Labels take centre stage in India’s packaging shift

The label is no longer a supporting element in packaging. It has evolved into the primary interface between product, brand and consumer, influencing both perception and purchase. Opening the session, moderator Amit Shah of Spectrum Scan, sets the tone by noting that labels are now central to packaging conversations rather than an afterthought. “Labels are now the ‘in thing’ in the packaging industry,” he says, framing the discussion around growth, relevance and opportunity.

The scale of engagement reflects this shift. The webinar attracted more than 300 registrations, with over 100 delegates attending live, underscoring growing interest in labels across the broader print and packaging ecosystem.

What follows is not just a discussion on print processes, but a deeper examination of how the label industry is being reshaped by demand fragmentation, technological convergence and rising expectations around sustainability. The panel’s insights reveal an industry transitioning from volume-led growth to capability-led differentiation.

A market in transition

Setting the context, Suhas Kulkarni of Soma outlines a market that is expanding in both size and complexity. While the global label market is approaching a trillion dollars, South Asia is projected to reach around USD 3.89-billion by 2030, growing at a CAGR of 5.2%, he explains. The opportunity, he suggests, lies not just in scale, but in how labels are being redefined across applications.

Kulkarni emphasises that labels are no longer limited to identification. “The label is a silent salesperson,” he says, highlighting its role in branding, communication and consumer engagement. This shift is particularly visible in segments such as personal care and food, where the label becomes the first and last point of interaction with the consumer.

He identifies three structural drivers shaping demand. SKU proliferation is increasing the number of variants and reducing run lengths, forcing converters to rethink production models. Regulatory compliance, especially in pharma, is introducing complexity through traceability and anti-counterfeiting requirements. At the same time, eCommerce is accelerating the need for variable data and faster turnaround.

Kulkarni adds that in India, food and beverage, pharma and personal care together account for nearly 75% of label consumption within an estimated USD 2.5-billion market, highlighting the concentration of demand across key sectors. He describes the current phase as a recalibration, where growth is defined not just by capacity but by capability, with hybrid technologies, automation and sustainability frameworks shaping future competitiveness.

From cost to capability

If the market is evolving, so too is the basis of competition. Ranesh Bajaj of Vinsak, positions this shift as a move from cost-driven manufacturing to technology-led packaging. “There is a packaging surge globally, and even more so in India because of the growing economy and per capita income,” he says, adding that the industry is steadily transitioning towards a technology-driven ecosystem.

This transition is most visible in the way demand is being restructured. Bajaj points out that FMCG brands today operate with multiple variants across geographies and languages. “You can have 50 variants, 40 languages and 30 states,” he says, explaining how this quickly multiplies into over 1,200 SKUs for a single product. The implication is clear. What was once a high-volume job is now fragmented into hundreds of shorter runs, each requiring faster turnaround and minimal inventory.

He adds that anti-counterfeiting and sustainability are no longer optional. Both have become essential requirements for brands, even as converters continue to face the challenge of delivering sustainable solutions without significantly increasing costs. The pressure, he notes, is to innovate while maintaining commercial viability.

On print technologies, Bajaj highlights that each process continues to have relevance, but their roles are shifting. Offset, he explains, offers the lowest cost of origination among conventional processes, making it competitive even in shorter runs. Flexo, meanwhile, has improved significantly and is now the dominant technology across narrow, mid and wide web formats, effectively replacing gravure in many applications.

Digital printing continues to gain ground, particularly with the rise of UV inkjet and hybrid systems. However, higher operating costs remain a constraint, even as manufacturers work to reduce ink and printhead expenses. This is where hybrid configurations are emerging as a practical solution.

“The future is hybrid,” Bajaj says, emphasising that converters can no longer rely on a single technology. Instead, they must build multi-process capabilities and route each job to the most efficient platform based on run length, application and cost. He cites an example of a recent installation combining flexo units for primers and coatings, offset for halftone quality and a digital module for variable data, enabling end-to-end production in a single pass.

Bajaj concludes by stressing that technology alone is not enough. Process efficiency, he notes, is equally critical. Without discipline in day-to-day operations, converters will struggle to remain competitive in a market that increasingly rewards speed, flexibility and precision.

The economics of shorter runs

While technology enables flexibility, economics determines viability. Manish Desai, director at Mudrika Labels, brings a converter’s perspective to the discussion, highlighting the operational realities behind the shift to shorter runs and faster turnaround. “Short runs are increasing, but they do not come cheap,” he says, cautioning against viewing digital as a universal solution.

Desai points out that while digital adoption is growing, its success depends heavily on utilisation and market alignment. He notes that a significant proportion of digital installations in India are yet to achieve consistent business viability, largely because investment decisions are often driven by trends rather than customer demand. For converters, the key is to understand their application mix and invest accordingly, rather than assuming digital will solve all short-run challenges.

At the same time, he stresses that conventional technologies are also evolving to handle shorter runs more efficiently. With the right equipment and processes, converters can significantly reduce turnaround times even on flexo and offset. Desai cites operational benchmarks from his own facility, where multiple short-run jobs are executed within a single shift. “We are doing six to seven job changeovers of around 5,000 metres each in an eight-hour shift,” he says, illustrating how process optimisation can offset the limitations of shorter runs.

This focus on efficiency is directly linked to sustainability. “The wastage you save is sustainability,” Desai explains, highlighting how reduced setup waste, faster changeovers and better machine performance contribute to both cost savings and lower environmental impact.

