According to the latest exclusive data released by Smithers, the total value of printed packaging and labels will reach $431.6 billion by 2020. The restrictions and regional blockades between countries and regions caused by covid-19 have affected the number of packaging printing, but the impact is far less than that of publications or graphics markets.
Although the growth of the packaging and printing market will be limited to some extent this year, according to the latest research report “the future of packaging printing by 2025″, the packaging printing market will continue to expand at a compound annual growth rate of 2.6%, reaching $491.1 billion in 2025.
Packaging has become the most profitable printing field in the 2010′s, so OEM, consumables and substrate suppliers pay more and more attention to this field. Among them, folding color box and corrugated packaging are the two largest market segments, accounting for 24.9% and 30.1% of the market respectively according to the market value in 2020. In the short term, these two forms of packaging will benefit from changes in covid-19 and packaging demand, while in the medium term, other trends, such as sustainable development goals, will promote further growth and innovation.
COVID-19
The policy of blockade and social distance implemented in the first half of 2020 has led to a surge in social demand for packaged goods. Shoppers stay at home and store a lot of necessities, especially food, leading to the peak demand for printed packaging. In the short term, the result is an increase in the running time of the mainstream core products.
When some essential stores remain open while others close, consumers worry about the risk of infection. This has led to a surge in online ordering, and the delivery demand for corrugated packaging of e-commerce has also increased.
According to Adobe analytics, U.S. consumers spent $152.5 billion through e-commerce channels in April and may 2020. In May alone, it was up 77% from the same month in 2019. Although some trade will return to physical channels, most of the shift will be permanent and accelerate the broad trend from physical retail to online retail.
Electronic Commerce
More and more e-commerce sales are creating opportunities for corrugated packaging suppliers, micro corrugated packaging and cardboard, while the use of digital technology provides packaging printers with more opportunities to add value and create new revenue sources. Many processors now offer custom-made e-commerce packaging cartons designed to fit standard size shipping cartons, and often contrast soft exterior markings with bright brand graphics and interior colors.
Corrugated packaging processors are developing an on-demand carton production system for e-commerce shippers to print and shape processed carton packages upon receipt of orders. Printing can be done in distribution centers and may contain additional promotional information for specific customers. These types of workflow will increase the demand for corrugated digital inkjet printing.
Corrugated Packaging
The global printing output value of corrugated packaging has increased from US $114.5 billion in 2015 to US $129.8 billion in 2020. This growth is due to the increasing use of corrugated packaging printing in retail packaging and e-commerce.
Flexo printing is by far the most widely used technology for corrugated paper printing. By 2020, it will account for 73.8% of the total output value of corrugated packaging printing products and 79.6% of the total output. Offset printing is used for sheet fed printing, while inkjet technology is the fastest growing printing technology. Several OEM manufacturers have developed high-speed single channel inkjet printers for preprint and post printing, which can shorten printing time and realize customized packaging.
In the medium term, an increasingly important aspect of corrugated packaging is that it is considered sustainable. It can be easily recycled, and the recovery rate is very high. If natural fiber is needed, it can be purchased from FSC or PEFC certified forest. Corrugated packaging itself is biodegradable. Aiming at the functional and barrier coating of corrugated packaging, the development scope and application of the coating are expanding. The coating provides water, oil and grease protection without damaging the recyclability of the final packaging.
Folding color box
Like the corrugated packaging industry, folding boxes are made from renewable resources and can be easily recycled, so the industry is benefiting from an increasing focus on sustainability. In some packaging applications, cardboard printing has replaced plastics, such as plastic shrink wrap for multiple beverage packages and plastic trays in food packaging.
The development of new barrier coatings and new uses of film technology provide opportunities for the use of printed color boxes in different ways. One example is Unilever Finland’s use of folding color boxes in its 1-liter capacity ingelmann ice cream in 2020, which is made of Stora Enso FSC certified cardboard with an active self polyethylene coating.
Sheet fed offset printing is the main printing process used in color boxes, accounting for 74.7% of the total value in 2020. Gravure and flexo printing are the following printing processes. Digital printing of folding color boxes has increased from $430 million in 2015 to $1.96 billion in 2020. Digital printing is expected to reach US $3.67 billion by 2025, with a CAGR of 13.3% from 2020 to 2025.
There are many OEMs that supply B2 and now B1 format digital presses. This includes B2 sheet fed toner HP indigo 30000, now combined with the new B1 roll to sheet indigo 90K. Other B2 printers, such as Fujifilm jet press 750S and Konica Minolta KM-1, are also used for small folding boxes and other commercial printing and graphics applications. Landa has B1 S10 printer, which can be used for color box printing. Heidelberg also produced the B1 format primefire 106, but due to a lack of interest, it announced that it would stop producing the product in March 2020.
Industry impact
As in other industries, companies in the printing and packaging supply chain respond to the new crown crisis by addressing liquidity as they prepare for a severe, deep and lasting recession. These have led to the recruitment of new employees, reduced capital expenditure, and suspended dividend payments and share repurchase plans. There are also obvious exceptions, such as Amazon, which has already recruited a lot of talent; Tesco, a supermarket chain in the UK, employs 16000 new employees to join its e-commerce home delivery business.
For printing OEMs, the first half of 2020 has been tough. The introduction of shutdown and safe operating practices into production facilities limits production capacity. Major trade shows, such as drupa 2020, have been postponed or cancelled. These are often the key events in demonstrating new technologies and developing sales leads. Many OEM manufacturers are launching new products through webinars and virtual trade fairs.
Post time: Nov-09-2020