Labelling Solutions
Luxury packaging and premium label production: Defying market pressures
By James Boughton, managing director, Edale
These elements create a multi-sensory experience that validates premium positioning and assures consumers of the product’s value.
MEETING MARKET DEMANDS
Premium label converters face the dual challenge of maintaining quality and adapting to evolving design requirements. Increasingly intricate designs demand sophisticated decoration, enhanced embellishments and labels that cut through retail ‘visual noise’. Meeting these demands requires advanced production technology capable of handling complex embellishments with consistency.
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n an era where cost pressures dominate business conversations, premium label production is thriving. Market consulting fi rm Towards Packaging projects the luxury packaging sector will grow from $15.3 billion in 2022 to over $25 billion by 2032. This growth highlights a fl ourishing luxury product market, driven by evolving consumer behaviours that demand premium products across sectors.
A GROWING MARKET
The broader labels market, valued at $41.75 billion, is forecasted to reach $67.36 billion by 2033 according to Future Market Insights, with premium labels representing a particularly dynamic segment. Factors such as rising luxury goods consumption, increasing demand for premium packaging in emerging markets, and the ongoing premiumisation of everyday products drive this growth. Premium packaging, including labels, plays a critical role in brand diff erentiation and consumer engagement. The ‘lipstick eff ect’, where consumers maintain or increase spending on small luxuries during economic downturns, remains as relevant today as ever. There is more to it than that, as modern consumers seek products that deliver quality and experience. Research shows that tactile elements signifi cantly infl uence purchasing decisions, making labels with high-build varnishes, embossing and textured fi nishes essential. In sectors like premium spirits, cosmetics and personal care, where packaging is the fi rst physical interaction with a brand, cold foiling, tactile varnishes and speciality fi nishes are more than decorative.
At Edale, part of the Canon group, the demand for systems that manage such complexity is clear. Premium labels now incorporate multiple fi nishing techniques, such as tactile eff ects and high-build embellishments, which elevate the consumer experience. The days of simple spot varnishes and basic foiling are well and truly behind us. Maintaining consistency across runs is key to meeting consumer demands and is a signifi cant challenge in premium label production. Advanced automation systems transform fl exographic printing, delivering exceptional consistency while reducing waste and simplifying operation. The latest generation of fl exographic presses, such as Edale’s FL3, are specifi cally engineered for premium labels. Features like precise registration control and the ability to handle intricate embellishments in a single pass ensure consistent, high-quality output. Automation reduces dependency on highly skilled operators and addresses workforce challenges, while intuitive systems ensure effi ciency without compromising quality
SUSTAINABILITY IN PREMIUM LABELS Premium label production is often at the forefront of sustainability innovation. Higher margins allow greater investment in sustainable materials and processes while maintaining strict quality standards. As consumer values evolve, luxury and sustainability are becoming intertwined. Environmental consciousness is now seen as a marker of sophistication, prompting brands to integrate sustainability narratives into their premium positioning.
Converters must meet these evolving demands by maintaining high-end fi nishing eff ects while adapting to new substrates. Whether reducing plastic content,
exploring fi bre-based alternatives or trialling next-gen sustainable materials, production equipment must deliver consistent quality across diverse substrates. Edale’s FL3 press, with its adaptability and advanced automation, supports this balance, enabling premium results on sustainability-focused substrates.
FUTURE OPPORTUNITIES IN PREMIUM LABELS While basic label production faces commoditisation pressures, high-end manufacturing continues to evolve, driven by consumer demands for innovation and quality. Success in this sector requires production systems that adapt to changing requirements while maintaining consistent output.
For converters, selecting the right technology partner is crucial. A fl exible production platform capable of handling multiple substrates, incorporating various embellishments and ensuring automation-driven consistency is key. Edale’s FL3 fl exo label press exemplifi es these capabilities, combining modular design, precise registration control and advanced automation to meet the sector’s demands.
The growth of premium labels underscores their critical role in brand success. Market trends and consumer behaviours indicate that investing in premium label capabilities is not just about maintaining market position, but capturing expanding commercial opportunities. Converters who consistently deliver quality, innovation and reliability will thrive in this competitive market, where eye-catching, tactile and precisely fi nished labels remain essential diff erentiators.
30
Dec 2024 / Jan 2025
www.convertermag.com
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