Digital Printing for Packaging to Grow to $52 Billion by 2027
Demand for digital printing in packaging was estimated to be valued at over U.S. $11 billion in 2016, and a new report by Future Market Insights (FMI) estimates it to grow at 15.3 percent to surpass U.S. $52 billion in revenues by 2027.
According to the report, the key factors fueling demand for digital printing in packaging include growing preference for conventional/analogue plates and their application in printing jobs of shorter run lengths.
Adoption of digital printing in packaging is also growing on account of its convenience over conventional presses. Digital printing allows packaging companies to reduce turnaround time, and this is a prime reason fueling demand for digital printing.
FMI projects these trends to positively influence the digital printing in packaging market.Shifting preference from conventional printing to variable data printing and personalized printing. Leading packaging companies are adopting variable data printing owing to its use in direct marketing.
Future Market Insights maintains a positive outlook on the global digital printing in packaging market, though it believes high variable costs and limited opportunities in indirect sales channels can impede widespread adoption.
Among these, labels is the largest segment, accounting for over $7.1 billion in revenue in 2016. Demand for labels is estimated to increase at 16.7 percent CAGR to reach U.S. $38.44 billion in revenue.
The food sector remains the largest end-user of digital printing in packaging. Demand for digital printing in packaging was pegged at over U.S. $4.5 billion in 2016. This is expected to increase at a CAGR of 16.6 percent during the forecast period 2016-2026.
North America, APEJ, and Western Europe are the three largest markets for digital printing in packaging. North America currently leads globally in terms of revenues; however, owing to robust adoption of digital printing in APEJ, it will be relegated to second position by the end of 2026. APEJ will outpace North America to become the largest market, increasing its revenue share from 28 percent in 2016 to 40.7% by the end of 2026.
This article is from Packaging Strategies.