brands and packaging in europe for thursday pm stima

1© 2015 InfoTrends www.infotrends.com© 2015 InfoTrends

Brands and Packaging in Europe: The Digital Print Advantage

Bob LeaheyAssociate Director 12 March 2015

2© 2015 InfoTrends www.infotrends.com

Objectives for Today

• Give insights about opinions of European brand owners

− What do they want, what will they want, in printed packaging?

• Derive actionable recommendations for brand owners

− Where can digital print help brands meet strategic goals?


Initial Notes

• Our presentation today is based on recent research

• In the study, we surveyed 265 brands in Europe

− What do they want? What will they want?

• We also surveyed 100 ‘converters’ about brand owners

− Printers of labels, folding cartons, flexible packaging, corrugated, other


What are ‘Color Digital Label and Packaging’ (‘CDLP’) Presses’?

•Production level digital printer, with least CMYK color

•Designed specifically to print label or packaging

•Capable of operating 3 shifts, 7 days

• Average monthly print volume, 1+ million labels or packages


Color Inkjet, Color Electrophotographic (‘EP’) Press Examples:

Inkjet: Durst Tau 330 Electrophotographic: Xeikon 3300, with rewind


Go

od

Be

tte

rB

es

t

Common Print Job Size

Pri

nt

Qu

ality

Color Digital Label and Packaging: Press and Printer Landscape

Color Digital PressesFlexo/Offset Presses

Test Runs Up to 100 Meters Up to 4,000 Meters Over 4,000 Meters

Wide format proofers

Tabletop label printers


What Overall Print Market Looks Like, To Press Vendors

Source: Piet Bakker


What Retail Stores Look Like, to Brand Owners


Brands Are Marketing Multiple Versions of a Product

Brands now commonly aim for‘mass customization’


Brands Are Changing Packaging Formats


Vendors Tend to Move Digital Print Options Ahead....

Digital Press Vendors Push

Market for: Color Digitally PrintedPackaging

New pressesNew applicationsNew materials


...and So Do the Needs of Brand Owners

Digital Press Vendors Push Brands Pull

Market for: Color Digitally PrintedPackaging

New pressesNew applicationsNew materials

More short runsLeaner supply chainsMore frequent orders


Brand Owners in Our Study: Main Vertical Industry

Food67%

Health and beauty12%

Beverage12%

Durable goods3%

Pharmaceuticals2%

Maintenance products

1%Other

3%

Q81: Which of the following best describes your company’s main vertical industry?

N = 265 Respondents that are brand owners in Europe


Converters: Main Print Applications

Labels43%

Folding Cartons31%

Flexible Packaging26%

Q42: Which of the following is your company’s MAIN print application?

N = 100 Respondents that are converters


4%

19%

30%

34%

67%

0% 20% 40% 60% 80%

Other

Shrink or stretch sleeves

Flexible packaging

Folding cartons

Product labels

Multiple Responses Permitted

Converters: Applications Printed on Color Digital Presses

Q55: Which of the following label or packaging applications do you print or plan to print with a color digital press?

N = 70 Respondents that are converters that operate digital color presses or buy digital printing on the outside


Key Findings: Brands and Short Runs

• There is a big trend in Europe for brands to manufacture short runs of products, and that trend is growing




• Driving this trend is brand owners’ need to (1) target markets and (2) be efficient in manufacturing and logistics





• Also driving this trend are Europe’s languages, its changing populations, its rules about food and drug packaging





• Also driving this trend are Europe’s languages, its changing populations, its rules about food and drug packaging

• Short run printing for packaging is growing as a result, allowing new versions of products, private label products


Key Findings: Brand Owners’ Priorities

• Sustainability is high priority for most brand owners

• Digital marketing strategies are also now important

• Brand owners want packaging to cut their risks

• Brands want to do ‘new things’, often digital-related

• Brand owners will pay a premium to achieve key goals


What ‘New Things’ Do Brands Want to Do?


Brands Want New Approaches to Security

Text revealed by IR light:

Covert Text Example, Printed by Xeikon 3300


Brands Want Packaging To Connect Digitally to Consumers


13%

41%

29%

45%

36%

45%

68%

11%

36%

41%

45%

47%

57%

64%

0% 20% 40% 60% 80%

None of the above

1 print job for 50 or more product versions

Electronic security features such as RFID

1 print job with less than 200 labels or packages

Variable data printing for personalized print

Variable data printing for track and trace codes

Environmentally friendly paper, film, or board media

Converters

Brand Owners


What Brand Owners Are Willing to Pay Extra For

Q72: For which of the following would your customers be willing to pay a premium?Q40. For which of the following would your company be willing to pay a premium?

N = 100 ConvertersN = 265 Brand Owners


13%

41%

29%

45%

36%

45%

68%

11%

36%

41%

45%

47%

57%

64%

0% 20% 40% 60% 80%

None of the above







Converters

Brand Owners






28%

15%

6%

16%

14%

9%

22%

25%

24%

19%

18%

25%

30%

34%

16%

21%

33%

37%

0% 20% 40% 60% 80% 100%

Ability to print security features, such asholograms, microtext, or covert codes

Ability to print variable data, such as random codesor personalized messages

Ability to create prototypes and test samplesquickly and economically

Ability to print many short production runs quicklyand economically

1 - Not important 2 3 4 5 - Highly important

Importance of Print Capabilities In Choosing a Converter

Q17: For decisions at your company about the printing of packaging or labels, how influential are the following:

N = 265 Respondents that are brand owners

Mean

3.9

3.2

2.8

3.8


28%

15%

6%

16%

14%

9%

22%

25%

24%

19%

18%

25%

30%

34%

16%

21%

33%

37%

0% 20% 40% 60% 80% 100%

Ability to print security features, such as holograms,microtext, or covert codes

Ability to print variable data, such as random codesor personalized messages

Ability to create prototypes and test samplesquickly and economically

Ability to print many short production runs quicklyand economically

1 - Not important 2 3 4 5 - Highly important

Importance of Print Capabilities In Choosing a Converter

Q17: For decisions at your company about the printing of packaging or labels, how influential are the following:


Mean

3.9

3.2

2.8

3.8


About Packaging and Labels Designed to Support Online Marketing Activities

Yes, we do this now38%

We plan to do this in the future

7%

No, and no plans to do this

52%

Don’t know3%

Q19: Does your company design or plan to design any of its packaging or labels specifically to support your marketing online,or through mobile phones?



Digital Printing Provides Exciting Options for Security

• Scannable codes, including covert codes

• Serialized codes and unique codes

• ‘Mobile product authentication’ is a young and growing


Use of Personalization for Packaging

Yes36%

No, but we will likely do so in the future

8%

No, and no plans to do so54%

Don’t know2%

Q36: Does your company EVER use any personalization for packaging to support your marketing in some way?



Personalized Cartons Are Valuable Cartons


Resolves, Recommendations (2)

• Look for converters that have color digital print technology

− If yours don’t have it, ask them to get it

• Educate your marketing staff about digital print options

− For personalization and 1:1 marketing

− For timely tests and cost-effective short runs

• Consider color digital printing as a security tool

− For serialized or coded packaging, for authentication

• Study success stories—brands digital has benefited!


Thank You!

[email protected]

brands and packaging in europe for thursday pm stima

Documents

digital print advantage

digital print help brands

digital print options

brands pullmarket

product brands

main print applicationsq42

packaging formats

flexible packaging