Research: Brands and Converters Weigh in on Digital Packaging

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For more than two decades, package printers/converters have known of the benefits of digital printing. Since the launch of the first digital devices, print providers of all types heard the marketing message that digital was the next frontier for print production, as promises of enabling short-runs, variable data printing, and other benefits were made. The wide acceptance of digital printing technologies in the commercial market for producing a variety of applications (i.e., direct mail, brochures, postcards, sell sheets, transactional documents) served as foreshadowing for the digital packaging migration occurring in multiple markets.

To uncover the key trends and market influencers driving the use of digital printing in packaging, NAPCO Research conducted a research study that was sponsored by the Specialty Graphic Imaging Association (SGIA), Fujifilm and Xeikon. The comprehensive research effort focused on trends, demands, challenges and requirements of brand owners and packaging producers. (A 35-page summary report of key research findings is available for download.) The study surveyed brand owners and package printers/converters.

About the Research Study

The overall research goal was to provide packaging printers, converters, brand owners and equipment/software suppliers with key insights on the trends, benefits and influencers that are driving the digital transformation of the packaging market. The research takes a comprehensive approach in identifying key market trends driving demand and adoption of digital package printing through the study of organizations that print packaging and those that buy and use packaging. Key areas of focus include:

• The digital packaging opportunity.
• Key challenges facing package printers/converters.
• Brand owner requirements driving demand for digitally printed labels and packaging.
• Identification of packaging strategies marketers are pursuing to differentiate their brands.
• The role that digital package printing can play in addressing current and future market needs.
• Direction for packaging printers, converters and suppliers (digital press, software, media) on strategies for meeting the needs of marketers and brand owners.

Migration to Digital Devices

The study confirmed that package printers/converters are migrating production to digital devices. More than half of package printer/converter respondents reported printing labels and/or packaging on digital printing devices for more than five years. Interestingly, technology limitations were not a major obstacle in the adoption of digital printing devices. Package printer/converter respondents reported operating a mix of digital and conventional printing technologies, indicating that both are essential to meet customer needs.

Digital printing devices’ ability to print high-quality output in affordable short runs have retailers, brand owners, marketers, agencies and package printers/converters taking notice. Of the 265 brand owners participating in the survey, 80% said they prefer to work with printers/converters that offer digital printing. Brand owners reported that some portion of their packaging was printed on digital devices.

Demand for Packaging Continues to Grow

Brand owner respondents indicate that demand for many types of packaging applications continues to grow. According to survey results, brand owner demands for key packaging applications are growing more than they are staying the same or declining. More than three-quarters of brand owner respondents that use prime labels reported growing demand for that application. Other important growth applications reported by brand owners include flexible packaging (68%), shrink sleeves (60%), corrugated displays (57%) and corrugated boxes (55%).

Digital Benefits Meet Brand Owner Needs

Brand owner respondents identified developing compelling products, complying with regulations, customizing packaging, meeting environmental standards, adding security features and offering more personalization/customization as essential/high priority objectives. In addition, brand owners identified improving their supply chains, managing frequent product launches, designing influential packaging, and managing versions as their top challenges. These priorities and challenges point to areas of opportunity that digital printing can support.

Personalization Leads to Positive Results

The ability of digital printing to produce versioned packaging and labels more effectively than conventional printing is an attractive benefit to brand owners. Sixty percent of brand owner respondents reported that customized or personalized packaging resulted in a positive effect on sales. Brand owners are exploring versioning for many competitive reasons: to capture consumers’ attention on crowded retail shelves, improve the consumer experience with packaging and to engage with consumers on a more personal level. Many product manufacturers focus on growing customer share through product extensions and ongoing product refreshes. This requires multiple versions of packaging, which digital devices can accommodate.

Brand owners are increasingly turning to their package printers/converters for versioning, specialized short-run jobs with consecutive numbering, bar coding and variable text applications that cannot easily be done on any other press but a digital one. The potential business impact of digital printing is becoming well understood among brand owners and print providers. Digital printing offers many benefits and opportunities for package printers, converters and commercial printers.

Click here to access the full results of the free research study "Digital Printing: The Time is Now!"