In the last article, we looked at the successful Labelexpo Americas 2022 event at a high level—including the level of excitement which mirrored the general mood of the industry bolstered by converters, equipment manufacturers, and suppliers seeming a bit giddy about their growth rates during and post pandemic. It also included the realization that while supply chain redundancy is necessary, there is no turning back from globalization and the shifting of consumer preferences. As a result, it appears that the “new normal” is that we all will need to be more adaptable in what we do and how we do it. So ultimately, rapid change is the new normal.

Digital print in label production isn’t new. In fact, Xeikon and HP introduced their first digital label presses in 2008, and they haven’t stopped innovating. Since those initial introductions, however, Konica Minolta, Durst, Screen, and many others entered with new digital label presses. Recently, some flexo press manufacturers have jumped into the market as well with their own offerings. Initially, with a proliferation of hybrid flexo/digital presses, which include both printing technologies to address the volume mix of a converter in a single press. Now some of these same flexo press manufacturers have developed all digital (or all-in-one) label presses. Just to clarify, toner (EP) technology was used in the original Xeikon and HP presses, and increasingly there are some digital label presses using inkjet imaging technology as well. 

As I previously identified, in label production today, flexo still outpaces digital, although according to the Smithers Future of Flexo to 2027 report, it is anticipated that flexo will still provide the largest production volume share compared with digital by almost 3:1 through 2027. However, they will be about equal in value. The volume vs. value difference is a function of the higher market cost of short-run digital labels compared with the lower market cost of long-run flexo label production. However, as the market continues to shift, the lower-run higher-cost label volumes will grow.