DIGITAL PACKAGING CAGR 12.8% FOR 5 YEARS

By Wayne Robinson | 9 October 2024

Global print and packaging research analysts Smithers says its modelling shows that digitally printed packaging will grow by 12.8 per cent every year for the next five years.

A CAGR of 12.8 per cent for five years represents market growth in that time of 80 per cent, or almost doubling its size today.

Smithers says that digital packaging print only takes 1.1 per cent of the market at present, but represents 3.9 per cent of its value.

It says that inkjet packaging print systems pose a direct challenge to older analogue presses, as quality improves, and they become more cost-competitive for longer runs than has been the case up to now.

According to Smithers the benefits of digital packaging print solutions – shorter turnaround times, less wastage, greater scope for customisation, integration with online design and ordering systems – all align with calls for greater versatility from packaging buyers.

Digital corrugated: Grwoth area — *Digital corrugated: Growth area*

Flexo remains the most widely used print process, especially for high-volume corrugated boards, labels, and flexible formats. It accounts for 52.6 per cent of contemporary output. Gravure and offset litho and are also popular, mainly for printing higher-quality graphics on folding cartons and flexible packaging. These account for 20.1 per cent and 17.9 per cent of packaging and labels volume respectively.

Smithers also says that print service providers are adapting to changes in packaging materials. It says the drive for greater sustainability is pushing converters to use more paperboard and coated paper stocks, as well as thicker monomaterial polymer formats in flexibles.

Regulatory developments are emphasising recyclability, which is creating a demand for packaging printers to switch to water-based inks, invest in better de-inking technology, and work with new material sets that are easier to recover at the end of life.

In the narrow web segment, this is pushing converters to move towards thinner easier to separate labelstocks, lowering ink coverage, and minimising or switching adhesives.