Corrugated Box
“Global corrugated print output has grown from $114.5 billion in 2015 to $129.8 billion in 2020,” Smithers says. “This growth has been underpinned by the increasing use of printed corrugated in retail-ready packaging, as well as in e-commerce.”
Flexography is by far the most-widely-used process for printing corrugated, according to market analysts. “In 2020 it [accounted] for 73.8 percent of the value of corrugated print output, and 79.6 percent of all output by volume.” Positive attributes of note include:
- An increasingly important aspect of corrugated is that it is seen as comparatively sustainable
- It can be readily recycled, uses a high proportion of recycled content and corrugated itself is biodegradable
- Development of a wider range of functional and barrier coatings for corrugated is extending its use, with coatings to impart protection against water, oil and grease while not compromising the recyclability of the final pack
Outlining one major challenge, Smithers points out that, “Despite being the largest segment, in corrugated, flexo faces the most direct competition from digital print. Single-pass inkjet machines, specifically designed for corrugated packaging, have now been in operation for several years. These have shifted the digital versus analog crossover point significantly in inkjet’s favor.”
Flexographers, according to Smithers, have not shied away from the impending threat. “Innovation to counter this has included more hybrid presses, with an inkjet station adding some variable data print. Flexographic plate and equipment improvements are allowing some corrugated print to reach the quality seen with offset and gravure, and take work from these print lines. This aligns with buyers placing more short-run and shelf-ready packaging orders, using three or more colors, which command a higher price.”
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Figure 2: Flexography’s Market Share by Application
Folding Carton
Analysts report, “Sheetfed litho is the dominant print process used on cartons. It accounts for 74.7 percent of the total value in 2020. Gravure and flexo are the next largest print processes. Digital print for cartons has grown from $4.3 million in 2015 to $1.96 billion in 2020. Digital print is forecast to reach $3.67 billion in 2025, a 2020-to-2025 CAGR of 13.3 percent.”
Market watchers point to specific trendlines in the carton arena:
- Like the corrugated sector, cartons are derived from renewable resources and can be readily recycled, so the sector is benefitting from the increasing focus on sustainability
- Printed cartonboard is being used to replace plastic in some packaging applications, such as plastic shrinkwrap for beverage multipacks, and plastic trays in food packaging
- Development of new barrier coatings and new uses of film technology is opening opportunities to use printed cartons in different ways
“Flexo print will continue to be a significant market in folding cartons, but again has to react to new market conditions,” the research team maintains. “Overall growth is highest in developing regions, where western style retailing is driving new demand for cartonboard packs.”
Smithers observes, “In developed and premium segments, there is a demand for more print embellishments, from equipment fitted inline with flexo presses. These allow brand owners and retailers to differentiate themselves on more crowded shelves and create a direct connection with consumers buying through e-commerce.” Another point made, “There is also interest in more coated cartonboards, especially water-based coatings, as brands look to move away from rigid plastic packaging.”
On a positive note, analysts say, “The main advantage for flexo in carton packaging again depends on its low cost for longer run lengths; while progressive improvements in automation and computer-to-plate (CTP) technology are lowering production, makeready and turnaround times.”
Competition from new inkjet machines, such as the VariJET built by Koenig & Bauer with Durst, and MGI’s AlphaJET B1 press, remain a challenge, according to Smithers. “Offset OEMs are adding more automation to their machines. For example, the Koenig & Bauer Rapida 105 Pro has an AutoRun mode, in which pre-selected printing and makeready processes are carried out on the press without the need for manual intervention.”
Along the same lines, one further note of explanation holds, “There are a number of OEMs supplying B2 and now B1 format digital presses. These include the B2 sheetfed liquid toner HP Indigo 30000, now joined by a new B1 roll-to-sheet Indigo 90K. Other B2 presses, such as the Fujifilm Jet Press 750S and Konica Minolta KM-1, are used for small-format folding cartons, and other commercial print and graphics applications. Landa has the B1 S10 indirect press that can be used for cartons.”
Flexible Packaging
Among the observations Smithers says is relevant to the flexible packaging arena, where gravure and flexography are the leading processes:
- Brands have made commitments to minimize use of plastics in packaging
- The intent is to invest in more recyclable flexible formats
- Interest in simpler and mono-material polymer constructions is rising
- Some brands are looking to use more coated paper pouches
Labels
Smithers reports, “Labeling is the sector where digital has made the greatest inroads.” It also says, “Experience gained here is supporting its wider use for other packaging substrates.” Still, in 2020, 43 percent of label print output is flexographic. Analysts note:
- There is pressure for more embellishment, mass customization and shorter runs
- The obvious solution for label converters is to move to digital printing
- Digitalization of flexographic equipment will see it remain a lower-cost alternative in the mid-to-long-run market
Editor’s Note: For more information, see Smithers’ The Future of Package Printing to 2025 and The Future of Flexo Printing to 2025.