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Digital Cartons 2016 is a Good Time Dr Sean Smyth smitherspira.com - - PowerPoint PPT Presentation
Digital Cartons 2016 is a Good Time Dr Sean Smyth smitherspira.com - - PowerPoint PPT Presentation
Digital Cartons 2016 is a Good Time Dr Sean Smyth smitherspira.com Agenda Drupa launches the Digital Packaging show The Carton Market, digital is arriving! Drivers what do brands and retailers want? Barriers Futures
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Who we are Delivering high value information enabling you to make better decisions, faster
3 Information Hubs
in Europe and the US Working with a
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consultants, freelancers and experts To serve a
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Who we serve
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Dr Sean Smyth
Printing technologist Smithers Pira consultant and analyst Research and author “Future of Digital Print for Packaging to 2020” Journalist: Smithers Pira; WhatTheyThink; FlexoTech; Digital Labels & Packaging; RadTech; Ink World; PIA Non-exec Director at printing companies
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Packaging is changing
Packaging protects goods, promotes them and informs customers Helps reduce waste It has fed & protected mankind, enabled social changes New upstart brands want professional, high quality packs (for the minimum cost!) In 2016 brands (and retailers) want more:
- to sell more volume
- to sell at higher prices
Digital packaging can help achieve these aims
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Packaging is changing
More SKUs
- more variants (size, colour, allergen free, no-fat, no-sugar)
- more regulation (ingredients, legibility, FIR, pharma regs)
- event driven (Euro 16, Rugby World Cup, Olympics, movie/TV)
- more languages
Falling run lengths Interacting with the digital world
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Big brands want to change . . .
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Big brands want to change . . .
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“Advertising is almost as important as packaging”
AG Lafley Chairman of the Board, President, and CEO of P&G
Big brands want to change . . .
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Big brands want to change . . . .
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Big retailers want to change . . . .
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Brand owner requirements
To build emotional involvement with the customer through packaging To “Premiumise” their brand To gain approval of their brand Its not just cost reduction
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Personalised dog food
JUST RIGHT–Purina premium brand Allows them to know the pet Huge owner involvement
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Digital packaging allows a 50% premium price!
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Applications – personalised condoms anyone?
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Market Data
Constant (2015) value in € real changes, eliminates inflation/currency exchange fluctuations Value of cartons from converter includes substrate, design & prepress where converter supplies, not filling Digital includes prototyping Print volumes, equivalent A4 single prints
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W European folding carton market
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W European Digital carton market forecasts
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Remember drupa?
Why the change now?
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Why the Growth in digital?
Market drivers – technology pull Use digital beside analogue to benefit both New technology coming to market – technology push Investment in developing digital packaging solutions is growing New systems in the pipeline Bespoke integrations in place
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Market drivers for adoption
Economic short runs Fast turn round Security and brand protection Engagement Environmental benefits
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Small agile company response
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Rapid response
Drivers for Adoption
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Supply Chain pressures
Current model is under pressure Many stages & players Too much time Too much cost Too much waste Retailing is changing as consumption changes Upstart brands
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Agility is important
Powerful mantra, be agile Test new ideas rapidly, discard ones that don't work Learn and succeed Workflow, colour management Low/no touch automation of order processing Evolving into a “Darwinian Selection Engine” Formal innovation processes, there are many techniques to minimise risks
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Brand owner requirements
To build emotional involvement with the customer through packaging Digital cartons do this To “Premiumise” their brand Digital cartons do this To gain approval of their brand Digital cartons do this Its not just cost reduction Digital cartons add more value
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Conclusion
Digital cartons opens new opportunities and will grow rapidly Understand market dynamics – more than litho replacement Workflow, board, print, coating, cut & crease, fold & glue DON’T IGNORE THIS OPPORTUNITY!
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