invest often did it through their existing partners, so not too many chances for us. However, we were very lucky to sell, via video streaming, our Wanjie demo machine and installing in Slovakia a machine that was supposed to go to drupa.
2021 was a recovery year: customers have been accepting visits and, moreover, are ready to purchase different technology brands from their existing ones. In the first half of 2021 alone we were selling a machine a month. My perception is that 2022 will be a great year if we do not have another Covid variant, and Labelexpo Europe is the key factor for such a recovery.
Norberto Wiederkehr, commercial director, Etirama
The year 2021 was marked by a strong recovery in the label market, especially in the first half, which positively impacted the sales volumes of machinery and equipment around the world.
This scenario will not be repeated in 2022 due to the inflationary trend that has been putting pressure on prices. In the first half of the year, this will influence consumer confidence, demand, and the growth of the world economy. The wage gap created by the pandemic, which impacted the consumption power of middle and low-income markets, will be systematically corrected during the year, and this could lead to a demand increase and consequently a more promising second semester.
These circumstances will guide our customers to be more cautious – avoiding capital expenditure for long-term returns. This will help those like us whose products offer less exposure to risk thanks to their a quick return on investment.
Lakshminarayanan, business unit head, Signode India (Wintek)
After the damage caused by the pandemic in 2020 and the first half of 2021, the economy is still yet to fully revive but we are optimistic thanks to improved results across the industry in Q3 2021. 2022 will see revival and turnaround.
2022’s outlook will be more dependent on surging e-commerce and changing consumer demand. We have seen the volume of smaller SKUs decline and consumers’ buying patterns shift to bigger SKUs and a reluctance to visit retail stores and buying off the shelf, in order to remain safe.
Many start-ups have emerged in the last year, taking advantage of the e-commerce surge particularly in personal care and cosmetics, wellness and health products and catered to by digital technology. Conventionally printed packaging has seen a decline; digital has evolved to cater to on-demand and quick turnaround.
With continued volatility in raw material costs, the response is to reduce wastage. The technology shift is towards digital, in order to reduce wastage and be cost-effective. Digital is the way forward for offering packaging and labels on-demand, with customized and seasonal promotions, to meet consumers’ expectations and the evolving trends in consumption and demand.
Harveer Sahni, chairman, Weldon Celloplast
While the situation prevalent due to Covid-19 seems to be softening, the after-effects are evident. The fear of yet another phase of the pandemic looms large. The industry which stayed locked in for most of last year and faced adverse impact has shown a fair amount of resilience and is fighting back. Increasing raw material prices, reduced workforce, and spiraling fuel and freight prices continue to trouble the label fraternity but the natural organic growth in the quantity of labels needed does drive a positive growth rate, despite depressed profit margins. The volume growth in India is driven largely by the younger median age of an increasing literate workforce with disposable income providing impetus to retail and finally an increase in need for labels and packaging. Pressure-sensitive labels continue to be the predominant format in a diverse range of label options. Wet-glue, despite decreasing market share, continues to hold substantial volumes and may remerge with new application techniques due to biodegradability and environmental concerns. Flexo continues to be the predominantly used printing technology though digital is now registering important installations due to an increasing requirement of short runs. If the pandemic continues to recede, the label industry can be expected to see a quantum jump when people start their visits to malls and markets and get back to their normal pre-Covid usage patterns.
Guido Van der Schueren, chairman, Hybrid Software
It’s never easy to predict the future but several trends are abundantly clear. First, the world is still fighting its way back to normalcy after an unprecedented pandemic, and this will continue well into 2022. Label and packaging production was not impacted as severely as many other industry segments, but the pandemic accelerated the migration of label converters to more automated production methods, especially digital printing, and I believe this trend will pick up speed in 2022 and beyond.
I believe that 2022 will be a year of shortages in many areas: manpower, energy, transportation and raw materials, to name a few. All of these trends favor digital label printing: labels can be produced faster and closer to the manufacturing process, in precise quantities which limit waste, with fewer human touchpoints. Variable data and personalization can also be added to increase the perception of value.
But automated manufacturing is a data-driven process, and this requires label designs that are printable, variable data sources that are correct, and manufacturing systems that efficiently map orders to available production equipment and substrates. What’s the common element? Software. Companies like Hybrid Software Group that produce software to automate label manufacturing will continue to grow in 2022, and so will label converters of all sizes that implement it properly. I see a very bright future ahead for the label and packaging industry as we recover from the pandemic together.
Taishi Motoshige, marketing director, Screen Europe
Sustainability is one of the biggest global trends, and one of the most common words in our collective vocabulary – for good reason. At Screen, we understand that environmental crises like global warming and chemical pollution are key issues affecting the sustainable development of society. For this reason, we make every effort to promote business activities aimed at maintaining an environment that is friendly to both people and the planet. When it comes to printing technology, Screen’s developments are very much focused on inkjet for the future, prioritizing water-based and UV inks that conform to relevant food safety regulations.