However, he remains pragmatic about the broader sustainability debate. While acknowledging its importance, he points out that it comes at a cost and that customers are often unwilling to pay a premium for it. The challenge for converters, therefore, is to integrate sustainable practices without eroding margins.

Desai concludes by emphasising that future investments must be performance-driven rather than cost-driven. In a market defined by shorter runs, faster turnaround and increasing complexity, the ability to deliver efficiency at scale will determine competitiveness.

Sustainability meets reality

Sustainability is a recurring theme, but the discussion reflects a pragmatic approach. While the need for sustainable solutions is widely acknowledged, the cost implications remain a challenge for converters.

Desai highlights that sustainability initiatives involve investments in materials, compliance and systems, yet customers are often unwilling to pay a premium. Bajaj echoes this concern, suggesting that the industry must focus on making sustainability cost-neutral through efficiency and innovation.

From a materials perspective, Harveer Sahni, chairman of Weldon Celloplast, traces the evolution of label substrates from wet glue systems to pressure-sensitive constructions and newer formats such as shrink sleeves and in-mould labels. He explains that early wet glue labels were constrained by drying time and application inefficiencies, which accelerated the shift towards pressure-sensitive labels.

“By the 1990s, pressure-sensitive labels had begun registering robust double-digit growth,” Sahni says, adding that the entry of global players such as Avery Dennison in 1998 further catalysed the development of labelstock manufacturing in India. Today, self-adhesive substrates account for nearly 50% of the label market, underlining their ease of use and versatility across applications.

He notes that the maturation of UV technologies played a key role in the rise of filmic labels, enabling higher-quality finishes and faster production. While paper-based labels continue to hold relevance, filmic substrates have grown rapidly, supported by the expansion of polymer manufacturing in India. The development of BOPP films, beginning with early installations in the late 1970s and scaling with industrial investments in the following decades, laid the foundation for this growth. BOPP today remains one of the most widely used polymers in label applications.

As the market evolved, new label formats emerged to address specific application needs. Wrap-around labels, shrink sleeves and in-mould labels expanded the scope of labelling beyond traditional formats. Sahni highlights that shrink sleeves, in particular, gained traction due to their ability to provide 360-degree branding, significantly enhancing shelf appeal and consumer engagement.

Material innovation has also been shaped by regulatory and environmental considerations. PVC, which was initially used for shrink applications, faced resistance due to toxicity concerns, particularly in food and pharma packaging. This led to the adoption of alternative materials such as PET and PE, which offered improved safety and performance characteristics.

Sahni also points to the development of specialised applications such as heat transfer labels, typically based on PET substrates, which have found niche uses in durable and high-performance labelling. Overall, he suggests that substrate innovation has expanded the market rather than replacing existing segments, with multiple materials and formats coexisting to serve diverse application requirements.

Scaling the business

As the industry evolves, the challenge for converters is not just growth, but sustainable growth. Anuj Bhargava, founder of Kumar Labels, identifies scaling while retaining speed and profitability as the central issue. “The biggest challenge is scaling it, while retaining speed and profits,” he says, highlighting the balancing act required in a dynamic and fragmented market.

Bhargava emphasises the need for a clearly defined strategy that is continuously reviewed. With customers, product formats and market expectations constantly changing, converters must regularly reassess where they want to play, whether in premium segments, mass markets or specific applications. Strategic clarity, he suggests, is the foundation on which all other decisions, including technology and investment, must be built.

Operationally, he points to process automation as a critical enabler of scale. Handling increasing job volumes requires robust systems, not just machines. “If you are processing 500 to 1,500 jobs a month, you are also creating 1,600 job cards and dispatch documents, and someone has to ensure there are no errors,” he explains, underlining the importance of ERP and MIS integration. A well-structured system, he adds, is just as important as a high-performance press in delivering faster turnaround.

Talent remains another key constraint. Bhargava notes that industries with a strong element of craft, such as print, face persistent challenges in acquiring and retaining skilled manpower. Scaling talent, he says, is often more difficult than scaling infrastructure, particularly as technology continues to evolve.

On digital, he takes a measured view. While adoption will continue to grow, it will reach scale only when costs, consumables and business models align with market expectations. Digital, in his view, is an important tool, but not a standalone solution.

Sustainability, he concludes, must be approached through efficiency rather than cost escalation. “It is about doing more with less,” he says, pointing to measures such as reducing wastage, optimising asset utilisation and lowering energy consumption. Technologies such as LED UV, which can reduce power usage by 50% to 60%, are examples of how sustainability can be aligned with operational efficiency.

At the same time, Bhargava remains pragmatic about market realities. While sustainability is widely discussed, customers are rarely willing to pay a premium for it. The onus, therefore, is on converters to integrate sustainable practices without compromising profitability, reinforcing the shift towards efficiency-led growth.

The takeaway

The broader takeaway is clear. The label industry is no longer defined by volume alone. It is being reshaped by complexity, speed and the need for integration across technology, materials and processes.

As the discussion suggests, the next phase of growth will belong to converters who can balance efficiency with innovation and scale with agility. The label, once a peripheral element, has firmly moved to the centre of packaging strategy.

---

The MCOP series of webinars is an effort by the All India Federation of Master Printers (AIFMP) in association with PressIdeas aimed at free knowledge dissemination for the Indian printing and packaging industry. Organisational support for the webinar is provided by PressIdeas and has been in its 12th edition over the last year and a half. The series was initiated under the chairmanship of Manoj Mehta, a two-time past president of AIFMP, and continues under the leadership of the current chairman, Amit Shah.