2025 in review, preview for 2026

Posted on 16 December 2025 by Sovereign Labelling Machines

Managing Director Thomas Glendinning reflects on 2025 and looks ahead to 2026 as we ramp up for another landmark year

As 2025 draws to a close, now is the right time to pause and reflect on what has been a dynamic year for Sovereign Labelling Machines and the wider packaging industry.

As the unabated shift toward sustainability has coincided with increased costs and financial burden for packaging manufacturers, so the spotlight has been shone brightly on efficient and effective processes and practices.

Productivity and sustainability have historically been treated as competing priorities but today they are viewed as two sides of the same coin. From the development of recyclable mono-material plastics and greater use of fibre-based packaging solutions to highly automated manufacturing lines that maximise uptime and strip waste out of production, all have a part to play in helping the label and packaging industry improve its performance and remain suitable in the worlds of today and tomorrow.

This underscores how robust, flexible, and future-ready labelling and sleeving technology is critical for brands, co-packers, and contract manufacturers across FMCG, beverages, personal care, cosmetics, pharmaceuticals, and more.

Take misapplied labels or sleeves as an example. They are no longer just an aesthetic issue, they are an avoidable source of material waste, machine stoppages, and even product withdrawals. In 2026, those pressures will only intensify.

Businesses that win will be those that treat labelling and sleeving as a strategic capability that touches productivity, compliance, brand value, and total cost of ownership (TCO).

Different needs, same result

At one end of the spectrum are those seeking fully integrated, turnkey labelling and sleeving solutions. They want a comprehensive platform from a partner who can expertly engineer and support the complete workflow: bespoke and modular, from infeed, conveying, application, inspection, tamper evidence, to outfeed. The integration of third-party solutions adds another layer of depth and complexity.

Such requirements have shaped multiple projects that we’ve fulfilled this year and ensured we have been able to support our customers with the most sophisticated labelling and sleeving needs.

At the other end of the spectrum, there are many brands and co-packers seeking straightforward, functional, and cost-efficient systems that are tailored to their needs and can label and sleeve jars, cans, bottles, and other containers precisely, at high speed, and at the highest quality.

As a machine builder with complete control of the entire manufacturing process of our systems, we can service this need just as well as we can those seeking unique and proprietary solutions.

In all cases, this covers the design stage, the manufacturing of machined components and stainless-steel machine frames, complex task of electrical enclosure builds and machine wiring, right through to on-site installation and after-sales care.

The result for many of our customers has been a measurable reduction in waste and a significant uplift in Overall Equipment Effectiveness (OEE), with operators able to focus on process optimisation and improvement. In a climate of volatile input prices and ambitious ESG commitments, that combination of efficiency and sustainability will be non-negotiable in 2026.

It is also striking how similar the core labelling challenges are for a multinational brand owner and an ambitious independent producer.

Both need accurate, consistent presentation at speed. Both need to manage a growing number of SKUs, pack formats, and regulatory variations. Both need to future‑proof investments in the face of uncertain volumes and evolving customer expectations. Both want to be strong in retail environments at the same time as capitalising on the growth in e-commerce and direct-to-consumer sales.

Where they differ is in scale, budget, and inhouse technical resource. This is why our portfolio has continued to evolve to serve both ends of the market.

High throughput, highly automated lines are capable of handling complex formats with minimal manual intervention to match the needs of the most complicated applications. Conversely, tailormade systems give smaller or fast-growing businesses an affordable way to automate their labelling and sleeving without sacrificing precision or flexibility.

What unites these solutions is a focus on TCO. For all customers, the right financing structure, robust build quality, and a clear upgrade path are just as important as the purchase price. The conversations in 2025 have been far more strategic, looking at lifecycle costs, uptime, training requirements, and integration with upstream and downstream equipment.

Four themes to watch

Looking ahead, several technology and market trends will define how labelling and sleeving evolve in 2026 and beyond.

Sustainability will continue to drive material and design choices. Expect further growth in thinner label stocks, recycled and bio‑based films, and recyclable sleeve materials, alongside formats designed to improve pack recyclability. Labelling and sleeving equipment will need to handle a broader range of substrates and thicknesses with the same consistency as traditional materials, while minimising waste during set-up and changeover.

Digitalisation will also deepen its influence. Many customers are only at the beginning of their journey with centralised artwork control, Cloud-based label management, and full traceability of codes and batches. In 2026, more sites will expect their labelling and sleeving assets to connect seamlessly with MIS, ERP and quality systems, enabling automated job downloads and recipe management, real-time performance and quality dashboards, and electronic records for audits and regulatory submissions.

Thirdly, intelligence at the machine level will grow. From adaptive set-up routines that guide operators step-by-step, to advanced diagnostics that predict wear and recommend maintenance before a fault occurs, labelling and sleeving systems will become easier to run and more resilient. The aim is not to add complexity but to hide it, and make sophisticated engineering accessible and reliable to all.

Finally, flexibility will be paramount. Product lifecycles are shortening, private label is expanding, and test-and-learn launches are more frequent. Equipment investment decisions in 2026 will be heavily influenced by how quickly a machine can change between formats, how easily it can be reconfigured for new packs, and how modular it is for future upgrades.

2025 into 2026

2025 has confirmed that the role of labelling and sleeving is expanding and being confirmed as an enabler of brand integrity, regulatory compliance, operational efficiency, and sustainability.

The demands on equipment and suppliers is to increase but so will the opportunities for those prepared to innovate and collaborate.

For us, 2026 will see continued investment in the people, technology, and partnerships that help brands and co-packers transform labelling and sleeving from a constraint into a competitive advantage.

Our commitment is to ensure that every project – whether a standalone system or a fully integrated high‑speed line – is engineered to help customers meet the realities of 2026 with confidence.

Technology will continue to evolve but the goal remains constant: precise, reliable, efficient labelling and sleeving that supports businesses today and is ready for what comes next.