Ahead of Labelexpo Europe, Konica Minolta takes a closer look at the outlook for the labels and packaging sector.
After the turbulence of recent years – from Covid disruption to a contraction in 2023 – the signs point to renewed momentum. With digital print now cemented as a mainstream technology in label conversion, the market is rebounding and fresh opportunities are opening across multiple sectors.
After a sharp contraction in 2023, the label market staged a recovery in 2024. Smithers valued the global printed label market at US$44.8 billion last year, with a total volume of 1.34 trillion A4 equivalents. Western Europe accounted for a 21% share by value – US$9.5 billion – and is forecast to grow by 2.4% CAGR in both volume and value through to 2029.
The rebound is also reflected in FINAT data, which showed label stock demand rising by 26% in the first half of 2024 compared to the same period in 2023, easing to 19.5% growth in Q3. “Still, a remarkable turnaround after the 25.8% drop in 2023,” said FINAT president Philippe Voet.
According to Yasunori Meguro, head of Label Business at Konica Minolta Business Solutions Europe, this stronger footing provides the platform for three defining trends that will influence the industry in 2025.
Trend 1: AI and automation drive efficiency
Artificial Intelligence and machine learning are emerging as game-changers, powering automation across the production chain. From prepress through to finishing, AI-enabled systems are cutting waste, improving precision, and enabling faster turnarounds to meet growing demand for short-run and on-demand printing.
“Digital printing has become the cornerstone of this transformation,” says Meguro. “It brings flexibility and resilience to converters who are navigating cost pressures and skill shortages.”
Trend 2: Smart labels accelerate digital transformation
Smart labelling is gaining traction as RFID and NFC technologies are increasingly deployed in logistics, warehousing, and promotional campaigns. According to IDTechEx, the European RFID label market is expected to reach €2.5 billion by 2027.
At the same time, tightening regulations for product declarations – such as allergens and nutritional information, often across multiple languages – are making digital production even more critical.
Trend 3: Premiumisation and embellishment
With consumer-facing brands competing for shelf impact, premiumisation is driving demand for eye-catching labels and creative embellishment. This is especially true in food and beverage, where aesthetics strongly influence purchasing decisions.
Digital print is increasingly enabling converters to deliver high-value finishes with agility. Smithers forecasts that by 2029, digital processes will represent nearly 10% of all label print volumes, but will account for 27.5% of total market value.
Expanding into flexible packaging
While labels remain the core growth engine, converters are also beginning to pursue opportunities in flexible packaging through digital. Konica Minolta notes a shift in mindset, with more converters exploring short-run, on-demand flexible formats alongside their label portfolios. The same advantages that have fuelled digital adoption in labels – speed, flexibility, reduced waste and creative finishing – are opening new avenues in flexible packaging, particularly for brands seeking agility in product launches and customised packs.
Creating a digital mindset
The industry’s shift from long-run analogue production to flexible, short- and medium-run digital output is well advanced. Beyond efficiency, digital systems reduce inventory, cut waste, and provide the agility to meet frequent design changes.
One Konica Minolta customer, Austrian organic tea brand Sonnentor, highlights these advantages. Using the company’s AccurioLabel technology, Sonnentor produces multilingual labels for worldwide sales with speed and minimal waste.
Outlook: a brighter year ahead
Konica Minolta believes partnerships between converters, brands, and technology providers will be central to meeting the sector’s evolving needs – from sustainability and cost pressures to the drive for creativity and premiumisation.
“Whatever 2025 will bring, we are confident of a brighter future for labels, packaging and embellishment,” says Meguro. “With Labelexpo in Barcelona just ahead, we look forward to demonstrating how digital print can open up new possibilities for the industry.”
Konica Minolta will be exhibiting an array of top-end technology at Labelexpo Europe.