Packaging Impressions Parlor: NAPCO Research Launches New Digital Packaging Study — Key Takeaways

Digital printing and production technologies have been unquestionably transformative in the packaging industry and are continuing to have a sizable impact on the label and packaging segments. In its latest research into digital printing in the packaging industry, NAPCO Research has uncovered trends driving package printers, converters, and brand owners toward increased adoption of digital technologies. Digital Packaging: The Pursuit of Prosperity, sponsored by BOBST, Fiery, Screen, and TLMI is the third edition of NAPCO Research’s Digital Packaging research series, and debuted at the recent Digital Packaging Summit in Ponte Vedra Beach, Florida.

Key Takeaways

The in-depth report offers several key takeaways spanning digital printing’s adoption, usage, expansion, and trends that will support the technology’s growth in labels and packaging.

Digital Adoption Across all Packaging Segments

Since digital printing’s emergence in the label and packaging industries, its adoption has differed across the various segments. The label and folding carton segments led the way as early adopters, with the label industry seeing the most adoption of the technology. But recent years have seen an expansion of digital printing throughout all of packaging, including the flexible packaging and corrugated segments. In Digital Packaging: The Pursuit of Prosperity, converters were surveyed about their upcoming digital technology investment intentions, which revealed the following:

• 61% of converter respondents plan to invest in digital in the next 24 months.
• Most respondents plan to use their new digital asset for pressure-sensitive labels (42%). All packaging applications received at least some interest, however. (Figure 1)
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  Click to Enlarge | Credit: NAPCO Research

Figure 1: Package Printers to Implement Digital Printing Across Several Applications

Brands Want the Digital Advantage

One of the most encouraging findings from this year’s digital packaging study is how in-tune with the digital advantage brand owners are. In the early days of digital printing in packaging, brands were not quite up to speed on what exactly production-level digital printing was and what it could do for their businesses. Now, however, brand owners are not only familiar with digital printing, but they also have a firm grasp of its distinct benefits and are proactively implementing it into their packaging.

For example, among brand owners surveyed in Digital Packaging: The Pursuit of Prosperity, 91% of brand owner respondents stated they get at least some of their labels and packaging digitally printed and recognize several advantages of the technology. Specifically, 55% state the cost-effective short runs of digital printing are a top advantage, followed by 53% of respondents citing increased speed to market. These top advantages indicate that brands recognize the efficiency benefits digital printing can provide and are prioritizing these benefits to get their products to market faster.

The creative benefits of digital printing are also widely recognized by brand owners, with 42% reporting versioning, personalization, and customization of packaging as a top advantage, and 34% highlighting the ability to change designs more frequently.

Expect Versioning and SKUs to Increase

With the emergence of digital printing and production technologies in packaging, brand owners have been able to leverage the technology to more easily and cost-effectively expand on their label and packaging versions and extend their product lines with additional SKUs. Consumer desire for more variety in the products they purchase is driving this trend, with 55% of brand owners surveyed reporting that this is a top driver of their expected increase in SKUs. Meanwhile, 79% of brand owners surveyed reported that their SKU quantities had increased over the past 24 months – a noticeable increase over the prior year’s survey, in which 41% of brand owners cited an increase in SKUs over the preceding 24 months. (Figure 2)

Click to Enlarge | Credit: NAPCO Research

Figure 2: Brands Anticipate an Increase in SKUs

Digital Print Sales on the Rise

While digital printing and production technology accounts for a minor percentage of overall printed label and packaging output, package printers are realizing the increased value that digital printing offers their customers. In addition to more than three-quarters of package printer respondents stating that more than half of their packaging sales stem from digital printing, the majority indicate they expect to see their digital packaging sales grow even further.

In fact, 66% of respondents report an expected increase in sales of digitally printed packaging in the next 24 months (Figure 3), while just 4% of respondents anticipate a decrease. Of those 4% anticipating a decrease, the expectation is that it will be minor, at 10% or less. This is encouraging for printers and converters adopting digital, as brands become cognizant of its distinct benefits. While the technology is not expected to replace conventional printing, it is demonstrating its ability to provide significant value and comprise a consequential portion of overall packaging sales.

Click to Enlarge | Credit: NAPCO Research

Figure 3: Package Printers Anticipate an Increase and Digital Packaging Sales

Click here to download the full NAPCO Research report Digital Packaging: The Pursuit of Prosperity.