Digital print builds consumer relationships, say packaging print leaders

A survey of packaging print leaders has shown that more than half are strongly motivated by relationships with consumers when it comes to adopting digital print in packaging production lines.

Published by packaging industry researcher Smithers Pira, the report revealed the opinions of more than 120 delegates surveyed at the Digital Print for Packaging Europe Conference in December 2015.

A total of 53 per cent of respondents identified consumer engagement as the top motivator for brands investing in toner- and inkjet-printed packaging.

A quarter saw cost-efficiency as the main driver; while 14 per cent felt the ability to reduce risk during new product launches was the primary motivator.

A growing number of brands are spending more to access the marketing advantages digital print can offer.

A total of 44 per cent of respondents believed brands would be willing to pay an extra 10 per cent for the increased flexibility and marketing opportunities digitally printed packaging offers. Another 24 per cent were even more enthusiastic, believing brands would be prepared to pay a premium of 25 per cent on top of their conventional print unit price.

The remaining 32 per cent or responses were divided equally between those believing digital print could command a five per cent increase, and those believing brands would accept no increase in price.

The survey reported the biggest business opportunity (47%) for packaging and label printers was to take short run print jobs off conventional presses – saving on set-up and changeover times. This was followed by 32 per cent who saw customisation and personalisation as offering the highest potential.

Beyond that, a small segment of respondents – 11 per cent – envisaged digital completely replacing conventional techniques, such as screen and gravure print.

BARRIERS TO DIGITAL

While already well established in label printing, a number of technical and business challenges remain before digital print can be expected to revolutionise other packaging segments.

There was no consensus from the delegate survey, but the barrier cited most frequently was cost (29%). This was followed by uncertainty on how to adapt digital print technologies (24%), difficulty in obtaining regulatory compliance for digital inks (20%), and an inability to connect with the right partners to introduce the technology (18%).

As these barriers are removed, independent market data from Smithers Pira predicts digital print in packaging will nearly double in value over the next five years. The recently published Smithers report – The Future of Digital Print for Packaging to 2020 – sees a total global market worth $19.8 billion in 2020, up from $10.5 billion in 2015.

What is the true value of digital print in packaging? Over two thirds of respondents consider it is worth at least a 10 per cent increase in price paid

PACK FORMATS

The penetration of digital printing into packaging has been led by the labels segment, which Smithers estimates was responsible for 80.5 per cent of total global market value and 93.5 per cent of the printed volume in 2015.

Lucrative though this format has been, only 13 per cent of respondents saw this as the biggest opportunity moving forward. Remaining responses were split between three pack formats. Flexible plastic packaging led (33%), with corrugated board and folding cartons each receiving 27 per cent of votes.

No delegates saw the primary opportunity in metal or rigid plastic packaging.

The Future of Digital Print for Packaging to 2020 bears out this data with corrugated, flexibles, and folding cartons – especially the latter two – all recording higher annual growth than labels over the next five years.

The survey went on to find that food (38%) and beverages (31%) are viewed as most profitable end-use segments. Industrial packaging and pharmaceutical and medical applications were in joint third place with 13 per cent each, and only six per cent of respondents saw cosmetics and personal care as offering the biggest opportunity.