AWA Direct Digital Printing Technologyfor Labeling & Product Decoration AWAreness Report 2016
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2016 AWA Alexander Watson Associates BV.
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DIRECT DIGITAL PRINTING TECHNOLOGY
FOR LABELING & PRODUCT DECORATION
AWARENESS REPORT 2016
AWA Direct Digital Printing Technology for Labeling & Product Decoration AWAreness Report 2016
AWA is the worlds leading source for international market research reports and market data on the Paper, Film, Packaging, Coating and Converting sector. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.
Founded in 1971, AWA Alexander Watson Associates BV regularly publishes and updates a series of comprehensive reports on areas of specialist converting, including labels, defining global, regional, and application segment opportunities. This is the first edition of the Direct Digital Printing Technology for Labeling & Product Decoration AWAreness Report 2016. This report focuses on the evolving methods for directly decorating rigid and semi-rigid containers using digital print technologies combined with UV and UV-LED curing processes.
Direct printed forms of product decoration or of providing detailed user information are not new, and are already found in areas such as beverage cans, flexible packaging, cartons etc. These existing forms of direct print are not included in the report scope. This report focuses on the emerging forms of direct print, most especially those involving digital ink jet technologies.
The areas of digital direct printing covered in the report are growth sectors, with emerging technologies. They have seen extensive technical development and innovation, and are now in the early stages of commercial development. The introduction of those technologies provides a new level of competition to more established forms of product decoration. The technology allows for a high degree of individual customization, reduced inventories, shortened supply and value chains, and for shorter lead-times to end users/brand owners.
Direct Digital Printing Technology for Labeling & Product Decoration AWAreness Report 2016 describes the present state of the technologies available and the market dynamics. It also includes information about the future growth prospects and forecast penetration levels for these emerging decorating technologies.
Research is based on available published literature complemented by extensive data collection. The primary research and data collection involved in this study include telephone interviews and online surveys with leading industry players across the value chain.
Reasons to buy this report:
Be among the first to learn about digital direct printing technologies and the opportunities they provide Learn about the growth prospects these technologies offer Learn about how these technologies can have an impact on your business
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1 INTRODUCTION 111.1 Introduction 11
1.2 Sources of Information & Methodology 12
2 EXECUTIVE SUMMARY 17
3 DEFINING DIRECT PRINTING TECHNOLOGIES 21
4 LABEL MARKET OVERVIEW 25
5 DIRECT DIGITAL PRINTING TECHNOLOGIES FOR PRODUCT DECORATION 43
6 DRIVERS FOR GROWTH AND SUBSTITUTION 47
6.1 Cost & Economics 48
6.2 Performance 54
6.3 Markets 57
6.4 Environmental 59
7 CHALLENGES FROM COMPETITIVE METHODS OF PRODUCT DECORATION 61
7.1 Economies of Scale 63
7.2 Product Differentiation 66
7.3 Capital Requirements 67
7.4 Switching Costs 68
7.5 Policy 70
8 DIRECT DIGITAL PRINT OPINION SURVEY 738.1 Direct Digital Print Opinion Survey Results 74
8.2 Direct Digital Print Opinion Survey Respondent Comments 77
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9 CONCLUSIONS 879.1 Conclusions Large Volume/Low Cost Markets 88
9.2 Conclusions Tube Market 90
9.3 Conclusions Label Market 91
9.4 Conclusions A Disruptive Technology 97
10 COMPANY DIRECTORY 9910.1 Equipment Manufacturers 99
10.2 Ink Manufacturers 103
10.3 Ancillary Equipment 105
11 AWA PUBLICATIONS 109
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AWA Alexander Watson Associates, founded in 1971, is an independent international market research and marketing consultancy whose specialization and expertise in the paper, film, packaging, coating, laminating, and converting markets, extends over many years and provides a unique database of information and knowledge. Labeling and product decoration is one of the core verticals AWA specialize in.
A critical element in the philosophy of AWA is integrity not only in terms of the information the company provides to clients, but also in maintaining the confidentiality and trust of the industry sources from which it receives information. The personal involvement of AWAs knowledgeable consultants and associates in every stage of a project ensures additionally that information and recommendations are based on hands-on knowledge of the market and clients needs.
AWA publishes a series of studies at regular intervals and also provides clients with a range of confidential services and customized studies. AWA Conferences & Events organizes specialized industry conferences, seminars and workshops worldwide.
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DEFINING DIRECT PRINTING TECHNOLOGIES
Direct printing refers to the application of inks or other printing media directly to the surface of the container to be decorated.
Direct printed forms of product decoration or of providing detailed user information are not new. The ubiquitous beverage can had its origins as far back as 1909, and beer was first sold in cans in the US on 24 January 1935, and in Europe in 1937. Direct printing of the cans with colored photographic images began in 1956. The use of printed cartons is even older than this, with some sources indicating 1879 as a start date.
Direct printing as a method of decoration or as a means of providing data is to be found in many forms:
Beverage/aerosol cans Flexible packaging Cartons Inkjet printing Hot/cold foil stamping Screen printing Integrated solutions molding combined with direct printing
Respecting the volumes of data available to describe the flexible packaging, can, and carton markets, this report will focus on the emerging forms of direct print on packaging specifically those involving digital inkjet technologies.
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LABEL MARKET OVERVIEW
Labels generally fulfill one or both of the following functions:
Product marketing or primary labeling (branding, merchandising, communication of information, promotional, product benefits, etc)
Information carrier (product identification and tracking codes, sell-by/use-by dates, instructions for use, product components, health warnings, nutritional data, etc)
These two main applications perform the functions of both a primary product label and a variable information (VIP) label. Direct digital printing of containers will compete directly with labels in fulfilling both of these functions. To fully understand the evolution and benefits of direct printing as a form of product decoration, it is useful to review the benefits of the alternative and more traditional method of decorating containers using labels. In later sections, the report identifies the markets and label formats where direct digital printing is considered to have the greatest short- and medium-term impact on the individual label markets and their end-use markets.
The label market or more properly, the product decoration and identification market is today a combination of various imaging technologies, employed to create printed media labels that perform a broad selection of aesthetic and functional roles.
In 2015, AWA estimate that the global label market approximated to xx billion square meters with an estimated value of US$ xx billion.1
1 For more information about the global and regional label market please refer to AWA Global Labeling and Product Decoration Market Review 2016.
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DIRECT DIGITAL PRINTING TECHNOLOGIES FOR PRODUCT DECORATION
Direct printing methods for container decoration have been available for many years. Screen printing, thermal transfer, and pad printing technologies have been widely used to decorate FMCG products in many end-use markets beverages; food; household chemicals; health and personal care; and industrial chemicals.