The packaging printing market is expected to grow at a CAGR of 9% over the forecast period (2021-2026). The growing demand for aesthetic appeal, coupled with personalized packaging, is one of the significant factors that is expected to fuel the growth of the packaging printing market over the forecast period.
- The printed packages enable the manufacturers to enhance the visibility of the products, thereby attracting the buyer's attention and propelling him to go for the product. According to Evergage Inc., 70% of marketers feel that personalization strongly impacts the consumer's buying behavior.
- The need for increasing the speed to market is propelling the players to increase the deployment of printing technologies. This may enable them to increase the in-house production capacity and get the products ready in time by meeting the scheduling challenges quickly and efficiently.
- The growing need for high shelf impact, ability to stand, lightweight, and sustainability of brand owners are drawn toward flexible pouches. As pouches are a laminated bag made from several layers of material that requires a number of different production steps, the market players are developing solutions that enable them to provide a fast turnaround solution.
- During the COVID-19, as compared to other industries, less lockdown was observed on the packaging industry as packaging industry and food & beverage and medical were considered essential and were never locked down. Furthermore, the huge demand for stocks considered "staple" and medicines caused due to panic-driven buying as a result of COVID-19 positively impacted the packaging printing market growth.
- Moreover, the advancements in technology, coupled with demand for creative packaging, driven by intense competition and brand awareness, are expected to aid the growth of the market. The growing demand for innovative packaging from end-user segments, like food, beverage, and cosmetics, is expected to lead to the expansion of the market studied.
Key Market Trends
Labels are Expected to Hold Significant Market Share
- Organizations such as Xeikon and Neilpeter, among others, believe that labels are the perfect approach to attract the customer and gain huge traction toward the brand. Additionally, according to foodinsight.org, consumers are more influenced by labels while shopping for food as compared to eating away from home. Such instances indicate that it has become imperative for the players to print innovative and attractive labels, fueling the market growth.
- The growth of the print label market is augmented by the rapid rise of digital print technology that has made the label printing market more sophisticated and increased the adoption of digital print labels. Their flexibility and versatility, along with the high graphics standards, are the major growth features. Furthermore, the rising need to ensure quick turnaround, profits, finishes, repeat lengths, speed, flexibility, and responsiveness is propelling the players in the market to come up with solutions that enable them to meet such objectives.
- For instance, in March 2021, Brother Mobile Solutions, Inc., a provider of mobile, desktop, and industrial printers and handheld labeling tools, announced the expansion of the Brother Titan Industrial Printer series. The five additional high-performance and enhanced 4-inch industrial barcode label printers will deliver increased speed and precision along with enhanced features, including internal rewinders for broader usability.
- Furthermore, the labels are adopted across various end-user markets, such as food, beverages, and cosmetics. In the alcoholic beverages market, according to the Resource Label Group, there are as many as a million wine labels in the global market. Moreover, most of the wine label uses paper label look or no label look with film label. Increasing wine consumption may, therefore, boost the market growth over the forecast period.
Asia Pacific register Highest Growth Rate
- In recent years there has been a significant increase in the demand for packaging solutions in the Asia Pacific region owing to the presence of various industries related to food and beverages, consumer electronics, and many others in countries such as China, India, Japan, and South Korea.
- Factors such as rising disposable income, expanding working population, rising domestic demand for ready-to-eat & convenience food products across the region is driving the demand for pouches, diversified food products, higher-quality packaging, brand protection, embellishments, and sustainable printing, which has propelled the players in the market to come up with new solutions that enable them to meet the growing demand.
- For instance, FlexoKite's newly-installed 7-station Bobst M5 label press along with software and plate-making equipment from Esko and DuPont enables a design-to-delivery workflow that matches the production cycle of printers and converters.
- Similarly, in March 2020, Hyderabad-based NS Digital Flexo, which provides flexo services including wide web, labels, folding cartons, corrugated, installed Kodak Flexcel NX System in March 2020 supplied and supported by Miraclon. The Kodak TIFF Assembler Plus software - TAP 5.0 of the Flexcel NX System simplifies the layout optimization wherein the DigiCap NX Patterning feature helps maintain ink density and control dot gain.
- Furthermore, the growing demand for packaging printing solutions is attracting new players in the market. Some of the prominent players in the market have expanded their presence in this region. For instance, in August 2021, Switzerland-based carton packaging provider Schweizerische Industrie Gesellschaft (SIG) completed the second construction of its production plant in China. SIG's new manufacturing plant includes extrusion, printing, creasing, cutting, and sealing capabilities. Such instances are expected to fuel the market growth over the forecast period.
The competitive rivalry in the packaging printing market is high, owing to the presence of some key players, such as Amcor PLC and Mondi PLC, among others. Their ability to continually innovate their offerings has allowed them to gain a competitive advantage over others. Through strategic partnerships, R&D, and mergers and acquisitions, the players have been able to gain a greater footprint in the market.
- July 2021 -Mondi announced the expansion of its Color Copy original flagship range with extra-long digital formats to meet the growing demand for digitally printed applications. Color Copy original ELDFs are compatible with all major printing machine manufacturers, e.g., Konica Minolta, Ricoh, Xerox, Canon, and others. The range is both FSC and EU Ecolabel certified as well as part of the Green Range.
- July 2021 - Liquibox and WestRock, unveiled a Ships In Own Container (SIOC) bag-in-box solution for Amazon. The product was developed using Liquibox's recycle-ready Liquipur flexible packaging, its wide dispensing taps and fitments portfolio, and WestRock's high-impact Meta box design solutions.
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