Interesting Facts & Figures About Packaging Printing

How Big is the Flexo Market?

According to recently released figures Flexography’s share of the entire printed packaging market remains a dominate 60% market share, more than $260 billion globally a year. The percentage of Flexo’s overall global volume that comes from packaging driven printing projects is 92%.

“Packaging print production isn’t a printing process, it’s a manufacturing process. New technologies like digital hybrid combine the best of digital with the best of analog to offer today’s printers more flexibility to win profitable business.” Jason Kammes – Fujifilm Business Development Manager

What is the Split Among Packaging Applications?

Corrugated remains the number one application with $125 billion in annual sales, followed by flexible packaging at $81 billion, labels & tags at $56 billion and folding carton at $1.5 billion.

The Rise of Digital Printing

According to a 2014 survey commissioned by the Graphic Communications Institute at California Polytechnic State University and reported in WhatTheyThink last November, consumer package good companies (CPG), converters, and commercial printers are all actively planning on incorporationg digital in their press offerings:

  • For CPG respondents, only 26% of respondents were not actively researching digital printing options and 10% currently have their own in-house digital presses installed
  • Better than one-third (36%) of the converters surveyed said they had already invested in digital printing and 68% said they expect to within the next three years
  • Nearly two-thirds (63%) of commercial printers responded positively to investing in packaging printing to offset declining volumes of existing print applications. About one-third (34%) said they currently were offering packaging and label applications. Digital registers highly with this response group, as 77% already operate digital sheetfed equipment

Overall, digital printing is expected to grow 17 to 18 percent CAGR over the next five years. As a result, it is anticipated that the percent of digital press installations in the North America tag and label industry will exceed those of conventional press by 2018.

Brand Managers Looking for a Single Source

The same 2015 PRIMAR study indicated more than 1 in 4 brand owners are looking for a single printing source and 68% would consider a vendor for additional printed packaging if they offered that capability.

 
Top 9 Growth Contributors to Digital Printing

According to a recent InfoTrends white paper (Packaging: A Market Poised for Growth, June 2015), nine growth factors were cited for the anticipated growth in digital packaging:

  1. Increases in Private Labeling and Resulting Shorter Runs
  2. Package Testing
  3. Customizing for Target Markets or Event Marketing
  4. Making the Package Interactive
  5. Streamlined Solutions for Secure Variable Data Label Printing
  6. Improvements of Supply Chain Management
  7. A New Emphasis on Sustainability
  8. Expanded Media Options
  9. Available Technology: The Presses and Beyond

The white paper concludes that the combination of emerging technologies, market demand from brand owners, and the benefits of streamlining the supply chain will make the digital packaging growth opportunity one that print service providers and label converters cannot ignore.

Flexo Ink Trends Show Huge Growth

According to a recent research report from Ink World Magazine (PRIMIR 2015, Printing Industries of America & Transparency Market Research Report), growth for flexo inks will continue for the forseeable future.

The study stated these facts about flexo ink growth:

  • 5.5% annual growth rate globally to $9.3 billion by 2020
  • Taking share from offset, letterpress, rotogravure and screen
  • Flexo will eradicate letterpress and screen worldwide share by 2020
  • $1 billion of Flexo Packaging Ink Consumed in North America in 2013
  • 80% of flexo inks used in packaging
  • $250 million of tag & label ink consumed in North America in 2013
  • Ink technology split is changing between analog and digital