Label Industry Trends and Insights

At a time of uncertainty and disruption, label printers and converters are demonstrating adaptability and resilience. With mounting unknowns and external pressures stemming from tariffs, environmental legislation, artificial intelligence, and labor constraints, the label industry is navigating a sea of variables while striving to keep customers satisfied. Despite the challenges, the sector continues to thrive, adapting to this new business landscape and monitoring additional hurdles on the horizon.

While any instability can concern business owners, label printers have a wealth of resources available to them to stay ahead of the changing conditions, and — through strategic technology investments — can seize new growth opportunities. While this confluence of factors has made for an unpredictable business landscape, the demand for printed labels remains strong.

“There are these uncertainties from the tariffs that companies are receiving from their suppliers, needing to pass those on, and will ultimately impact the consumer,” says Linnea Keen, president and CEO of TLMI, a North American tag and label industry association. “Underneath that uncertainty, the label industry is still a great industry to be in, with healthy demand and estimated market growth of 2% to 4% overall and higher in specific market verticals. … From what the members are experiencing, order intake and backlogs are consistent, and it is steady.”

This article offers a preview of a broader trends report exploring the state of the label printing industry. The full version includes additional insights on topics such as artificial intelligence, sustainability mandates, and recycling initiatives, and it can be found here.

Tariffs Taking Their Toll

While technological changes are having a major impact on the label printing segment, arguably the most pressing development label printers have had to contend with in 2025 is the implementation of tariffs on imported goods. Additionally, the rapid and frequent changes that occurred during the tariff rollout have led to challenges in adapting to each development.

Bryan Vickers, a partner at PACE Government Affairs, a Washington, D.C.-based lobbying and consulting firm that counts TLMI among its clients, has been at the forefront of helping label printers stay informed about the many legislative and regulatory factors impacting the industry.

Vickers explains that the global 10% tariff is primarily what the industry is contending with as it imports items into the U.S. However, with delays and larger tariff rates for certain countries, another layer of complexity exists as businesses await announcements from the administration. Vickers explains the label industry is capital-intensive, and even a blanket rate of 10% can add substantial costs.

“Ten percent may sound small, but if you’re buying a large piece of equipment or machinery, especially from Europe, it’s a significant cost when it comes into port and the tariff is assessed,” Vickers says.

At the association level, Vickers says that TLMI has held firm to its initial position statement it released during the first Trump administration, when a variety of tariffs were introduced, most notably on steel and aluminum imported from China. The statement, while not expressly pro- or anti-tariff, indicates that TLMI encourages tariffs to be implemented with a specific purpose. Additionally, it encourages the ability to provide exclusion requests and for specific industries to offer input and perspective.

“If the goal, in part, is to bring back manufacturing to the U.S. and to provide an off ramp or an avenue for that to occur, in the meantime, consider where a lot of this equipment is being made right now and the fact that it is being bought and used in U.S. facilities that employ Americans,” Vickers says.

Navigating the One Big Beautiful Bill Act

The label industry is also keeping a close eye on the One Big Beautiful Bill Act, the multifaceted tax and spending bill that President Trump signed into law in July. The bill contains multiple components that will likely have noticeable impacts on the label industry, spanning workforce implications, research and development incentives, and corporate tax structure.

On the workforce side, the Freedom to Invest in Tomorrow’s Workforce Act is part of the One Big Beautiful Bill Act, which provides added flexibility for how students can use funds that have been saved on their behalf in a 529 plan. Although there are exceptions, 529 savings funds are primarily intended for traditional college or university tuition. With the passage of the Freedom to Invest in Tomorrow’s Workforce Act, 529 funds now have more flexibility to be allocated toward other types of job training programs, certifications, or apprenticeships.

“Almost across the board, our member companies are struggling to get new folks in, trained, and working with their companies in their facility,” Vickers says. “Whether that’s technology training that’s done on site, or whether that’s outside training that’s applicable to running the operations within the shops on the production side, this would really be a benefit and start the process earlier.”

Innovation is also incentivized as part of the bill, with research and development credits as a component of the legislation. Mark Glendenning, owner and CEO of La Crosse, Wisconsin-based Inland, explains that companies that catalog their research and development work can then take a portion of that as an expense against their taxation.

Particularly on the sustainability side, the need for research and development in the label industry is pressing. Glendenning explains that while a label is a small fraction of the overall package in most applications, there are key implications that converters and brand owners must consider. For example, in the recycling process, the label must be able to be separated from the container it is adhered to, while maintaining the adhesives, inks, and coatings applied to it. Enabling this is critical to successful recycling and requires research and development activity from the industry.

“We have people dedicated to research and development,” Glendenning says. “We send things out to labs for testing. That costs money obviously, so if that’s considered part of research and development then you have a resource to at least reclaim some of that effort.”

On the tax structure side of the bill, Vickers explains that with the bill’s passage, the 20% pass-through rate applied to S corporations under the prior tax bill has been made permanent and elevated to 23%. He adds that this provides additional income tax savings, which could then be potentially reinvested in label-converting facilities in the U.S. The current tax bill expires at the end of the year, so passing this provision provides some welcome stability for label printing businesses, many of which are family-owned S corporations.

“When you look at a lot of the family-owned businesses that are within TLMI, how do you logistically plan for the future when you don’t know if you’re going to have that pass-through rate or the ability to pass through that income beyond the end of this year?” Vickers asks. “Making that permanent, whether it goes up to 23% or not, provides a certainty that our folks are looking for.”

To access the full article — including additional reporting on artificial intelligence in label production, extended producer responsibility laws, and TLMI’s sustainability initiatives — click here.