How printers are deploying new strategies and technologies in packaging and labels

Brands around the world are waking up to a new dawn in packaging production. Digital printing, it seems, is the solution of the future, offering a wealth of brand benefits, enhanced consumer experiences, and a reduced carbon footprint. But digital printing is nothing new. It’s actually been in use for over 20 years. It’s only now, however, as a number of forces converge, that it’s gaining a competitive edge with its efficiency, speed-to-market and personalization options. Over the next few years, brands from all industries are expected to decrease their use of analogue and increase digital-only production. That being said, analogue printing in packaging is still predominant when it comes to overall volume.[
In its recent study, The Future of Digital Print for Packaging to 2024, Market research firm Smithers pointed out that “in a total market for printed packaging worth nearly $420 billion in 2019, digital printing represents a relatively modest but fast-growing segment.” It went on to say that, valued at $18.6 billion in 2019, digital packaging print is expected to grow to $31.6 billion by 2024, at an “impressive” CAGR of 11.1%. Sectors such as corrugated, cartons and flexible packaging are following the lead of labels, which was the early adopter of digital.

Six cutting-edge technology developments for label printing
As far as label printing, Smithers revealed that “the global market for label printing valued at $36.98 billion in 2017, will continue to increase at an annual average growth rate of 4.1% in value terms to reach $45.22 billion by 2022.” According to its new report The Future of Label Printing to 2022, six major technology advancements are significantly disrupting the market. These include: smaller, more lightweight labels; increasing recyclability of packaging; greater automation; more ‘premiumization’ (where the perceived quality of a product can be enhanced by using expensive-looking labels or packaging); the emergence of more anti-counterfeiting solutions; and the inevitable move to digital printing. “With opportunities for customization from printers, developments in the digital (toner and inkjet) printing processes are attracting the highest levels of investment,” Smithers-Pira added.
Digital printing: Dynamic and agile
So why the sudden shift to digital in packaging and labels? “There are several forces at play here,” according to Renée Walsh, Vice President of Sales & Marketing at Toronto-based TI Group. The company (a successful integrated print-service provider that also helps clients better connect brands with consumers) is uniquely qualified to assess the current packaging and label landscape, both as a marketing agency and more importantly, as a print provider.
“Digital package printing offers better management of the supply chain, when multiple short runs replace one big order, Walsh said. “As a commercial print provider, TI Group traditionally offered services to retailers and brand owners that included litho printing with ‘overs’ – that require warehousing for future fulfillment. Our clients are seeking better overall supply-chain solutions to get to market sooner, with a unique presence, while containing costs.” The company’s solutions now allow them to not only mass-produce litho packaging and topsheets for corrugated packaging or displays, they can also provide digital, on-demand short-run packaging without sacrificing quality. This allows them to customize the messaging regionally, while reducing waste from print overs and storage. This approach has been a significant contributing factor to TI Group’s growth over the past two years.
“As was the case with print advertising and currently with in-store signage, messaging and graphics are all about customer intimacy,” she added. “Many forms of print and online advertising have perfected localization messaging based on language, demographics and buying preferences. Packaging is no exception – whether it’s in the form of a subscription box delivered to your home, a retail display, a ‘pop-up’ experiential brand activation, or primary packaging on a retail shelf.” In addition, the TI group is a G7 colour-certified printer. This is important because matching brand colours today is essential. “We can successfully interchange work amongst print devices and methodologies to ensure brand-colour matches, which is essential for a cohesive go-to-market strategy with any brand,” said Walsh. “Skeptics will claim that digital print quality can’t compare with traditional methods. With high resolution, precise registration and a wide colour gamut, including unique inks, there’s now no doubt that digital can certainly compete.”
Barriers and growth
For many companies, the higher cost of digital has been the main obstacle to wider use. While it can be more expensive than analogue methods, estimates often don’t take into account the savings that can be made on direct and indirect obsolete packaging inventory. Production timelines can also be reduced, helping to get products onto retail shelves faster. Overall, taking the entire lifecycle into account, digital can actually help to contain costs, according to Walsh.
“With the proliferation of SKUs in the marketplace, many large consumer goods brands can’t seem to gain an advantage,” said Doris Brown-McNally, WW Brand Innovation and Partner Development Manager at HP. “In fact, over the last decade, many incumbent/heritage brands have been consistently outmaneuvered by innovative start-ups. To join the ranks of the growth leaders, consumer goods companies must create an agile growth environment. That starts with bringing their entire organization, from marketing to production, into an integrated organism. The results can be impressive. In product lines where this agility is used, companies have seen as much as a 400% increase in revenues. Plus, the time it takes to get new marketing ideas in front of customers has gone from several weeks or months, to less than two weeks. Advancements in packaging and digital print are at the core of many companies that are succeeding today.”
Cannabis: A new frontier for Canada
As the Cannabis Act came into effect in October of 2018, many organizations wanted to capture their share of this lucrative, game-changing market. “Our clients needed compliant packaging solutions,” said Gail Aker, Account Executive with the TI Group. “The cannabis regulations created challenges for large-run printing, in particular to lot-level data that included variable information such as THC and CBD amounts, lot numbers and packaging dates. Coupled with the rotation rules for warning indications and highly-templated design restrictions, digital printing proved to be an ideal production method,” she added.