Insights from the drupa 8th Global Trends Report

“Confident”… “Strong”… “Capital expenditure-minded”… “Determined to succeed!”

Words expressed by drupa analysts bode well for the flexographic package printing and converting industry. They are contained in the organization’s 8th drupa Global Trends Report—hot off the press.

Good news starts right up front and is captured on several infographics:

• Confidence is on the rise and all regions and markets forecast higher investment in 2023
• The packaging market is strongest, but commercial, publishing and functional markets all show signs of recovery in 2023
• Flexographic volumes continue to accelerate for package printers
• Flexography will remain the most popular press investment choice in the packaging community in 2023
• Finishing equipment is the second-most-popular target for investment after new presses

Bottom Line

Nearly half of printers—46 percent—said revenues are up, while 25 percent indicated a drop off in volume. Business was steady at the remaining 29 percent. Similarly, 71 percent reported prices on the rise and just 10 percent hinted at cost cuts. Approximately 20 percent saw prices as constant.

Eighteen percent noted margins were on the upswing, but 48 percent said they are getting smaller and smaller and hence more challenging. One third—33 percent—indicated no upward or downward trend.

Half of all suppliers polled described revenues as on the rise, but 18 percent reported a drop off, with the conclusion being the remaining 32 percent felt sales activity was holding steady. Sixty-four percent attributed revenue boosts to a hike in prices. Only 4 percent said prices were down.

Roughly one-third—32 percent—saw prices as unchanged. Margins, however, were off at 36 percent of manufacturing sites and up at just 16 percent, meaning they remained flat at 48 percent.
Changing Perspective

Results were collected in a spring 2022 survey of more than 500 senior decision makers—both print service providers and machine manufacturers/suppliers worldwide. It was conducted by Printfuture (UK) and Wissler & Partner (Switzerland) on behalf of drupa.

Findings depict “an industry that is on average across the globe a little more confident for the future than when last surveyed in 2019,” according to the report. Printers and suppliers alike confirmed strong plans for capital expenditures.

The finding prompted Sabine Geldermann, director print technologies at drupa parent Messe Düsseldorf to remark, “Printers and suppliers know they must innovate to succeed in the longer term. The shocks of the last two years pegged back investment, but the survey indicates that the industry expects recovery to start in 2023. All regions and markets forecast higher investment in the coming year.”

Globally, it was revealed that 18 percent more printers described their company’s economic condition as “good,” compared with those that reported it as “poor.” For suppliers, the net positive balance was even stronger at 32 percent.

Packaging Thriving!

Analysts remarked, “The packaging market is thriving with publishing and commercial sectors facing structural changes from digitization.” Still, it was stressed that signs of confidence are returning.

“Print volume in 2022 by press type shows continuing decline in sheetfed offset among commercial printers matched by increases among packaging printers,” according to pollsters. “Flexo volumes continue to accelerate for packaging printers, while all markets reported increased volumes using digital toner cutsheet color; and all but publishing with digital inkjet roll-fed color.”

Statisticians further stated, “Sheetfed offset was the most popular press type for investment in 2023 across all markets, except packaging, where flexo led, followed by sheetfed offset.” In the packaging arena, flexographic technologies garnered 39 percent of attention when it came to pending purchases, as compared to the 34 percent captured by sheetfed offset.

Report authors stated on record, “Digital toner cutsheet color was the second-most-popular target for all other markets. Finishing equipment is the second-most-popular target for investment after new presses.”

Pressure Points

According to drupa’s 8th Global Trends Report, “Socio-economic pressures are having a major impact across the globe, although they vary in influence between regions.” Specifically:

• Sixty-two percent of printers in Asia chose pandemics as the biggest threat, while in Europe this was chosen by 51 percent
• Thirty-two percent of European printers chose physical wars as a major concern and potential impact point; this was chosen by only 6 percent of those in South/Central America
• In the Americas, 58 percent of printers focused on the threat of economic recession as a potential source of turbulence in the business climate

Strategic Stance

Analysts pointed to the fact that poll results offered clear indications that, “Print is still a central means of communication in all markets and region. While there are challenging times ahead, the industry has both the confidence and the determination to succeed.”

Their forecast in the build-up to drupa 2024, set for May 28-June 7 under the theme, “We Create the Future”: “Wise strategic investment will ensure that printers and their suppliers will thrive.”

To obtain a copy of the 8th drupa Global Trends Report, visit drupa.com.