Packaging and labels aren’t just “support functions” anymore. In 2026, they’re becoming a competitive advantage and a compliance risk.

Between accelerating automation, a tightening sustainability/regulatory environment, and the operational reality of labor shortages, the companies that win won’t just have better equipment or materials. They’ll have better talent, better cross-functional execution, and leaders who can steer complexity without slowing the business down.

Here are the trends shaping 2026 in the U.S. packaging and labels space, and the hiring implications executives should be thinking about right now.

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1) Growth is steady, but complexity is the real story

Demand for packaging continues to climb, especially where e-commerce, SKU proliferation, and faster product cycles drive more variation and more changeovers.

• U.S. retail e-commerce sales in Q3 2025 were $299.6B, up 5.2% YoY, and represented 15.8% of total retail sales—a meaningful tailwind for corrugate, protective packaging, labels, and fulfillment-ready formats.
  
  
• In folding cartons, Freedonia projects U.S. demand rising 2.6% per year through 2029 to $15.1B—not explosive growth, but stable and attractive for operators who execute well.
  
  
• Flexible packaging continues to grow globally through 2026 (volume), supporting ongoing format shifts and brand preference for lightweighting and efficiency.
  
  

What this means for leaders: The market isn’t “slow.” It is more operationally demanding. Winning shops will be the ones that handle complexity profitably (shorter runs, more versions, faster turns, higher compliance load).

Hiring implications (what’s changing in 2026):

• Sales leaders and reps need to sell solutions, not specs: uptime, lead time reliability, changeover speed, compliance assurance, sustainability reporting support.
  
  
• Ops leaders need to be fluent in lean + automation + change management (and be able to train through transitions without losing throughput).
  
  

2) Automation is shifting from “capex project” to “operating strategy”

In 2026, automation isn’t just about speed; it’s about resilience against labor volatility and SKU complexity. AI-enabled robotics, vision systems, and easier deployment standards are pushing adoption beyond early adopters.

• Packaging World reports AI-driven robotics (AMRs, vision-guided cobots, smarter automation) are increasingly used to manage SKU complexity and labor gaps, while improving flexibility and uptime.
  
  
• Industry emphasis is also moving toward standards-based automation and “real-world use” deployment—meaning more companies can implement without massive custom engineering.
  
  
• Packaging machinery manufacturing in the U.S. grew at a 5.6% CAGR (2020–2025), reflecting sustained investment in equipment and modernization.
  
  

Where this hits labels specifically: Finishing and converting automation (inspection, rewinding, slitting, automated workflow) is increasingly viewed as the profitability lever.

Hiring implications for Automation-Minded Printing and Packaging Companies:

• Demand rises for: automation-minded plant managers, maintenance leaders who can bridge mechanical + controls, and ops people who can translate data into uptime improvements.
  
  
• Sales hiring shifts toward people who can sell into operations + engineering + procurement (multi-stakeholder, value/ROI-driven deals).
  
  
• Executive leadership profiles increasingly require capability-building experience (building a training culture, standard work, continuous improvement with automation).
  
  

3) Digital printing and workflow automation keep moving upmarket in labels

In 2026, digital printing in labels isn’t “the future.” It’s a growth lane where speed, versioning, compliance, and short-run economics matter.

• Industry commentary on 2026 labeling trends highlights continued movement toward digital printing, plus greater automation and AI use across labeling operations.
  
  

Even if a converter isn’t “going fully digital,” buyers increasingly expect:

• quicker turns,
  
  
• more versions without drama,
  
  
• better color management and repeatability,
  
  
• stronger quality inspection/documentation.
  
  

Hiring Implications for Labeling:

• Add or upgrade: prepress + workflow talent (MIS/ERP-to-production integration, automation, job onboarding speed).
  
  
• Strong hybrid “player-coach” roles matter: ops leaders who can keep legacy running while building digital capabilities.
  
  

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4) Sustainability is evolving from marketing to compliance

In 2026, sustainability is increasingly regulated and litigated. We saw this around recyclability claims and producer responsibility.

EPR and state policy momentum is real

Several states have enacted packaging-focused Extended Producer Responsibility (EPR) laws, and industry watchers expect more activity in 2026. 

