In-mould labelling (IML) was initially designed for blow molding, though developments using injection molding or thermoforming with reel-fed systems have increased the efficiency of the labelling process. The original concept involves coating the reverse side of the label with a heat seal layer, followed by a substrate material in which heat resistant ink is applied to. A heat resistant coating of lacquer is then applied. This process eliminates the need to flame treat the bottles prior to labelling in order to achieve adequate adhesion. Initially, paper was used as the label substrate to which the heat reactive adhesive was applied. In more recent times polyolefin substrates have been employed, such as Polyart from Arjobex Synthetic Papers. This creates the advantage that scrap polyethylene and polypropylene bottles produced in the molding process can be recycled, without the need for label removal prior to recycling.

There are several techniques for conducting the in-mould labelling process. Vacuum and compressed air can be used to handle the labels, also static electricity can be used. Electrostatic charging electrodes charge a label while it is being transferred to the moulding machine, so that when the label is placed on the tool and released by the labelling robot, it will wrap itself onto the tool. Most robot systems for placement of labels are not required for specific moulding machines and can be used with up to date presses with fast clamping systems.