Greg Hrinya, Associate Editor03.23.15
As part of Xeikon Cafe Packaging Innovations 2015, a host of experts delivered lectures on the label & packaging industry as part of the event’s business conference program. Bob Leahey, associate director of InfoTrends, and Corey Reardon, president and CEO of AWA Alexander Watson Associates, headlined discussions regarding digital printing and the global label market.
In addition, Biotak and FINAT examined sustainability, and the self adhesive and narrow web markets, respectively.
State of the industry
Leahey, in his “Brands and Packaging in Europe: The digital print advantage” seminar, explored where digital printing fits into a market dominated by traditional printing methods.
Conventional presses still account for the vast majority of printing, and according to Leahey, will continue to do so for years to come. These presses have maintained their standing in the industry due to improving flexo technologies and the suitability for long runs.
There is a place for digital, however. “At the same time, the digital side is offering some pretty exciting products in terms of print quality and functionality,” said Leahey.
Digital presses offer an advantage on shorter runs and print jobs that are not as convenient or cost-effective to run on a flexo press.
Another key trend involves the label and packaging market. “Most printing applications are actually in decline, but magazines, forms, books, office documents, almost anything you can think of that is printed, the actual physical volume is starting to be displaced by electronic media,” added Leahey. “There’s one huge exception to that, and that’s the market that we’re in. Packaging and labels tend to grow in consumption with human population.”
Due to the market’s growth, brand owners face several challenges, including stiff competition. They must design packaging that stands out on the shelves and labels that have the ability to engage with consumers.
“Because they have the ability to get into new applications, not just Xeikon, but a long list of companies as far removed as Xerox and many companies you haven’t even heard of, want to be in this market,” said Leahey. “They want to print on new materials and they want to offer new presses.
“They want to print short runs, test new products, they want supply chains to be lean and to order frequently at smaller amounts.”
AWA’s Reardon, in a presentation titled “Global labeling and product decoration market,” analyzed the trends and data available to the label industry. He focused on pressure sensitive, glue-applied, IML and shrink sleeve labels.
According to AWA, half of all label production occurs in the Asia Pacific region. However, all label markets are experiencing growth between 3.5-4%.
“We start seeing where the real growth driver for labeling and decorating is, and it’s the Asia Pacific region growing at two-to-three times that of the rest of the world,” said Reardon. “What’s important to note is that this Asia Pacific growth continues but at a decelerating rate. It will continue to be the growth driver, but in terms of it maintaining a 6% growth rate, that’s slowing down.”
Pressure sensitive labels account for the majority of the labels printed at 39%, with glue-applied labels sitting at 37%. Although not at the top, sleeve technology is the fastest grower at just over 5%.
Reardon found that any label market’s success is closely tied to that region’s GDP growth. “This is particularly important when we look at the European economy, which has been quite sluggish. We see slow recovery; In North America, we see a little bit faster recovery in GDP growth post-recession.”
Reardon also stated that digital printing has grown in all regions. Material science, especially in regards to substrate and resin production, has also helped businesses regulate their costs.
“There are two types of functions for labeling in pressure sensitive, and that is primary product labeling and VIP labeling,” said Reardon. “Primary product labeling represents the largest labeling segment, of which sleeving, in-mold and glue applied are all players in. VIP applications are the strongest in Europe and North America. Pressure sensitive labeling is really the primary label technology for bar coding, VIP, logistics and transport labeling.”
The food and beverage market remains the leader for end use segments.
Reardon noted that mergers and acquisitions have played a large role in the industry’s growth. Rather than organically building a company, there is a lot of movement with consolidation and fragmentation throughout the value chain.
An environmental edge
As companies continue to grow, they are finding new ways to explore environmental and sustainable alternatives. Environmental pressures are affecting companies as they select substrates for their products.
To expand upon sustainability in today’s industry, Arjan Klapwijk from Biotak looked at all the ways the industry can become more environmentally sound. In order to target ways to protect the environment, Klapwijk said four aspects of a label must be examined: the ink; the face material; the adhesive; and the release liner.
There are different products that can aid companies in their quest to go green. There are films derived from cellulose and poly-lactic acid, which is industrially compostable.
Other natural fibers like starch, wood, sugar cane, rice and cotton can also be used. Biodegradable alternatives can serve end uses on items such as fruits and vegetables.
In 2014, Biotak won the Sustainability Award at Labelexpo in Chicago, IL, USA.
FINAT’s view of the future
Jules Lejeune, managing director, FINAT, spoke about the future of the self-adhesive and narrow web industry. According to Lejeune, 60% of all label printers are members of FINAT, a figure that spans over 50 countries. He believes that digital’s presence will continue to grow. Currently, digital presses account for 20% of all installations, but that number is projected to rise.
Lejeune also detailed his organization’s “5 strategic pillars for 2020”: leading by knowledge, technology awareness; driving the sustainability agenda; embracing the geographic shift; and repositioning FINAT.
Some of the key market drivers include market forces like structural changes in the economy; alternative decoration technologies; and customers’ desire for one-stop shopping.
