Innovation is a common term in the beverage market that gets used frequently when discussing the latest trends. However, the reasoning behind these innovations can be just as intriguing as the finished products.

Although formulations might get the majority of coverage in beverage innovations, packaging suppliers are showing that these industries are just as eager to develop solutions that support the interests of consumers and needs of brand owners. For labeling materials, sustainability continues to be one of the key attributes influencing these next generation solutions.

“As consumers become more informed about the impact of their purchasing decisions on the environment, demand is growing for sustainable printing solutions for product packaging,” says Mark Volz, vice president of sales and marketing at Phenix Label, Olathe, Kan. “We see sustainability as a driving force in material selection, especially in the beverage space where consumer awareness and brand accountability are high. In fact, the packaging industry overall is experiencing a shift toward recyclable, compostable, and thinner materials that reduce environmental impact without sacrificing performance.”

Volz notes that this has prompted a demand for labels that offer recyclability, for instance, pressure-sensitive label constructions with wash-off adhesives and PET-compatible films.

Volz adds that for many brands, their sustainability efforts have become part of the story that they are eager to embrace and share.

“For example, one of our beverage brand customers promote that their product labels were produced with renewable wind power,” he says. “At Phenix Label, not only is a quarter of our energy provided by wind power, we take sustainability a step further, sending our production waste to be converted into alternative solid fuel to power kilns at a nearby cement plant, making our facility 98% landfill-free certified. This is just a microcosm of these trends.”

Jesse Kraft, vice president of sales at CL&D, a ProMach company, Cincinnati, also notes the impact that sustainability has on labeling materials and how it has evolved over the years.

“Sustainability continues to be a major driver of innovation in labeling, and today’s solutions reflect both material science advancements and growing end-user expectations,” Kraft says. “There are now more options than ever — thanks to the wide variety of container and packaging formats, the combinations to promote sustainability are nearly limitless.

“Some of the earliest sustainability strategies, such as downgauging films, remain among the most cost-effective and impactful,” he continues. “Reducing material thickness not only cuts costs but also decreases the amount of plastic entering the waste stream.”

Kraft notes that post-consumer recycled (PCR) shrink films have made significant quality gains while crystallizable PET (cPET) has seen an uptick in adoption from brands.

“[PCR shrink films] offer improved clarity and performance compared to mechanically recycled alternatives, which tend to suffer from discoloration, brittleness, and reduced shelf life,” he says. “Another significant shift has been the adoption of cPET (crystallizable PET) shrink films in place of PETg. cPET films are compatible with PET recycling streams, whereas PETg introduces glycol, a contaminant.

“When used on PET bottles, cPET shrink sleeves (paired with appropriate adhesives and wash-away inks) can be recycled alongside the container,” Kraft continues. “Wash-away inks are designed to flake off during the hot caustic bath process, reducing ink contamination in recycled plastic.”

Kraft notes that compostable films, such as PLA, which are made from renewable resources offer viability for niche applications; however, they need to be separate for PET products during recycling because of contamination risks.

“Other innovations include magnetic coatings that facilitate the separation of shrink sleeves during recycling, improving material recovery, and the use of perforations — still a simple but effective way to aid recycling, especially for aluminum cans,” he adds.

Compatible solutions

Although sustainability remains among the top influences on beverage labels, experts explain that primary packaging and much more are leaving their mark.

“We have seen a general shift toward aluminum cans, sleek PET bottles, and alternative substrates, such as recycled or plant-based plastics, leading to greater demand for label materials that can perform on these containers,” Phenix Label’s Volz says. “For example, the rise in contoured and matte finished bottles has required greater flexibility and conformability from labels.  

“And although shrink sleeves remain popular for full-wrap branding, we see pressure-sensitive labels continuing to dominate in premium craft beverages and ready-to-drink functional products,” he continues. “This is largely due to durability, special finishes such as tactile textures, as well as sustainability.”

CL&D’s Kraft stresses the importance of compatibility between containers and labels for beverage-makers.

“As brands explore new packaging formats, especially lightweight or recyclable containers, label materials must evolve in parallel,” he says. “Compatibility between label and container is crucial — not just for aesthetics and application, but also for recyclability and environmental compliance. Label converters and co-packers must work closely to ensure material selection supports both performance and sustainability goals.”

When selecting labeling materials, Kraft also notes that beverage category trends are causing a shift in requests.

“We’re seeing continued growth in dairy-based protein drinks, which require protection from UV exposure to preserve flavor and freshness,” he says. “Light-blocking shrink sleeve labels meet this need while offering a bright, premium white appearance that appeals to consumers.”

Beyond category specifics, Phenix Label’s Volz notes that as brands lean into storytelling and shelf impact, labels are helping to support those goals.

“As a result, we’re seeing higher demand for bold finishes, layered textures, and interactive elements — QR codes for now, but we expect increasing use of near-field communications (NFC) and RFID integrations in the near future,” Volz says. “Additionally, functional beverages and health-conscious products often highlight clean-label messaging, which requires label materials that communicate simplicity while still standing out.

“Likewise, smart packaging that bridges digital engagement — from traceability to loyalty programs — also is beginning to influence material selection, especially for premium or limited-edition products,” he continues.  

Looking deeper at label enhancements, Volz notes that many beverage-makers are employing enhancements to support a premium positioning.

“Textured varnishes, soft-touch finishes, cold foils and holographic accents are extremely popular, particularly among craft, premium and wellness-focused beverages,” Volz says. “These enhancements tend to convey quality, helping brands stand out on crowded shelves while telling a sensory story even before the first sip.

“We find that beverage-makers are especially drawn to matte/gloss contrast effects and embossed textures that create a tactile experience,” he continues. “When done thoughtfully, these enhancements can elevate brand perception without compromising recyclability.”

CL&D’s Kraft echoes similar sentiments on the enhancements that beverage-makers are using and why.

“Matte/gloss combinations remain a favorite among beverage brands,” Kraft says. “A matte background paired with high-gloss logos or imagery creates visual contrast and a premium tactile experience — without significantly increasing cost.

“High-luster silver inks are another popular choice, offering a metalized effect on clear PET bottles,” he continues. “While slightly more expensive than standard inks, they provide a cost-effective alternative to cold foil and help products stand out on shelves.”

Whatever type of labeling material that beverage-makers opt for, Kraft explains that it is essential to align the label material with the application method.

“Different films perform differently depending on the equipment used,” he says. “Even if a converter can supply the desired material, the co-packer’s equipment and experience must be taken into account to ensure successful application and performance.”

Phenix Label’s Volz additionally notes that several factors can guide label material selection.

“These include application performance (e.g., adhesion, moisture resistance, chill performance); cost and lead times; regulatory compliance; and production method (e.g., speed, automation compatibility, labeling equipment),” Volz says. “Other important considerations include sustainability goals (e.g., recyclability, material origin); and brand expression (e.g., transparency, texture, finish). With the help of their label supplier, beverage brands can strike a balance between performance, aesthetics, and environmental impact to select a label that does more than just stick ― it sells their brand.”