India: Sustainability and automation propel growth

The Indian label industry faced several challenges during this past year. 

Global economic uncertainties and complex and ever-changing regulations hit the industry. Price pressure and thinning margins also presented significant challenges, with intense competition driving some converters to undercut prices unsustainably. 

Fluctuating raw material costs, especially for specialty papers, films and adhesives, remained another pain point for an otherwise booming industry. 

Many companies faced challenges adopting advanced machinery and automation to remain globally competitive. Subsequently, finding skilled operators to maintain consistent quality remains a persistent hurdle.

Despite these challenges, 2024 underscored the industry's resilience, adaptability and commitment to innovation. With lessons learned and challenges met head-on, India’s label and package printing sector is well-positioned for a promising future.

Industries fueling the growth

It was a pivotal year for the Indian label and package printing industry. According to Mordor Intelligence, the India print label market size is expected to grow from 2.17 billion USD in 2024 to 4.05 billion USD by 2029, growing at a CAGR of 13.29 percent. In terms of production volume, the market is expected to grow from 6.28 billion sqm in 2024 to 11.26 billion sqm by 2029, at a CAGR of 12.39 percent.

Regarding the growth in India’s label printing industry, Amit Khurana, CEO at Technova Imaging Systems, says: ‘FMCG (27.9 percent YOY) and food & beverage (11.05 percent CAGR) growth underscore this momentum. Consumer brands, driven by e-commerce, seek flexible, on-demand packaging as they prioritize lean inventory.’

Adding to it, Kulbhushan Malik, global business head, Cosmo Films, comments: ‘Another promising trend is the growing demand for wrap-around films, fuelled by increased discretionary spending. With prolonged summer seasons driving higher beverage consumption, we're witnessing a corresponding rise in order volumes for these label solutions. This dual growth pattern signals a positive demand outlook for specialty and non-specialty labels in our portfolio.’

He continues: ‘We're also observing a distinct market shift towards synthetic papers across various industries, indicating a broader transformation in material preferences. In the BOPET line segment, significant growth opportunities are emerging, particularly in the shrink label films category.’ 

Technologies charting the growth

Another notable trend is the shift toward more agile production systems and digital technology, offering shorter turnaround times, cost-effectiveness for small batches and personalized products.

Commenting about this technology shift, Manish Kapoor, sales manager at Nilpeter India shares: ‘A continued shift towards short-run flexible packaging is anticipated, driven by growing demand for wider presses (430, 500, 550 and 650 mm). More well-established pressure-sensitive label converters will focus on consolidating relationships with reliable, long-term customers who value consistency over short-term cost savings. This approach may support a healthier, more stable industry despite economic pressures and high competition, fostering resilience for converters and suppliers alike.’  

Taking a different approach, Patrick Graber, marketing director narrow-mid web printing and converting at Bobst, adds: ‘Demand for more automated equipment providing higher quality output, faster setup and improved ease of use to replace legacy machines, is a strong driver in inline flexo. In addition, India’s label market is growing considerably, in volume, quality and diversity of label, shrink sleeves and flexible packaging applications. Digital solutions are also finding their place alongside analog equipment for customization and short runs, even though run lengths are still high compared to other world regions.’  The trend was also observed during Labelexpo India 2024, which returned to the region with the biggest-ever edition yet.

The Indian market saw increased adoption of digital label presses, signaling a shift toward more agile production systems. Automation also played a critical role, with manufacturers investing in robotics, cloud-based management systems, and Industry 4.0 tools to enhance productivity and reduce downtime.

On similar lines, Ranesh Bajaj, director at Vinsak and Rotatek, adds: ‘There is a rising demand for digital printing. Advancements in digital printing technology make short-run jobs highly efficient and cost-effective, especially for small to medium-sized businesses. As income and aspiration levels improve, there is a shift toward branded and quality products, resulting in the demand for premium packaging with embellishments and fine finishings.’

As brands seek more and more innovative ways to make their products stand out on retail shelves, another notable trend emerging is the increasing adoption of embellishments. Commenting on the trend, Sandeep Sharma, director at Acme Rolltech, says: ‘An important development is the increasing demand for embellishments on every label that’s being printed. Everyone wants to do embellishment at competitive cost. We have grabbed this opportunity with both ends. 

While brands continued to invest in customizing and personalizing their products, they seemed equally invested in the security of their products as well. Sharing more on this, Preeti Mishra, manager-business development at Holosafe Security Labels, adds: ‘With rising concerns around counterfeiting, tamper-evident and holographic labels have become essential across industries. Opportunities have emerged with digital transformation, particularly with smart labels, track-and-trace systems and RFID-enabled solutions in pharmaceutical and FMCG sectors. 

Similarly, Ankit Gupta and Shobhit Gupta, joint managing directors at Holostik India, share: ‘Consumers and brands are increasingly demanding transparency in supply chains. Security labels and holograms will play a crucial role in ensuring product authenticity and traceability. Emerging technologies like AI, blockchain and IoT offer new avenues for innovative security solutions. Digital watermarks, QR codes, RFID and NFC tags will become more prevalent, enabling real-time product verification.’ 

Growing, the ‘green’ way

Sustainability emerged as a defining trend in 2024, with converters and printers transitioning to eco-friendly materials like recyclable liners and compostable films. Leading companies introduced water-based and UV-LED inks, reducing energy consumption and waste. The push for sustainable packaging was further amplified by government mandates under the Plastic Waste Management (Amendment) Rules, 2022, which tightened restrictions on single-use plastics.

It was also one of the major themes at Labelexpo India 2024. While at the show, Rajesh Gandhi, vice president – Fujifilm Sericol India – Fujifilm Ink Solutions Group, identifies sustainability as the driving force for the industry. He highlights the growing adoption of water-based inks and energy-efficient technologies such as LED curing systems. ‘Sustainability is not optional anymore; it’s the future. Products and technologies that reduce carbon emissions and energy consumption will define the market,’ he says.

“Sustainability is not optional anymore; it’s the future. Products and technologies that reduce carbon emissions and energy consumption will define the market”

The Indian label and package printing industry is poised for significant growth in the coming years. By embracing sustainability, digital technologies, automation, and smart packaging solutions, industry players can navigate challenges and capitalize on emerging opportunities. As consumer preferences evolve and regulatory landscapes shift, the industry must remain agile and adaptable to stay ahead of the curve.

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