“We have to also look at our people,” said Lejeune. “We have to educate our workforce and make sure that they comply with work health and safety standards.”
To view more pictures from the event, click here for the slideshow.
In addition, Biotak and FINAT examined sustainability, and the self adhesive and narrow web markets, respectively.
State of the industry
Leahey, in his “Brands and Packaging in Europe: The digital print advantage” seminar, explored where digital printing fits into a market dominated by traditional printing methods.
Conventional presses still account for the vast majority of printing, and according to Leahey, will continue to do so for years to come. These presses have maintained their standing in the industry due to improving flexo technologies and the suitability for long runs.
There is a place for digital, however. “At the same time, the digital side is offering some pretty exciting products in terms of print quality and functionality,” said Leahey.
Digital presses offer an advantage on shorter runs and print jobs that are not as convenient or cost-effective to run on a flexo press.
Another key trend involves the label and packaging market. “Most printing applications are actually in decline, but magazines, forms, books, office documents, almost anything you can think of that is printed, the actual physical volume is starting to be displaced by electronic media,” added Leahey. “There’s one huge exception to that, and that’s the market that we’re in. Packaging and labels tend to grow in consumption with human population.”
Due to the market’s growth, brand owners face several challenges, including stiff competition. They must design packaging that stands out on the shelves and labels that have the ability to engage with consumers.
“Because they have the ability to get into new applications, not just Xeikon, but a long list of companies as far removed as Xerox and many companies you haven’t even heard of, want to be in this market,” said Leahey. “They want to print on new materials and they want to offer new presses.
“They want to print short runs, test new products, they want supply chains to be lean and to order frequently at smaller amounts.”
AWA’s Reardon, in a presentation titled “Global labeling and product decoration market,” analyzed the trends and data available to the label industry. He focused on pressure sensitive, glue-applied, IML and shrink sleeve labels.
According to AWA, half of all label production occurs in the Asia Pacific region. However, all label markets are experiencing growth between 3.5-4%.
“We start seeing where the real growth driver for labeling and decorating is, and it’s the Asia Pacific region growing at two-to-three times that of the rest of the world,” said Reardon. “What’s important to note is that this Asia Pacific growth continues but at a decelerating rate. It will continue to be the growth driver, but in terms of it maintaining a 6% growth rate, that’s slowing down.”
Pressure sensitive labels account for the majority of the labels printed at 39%, with glue-applied labels sitting at 37%. Although not at the top, sleeve technology is the fastest grower at just over 5%.
Reardon found that any label market’s success is closely tied to that region’s GDP growth. “This is particularly important when we look at the European economy, which has been quite sluggish. We see slow recovery; In North America, we see a little bit faster recovery in GDP growth post-recession.”
Reardon also stated that digital printing has grown in all regions. Material science, especially in regards to substrate and resin production, has also helped businesses regulate their costs.
“There are two types of functions for labeling in pressure sensitive, and that is primary product labeling and VIP labeling,” said Reardon. “Primary product labeling represents the largest labeling segment, of which sleeving, in-mold and glue applied are all players in. VIP applications are the strongest in Europe and North America. Pressure sensitive labeling is really the primary label technology for bar coding, VIP, logistics and transport labeling.”
The food and beverage market remains the leader for end use segments.
Reardon noted that mergers and acquisitions have played a large role in the industry’s growth. Rather than organically building a company, there is a lot of movement with consolidation and fragmentation throughout the value chain.
An environmental edge
As companies continue to grow, they are finding new ways to explore environmental and sustainable alternatives. Environmental pressures are affecting companies as they select substrates for their products.
To expand upon sustainability in today’s industry, Arjan Klapwijk from Biotak looked at all the ways the industry can become more environmentally sound. In order to target ways to protect the environment, Klapwijk said four aspects of a label must be examined: the ink; the face material; the adhesive; and the release liner.
There are different products that can aid companies in their quest to go green. There are films derived from cellulose and poly-lactic acid, which is industrially compostable.
Other natural fibers like starch, wood, sugar cane, rice and cotton can also be used. Biodegradable alternatives can serve end uses on items such as fruits and vegetables.
In 2014, Biotak won the Sustainability Award at Labelexpo in Chicago, IL, USA.
FINAT’s view of the future
Jules Lejeune, managing director, FINAT, spoke about the future of the self-adhesive and narrow web industry. According to Lejeune, 60% of all label printers are members of FINAT, a figure that spans over 50 countries. He believes that digital’s presence will continue to grow. Currently, digital presses account for 20% of all installations, but that number is projected to rise.
Lejeune also detailed his organization’s “5 strategic pillars for 2020”: leading by knowledge, technology awareness; driving the sustainability agenda; embracing the geographic shift; and repositioning FINAT.
Some of the key market drivers include market forces like structural changes in the economy; alternative decoration technologies; and customers’ desire for one-stop shopping.
“We have to also look at our people,” said Lejeune. “We have to educate our workforce and make sure that they comply with work health and safety standards.”
To view more pictures from the event, click here for the slideshow.