Packaging and Labels: Is The Next Big Thing Already Here?

Throughout the history of the digitization of printing technology and processes we have seen a fairly repeatable model of change. It goes something like this; a new technology is introduced; it drives new PSP creativity in how it can be used; PSPs introduce it to their customer base who see new applications; with that come new requirements; which drives new technology development; and the cycle continues… While all of this is going on, the consumers (whether it is of information or product) are adopting and redefining their expectations as well, creating new demands. As this cycle continues, so does the adoption rate and the transition from legacy technologies and processes.

If we translate this model to the label and packaging market, we are already well on our way. While the annual total market for retail packaging is hard to pin down, it seems to fall in the $400 to $500 billion range. Estimates are that only about 3% is currently digital production, most of that in labels and flexible packaging, creating significant opportunities for growth, but in which applications and at what rate? 

Historically, label production had been driven predominantly by flexography and offset, with gravure picking up some of the larger runs. In the mid 1990’s we started to see the early use of the digital electrophotographic process for label production, with the Xeikon DCP/32S. Since then we have seen a shift to a variety of electrophotographic and inkjet technologies, from Konica Minolta, Mark Andy, HP Indigo, Gallus, Canon and others. This shift has driven the growth of short run label production, offering CPCs the benefit of customized branding, targeted marketing and quicker time to market. 

At the same time this has been going on we have seen an increase in the use of flexible packaging which has also impacted printed label production. The flexibility and cost advantages of direct to package printing, especially with the introduction of inkjet, are now starting to impact label and some rigid packaging print production as well. So here, as in labels we see not just a shift from analog to digital, but also a shift in the type of print demand. These new applications are impacting growth beyond shifting from analog to digital through the introduction of new applications.

We are beginning to see a similar scenario start to emerge in the folding carton space. There has been some growth in digital folding carton migration from offset, with electrophotographic and inkjet technology, primarily driven by and offering some of the same benefits of digital label production. In addition, we are now starting to see shades of alternative packaging methods in the expanded use of flexible packaging and corrugated in place of folding carton. In both of these production inkjet technologies are now making it to the market. Flexible packaging’s latest entry is the new UTECO/Kodak Sapphire EVO, and in corrugated there are two new entries, the EFI Nozomi C18000 and the HP PageWide C500. The movement in this space is still early, and it will be interesting to see what directions it takes.

Labels and packaging have many different and unique requirements over what we see in print for publication or marketing collateral. Media and ink compatibility and regulatory compliance, especially for food and Pharma. Broader and more stringent color requirements to enhance visibility and maintain brand identity. Specialized converting needs and streamlined design to distribution workflows to enable faster time to market, are just some of the areas that are impacting the adoption and growth of digital print technologies in this space. If you add to that some of the new opportunities for the CPCs like personalization, on package promotion and embedded intelligence just to name a few, you can see that there are some challenges and exciting times ahead.