Labels: Adding Value to Packaging

Downgauging and secondary use

With its complex make-up, the self-adhesive labelstock is particularly susceptible to raw material price increases—and these have characterized the market for nearly two years, creating margin pressures at every level of the value chain. Prices for platinum—the initiator for silicone release coatings—remain extremely high, and crude oil prices, fluctuating in response to world political issues, continue to be of high concern, particularly in relation to plastic films. While paper labels and release liners continue to dominate self-adhesive label use, film facestocks and release liners are gaining market share. Environmental concerns and the quest for sustainability are encouraging the use of downgauged self-adhesive labelstocks in order to reduce material usage and save cost. Lower-gauge film facestocks and release liners are key players in this arena, with significant reductions in basis weight achieved.