By PrintAction Staff
By PrintAction Staff
A new report by Future Market Insights estimates the demand for digital printing in packaging will grow at 15.3 percent to surpass US$52 billion in revenues by 2026. This growth figure is based on what the research organization estimates the current demand for digital printing in packaging to be valued at over US$11 billion in 2016.
According to the report, the key factors fuelling demand for digital printing in packaging include growing preference for conventional/analogue plates and their application in printing jobs of shorter run lengths. Adoption of digital printing in packaging, explains Future Market Insights, is also growing on account of its convenience, to reduce turnaround time, over conventional presses.
The shifting preference from conventional printing is also fuelled by variable data printing and personalized printing. Leading packaging companies are adopting variable data printing, explains the organization, owing to its use in direct marketing. While Future Market Insights maintains a positive outlook on the global digital printing in packaging market, it is of the opinion that high variable costs and limited opportunities in indirect sales channels can impede widespread adoption.
Production by electrophotography (digital toner presses) is the largest segment, accounting for over half of revenue share by technology type. In terms of revenues, this segment was valued at just over US 6 billion in 2016. FMI projects it to grow at 16.6 percent CAGR and surpass US$32 billion in revenues by 2027.
By product type, labels is the largest segment, accounting for over US$7.1 billion in revenues in 2016. Future Market Insights estimates demand for labels to increase at 16.7 percent CAGR to reach US$38 .4 billion in revenues.
The food sector remains the largest end-user of digital printing in packaging. According to Future Market Insights, demand for digital printing in packaging was pegged at over US$4.5 billion in 2016. This is expected to increase at a CAGR of 16.6 percent during the forecast period 2016-2026.
Future Market Insights, in its report, offers market forecast and analysis on the basis of region, technology type, product type, and end-use. Printers profiled by Future Market Insights in its report include Quad/Graphics Inc., Tailored Label Products Inc., Creative Labels Inc., Reynders Label Printing, DS Smith Plc, THIMM Group GmbH + Co. KG, Traco Manufacturing Inc., WS Packaging Group Inc., Elanders AB, and Colordruck Baiersbronn W. Mack GmbH & Co. KG.