Sticking Around

According to Mordor Intelligence, the print label market is expected to grow at a CAGR of 4.2% over the forecast period (2021 - 2026). Last year had a significant impact on consumer purchasing habits, so as a result it also had an impact on labels and packaging in general. These changes and more importantly trends, many of which were already beginning to evolve, started shifting at an increased rate, facilitated by new technologies.

Procurement Trends

The most consequential driver is the increase in on-demand label procurement. With the increase in market segmentation, and the need to keep up with regulatory label changes, label procurement has been moving from an annual or semi-annual production purchase and warehouse model to produce what is needed for current production or on-demand model.

As you can see from a recent Xeikon presentation, the cost of obsolescence combined with the more competitive costs now available with digital label production make a compelling case for on-demand label procurement.

Labeling Trends

Pressure-sensitive labels still represent the largest segment of growth in labeling, or about a 40% share, and is projected to grow at a CAGR of over 4% through 2026. Glue-applied labels are in second place at about 35%. Plastics used in labeling, like shrink sleeves and in packaging in general are increasingly the target of sustainably conscious consumers. Even if a label that on its own can be recycled, once applied to a plastic bottle, it can play havoc on the recycling stream. As a result we are seeing more direct-to-object printing in place of conventional labels and even the testing of paper bottles from brands including Absolut, Carlsberg and even Coca-Cola. While they are using an inner barrier for the bottle produced from a recycled polyethylene terephthalate (PET) polymer film, it still limits unrecyclable waste. 

There is also continued movement to flexible packaging, which don’t need labels, from rigid containers in the form of stand-up pouches. Pouches, which are easier and less costly to ship actually use anywhere from 40-70% less plastic than rigid-container-and label combinations. However, while they use considerably less plastic, the plastic that is used in pouches is generally not recyclable. Lately there has been a lot of focus on Bioplastics as an alternative. Bioplastics, manufactured by synthesizing corn, soy, sugar cane and other crops, provide quicker biodegradability than plastics, and are sourced from renewable crops. One of these, PLA (polymerized lactic acid) manufactured by NatureWorks LLC, a Cargill company, is one of the more widely used components of bioplastic packaging in the U.S. PLA can also be recycled into the same product repeatedly, while plastics can’t. However, currently PLA  can’t be processed by mainstream recyclers, and they probably won’t create a new recycling stream until the use creates a critical mass and an economic incentive.

Technologies

Increased cost competition between digital and analog (primarily flexo) label production can be attributed to the explosion of inkjet label press solutions as well as hybrid solutions, and it is expected to continue. In the last year, there have been a significant amount of new press introductions in both toner and inkjet technology.

Toner

The digital printing of labels really started with and is still currently dominated by electrophotographic presses.  HP Indigo and Xeikon offer the most widely used label press offerings, although others including Konica Minolta and Mark Andy entered the market with their own toner solutions as well. In the last year, HP Indigo and Xeikon introduced new models that increase productivity by about 30% over their previous models. Additionally, HP previewed their next generation V12, based on their LEP^x inline architecture, which is expected to print at a speed in excess of 120 m/min, bringing it in line with inkjet and hybrid inkjet/flexo solutions, further increasing digital competitiveness compared to flexo.

Inkjet and Hybrid

Xeikon recently introduced their PX30000 to complement their PX2000 and PX3000 UV inkjet label presses, based on their Panther platform providing a higher level of productivity over their toner line. Mark Andy, historically a flexo press manufacturer, has continued to increase their digital offerings with the Digital Series iQ powered by the Domino N610i UV inkjet module in addition to their Digital Series HD, the configurable hybrid press. Canon, which is not new to inkjet but new to the packaging market has started placing their LabelStream 4000 hybrid label press as well.

Memjet OEMs like Colordyne, Konica Minolta and others are increasingly integrating their printheads into a variety of different inkjet and hybrid machines to support label print applications. And the list goes on…

Embellishment

Brand identity and shelf appeal are still the primary functions of a label. Digital embellishment technologies like those from JetFX, Actega, MGI and others are providing the solutions needed to support the needs of on-demand label printing. Increasingly they are integrated into complete inline label production with solution like the FEU offered by Xeikon and the HP GEM.

Summary

The use of labels is going to continue to increase, especially pressure sensitive, however there are other alternative packaging methods that will put some limits on that growth. Digital label production will continue to increase as a result of the increase in available toner, inkjet and hybrid solutions.