FLAG explores technological trends in labels and packaging

Editor’s take: The complex AI space will have ramifications on label converters in the future. The technology is already being deployed, providing advantages on a day-to-day basis.

Label converters are continually striving to equip their shops with the newest technology. From the latest presses and sustainable materials to AI, there are a host of considerations. This is especially true when attending trade shows like LOUPE Americas. There, the newest technologies will be on display.

The technology has evolved by leaps and bounds, though. The industry and its requirements have changed, especially as brands seek enhanced quality and faster lead times.

Making a mark

Automation and AI will arguably make the biggest impact going forward, says JC McKay, president, FLAG.

“Every converter in the market knows they need to bring this into their business, unless they operate under a rock,” states McKay. “There isn’t much argument anymore about whether automation and AI are optional, so most of the converters and suppliers are exploring it.

“AI is where it gets interesting,” he continues. “More and more businesses are leaning on their people to do more with the same headcount, and used the right way, AI is what makes that realistic. The problem is knowing where to start. There are thousands of shiny objects out there and every one of them claims to be the answer, so a converter can get overwhelmed, or pushed into the wrong solution that sets them back even further.”

Solving complexities

AI is a complex category, though. The launch of Agentic AI (AI employees) has shifted the playing field.

“You can create an AI employee to solve a specific problem in the business, give your people a way to get more done in less time, be more profitable, all while keeping your company values and customer experiences intact,” explains McKay. “That’s also where an independent converter has an advantage against a larger competitor. They can decide on a Monday to start implementing a solution in the best interest of their customers (that they know so well). By mid-afternoon on that same day, they can already begin building the solution – while bigger shops are still working through committees to make a decision.”

McKay recently launched LabelConverter.ai. While general AI tools exist, this industry has its own problems, workflows, and operating process.

“LabelConverter.ai is built specifically for label converters, so instead of chasing another tool that was never made for them to begin with, a converter can start with something built for exactly what they do,” adds McKay. “The biggest takeaway in all of the technological advances we’re seeing in the market is that if you do not find ways to innovate with AI and automation, and embrace the change we’re seeing in business now, both converters and suppliers are going to have a very hard time keeping up, if they survive at all.”

Sunrise 2027 and smart technology

In addition to AI and automation, the label industry is planning for new barcode technology. GS1 established Sunrise 2027, which is a global POS system fully capable of scanning 2D barcodes (such as QR codes or DataMatrix). The changes are expected to take place by December 31, 2027.

“That’s going to impact a large majority of the labels in the market,” says McKay. “A lot of those codes are serialized and carry variable data, which might lead to more digital or hybrid adoption as the market changes. Between that and brands looking for shorter runs with more SKUs, digital keeps growing.”

Meanwhile, smart labels continue to proliferate. “RFID and smart labels are becoming more of a requirement for brands as well,” adds McKay. “Some retailers, like Walmart, are building in requirements for the brands they carry to have RFID technology in their labels for inventory purposes.”

Recognizing the newest trends will prove critical for converters looking to stay ahead of the curve. “Finding new markets of demand and moving into new categories is a big part of what converters will have to do to keep growing,” states McKay. “If you’re a converter in the market, you must be proactive about this market to keep growing. We’re at a point where a converter has to see where demand is moving and get there first.”