awa direct digital printing technology for labeling & product

AWA Direct Digital Printing Technologyfor Labeling & Product Decoration AWAreness™ Report 2016

Sample Report | Graphs are nonfactual

© 2016 AWA Alexander Watson Associates BV.

This publication contains information gathered professionally and in good faith from sources within the public domain, interviews and from the publishers’ own industry database. While every step has been taken to ensure that the data presented is accurate, the publishers cannot accept responsibility for any consequences arising from the application of data presented in this document.

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Measures have been adopted during the preparation of this report, which will assist the publisher to protect their copyright.

AWA

DIRECT DIGITAL PRINTING TECHNOLOGY

FOR LABELING & PRODUCT DECORATION

AWARENESS™ REPORT 2016

FIRST EDITION

AWA Direct Digital Printing Technology for Labeling & Product Decoration AWAreness™ Report 2016

AWA is the world’s 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

CONTENTSCONTENTS

© 2016 AWA Alexander Watson Associates 5

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

6 © 2016 AWA Alexander Watson Associates

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


INTRODUCTION

1.1 Introduction

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 AWA’s 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.


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.


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.


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.

Inkjet printing has also been available for variable print applications since the 1980s. Typical early applications were in areas such as marking and coding, addressing, and home and office applications. From the mid-1990s, applications extended into flatbed graphics, wide format graphics, digital textile print, and labeling. Since 2005, the catalogue of end uses has extended to flexible packaging, rigid packaging, glass decoration, etc


DRIVERS FOR GROWTH AND SUBSTITUTION

As direct digital inkjet printing technologies continue to develop, investments in them will become increasingly attractive to brand owners and end users for a wide variety of reasons.

The factors that can prove to be drivers for growth in direct digital inkjet printing formats for containers include considerations of:

» xxx/xxx » xxx » xxx » xxx

The following discussion identifies the key drivers for growth of direct digital inkjet printing of containers, as well as the areas of use where it may replace more traditional methods of FMCG product decoration.


CHALLENGES FROM COMPETITIVE METHODS OF PRODUCT DECORATION

Label technologies require the decoration of a substrate independent of the container to be decorated. This places such technologies at a disadvantage when compared with more direct methods of product decoration such as direct printed cans, digital container print, cartons, etc, as label technologies:

» Impose the need for additional materials in the decorating process » Introduce issues of sustainability/recyclability » Develop complexities in supply chains » Provide opportunities for increased costs » Reduce the transparency of the value chain while extending length

Other forms of decorated packaging for FMCG and industrial goods – such as flexible packaging, cartons, and direct- printed cans – can include complexities:

74 © 2016 AWA Alexander Watson Associates

8.1 Direct Digital Print Opinion Survey – Results

The results of these surveys can be summarized as follows:

1. Are you aware of the direct print technologies in commercial and technical development for product decoration

Exhibit 8.1: Awareness Levels of Direct Printing Technologies for Product Decoration Source: AWA

50%50%

Yes

No


2. We anticipate that direct digital print on plastic bottles will compete with label formats. How would you rank the likelihood of the volumes of a label technology being affected by the use of direct digital print?

3. What is your current understanding of the commercial status of the commercial development for direct digital printing technologies in product decoration?

Exhibit 8.2 Likelihood of an Individual Label Format being Affected by Direct Digital Print of Plastic Bottles Source: AWA

Exhibit 8.3: Current Understanding of Commercial Status of Direct Digital Printing Technologies for Product Decoration Source: AWA

25%

25%25%

25%

In early days of introduction with onlyone or two units in use

In use with interest at brand ownersin further investment

In use with limited interest at brandowners

Brand owners/end users do not wishto be first and are watching to seedevelopment

0 0,5 1 1,5 2 2,5 3

RFS MD Shrink sleeve Labels

In-mold

Heat Shrink Sleeve TD Labels

Glue Applied

Pressure-sensitive

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