Packaging and value-adding digital to boost growth in global print market

In its latest report, The Future of Global Printing to 2020, Smithers Pira stated that global printing output was projected to reach 870 billion USD in 2015. In constant value terms, the global market is up from the 2010 value of 806 billion USD to 824 billion USD, but the total print volume has fallen, from the equivalent of 50.5 trillion A4 prints in 2010 down to 49 trillion A4 prints in 2020.

‘Going forward the overall printing volume will continue to fall, but in constant value terms there is growth,’ said Dr Sean Smyth, co-author of the report. ‘This is through continuing product mix changes with a greater share of higher value products, particularly packaging, and the prospects vary significantly by geography.

‘The report identifies the winners and losers. There are rising requirements for higher value digital production – to print low runs and to add engagement to the printed item – and for packaging where the physical needs and heavier substrates are higher in price.’

Packaging and labels are growing consistently, according to Smithers Pira, while publication print volumes and value are declining significantly. In publication and commercial graphics, electronic media is steadily replacing printed products. Print manufacturers are also more efficient, using better workflow and automation to minimize make-ready and lower waste, reducing demand for paper and inks.

There are similar efficiencies in packaging, but digital enjoys a very low share, except in labels, and overall demand is growing. It is claimed that as digital systems develop there will be supply chain efficiencies reducing waste and unused packaging in those sectors. Digital print, chiefly used in the commercial print sector and labels, is 'faring rather better' than the long-established analogue alternatives, and is forecast to increase in market share by 2020 as new applications, particularly in packaging, grow. It is the higher value that is attractive to print service providers, and to equipment and consumable manufacturers, stated Smithers Pira. 

Analogue machinery is expected by Smithers Pira to fall while the value of digital equipment more than doubles in real terms. Printing inks and coating use broadly follows print volumes, although there are market mix changes with increasing use of color, more radiation curing, and greater use of varnishes and coatings pushing growth. It is, however, the much higher valued digital grades that are showing growth, stated the market intelligence firm.

By geography, Smithers Pira has identified declines in North America, Western Europe and Australasia, while Latin America, the Middle East, Eastern Europe and Africa are all seeing growth. Asia is the biggest print region, growing in volume and value. China continues to grow and has overtaken the volume in the US during 2015 to become the biggest print market, although the value of the output is significantly lower reflecting the different product mix and lower pricing.