Digital inkjet opportunities in the corrugated space

by | 20 November 2020 12:52 pm

By Eve Padula and Steve Urmano

Although corrugated materials have been around for more than a century, their uses continue to evolve as technologies improve and market demands change. The traditional cardboard box is likely the first thing that comes to mind when most people think about corrugated, but the overall market is actually much larger. Today’s corrugated packages come in a limitless variety of shapes and sizes, and free-standing/point-of-purchase (POP) displays are also part of this category. Food and beverage manufacturers have been—and will remain—huge consumers of corrugated packages as they strive to differentiate their products, protect the contents, maintain freshness, and increase awareness for their brands. The need for packaging grows with the human population and economic development, and this is one industry that is not being displaced by electronic offerings.

While market maturity and increased competition from other forms of packaging do pose some threats, the corrugated industry continues to grow. Further, the recent movement toward digital printing has created many new strategic opportunities in the marketplace.

This white paper evaluates the emerging applications and opportunities in the corrugated space and considers the role digital inkjet will play today and in the future.

Market overview

Background
Since many purchasing decisions are made based on the appearance of a package or the signs/displays in a retail environment, it is important to design materials that send the right message to prospective buyers. Printed graphics can be applied to corrugated boxes, displays, or signs in one of two ways:

• Images, text, and designs can be directly printed on board materials after the board is combined and cut into sheets. For a more refined result, images can also be directly printed onto the linerboard before it is glued to the fluted (corrugated) medium.
• Sheet printing involves outputting on separate sheets that are then glued to combined board. This printing process can be achieved in two ways:
ii. Single-face lamination involves laminating a prepared sheet directly to the open flutes of a single face.
ii. Labelling combined board, also referred to as litho labelling, is printing on a sheet of paper or label stock that is later glued to the combined board.

Although some printing techniques dictate whether it is best to print on combined board, linerboard, or a separate sheet, other techniques work equally well on more than one material. The method used to apply the graphics to corrugated boxes or displays is determined by costs, scheduling, design/quality factors, and the printing process that will be used.
Corrugated digital inkjet printers can vary widely in terms of capability and price. The lowest volume devices are manually fed, but the highest volume systems are automated. There are two general printer categories: multi-pass and single-pass. Multi-pass printers have been serving the corrugated industry for more than 20 years, but they were mainly used to print prototypes until a few years ago. Starting in 2012, the most productive multi-pass printers have also focused on printing short production runs. Single-pass solutions started to become available in 2014, and these devices range from entry level to high speed.
Corrugated output is ultimately converted into packaging or displays. Packaging can be primary (e.g. for consumer electronics) or secondary (e.g. regular slotted cartons). Meanwhile, displays include free-standing containers and temporary/semi-permanent POP items.
Like all industries, the corrugated market has growth drivers as well as inhibitors. The key factors are outlined in Table 1.

Since the drivers outweigh the barriers, the corrugated market is currently experiencing healthy growth. There are a few key reasons the drivers are more influential than the barriers including:
• Due to the vast array of brands on a worldwide basis, short-run printing has become mandatory in many cases;
• Converters are becoming more skilled at digital print production and selling inkjet printing, so these offerings are seeing more widespread acceptance; and
• As digital vendors are improving their products and adding new ones all the time, the list of cost-effective applications is ever expanding.

Benefits of digital inkjet printing

Until a few years ago, manufacturers typically relied on converters and packaging suppliers to produce their packaging. The issue was many of these intermediaries used analogue printing devices to handle production, creating the need for long lead times and large order volumes. Today’s digital colour printers are transforming the process, making it possible for corrugated packaging to be produced quickly, efficiently, and with personalization. Digital inkjet technology offers numerous benefits for package printing, particularly with short runs.

Ease of use
In today’s competitive market, standing out in the crowd is more important than ever before. Brand owners and retailers alike are relying on eye-catching packages, displays, signs, and other visual communications to ensure their products remain top-of-mind among consumers. Many of these items can now be produced on colour digital packaging printers, which are compact enough for even small operations. In many cases, today’s manufacturers and print shops can now handle package printing in-house rather than outsourcing the work. Further, because these devices are easy to set up and operate, there is no need to hire specialist employees to handle the equipment.

