In conversation with Alessandra Costa

Alessandra Costa is head of innovation at All4Labels, one of the world’s leading label converting groups. As a speaker at the upcoming conference at Label Summit Latin America 2024, she offers a taste of what she will cover in her session.

Question: Welcome Alessandra, it’s great to have you join a panel discussion at the Label Academy-hosted Label Summit in Latin America. Tell us what the debate might cover.

Alessandra Costa (AC):  I'm excited and grateful to be invited to share experiences around pan-regional opportunities for label and packaging converters. I’ll be focusing on discussing packaging consumption trends, and the complementarity of each country in the region. I’ll also be sharing some of All4Labels’ strategy in this context.

The market trends we see as 2030 approaches present us with new consumption behaviors and preferences. They are defined by values such as sustainability, connectivity, interaction, design personalization, and self-care. These trends can serve as a basis to identify new opportunities. We can use the best of our label and packaging solutions to support our customers and to help their brands stand out on the shelf.

Q: What are some key differences between various countries in Latin America, in terms of their label and packaging printing industries?

AC: The main distinctions I see between Latin American countries involve their individual cultures, market focus, shopping habits, and consumer expectations. These differences directly influence packaging design and functionality. Each country also has its own market focus particularities. For example, Chile and Argentina have a strong position in the wine market, Brazil stands out for personal care, and Paraguay has extensive meat production.

By expanding our presence in the region, with sites in Brazil, Chile, Argentina, and Paraguay, we aim to ensure a wide range of expertise and production capabilities, able to serve different markets. Diverse technologies create opportunities for innovation and customization, and continuous exchange of information between our regional sites and local markets is important. Not only does this strengthen our sales team, but it also significantly expands our expertise, providing a high-quality service adapted to each regional reality.

Q: Where do you see the biggest growth, where package printing converters can invest, over the next five years in Latin America?

AC: Talking about label technologies, shrink sleeves are growing significantly. The Compound Annual Growth Rate (CAGR) is predicted to be 6.52% over the period 2021 – 2026, and is expected to reach USD 15.55 billion by 2026, according to Mordor Intelligence research. This technology improves on conventional pressure sensitive labels in several ways, for example because it offers more flexibility in terms of design, allowing products to stand out in the shelf. We can also combine these features using more sustainable substrates such as STARCRYSP – this is our material range that can be recycled together with the PET bottle. In combination with washable inks, STARCRYSP leaves no ink residue on PET flake. Another option that supports recycling is to simply use precuts, to easily separate labels from bottles.

With regard to printing, digital technologies are also expanding fast. These offer high print quality, are fast to market, have a low MOQ, and create minimum waste, to give some example benefits. All4Labels has a strong digital heritage: we have been investing in this technology for many years, and we are the first beta site for HP Indigo’s ground‑breaking V12 digital press in Europe. For LATAM, we are studying all the different technologies - including Hybrid – to invest in 2024 in a digital machine that will best answer to the need of the market. Reinforce the digital mindsets in the region is important because it enables countless possibilities for creating and providing personalized services to our clients. A concrete example is our Human Blend project. This is a campaign focused on promoting variable printing, highlighting the versatility and innovation that this approach brings to our portfolio. We are committed to solutions that not only meet, but also exceed market expectations, promoting excellence and differentiation in our products and services.

The era of digitalization goes beyond simple printing, representing a comprehensive revolution affecting all supply sectors. This transformation aims to establish transparency and promote a continuous flow of information that connects the entire sector, eliminating dependence on paper and maximizing the potential of data.

With respect to market trends, it is expected a significant growth within Wine & Spirits and Health Care, and both are strategic areas for our company. According to The Brainy Insights research, the global luxury Wines & Spirits market is growing at a CAGR of 6.5% from 2023 to 2032, expected to reach USD 470.0 billion in 2032. Health care reached USD 284.16 billion in 2022, and it is expected to hit around USD 608.39 billion by 2032. Predicted CAGR for this segment is 7.91% during the forecast period from 2023 to 2032, according to Precedence Research.

Q: Where are the key regional areas of focus for All4Labels, now and over the next few years?

AC: Since expected growth in the luxury Wine & Spirit market is driven mainly by consumers who are more interested in premium, unique, and high-quality products, we have launched a global initiative for this market: our Motherland campaign. The labels in this showcase are inspired by the countries where we are present. It enables us to present the wide range of embellishment possibilities. All4Labels won the internationally renowned Red Dot Award in the category Brand & Communication Design for this project, and we are now focused on developing the second edition, including Brazil, Chile, and Argentina.

In the health care segment, we will support market growth by introducing our Integritag brand into the region. This offers comprehensive security labels and packaging solutions that help the brands combat counterfeiting. We know that some LATAM countries experience among the highest levels of counterfeiting in the world. For example, Argentina, Chile, and Venezuela are among the 7 countries listed in the Priority Watch of the 2022 Special 301 Report, prepared by the Office of the United States Trade Representative (USTR). Brazil, Colombia, Mexico and some other countries are also on the watch list. This report identifies trade barriers to United States companies and products due to intellectual property laws in other countries, in areas such as copyright, patents, and trademarks.

All4Labels will also focus on strengthening our All4Graphics packaging design unit in the region. In 2024, we will launch a new hub in São Paulo, to offer additional services such as design, artwork preparation, prototyping, and artwork management – all complete with long-term industrial expertise.

The expansion of our eco-innovative STAR portfolio of products and solutions will continue, offering customers a range of recycled substrates, and completely recyclable, reusable, and renewable products. These work hand-in-hand with wider solutions to promote sustainability. Most companies have ambitious goals to make their products more sustainable in the coming years and we want to support them in achieving these targets.

To answer the demands of our customers, in addition to Star Portfolio, All4Graphics and Integritag, it is worth mentioning that we are also exploring Vertical Integration Program (e.g.: in-house coating) with the aim of developing more sustainable solutions internally.

Q: What are some of the steps that label converters in Latin America can take to make their business more financially viable?

AC: A driver for excellence is close collaboration across the entire chain, understanding customer project requirements in depth and cultivating an open innovation ecosystem. Effective partnership with suppliers plays a crucial role in overcoming challenges.

It is also worth highlighting the synergy between our own LATAM sites, allowing us to leverage our technical and supply capabilities and expand our customer base. We believe that staying ahead of innovations and trends is essential in order to differentiate ourselves and remain competitive in the constantly evolving market.

Q: What are you most looking forward to seeing at Label Summit Latin America 2024?

AC: I look forward to exploring cutting-edge technologies and sustainable innovations in the label and packaging industries, and responding to market trends with agility. Strengthening the connection we have with our current suppliers is also important, along with seizing the opportunity to meet new partners, broadening our perspectives and deepening our understanding of our industry’s trends.

See Alessandra and her co-panelists discuss ‘Pan-regional growth opportunities for the label converter’ from 12.30 pm to 13.15 pm on March 13, 2024.

For the full program of Label Summit Latin America 2024, visit the event’s website.