6. California SB 54 is a forcing function

California’s SB 54 program is moving through rulemaking and implementation steps; it’s already driving producer reporting and planning requirements that ripple through packaging supply chains.

“Recyclable” claims are under the microscope

California has taken legal action over allegedly misleading recyclability claims. This is a signal to brand owners and packaging suppliers that environmental marketing claims need to be defensible.

Labeling systems are also changing

Programs like How2Recycle continue to update guidelines and transition labeling formats. Compliance and accuracy matter more than ever.

Hiring implications due to Sustainability Initiatives in Printing and Packaging:

• If you don’t already have it, 2026 is when many companies add or formalize sustainability/compliance ownership (even if it’s part of QA, R&D, or product management).
  
  
• Sales leaders need tighter alignment with compliance: claims, materials, and end-of-life realities can’t be “handled later.”
  
  
• Execs should prioritize leaders who can run cross-functional programs (sales + ops + procurement + compliance) without stalling throughput.
  
  

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5) Traceability and “connected packaging” are getting a deadline

The industry-wide move toward 2D barcodes (QR/DataMatrix) has a timeline.

• GS1’s Sunrise 2027 initiative targets readiness for retailers to scan 2D barcodes at point-of-sale by the end of 2027, driving packaging and label changes well before then.
  
  

For converters and label suppliers, 2026 becomes a preparation year:

• packaging real estate decisions,
  
  
• artwork/version control,
  
  
• variable data and serialization capabilities,
  
  
• press/finishing and inspection readiness.
  
  

Hiring implications for traceable packaging:

• Growing need for leaders who understand data + packaging: variable data workflows, inspection systems, and customer readiness planning.
  
  
• Salespeople who can lead consultative conversations with brands about “how to get ready” will outperform spec-based competitors.
  
  

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6) The workforce reality: hiring stays hard, and training becomes a differentiator

Packaging and processing companies continue to report hiring challenges, and many expect it to get worse.

• PMMI’s workforce research indicates nearly 60% expect hiring issues to become “somewhat or more demanding.”
  
  
• The same research emphasizes gaps in onboarding, knowledge transfer, and the need for more embedded training tools and practical documentation.
  
  

2026 “talent truth”: You can’t hire your way out of the skills gap. You have to build capability faster than your competitors.

What strong hiring managers are doing in 2026

• Hiring for learning agility and mechanical aptitude—not just years of experience.
  
  
• Creating internal “academy” systems (micro-training, SOP libraries, quick-changeover training).
  
  
• Investing in leadership that can stabilize shifts, reduce turnover, and raise baseline performance.
  
  

Roles likely to be hardest to fill (and most valuable when you do):

• Operations leaders who can run high-mix environments without chaos
  
  
• Maintenance + controls leadership (uptime is margin)
  
  
• Sales reps who can sell consultatively into ops + procurement + compliance
  
  
• Plant managers who can lead automation adoption without culture backlash
  
  

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The 2026 Executive Playbook: 7 moves that actually matter

If you’re an owner, VP, or GM in packaging or labels, here’s what to operationalize this year:

1. Audit operational complexity (SKU count, changeovers, versioning) and quantify its margin impact.
   
   
2. Build a two-year automation roadmap tied to labor risk and throughput not “cool tech.”
   
   
3. Put a clear owner on sustainability + claims governance (even if part-time).
   
   
4. Prepare for Sunrise 2027 now. Treat 2026 as readiness year.
   
   
5. Upgrade your sales approach: train to sell ROI + risk reduction, not just print/capabilities.
   
   
6. Create an internal training system to reduce ramp time and turnover.
7. Hire leaders who can run cross-functionally because packaging is now ops + compliance + brand + data.
   
   

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Closing: The winners in 2026 will be the best builders

Technology will keep advancing. Regulation will keep tightening. Customer expectations will keep shifting.

But the most durable advantage in packaging and labels in 2026 is still this: the ability to build a capable team that executes. Get started here.

If you’re hiring sales reps, plant leaders, or executives this year, the question isn’t just “can they do the job?”

It’s: can they lead through complexity without slowing the business down?

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