Demand for digital printing in packaging was estimated to be valued at over US$ 11 Bn in 2016, and a new report by Future Market Insights estimates it to grow at 15.3% to surpass US$ 52 Bn in revenues by 2026.
Future Market Insights, in its report, offers market forecast and analysis on the basis of region, technology type, product type, and end-use.
According to the report, the key factors fuelling demand for digital printing in packaging include growing preference for conventional/analogue plates and their application in printing jobs of shorter run lengths.
Adoption of digital printing in packaging is also growing on account of its convenience over conventional presses. Digital printing allows packaging companies to reduce turnaround time, and this is a prime reason fuelling demand for digital printing.
Shifting preference from conventional printing to variable data printing and personalised printing. Leading packaging companies are adopting variable data printing owing to its use in direct marketing. Future Market Insights projects these trends to positively influence the digital printing in packaging market.
While Future Market Insights maintains a positive outlook on the global digital printing in packaging market, it is of the opinion that high variable costs and limited opportunities in indirect sales channels can impede widespread adoption.
L T Electrophotography Largest Segment by Technology
By technology, the report has segmented the market into,
- L T Electrophotography
- Nano-graphic Printing
- Inkjet Technology
Among these, L T electrophotography is the largest segment, accounting for over half of revenue share by technology type. In terms of revenues, this segment was valued at just over US$ 6 billion in 2016. FMI projects it to grow at 16.6% CAGR and surpass US$ 32 billion in revenues by 2027.
Labels Largest Product Type
By product type, key segments include,
- Films & wraps
- Bags & sacks
- Folding cartons
- Pouches & sachets
Among these, labels is the largest segment, accounting for over 7.1 Bn in revenues in 2016. Future Market Insights estimates demand for labels to increase at 16.7% CAGR to reach US$ 38 .44 billion in revenues.
Food Largest End-user
The food sector remains the largest end-user of digital printing in packaging. According to Future Market Insights, demand for digital printing in packaging was pegged at over US$ 4.5 Bn in 2016. This is expected to increase at a CAGR of 16.6% during the forecast period 2016-2026.
APEJ to Outpace North America to Become the Largest Market
North America, APEJ, and Western Europe are the three largest markets for digital printing in packaging. Currently, North America leads globally in terms of revenues; however, owing to robust adoption of digital printing in APEJ, it will be relegated to second position by the end of 2026. APEJ will outpace North America to become the largest market, increasing its revenue share from 28% in 2016 to 40.7% by 2026-end.
Competitive Landscape Profiling
Leading players profiled by Future Market Insights in its report include Quad/Graphics Inc., Tailored Label Products Inc., Creative Labels Inc., Reynders Label Printing, DS Smith Plc, THIMM Group GmbH + Co. KG, Traco Manufacturing Inc., WS Packaging Group Inc., Elanders AB, and Colordruck Baiersbronn W. Mack GmbH & Co. KG.