Digital Printing Accelerates Label Sector Reshuffle as New Tech Redraws the Competitive Map

The arrival of new technology often comes at the expense of an older economic development model. As digital printing reaches its peak, the label industry has entered a reshuffling period.

As carriers of product information, labels have become an inseparable part of products. In recent years, label printing industries in many regions have kept growing at a rate 1-3% above GDP (gross national product). In developing economies such as China, India, Eastern Europe and Latin America, growth is slightly higher. Such substantial market demand inevitably calls for matching technical support. Digital printing, now a hot technology in the sector, can help label printers broaden their business scope and more easily create new, high-value-added solutions for customers, leading to higher profit margins.

Digital label printing has become a powerful trend in the global label industry. Within the label sector's US$73 billion output value, digital printing accounts for about US$3 billion, and it is expanding rapidly at 15% per year.

In 2012, worldwide installations of various digital label presses exceeded 2,000 units, with the vast majority located in relatively label-developed countries and regions such as Europe (about 44%) and North America (about 34%). In addition, roughly one fifth of newly installed label presses were digital label presses. At the 2011 European Label Printing Exhibition and the 2012 North American Label Printing Exhibition, suppliers of digital inkjet label printing equipment had already surpassed 40. Moreover, new business models began to emerge; beyond digital printing, other digital processing technologies in label printing are also gradually surfacing.

Han's Guanhua's label laser die-cutting system, Huaguang Jinggong's flexographic/resin plate CTP platemaking system, and Lucky Huaguang's flexo digital plates are all products launched to help label printing achieve digitalization. Together with digital printing, these digital processing technologies for traditional printing form the main channel for label printing technology to move toward digitalization. As these technologies are introduced, label printing processing technology is facing a new upheaval.

However, one issue may unsettle label printers: inkjet equipment manufacturers usually sell products directly to their customers, namely end users. For example, EFI directly sold two Jetrion 4830 inkjet devices to European pharmaceutical manufacturer B.Braun. Yet in most cases, brand owners, distributors and product manufacturers prefer label printers to provide digital printing solutions for them, especially in pharmaceutical manufacturing, where information changes continuously and zero inventory is required.

In summary, traditional label printing methods have begun to decline, while more players favor digital printing. This is set to trigger a major reshuffling of the label printing industry. If traditional label printers still have not established their own digital printing departments to offer short-run printing services and variable data printing solutions to existing customers, they will not be able to compete with emerging companies and may ultimately be forced to exit the stage of history.

Beyond digital printing, other digital processing options in label printing are also emerging one after another. Han's Guanhua offers a label laser die-cutting system, Huaguang Jinggong provides a flexographic/resin plate CTP platemaking system, and Lucky Huaguang brings flexo digital plates; all of these products aim to advance digitalization in label printing. Together with digital printing, they form a main route for traditional printing to move toward digitalization and push label processing technology into a new round of change.

—Reprinted from China Packaging Network (pack.cn); original link: http://news.pack.cn/show-361889.html