Data courtesy of Smithers Pira
Technological advances are forever changing the face of flexographic printing. Demonstrated by key marketplace developments and changing consumer habits, these major trends are detailed in the Smithers Pira market report The Future of Flexographic Printing to 2023.
The report delves into the evolving marketplace where innovations in imaging software, plate making and delivery, substrate and inline press management, and ink formulation are affecting growth throughout the forecast period.
The global flexo print market in 2013 was valued by Smithers Pira at $147 billion. With a forecasted 2.3 percent CAGR (compound annual growth rate), the resulting global value in 2023 will reach $187 billion. Key to this growth are packaging-related industries that include corrugated board packaging, flexible packaging, bags and sacks, and others.
With the increase in population and the growing global middle class, there is a noticeable change in consumer behavior that is driving demand for flexo output in the form of packaging. This demand is creating opportunity for meaningful collaboration between manufacturers as a way to compete with the expanding marketplace. Chart 1 shows key end-use packaging applications that are shaping the flexo printing landscape.
Corrugated Board & Flexible Packaging
As seen in Chart 2, corrugated board remains the largest category in terms of volume and value for the global flexo marketplace. The segment is expected to grow at a rate of 2 percent to 2023, equaling sales of $114 billion. Growth of this main packaging category will feed the many possibilities for flexo printing open to retailers and brand owners. An increase in brand and promotional activity is developing a presence of shelf-ready packaging (SRP) and retail-ready packaging (RRP) worldwide, contributing to the extended growth and competition.
Supermarkets are becoming especially favored by consumers due to their wide product ranges and diverse choice of premium brands, usually unavailable in other types of outlets. There has also been growth in the number of discount stores and private label products, which enables those with lower incomes to purchase packaged food and drinks at more affordable prices. Also, with increased interest in health and wellness through the media and internet, there has been growth in the demand for packed fresh fruit and vegetables, dietary supplements, and natural, organic and additive-free products, which has boosted demand for flexible packaging types.
The interest and demand in flexible packaging is also providing opportunities for flexographic printing. Flexo remains a stable and versatile platform for consumer products that are requiring shorter runs on flexible substrates, thus increasing demand. A forecasted CAGR in the category will generate a sales increase of more than $10 billion from 2013 to 2023 for a resulting sales value of $36 billion.
Labels & Other Packaging
With the trend toward shorter printruns, opportunity in the labels market is similar to that in flexible packaging. A lower forecast for a CAGR of 3.1 percent to 2023 is projected by Smithers Pira for the segment, while the cartons market is forecasted to have a 2.8 percent CAGR, despite the sector having competition from digital printing.
Digital print technology continues to impact more sectors, newspapers in particular. Newspapers, envelopes and carrier bags are more traditional flexo markets that are now declining with little sign of this trend changing. Change in consumer behavior, including digital lifestyle trends, has caused the drop in traditional print technologies. Even though newspapers may evolve, flexo’s place as a producer will likely dissolve.
The other market sector in decline is bags and sacks, which has fallen victim to changes in consumer habits driven by environmental concerns. With the mounting public pressure on brand owners and retailers to reduce the environmental impact of packaging, brand owners are responding to consumers’ environmental concerns in several ways. These include:
- Lightweighting, reducing material usage without impairing pack performance
- Using more recycled and recyclable polymers in packaging
- Investigating the use of bioplastic packaging
Retail chains and brand owners continue to adopt bioplastic packaging options rather than conventional plastics in order to meet their sustainability goals and minimize their carbon footprint. They also recognize that sustainable packaging presents an opportunity to differentiate their products and to present a more environmentally friendly image to consumers.