Looking forward to the development of digital packaging in the next five years
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In 2016, the Smithers Pira Market Research Institute published a research report on the Growth Report on Digital Printing in the Packaging Sector in 2022, which has received wide attention from the industry. It looks ahead to trends, drivers, applications and new technologies in the packaging and label production landscape, and includes forecasts for market development over the next five years. As digital printing production is gradually becoming known and used by the world, in the near future, people will see major changes in digital printing, which will enable many brands and retailers to view packaging in new ways, enabling packaging manufacturers to follow new supply. Chain development, doing something different.
Digital packaging only accounts for 3.33% of packaging printing
The report expects global digital printing in the label and packaging sector to total $13.2 billion in 2017. The label industry is an early adopter of digital printing and is quite mature in most parts of the world. With its high-performance application characteristics, corrugated paper has grown substantially in the overall market, and the one-time paper-printing press used in corrugated paper can produce tens of millions of square meters per year. Other digital packaging applications, metal packaging, rigid plastic packaging, flexible packaging, carton, flexible packaging and direct molding compound growth rates have been reduced to varying degrees. In 2022, digital packaging grew at an average annual rate of 11.2% and will grow to $22.4 billion. Carton and corrugated packaging are forming a mainstream, with an average compound annual growth rate of 28.1%. Therefore, this article focuses on how companies can use this megatrend to achieve their growth. Not only you, everyone is thinking.
Forecasting growth patterns for different applications, led by small flexible packaging, metal and rigid plastics, while corrugated paper, cartons and labels are the driving force behind actual volume production.
The $13.2 billion is not a small amount, but the digital packaging only accounts for 3.33% of the package printing. In terms of printed area, it is equivalent to 163 billion A4 prints, accounting for only 1.72% of the total packaging, while 1.7 million tons of products account for only 1.03% of the total packaging. By 2022, the $22.4 billion digital packaging market will account for nearly 5.3% of the packaging, of which 343 billion A4 prints will reach 3.2% of the print area, and nearly 6 million tons will also account for 3.2%. Therefore, even after five years of strong growth, digital packaging will still be a small amount, and it can hardly be the main breaking factor for some people's predictions. But this is an important foundation that will lay the foundation for major changes in the supply chain and even for developing packaging functions.
As more and more packaging printers get involved and invest, they will learn how to use these technologies to benefit their customers. Packaging and printing plants will provide new services and responsiveness to their customers, which will make this supply chain more efficient, some of which are not clear at the beginning of 2017, but will be released in the next few years to better suit packaging. The ultimate consumer. Buyer satisfaction is the goal of all parties.
Digital printing is maturing in the packaging field. Around 2010, the biggest question for brand owners and packaging printers is: “What can this technology do? What should it do?” After seven years of concentrated development, the problem has become: “Where is the application value?” All parties in the supply chain are aware that using digital printing can help them make money. This is the case for brands/retailers (and their agents, including design) and packaging and label printing companies, and only some of them are truly prosperous to drive the prosperity of the rest of the industry chain. The same is true for equipment/consumable suppliers, although not all that is so easy to succeed.
Digital packaging is already on the road
At drupa 2016, we can see the true leapfrogging in quality and performance of digital printing, from established suppliers and equipment suppliers to new water-test packaging for digital printing. HP is the market leader with thousands of Indigo digital presses, producing high-quality labels, cartons and flexible packaging, while its inkjet monster printer HP Indigo 30000 is entering the corrugated site. But HP is not alone, because other manufacturers are also improving quality and productivity and reducing production costs. Significant breakthroughs in new printing materials and surface treatments, progress in the post-press digital process, and most importantly, improvements in workflow.
In the field of high-volume corrugated paper, a large number of cutting and finishing provide new functions and increase the efficiency of the factory. Interestingly, this is led by industry giants such as Georgia Pacific (wood producer giant) and DS Smith (electric water heater giant) and more agile independent manufacturers. Over time, the latest inkjet printers, and even standard printing materials, will improve quality and will become a breakthrough in the mainstream production of high-volume inkjet printing packaging.
With the arrival of new high-speed single-pass inkjet printers, cutting and finishing equipment, millions of square meters of production worldwide can be produced every year. These will give new business models a new opportunity for buyers of shelf packaging and shipping packaging. The tools currently on the market are firmly targeted at offset and flexo-printed alternatives, as these tools will undergo major changes in production equipment and methods to drive the development of new products and services to make them more relevant to corrugated paper in the future. The carton manufacturer hopes that the product will adopt a "pan-flavored brown carton" that will become a history, at least in some applications.
Digital printing will enable the packaging supply chain to evolve, providing buyers and end consumers with cost, time and flexibility advantages. In 2017, most of the packaging and labeling was produced by a professional packaging and printing factory and then delivered to the cartoning and packaging manufacturers. These manufacturers put the goods in the package and label them, then add the code, and finally the complete package is then distributed to the retail distribution chain. Packaging must pass through the entire supply chain to protect the content placed by the manufacturer and reach the consumer through the distribution chain. Changing the location and timing of packaging printing can yield some benefits in the packaging/packaging stage or in the retail distribution chain. This may be a new business, or more likely an experienced printing and packaging company can establish a partnership with a “wall-through” manufacturer closer to the customer. Fundamentally, the use of digital printing in packaging enables brands and retailers to make decisions that are closer to the end consumer. This makes packaging and labeling more relevant to the final consumer who ultimately determines the success of the brand and retailer. This means that many manufacturers also find ways to please new customers and discover how to profit from this fast-growing, fast-changing market.