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Labelling industry on brink of transformative decade
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Thursday, 02 January, 2025, 15 : 00 PM [IST]
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Shailesh Seth
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As industries globally inch closer to 2030, the labelling sector is at the crossroads of transformation and complexity. Driven by advancing technologies, evolving regulations, and growing consumer awareness, labelling faces challenges that demand adaptability, collaboration, and innovation.
Regulatory Compliance and Global Standards
One of the most pressing challenges for labelling is the increasingly stringent and diverse regulatory landscape. Governments worldwide are enforcing stricter guidelines for labelling to ensure transparency and consumer safety. For instance, industries such as food and beverages, pharmaceuticals, and cosmetics must navigate region-specific requirements regarding ingredient disclosures, allergen warnings and sustainability certifications.
According to a report by Grand View Research, the global food labelling market alone is projected to grow significantly, spurred by policies such as the FDA’s Nutrition Labeling and Education Act in the US and similar mandates in Europe and Asia-Pacific. Companies will need to adopt technologies like AI-driven label validation tools to ensure compliance with multifaceted international standards, especially as they expand into new markets.
Integration of Digital Technologies
Digital transformation is reshaping labelling, yet it comes with challenges in adoption and integration. In India, smart labels—featuring QR codes, RFID tags, and augmented reality (AR)—are being adopted to provide detailed product information, authenticate brands and engage customers. For instance, the government’s push for Digital India has inspired initiatives like QR-coded seed packets in the agricultural sector to ensure traceability and combat counterfeiting.
Despite these advancements, the adoption of smart labels is uneven, especially among smaller players due to cost constraints and lack of technical expertise. Research from NASSCOM suggests that technology adoption in India’s labelling industry will require public-private collaborations, skill development programmes, and incentives for innovation.
Customisation and Scalability
India’s diversity poses a unique challenge for labelling customisation. With 22 official languages and a vast range of regional preferences, companies must create labels that cater to local sensibilities while maintaining national and global appeal. For instance, the FSSAI’s guidelines for bilingual labelling (English and a local language) require companies to navigate complex design and production challenges.
Hyper-personalised labels, such as those tailored for dietary needs or regional festivals, are gaining popularity among Indian consumers. However, achieving scalability for such personalisation remains difficult. According to a report by the Confederation of Indian Industry (CII), digital and hybrid printing technologies are emerging as a solution, allowing manufacturers to produce customised labels efficiently and affordably.
Research predicts that by 2030, there will be a significant rise in demand for smart labels, driven by advancements in data collection and real-time monitoring technologies. In India, the growing trend of e-commerce and sustainability will accelerate the adoption of digital and sustainable labelling solutions. The labelling industry will benefit from innovations in artificial intelligence, enabling brands to offer personalised, interactive labels while ensuring compliance with both local and international standards.
Supply Chain Disruptions
Global supply chain disruptions, exacerbated by geopolitical tensions and pandemics, are another challenge for labelling by 2030. In India, disruptions have exposed vulnerabilities in sourcing raw materials such as adhesives, specialty inks, and eco-friendly substrates. Additionally, delays in shipping and rising transportation costs have further strained production timelines.
To address these issues, Indian companies are focusing on localised production and diversified sourcing. The government’s focus on infrastructure development, such as the National Logistics Policy 2022, aims to streamline supply chains and reduce operational inefficiencies. Industry leaders are also investing in technology.
Ethical Labelling & Consumer Trust
Ethical labelling is emerging as a crucial component of consumer trust. Certifications such as Fair Trade, organic, cruelty-free, and non-GMO are now baseline expectations in various industries. However, ensuring the authenticity of such claims is a significant challenge.
A study by NielsenIQ found that nearly 42% of consumers distrust label claims, emphasising the need for brands to back their statements with credible evidence. The rise of blockchain technology offers a potential solution, enabling end-to-end traceability and transparency in product labelling. Brands must also prioritise third-party audits and certifications to build long-term credibility.
Cost Management in a Competitive Landscape
Balancing innovation with cost efficiency remains a perennial challenge for the labelling industry. The integration of new materials, technologies, and sustainability practices often leads to increased operational costs. Simultaneously, the competitive landscape necessitates competitive pricing, forcing manufacturers to find cost-effective solutions without compromising quality.
Automation and robotics are expected to play a pivotal role in streamlining operations and reducing costs. According to a report by MarketsandMarkets, the global industrial automation market is set to reach $298 billion by 2030, with the labelling sector being a key beneficiary.
Workforce Upskilling and Talent Retention
The technological evolution of labelling requires a skilled workforce adept at operating advanced machinery, managing digital systems, and adhering to regulatory standards. However, the Indian industry faces a skills gap, particularly in rural areas where much of the manufacturing workforce resides.
Investments in training programmes, collaborations with educational institutions, and government-backed skill development initiatives like Skill India are critical to addressing this challenge. Companies are also exploring AI-powered training modules to upskill employees efficiently, ensuring they remain competitive in a rapidly evolving landscape.
Opportunities Amid Challenges
While the challenges of labelling in 2030 may seem daunting, they also present opportunities for innovation and growth. For example, the adoption of AI and machine learning can enhance predictive analytics, helping companies anticipate regulatory changes and optimise their supply chains. Similarly, advances in sustainable materials and digital printing technologies are opening new avenues for eco-friendly and creative labelling solutions.
Collaboration across industries is also a promising path forward. By working closely with regulators, technology providers, and supply chain partners, the labelling sector can create standardised frameworks and shared resources to tackle common challenges.
Future Labels
The labelling industry stands on the brink of a transformative decade. From regulatory compliance and sustainability to technological integration and consumer trust, the challenges of 2030 are multifaceted and interconnected. However, with proactive strategies, robust partnerships, and a commitment to innovation, the sector can not only overcome these hurdles but also thrive in an era of rapid change.
As companies prepare for the future, one thing is clear: adaptability will be the key to success. Those who embrace change, invest in technology, and prioritise consumer-centric practices will lead the way in shaping the next generation of labelling solutions.
(The author is chairman & MD, Kris Flexipacks)
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