Further innovations include automation, not just in terms of submission, management, processing of the data within our Digital Front End (DFE) Equios, but also integrated with the whole production process – from JDF format instruction processing to real-time JMF job messaging generation. It’s all about reducing steps, as well as waste, and generally improving efficiencies in the printing process.
Another key focus area is getting the balance right between professional printing quality and shortening the job turnaround time. The SAI-S – with the inclusion of just two additional color modules, vibrant orange and unique blue – extends the gamut to cover as closely as possible the most common Pantone colors printed by converters. It enables them to reproduce such spot colors without using spot color ink in short time by a smart color management system.
Paolo Grasso, sales director, Actega Metal Print
Next year will represent a post pandemic business recovery, with some of the trends that we’ve seen over the last 18 months continuing into 2022. For instance, the adoption of the web-2-pack model will no doubt increase, in addition to the continued and general rise of digital print across the sector. And importantly, sustainability will remain a key objective for most in 2022 and the decades to come. We already see this from brands and converters who are interested in our digital embellishment technology to help them reduce or replace their use of hot and cold foils, which are notoriously unsustainable. Although still in its infancy, we predict that in a few decades time, digital embellishments will be mainstream and the industry standard. Beyond that, digital print across the industry will continue to increase next year as mentioned, but perhaps beginning to incorporate other digital communications such as microchips and connected apps for a smart, enhanced consumer experience.
Jimit Mittal, president, Jetsci Global
Due to Covid-19, the last two years have been challenging for every business. The fast pace of vaccination is easing the restricted travel across the countries, thus gradually increasing business opportunities. Businesses have completely changed the way it was done before Covid due to the increased requirement of faster turnaround and shrinking volumes, especially for the label converters.
In the coming year, more focus will be on automation in processes and on catering to the demand of short runs and faster turnarounds. Thus we will see a large number of installations of digital technology. The label and packaging market is expected to grow at a faster pace than ever before in the coming years. Labelexpo Europe 2022 will be the trendsetter for the label and packaging industry as we can see many new launches in technology and huge interest from label converters to upgrade their existing workflow and processes to adapt to the post-Covid changes.
Harald Wallner, director of international sales, Herma
We strongly expect the consequences of the Covid pandemic will continue to shape 2022. However, the fact that the world has managed to develop and produce highly effective vaccines in such a short time is a good sign. We should always remember the great success of this joint effort when we complain about the minor limitations we still have to live with at present.
We are very much looking forward to welcoming our customers in person again in 2022 at trade shows such as Labelexpo. These live events, in which we will increasingly participate next year, will probably have fewer visitors than usual. But talking directly to those who are seriously interested is invaluable. It creates understanding and trust – all over the world, these are two key factors for successful long-term partnerships.
In 2022, however, we will also see the digital infrastructure created in the previous two years become an even more natural part of the communication culture. Even to clarify more complex issues, you no longer necessarily have to jet around the globe. With our HERMAviEvent platform, our customers and discussion partners can choose whether they want to be there live or experience content relating to self-adhesive materials on a time-delayed basis. They can decide whether they prefer to explore content on their own, participate live in discussions with experts, or have innovations explained to them by their usual contact person using multimedia tools.
Further progress is urgently needed in another area: global warming threatens us all. More and more people around the world are feeling it firsthand. Sustainability is a big word that we need to breathe life into. Recycle, Reduce, Renew are the order of the day. In recent years, we have already shown what is possible in this respect with self-adhesive materials. This will also be the focus of Herma’s products in 2022.
Gary Seward, managing director, Pulse Roll Label Products
2021 has been a year like no other, with the global supply chain crisis creating unprecedented challenges, affecting not just the label market but many other industries, and consumers, worldwide. Our sector has experienced exceptional circumstances shaped by factors that together have contributed to seeing prices rocket and supplies interrupted on a scale that could simply not have been predicted.
Raw material prices continue to escalate and conditions remain extremely volatile. Unfortunately, we have no way of knowing if, or when, this situation will stabilize. Right now, it is difficult to predict a month ahead, so predicting how this will play out in 2022 is virtually impossible. We do however anticipate the situation is likely to continue early into next year.
Despite a turbulent year, Pulse Roll Label Products remains in a strong position. We continue to work closely with our customers, partners, raw material suppliers and transport companies and will continue to take pro-active steps wherever possible to ensure continuity of supply for our customers. Keeping the supply chain moving will be a key focus in 2022. At the same time, we expect the trend to continue for innovative products that add value, save time and money, and that are more sustainable.
Al Spendalow, director, A B Graphic International
Automation will be a continued trend for 2022. With increased demand, you either need twice as many machines or machines with twice the production, and automation is the way to achieve that.
