Die-cutting developed as a result of the Industrial Revolution. Manufacturers needed to produce standardised parts of their products economically.
In the early to mid-1800s, artisans started to cut out parts using a pattern with a hand-held knife. The next evolution was to create cutting dies to cut out the different pieces of a product.
By the late 1800s, parts were cut using die-cutting presses, mainly in shoe manufacturing for cutting leather.
Other industries adopted the process of die-cutting, including the sticker & label industry, and it's still widely used today.