Demand for flexographic print will continue to recover through 2022, according to the latest exclusive research from Smithers.
In North America (Canada and the US) the market will increase by 2.8 percent to reach $47.0 billion, making it a significant component in a global market valued at $173.1 billion in 2022.
Continuing expansion of packaging segments and penetration into developing markets will see global expansion at a compound annual growth rate (CAGR) of 2.6 percent for 2022-2027 to reach $196.4 billion. Global volume output will reach 4.84 trillion sq. ft. in 2022.
State of Affairs
Data from the brand-new Smithers report, The Future of Flexographic Printing Markets to 2027, shows sluggish growth at 0.6 percent CAGR for North America, which, like Europe, represents a more mature market—one where flexography will face competition, especially from higher-productivity inkjet presses.
In the short term, the flexographic market is having to adapt to rising raw material prices, which are affecting the cost of inks, other consumables and printing plates. As plate supply moves toward stabilization across 2022, interest in a lower environmental profile for print jobs will foster wider interest in water-wash flexographic plates, and improvements in anilox roller technology on press.
Similarly, as the market evolves:
- Flexography will benefit from continuing growth in demand for packaging print and labels, as an increasingly cost-competitive alternative to gravure and offset lithography
- The need to produce shorter printruns and manage new demands for variable data print will stimulate further development of hybrid (flexography/inkjet) configurations
- Adoption of computer to plate (CtP) and other automation features, as well as inline finishing, will improve order turnaround
- Effective integration of electron beam (EB) curing stations and inks especially suited for high-speed flexographic print on newly popular mono-material flexible plastics substrates, becomes a critical focus on ongoing R&D work
Smithers’ comprehensive study offers unparalleled detail on this major print market as it negotiates pressing contemporary challenges and adapts to longer-term changes in print market metrics.
Dynamic Tools
The Americas will provide the best new sales opportunities for flexographic press manufacturers through 2027. Total sales of flexographic equipment in North America will remain positive, with OEMs in 2022 benefitting from purchases postponed during 2020-2021. The majority of new sales are for narrow web (up to 13-in.) and medium web (13-in. to 47-in.) formats.
For US press OEMs, South America represents the obvious next region to target for new sales, with only a limited domestic manufacturing footprint. This will again favor medium and narrow web press designs, although there will also be interest in sheetfed folder/gluers for use in folding cartons; as the Latin American market increases from $8.43 billion to $9.94 billion across 2022-2027.
As the industry adjusts to the post-COVID market space, OEMs and print service providers (PSPs) will be faced with a changed landscape across many of flexography’s core end-use applications. The longer-term impact of widespread social distancing and shifts in consumer preferences for media means demand in some applications will trend downward.
Corrugated Board
Long a mainstay of flexographic output (36.8 percent share by volume in 2022), corrugated board has seen a rapid increase over the past two years, as consumers moved purchases into e-commerce home delivery channels. This has particularly benefitted custom-sized boxes, with Amazon alone shipping more than 2 million packages in the US in one day. And flexography remains the best option for low-cost and higher-productivity print.
At the premium end of the market, print buyers are looking for more bespoke packaging graphics, incorporating brand colors and logos. Printing applications with high-color graphics have provided a challenge to flexography, although using a preprint process—printing on a liner or clean smooth paper first and then laminating it to the corrugated—has been successful in producing a high-quality print.
This is now being supplemented by new technology from BOBST, Koenig & Bauer and Heidelberg, all providing postprint options that can print high-color graphics with a quality acceptable for many applications.
While inkjet will continue to expand into this market, the general increase in demand means the outlook is positive for both digital and analog print, including hybrid press configurations.
Labels
Labels are another core flexographic segment that has lost some share to digital narrow web printing. In 2022, some of the automation and convenience features that characterize digital are now being fitted to flexographic presses.
More productive and cost-effective digitized and hybrid flexographic equipment designs are starting to impede that shift, especially in medium-run labels. For longer established brand runs, flexography will remain the process of choice.
Flexible Packaging
Flexible packaging is set to be the second-fastest-growing flexographic segment in North America over the next five years, though globally, it remains the fastest growing of the nine major applications tracked in Smithers’ analysis.
This reflects increased interest in replacing rigid plastic formats with lighter-weight flexible plastic substrates. Many narrow web press OEMs are expanding capabilities in this segment to enable PSPs to diversify their product offering. Again, digital presents a threat for lower printrun orders.
Sustainability concerns are simultaneously leading to the introduction of new substrates, including easier-to-recycle mono-material polymer constructions, and coated and barrier papers.
Folding Cartons
The fastest growth application in North America across 2022-2027 will be folding carton print, with the market buoyed by new consumption in multiple segments, including pharmaceutical packaging.
The competitive landscape for flexography in carton print is built around volume run length, although new developments in both offset lithography and digital will continue to provide competition and stimulate further enhancements on flexographic presses and finishing units. Digital and more advanced automation in offset have facilitated the support of minimum run lengths and more expedited production timings. Flexography will remain more economical at longer run lengths.
Bags & Sacks
Single-use plastic grocery bags are falling out of favor with many consumers and have been backed by bans in several US states, including New York and California. In the segment with the least optimistic five-year outlooks the market is inclining toward paper bags, including simpler non-printed lines.
Transit packaging is also moving away from sacks toward more durable, re-usable flexible intermediate bulk containers (FIBCs).
Newspapers
Newspaper printing on flexography will continue to decline in the US and globally. This mainly tracks the post-COVID decline in printed news media, after two years when TV and online news have become the staple of most consumers.
Envelopes
A similar post-pandemic effect is being felt in envelope printing. Already in decline in the last decade, physical mail has been abandoned by many businesses and consumers, with email offering a quicker, cheaper, less-wasteful means for communication.
Towel, Napkin…
One segment that has continued to grow for flexographic print is printing paper towels, kitchen rolls and napkins in kitchenware, diapers, adult incontinence products and feminine sanitary items. Many of these products received a temporary boost from increased home cleaning at the beginning of the pandemic.
The ability to print and apply branding to these products is a solid opportunity for brand owners. Due to the type of materials used for products in this category, which can be both delicate and of uneven surface, flexography remains a consistent choice. Printing is usually low complexity and color, and the flexographic process allows for accurate ink dispersion.
About the Author
The outlook for flexographic printing, equipment and plate sales in the US and globally is examined and quantified authoritatively in the new Smithers study The Future of Flexographic Printing Markets to 2027. Founded on a dataset with 300+ tables and figures, it is available to purchase at smithers.com.
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