Steve Burleson, sales and marketing segment business manager for label products, Coatings & Adhesives Corporation
The challenge of raw materials will continue to be a serious issue in 2022; we will need to be more adaptable and flexible than ever before as costs increase throughout the supply chain.
Lori Campbell, president, The Label Printers
For 2022, I would expect the uptick in demand we saw from some of the markets to taper off back to pre-Covid levels, which should help capacity and supply issues.
John Attayek, CEO, Signature Flexible Packaging
I anticipate more business growth, more acquisitions, more innovations in technology, and less focus on Covid.
Jorge Cordoba, general manager, Lintec Label
Pharmaceuticals, cannabis, food, flexible packaging and smart labels are all growing sectors that will continue to expand through 2022; we are looking to increase our business in these sectors as our customers are demanding their dedicated partners grow along with them in those fields.
Todd Kennedy, owner, The Kennedy Group
I foresee continued supply chain and labor issues throughout 2022, as well as continued consolidation in terms of mergers and acquisitions.
Cynthia Frost White, president and CEO, Channeled Resources Group
It’s hard to put what is going to happen in 2022 into words. I doubt any of us forecast the crisis that happened due to Covid and supply constraints in 2020 and 2021. Twice in the last two weeks, I have heard that we have 16 to 18 more months of supply chain issues to look forward to. We have had three price increases from our paper suppliers in the past six months, and we expect one more in early January. I’m afraid until demand drops, that will not be the last increase. On top of that, labor and freight constraints will increase costs and lead times on materials for the inevitable future. We are repeating the rapid inflation of the 1970s. Worse, we cannot get certain chemicals, so supply is almost impossible in some product lines. This is not a fun prediction for 2022. Most of us had a tough 2020 with Covid headaches. 2021 has been very stressful due to prices and shortages. 2022 will not be much better.
Victor R. Gomez, director, industrial label products, Epson America
Label and packaging converters are going to be facing similar challenges in 2022 as they faced in 2021. By that, I’m talking about workforce challenges, which has been a problem in the industry for years prior, but it’s being accelerated now as more of the older press operators are retiring or are more at risk.
Because of this, digital printing is being brought to the forefront as it’s easier to find people to operate digital presses. Young people, who may not be willing to take on a five-year apprenticeship on operating a flexo press, may be more willing to learn how to operate a digital press.
And, of course, the supply chain challenges that are front and center in everybody’s mind are not going to be sorted out for a long while. There are no short-term solutions – it’s a systemic issue that we’re going to be living with for probably the next calendar year.
Bill Podojil, vice president, sales label & graphic materials (north), Avery Dennison
There are three topics that we’re focusing on, the first being sustainability. And when I say sustainability, I mean sustainably sourced. That’s with materials that can either be removed, reused, or recycled – where you’re not just thinking about the material from your point of view but rather through the circularity of its lifecycle.
Secondly, innovation is going to be critical in the next year. And by innovation, I don’t just mean new products. That’s definitely part of it, but innovation also means new ways of doing business. New business models, new marketplaces. I think the sky is the limit. With the booms we’re having in e-commerce and buying behavior, people need to be conscious of how to adapt to – or drive – the change to keep the industry strong.
And finally, make sure you keep your talent pool strong and empowered. Because with the people side of business, especially once we’re on the other side of Covid, they’re going to be much more engaged, creatively, on figuring what this new space looks like. Whether that be innovation or developing new business models, it’s going to take people to drive this.
Bruce Hanson, CEO, AWT Labels & Packaging
Sustainability stands out the most. Finding ways to bring better, more sustainable solutions forward. And that’s both on the label and flexible packaging side of the industry. Whether its wash-away adhesives or other PET-type products, you’re going to find a lot of companies trying to bring products that are better for the environment.
SKU proliferation is also a trend that’s going to continue into 2022. The complexity and variety companies are looking to bring to market will remain and be a steady trend. Label converters are going to have to be able to support and meet the demands clients are looking for in terms of standing out on the shelves through the use embellishments or other finishes.
Another thing that’s going to be interesting to see is how companies are going to manage and control costs with the price increases that have been hitting the label and flexible packaging markets. Everyone, across industries, is dealing with this right now.
Pol Estrada, international business manager, Tecnocut
Our world continues to change, and companies must continue to adapt to keep up with competition and consumer demands. Thanks to new technologies, changing customer priorities, and of course the repercussions of the Covid-19 pandemic and the global lack of supplies, we will see that many of the industry changes that already begun in 2021 will be consolidated during 2022.
The label sector will continue its upward path during 2022 and will focus its efforts on optimizing production processes. Environmentally friendly products have a record demand that spans different industries and is increasingly becoming a requirement. We must keep looking for new ways of manufacturing with the aim of leaving the smallest possible footprint on our planet. Going green is no longer just an option, as the market for more environment-friendly manufacturing processes continues to grow.
