How premium labels are redefining brand power in India

Nirav Shah, managing director at Ahmedabad-based Letra Graphix, calls the premium label “a handshake between brand and buyer.” He adds, “In the 2.3 seconds it takes a consumer to notice a product, that label must communicate quality, authenticity and aspiration simultaneously.” For Shah and others in the business, labels are no longer passive wrappers—they are persuasive tools.

The transformation is not limited to retail shelves. A diamond exporter in Surat adopted tamper-evident holographic labels, resulting in an 18% reduction in insurance premiums. Textile mills in Tirupur have embedded RFID threads in garment labels, giving brands 99.7% inventory accuracy while discouraging counterfeiting. These industrial applications now account for 32% of Letra Graphix’s premium business, up from 9% in 2018.

India’s market has grown from INR 2,800-crore in 2020 to INR 4,000-crore today, outpacing the global average by over three percentage points. This growth is fuelled by rising household affluence, the increasing visual expectations of eCommerce’s “unboxing” culture, and regulatory pressures demanding more resilient and informative labelling.

Shah recalls the order that marked a turning point. A Gujarat-based tea brand requested gold foil labels for its INR 50 sachets—an investment that initially raised eyebrows. However, when sales spiked by 40% within three months, it sparked a wave of demand across the FMCG sector for metallic inks and textured finishes. “Packaging became a weapon for differentiation,” Shah says, summing up a broader shift across Indian brands, now more attuned than ever to the marketing value of print embellishments.

The anatomy of persuasion
What distinguishes a premium label from its mass-market equivalent lies in both materials and execution. These labels are engineered to resist heat, moisture and UV rays while preserving their visual integrity. Such resilience is vital for high-end spirits served in ice buckets or beauty products stored in humid bathrooms.

Yet it is the psychological effect that carries the greatest weight. A 2022 Nielsen study found that 72% of consumers associate tactile enhancements like spot UV or embossing with superior product quality—even when price points are identical. “It’s the halo effect,” says Shah. “When a label feels expensive, the brain assumes what’s inside must be too.”

This cognitive association plays out strongly in retail. Wine bottles with gold-foiled labels outsell their plainer counterparts by 23%, according to Wine Business Monthly. Similarly, textured labels on limited-edition beauty SKUs help brands command a 17% price premium. Even technology companies are paying attention. Apple’s understated but precision-driven labels subtly reinforce the brand’s core promise of perfection. “For premium electronics, the label isn’t an afterthought—it’s the final stamp of authenticity,” Shah observes.

Material innovation meets market insight
Letra Graphix’s R&D lab in Ahmedabad is where material science and marketing logic intersect. Labels are developed to survive conditions ranging from deep-freeze storage to oil exposure without degradation in appearance. Pharmaceutical labels are tested for legibility after prolonged ice-bucket immersion. Some have been submerged for 72 hours without ink bleeding.

“This is where we push beyond aesthetics,” Shah explains. “Brands need labels that look good and perform under extreme conditions—that’s where value is created.” Such performance comes at a cost—often three to five times the price of standard labels—but the return on investment is clear. According to a FICCI report, brands that adopted these high-performance labels saw tangible results: increased shelf pickup, fewer counterfeiting incidents and higher customer retention.

The sustainability equation
As consumer demand for sustainable solutions grows, premium label makers are being challenged to blend eco-credentials with visual sophistication. Letra Graphix has developed sugarcane-based substrates that mimic metallic effects without using aluminium. Compostable labels developed for an organic tea brand improved consumer perception of its premium status by 22%.

“Earlier, sustainability and premium aesthetics felt like trade-offs,” Shah notes. “Now, we’re proving they can coexist—and even enhance each other.” Environmental regulations are also pushing innovation. FSSAI’s mandate for oil-resistant labels in food packaging created an INR 120-crore opportunity for specialty materials. Meanwhile, spice exporters responding to EU packaging directives are trialling recyclable labels that endure months-long shipping journeys.

Digital meets physical
Technology is adding another dimension to premium labels. Shah demonstrates a whisky label embedded with an NFC chip, enabling users to verify authenticity, view cocktail recipes or join loyalty schemes. “What we’re building is not just a label—it’s a portal to the brand experience,” Shah says.

Engagement is rising. Johnnie Walker’s NFC labels delivered nearly five times longer consumer interaction than traditional packaging. Forest Essentials’ AR-enabled labels prompted a 23% increase in social media shares. In the B2B realm, a bearings manufacturer reduced service calls by 27% by linking product manuals via QR codes on labels.

From shelf to future
Shah holds up a prototype label that changes colour when a medication reaches its expiry date. It is a small preview of what’s coming—smart labels that react to environmental stimuli, or embedded sensors in construction materials that flag structural stress.

“The future of labelling is sensory and smart,” says Shah. “We’re moving from decoration to communication, from static to responsive.” With India’s premium label market projected to reach INR 6,500-crore by 2028, one message is increasingly clear. In the contest for consumer attention, the most powerful pitch might not come from an advert, influencer, or discount, but from a square of adhesive paper—the silent salesman doing the loudest work.

The loyalty loop
Durability does more than ensure legibility; it builds long-term brand trust. A peeling or smudged label suggests poor quality, while one that stays intact across multiple uses reinforces brand reliability. This explains why premium organic food brands are increasingly turning to compostable yet refined labels, finding in them a confluence of environmental responsibility and aesthetic appeal.

Shah frames this dynamic succinctly. “In a world of digital noise, tactile packaging is the last unskippable ad.” 

The message is clear as India’s premium label market races towards INR 6,500 crore by 2028. "In a competitive, multisensory world, what sticks to your product must also stick in the consumer’s mind," concludes Shah.

(Data Sources: Mordor Intelligence 2024, FICCI Packaging Report 2023, IBEF Export Analysis)