IDC: Label- and Package-Printing Market to Experience Strong Growth Throughout 2019

Label printersDemand for customization and on-demand solutions is driving the worldwide label and packaging (L&P) printing-press market. According to new research from International Data Corporation (IDC), total L&P Press shipments grew 27.5 percent in 2014, and IDC has forecast the market to expand to 627 shipments by 2019, growing at an 8.7 percent compound annual growth rate (CAGR) and representing $507.5 million in value of shipments. Both Electrophotographic (EP) toner-based and inkjet printing devices will continue to gain traction throughout the forecast period, says the firm.

“The growth opportunity for digitally printed labels and packaging is substantial and represents a sure bet,” commented Amy Machado, senior research analyst for IDC’s Hardcopy Peripheral Solutions. “L&P will not be impacted by some of the challenges faced by traditional document printing. For example, the L&P market will not be disrupted by e-presentment or the emergence of mobile technologies. The worldwide appetite to purchase goods of all types — products that need to be labeled and packaged — shows no sign of abating.”

According to IDC, the “omni-channel” transformation has led to brand owners utilizing “big data” more and more. IDC is seeing an increase in the number of SKUs. And, the need for variable data is increasing. It has led to manufacturers demanding more “on demand” or “just in time” solutions. IDC says this transformation affects not only prime label/packaging but secondary label and packaging as well.

Hardware vendors are not only finding growth in shipments but also continual ramp-up in print volumes coming off their presses. Increasing volume translates to a growing annuity stream of consumables/services revenue, and every production-class hardware vendor should be serious about entering the L&P segment.

Other findings from IDC’s research include:

  • Hewlett-Packard was the worldwide market-share leader with a commanding 62 percent share in 2014, followed by Xeikon, Electronics for Imaging (EFI), and Epson.
  • Newer entrants into the worldwide L&P market include Screen, Durst, Delphax, Founder, and Fujifilm.
  • As customers/consumers become more enabled through the omni-channel, they also become more demanding of the supply chain. Customers are demanding more personalized offerings and expecting more personalized products targeting them directly.
  • Brand owners at manufacturers are also using customized messaging to their own marketing advantage, to grow brand awareness, gain new customers, and retain brand loyalty.
  • One of the biggest threats to digital print in L&P is still the traditional flexographic process, but digital adds value beyond cost. Hardware vendors that have spent a great amount of research and development on technology development must now also invest in sales and solutions, ensuring that everyone — the brand owner and the converter/commercial printer — fully realizes the value-add of digital.

The IDC study, U.S. & Worldwide Label & Packaging Press Forecast 2015-2019 (IDC #256559), quantifies the U.S and worldwide label and packaging (L&P) press opportunity in detail and analyzes trends and drivers. It includes digital-label and packaging-press shipments, value of shipments, and average selling value (ASV). For more information about this research, contact your IDC sales representative, or IDC Sales at 508-988-7988 or sales@idc.com.

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