According to new report on global digital print market for packaging, a shift from labels to other forms of packaging will be driven by a demand for premium packaging.
Research and Markets announced the addition of a report projecting on the global digital printing market for packaging from 2017 to 2021. Analysts forecast the market to grow at a CAGR of 10.58% during this period.
The report stipulates that the latest trend gaining momentum in the digital printing market is a shift from labels to other packaging types. This is evident from the reduction in market shares and the low growth rate of labels during the forecast period.
According to the report, one of the major drivers for this market is increased demand for premium packaging. Premium packaging has high unit cost and is targeted toward specific customers. High preference is given to product design and appearance by investing more money.
The premium packaging market was approximately worth $15 billion in 2016. Premium packaging is mainly used for cosmetics, alcoholic drinks, and household items. Cosmetic segments had the highest market share by revenue of around 40%, followed by alcoholic drinks in 2016. The increased demand for premium packaging for products, such as cosmetics and household items is mainly from developed and mature markets such as the US, Japan, and Western Europe.
Further, the report states that one of the major factors hindering the growth of this market is dominance of analog technology. Analog printing holds the largest share of the global printing market for packaging. In 2016, the share of analog printing in packaging was 91.47%. It is a traditional way of printing for packaging and labeling and includes several processes, such as letterpress, xylography, flexography, lithography, and offset labeling. Most of the packaging and labeling companies use this method of printing because of its various advantages.
The report covers the present scenario and the growth prospects of the global digital printing market for packaging market for 2017-2021. To calculate the market size, the report considers the revenue generated by different vendors through sales of digital printing in various packaging types, such as labels, flexible plastic, corrugated and folding cartons, and other packaging types. The report also includes a discussion of the key vendors operating in this market, including HP, Flint, Xerox and DuPont.