Another key point for the sector is to continue with the updating and implementation of new technologies to continue providing added value in the daily lives of citizens everywhere in the world.
Rachel Littleboy, marketing executive, Fix-a-Form International
Trade shows returning and being able to travel will be a welcome addition to 2022, especially for machinery manufacturers. Although you can ‘maintain’ relationships via online platforms, it is harder to make new relationships. People like to see what they are buying, meet who they are talking to and generally build a rapport before making a decision. I do think going in to 2022 businesses will still be focused on saving costs and sustainability, looking at different avenues on which products they can offer to financially secure their business in a world which has changed over the last two years.
According to The World Bank Group, the global economy is set to have its strongest post-recession pace for over 80 years. We know the recovery will be uneven in many different sectors and in different countries, but the label sector has continued with momentum despite the pandemic. E-commerce sales were already on the rise but the pandemic accelerated this and we will expect to see this continue in 2022. Pharmaceutical, clinical trials and food packaging were also in high demand, which I also expect to continue.
Jakob Landberg, sales and marketing director, Nilpeter
From my point of view, 2022 is going to be yet another surprising year, with unprecedented challenges. Our markets have been booming during/after Covid-19, but our industry-wide supply chain crisis is front page news all over the world.
Some parts of the world have handled Covid very well, while others (in Asia, Latin America, and certain enclaves in Europe) are still fighting. That will unfortunately continue well into 2022.
On a positive note, I do, however, expect the introduction of a lot of new technology – conventional, digital, IoT-based – pushed by price increases and very busy label markets. Workflow automation with focus on faster changeovers and minimal waste will pop up.
More automation is crucial if we want to attract new generations of operators and managers into our industry. There is a global need for ‘young blood’. 2022 will also be another milestone for mergers and acquisitions in our attractive industry. We’re facing many inevitable generational changes without new generations to take over.
I believe we are fortunate to work in an innovative industry – with a vast combination of technologies, a global market, small product suppliers and enormous solutions-based providers. We are used to facing a multitude of challenges, and I for one am excited to come up with new solutions. Bring on 2022!
Aleksandar Milutinovic, head of client solutions, 3D AG
The world is turning, and we are turning with it. As in almost all industries, the well-known megatrend of individualization will continue to accompany us in 2022. More than ever, it is important to keep an eye on consumer behavior when developing new products. These days, consumers are always looking for standardized products that they can individualize or personalize according to their needs, allowing them to create truly unique products in a world where it feels like everyone already has the very same thing. Consumer behavior will also adapt more and more to this trend; customers will become more individual and self-determined. Already today, a company must stand out from the crowd. Purchasing decisions are no longer made solely based on price. The customer can choose from a wide range of competitors, which means that in the future one will be selected even more carefully than before. The consumer wants to decide and will no longer choose brands that do not fit their ethical, self-determined way of thinking. So, you have to reach the consumer with your content, your story and your vision. Many of you may be wondering how to do this as a company with a physical product: the key is with a digital asset. In our case, we help customers facing these challenges with a QR code on a hologram so they can tell their story and allow their consumers to interact with their product. So, keep your eyes and ears open in client meetings, because the customer journey to the point of purchase will define the future of business.
Dr Fred Jordan, CEO and co-founder, AlpVision
In 2021, AlpVision celebrated its 20th anniversary. That means that AlpVision has been providing solutions to detect counterfeit labels for 20 years using the Cryptoglyph technology. The Cryptoglyph uses micro-holes printed in the varnish layer which are invisible to the naked eye, cost nothing to print, and are easy to detect with AlpVision dedicated smartphone app. It is used to protect 30 billions of products each year and is printed by over 200 printers worldwide.
In 2022, AlpVision will deploy the new generation of its Brand Monitoring System (BMS) platform. BMS can instantly connect the brand owner, the supplier and the consumer, for instance providing real-time information about where counterfeit issues are happening. It will also provide entirely new features thanks to the 5G connectivity. Indeed, it will implement a new functionality to manage variable Cryptoglyph used for the detection of gray market activities. Finally, for the first time, the Cryptoglyph technology will be used to introduce information related to recycling to automate the sorting of packages that have a label.
Hank Guitjens, commercial manager for label printing and industrial applications, SPG Prints
2022 will be a year where more focus will be on the supply chain and performing on time. Luckily the investment climate in new production capacity is positive. Consumers use more than ever goods where our industry supplies the labels and packaging. New printing presses are installed and our rotary screen printing units will have a significant part in that. Best in class in terms of screen white and embellishments cannot be beaten by the demands of brands, top quality is and will be the standard. Especially when volumes are required. Next to this we see a trend in non-label applications, such as printed electronics, where quantities are getting higher and rotary screen printing becomes profitable. SPGPrints sees a bright future, especially in 2022.
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