Flexo Equipment & Technology Developments
Even though the landscape for flexographic printing equipment is changing, many manufacturers are embracing the change. Evolving trends show narrow web presses, which currently account for 27 percent of installations globally, are expected to decline to 25 percent by 2023. This may be associated with the competition in label sectors and presents an opportunity for mid web installations.
Equipment sales continue to show growth and encouraging signs for increased sales for manufacturers and ink suppliers in developing geographic regions. The strongest opportunities for equipment sales are in the Middle East and Africa, while Eastern Europe and Latin America show further potential for developing flexo output.
The Impact of Digital Printing
Digital printing is changing the landscape for flexo technology, with many digital processes being used to improve productivity. Digital workflows, computer-to-plate (CTP), digitized plate registration, ink manipulation, and monitoring and control of changeovers have all helped to optimize flexographic printing.
To compete with the threat of digital print, a greater emphasis is being placed on the packaging sectors. Advances in print technology will continue to increase competition so manufacturers remain focused on flexo print processes and have used digital to evolve.
With making the flexo printing processes more competitive against digital, technology changes have created a shortage in skilled labor. This change requires the modern flexo operator to have more analytical skills and the ability to work with the entire digital workflow to control production.
Geographic Growth Perspective
With the market expected to achieve a further 4.3 percent CAGR to 2023, its value will exceed $72 billion by the end of the forecast period (see Chart 3). Asia is currently the largest market by sales volume, pushing its value to $56 billion in 2017, with North America and Western Europe forecasted to experience more conservative growth in line with the overall marketplace.
Western Europe is more developed in flexo and is currently holding 23 percent of the global sales volume with marginal growth of 0.8 percent CAGR to 2023. However, market share will decrease to 20 percent for the period as other regions enjoy faster growth activity.
Overall growth activity will decline, especially for newspaper, which will have a -6.5 percent CAGR sales value that will decline from $495 million in 2013 to $146 million by 2023 based on changing consumer behavior and technological advances.
With flexo moving toward more of a packaging-driven marketplace, demand and the attached figures are reliant on other regions also building on the same initiatives. Asia, along with Latin America, has a clear focus on flexo development, especially corrugated board companies, and they anticipate this rising demand.
The analysis and data included here is drawn from the new Smithers Pira market report The Future of Flexographic Printing to 2023. To purchase this business strategy asset or for more information please visit www.smitherspira.com.