Efficiency
With digital inkjet technology, relevant product/order information and images can be printed directly onto the package, eliminating the time-consuming and error-prone process of multiple print runs or applying labels to packages. This streamlines the ordering process and makes it easier for manufacturers to manage multiple stock keeping units (SKUs) and highly customized/personalized projects.

Prototyping/proofing
Digital inkjet presses are ideal for creating proofs and prototypes. Once production decisions have been made, these proofs/prototypes can be printed in higher quantities on traditional analogue presses.
Although today’s digital wide-format devices are colour accurate, they require colour calibration (a form of colour profiling). Companies that are serious about adding digital wide-format colour printing to their offerings will have some colour matching requirements. It is a good idea to have an employee who is specially trained for the critical colour-matching role. Some digital inkjet printer manufacturers offer colour management software, spectrophotometers, and training on colour profiling
so one can get started quickly.

Increased customization and personalization
Today’s consumers demand a personalized shopping experience, and packaging is part of this equation. With digital inkjet printing, the messaging on a package can be changed on a very frequent basis. The possibilities are endless—text, images, and other graphics on a package can be customized for specific locations, age demographics, different ethnicities, dietary needs, or holidays/seasons, etc. In addition to providing protection for the contents inside, it can catch a consumer’s eye, make an item stand out in a sea of similar products, highlight important information, or draw attention to any differentiating features. Packaging is a connection between a brand and a consumer, and people will be more likely to reach for a product that speaks to their individual needs and preferences. This is the reason why personalization is so important—and it is also why brand owners change their packaging so often.

Improved print quality
Due to ongoing innovations in printhead/toner technologies, water-based inkjet ink, colour management workflow software, and real-time, closed-loop colour controls, the print quality of digital inkjet press solutions is better than ever. Colour is a major component of a company’s identity, and digital inkjet printing makes it possible to replicate precise corporate hues time and time again.

Environmentally friendly
With digital inkjet, corrugated materials and containers can be produced on an as-needed basis in the exact quantities required. With the ability to cost-effectively print short runs, packaging designs can be changed as often as required without excess inventory. Further, most corrugated materials can be recycled, enabling a high level of sustainability.

The bottom line: capitalizing on the opportunity

Fuelled by the ongoing success of multi-pass devices and the more recent introduction of single-pass machines, the corrugated market continues to grow. Prices are coming down even as the technologies continue to improve, so brand owners and print shops have more options than ever before. Some might choose to handle their package printing in-house, while others will be turning to sign/graphics companies and outsourcing these capabilities.
In addition to providing protection for the contents inside, today’s brand owners and retailers understand packaging is a great way to connect with a prospective customer at the point of purchase. The proliferation of digital technology is expanding the possibilities even more, opening the door to cost-effective personalization, customization, enhanced colour capabilities, and variable data. Further, savvy marketers are implementing value-added features (e.g. customized shapes/sizes, flexible formats, easy-tear strips) as well as high-quality printing to expand and differentiate their offerings. In many cases, brand owners will change their packaging more frequently than they change the products inside. Digital inkjet facilitates short-run production, enabling brand owners to create packages that look fresh, relevant, and appealing in the eyes of consumers—even if the products they contain have been around for generations.

This article is based on a white paper the authors prepared for the International Sign Association (ISA). For more information, visit www.signs.org[6].

Eve Padula is a senior research analyst for Keypoint Intelligence—InfoTrends’ business development strategies, customer communications, and wide-format consulting services. Her responsibilities include the promotion and distribution of InfoTrends’ content, assisting in building business development programs, handling data analysis, and managing the editing cycle for many deliverables.

Steve Urmano is the director of InfoTrends’ wide-format printing consulting service. He develops InfoTrends’ annual global market forecasts for hardware and supplies used in the wide-format printing markets. He is responsible for conducting annual research studies in the wide-format market both on a custom basis and as part of InfoTrends’ syndicated research.

 

Source URL: https://www.signmedia.ca/digital-inkjet-opportunities-in-the-corrugated-space/

---