Greater Automation
The trend toward greater automation in label printing is motivating printers to invest in sophisticated management information systems (MIS) that are integrated with specialized inspection and color performance software and technology, and even fully automated press and finishing line setup systems.
The ultimate objective is to establish a capability for running completely automated and streamlined workflows 24 hours per day that receive job orders by electronic data interchange. The new automated systems can utilize the potential of cloud computing and the Internet of Things (IoT) to liaise with shipping carriers, set up invoices and receive payment advice, and use Wi-Fi for remote access and control of production processes.
Many label presses feature high levels of automation with full servo control, fast changeover and storing job settings in memory. However, a significant number of converters have yet to exploit automation due to a lack of integration with software systems in common usage.
Global Label Output by Print Process, $41 Billion, 2019
[infogram id=”august-2019-smithers-pira-global-label-output-1hd12y17gz5l2km” prefix=”pIo”]
Automation is also being applied to warehouse management and the preparation of shipments to customers. Higher levels of automation mean the role of the employee is changing, and new skill sets are required.
Hybrid Presses
With greater automation comes shorter printruns, which many end-use applications for printed labels are moving toward. End-users are creating higher demand for customization; this demand is a key growth driver for digital printing and will continue through 2024.
Due to economic challenges, many brands are prioritizing cost reduction, while consumers are demanding superior value and customer service from suppliers. This mix of market conditions has led to the rise of hybrid flexo/inkjet, with or without inline finishing, which is a major industry trend.
For printers to have more flexibility in meeting the changing demands of label end-users, they are introducing hybrid presses, which run an analog and a digital print process inline.
These hybrid presses can carry out printruns purely on the analog station or on the digital station, depending on the label requirements and the length of the run. Hybrid presses also offer the option of running the two print systems in tandem, with base colors and some detail printed by an analog process, while parts that require more customization in the design are printed digitally.
Regional Profiles
Asia dominates the geographic market for printed labels, experiencing an annual growth rate of 7 percent in value since 2014. North America and Western Europe are the next two largest markets for printed labels; these three regions make up 85 percent of global volume demand and 87 percent of the global value.
Printed label demand in India is growing to match China as one of the leading global growth markets. The market share for this region expanded more rapidly than any other from 2014 to 2019, at 7 percent in volume, and is projected to continue to increase up to 2024.
Africa experienced the highest growth in demand in value over the review period, at 8 percent, though this was achieved from a relatively small base.
Significant Applications
The two largest end-use segments for printed labels are the beverage and food industries, which account for 51 percent and 16 percent, respectively, of A4 print demand and 45 percent and 17 percent, respectively, of value. Along with health care—the third-largest end-use segment—the three will be among the fastest-growing applications to 2024, alongside general industrial and other specialty labels.
Globally, beverage label demand had the highest growth rate in volume from 2014 to 2019 at nearly 6 percent per annum, reaching 623 billion prints or equivalent, at a value of $18.4 billion. Demand from this segment will continue to grow through 2024 at around 6 percent on average in volume, reaching 839 billion prints with a value of $23 billion.
Shrink sleeves make up the largest share of the global sleeve market at 90 percent of global volume. PVC is the most common substrate, but PETG is growing at a faster rate for end-use. Sleeves are expanding into beverage can labeling, as well as other new areas. Though difficult to recycle, new developments in multi-layering Cyclic Olefin Copolymer (COC) with Polyethylene (PE) or Polypropylene (PP) are assisting in the separation of label and bottle plastic.
Pressure-sensitive labels are increasing in market share as government regulations on tracking and barcoding requirements for medical and pharmaceutical products boost demand. They will continue to trend; however, there is a growing drive for innovative solutions to improve sustainability of release liners.
Wet-glue labels, despite losing market share to pressure-sensitive labels and label sleeves, are still supported by strong global expansion in the food and beverage markets, particularly in Asia’s beer industry, which is the world’s fastest-growing beer market.
For more information on label trends and the growing market, and to obtain a copy of The Future of Label Printing to 2024, visit Smithers Pira.