industry focus – how the industry is developing mike fairley director strategic development
TRANSCRIPT
Industry focus – How the industry is developing
Mike FairleyDirector Strategic
Development
Agenda
• Overview of labels• Trends we see impacting the industry• Update on the digital label market
Market Overview
• Industry growth globally 2013 = 6-7%• But 80% of growth is in emerging markets• Emerging markets offer huge opportunities• Industry remains very fragmented, limited
consolidation mostly in USA• Flexible packaging and cartons good growth
Evolution of Label and Package Printing
Flexible Packaging Folding Cartons Labels0
10
20
30
40
50
60
70
80
90
100
$89 B$79 B $73 B
Digital PrintTotal value
Valu
e in
US
dolla
rs
$3 B
Estimated worldwide print value 2012 in $B
Market overview
North America 28.4%
Western Europe 27.1%
China/Asia Pacific 21.9%
Japan 7.20%
Eastern Europe 7.80%
South America 5.6%India 1.4%
Rest of World 0.6%
Estimated breakdown of the global label market in 2012. All kinds of labels now in excess of 46 billion sq.m
The global label market by region
Market overviewGlobal Markets Estimated per Capita Label Consumption
USA 15-16m2
Scandinavia 17-18m2
W Europe 12-15m2
E Europe/ME 6-7m2
China 0.9m2
Brazil 2.2m2
India 0.9m2
SE Asia 2-3m2
Market overview
45%
41%
7%3% 4%
Total Western European label market by type of label
Self-adhesiveWet GluesleevingIn-moldOthers
Market Overview
• Price squeeze continues with rising costs and pressure on margins
• Adoption of digital accelerating• PS still has major share of label market but
shrink/IML gaining from a low base (3% per annum)
Market Overview
• Environment ever increasing importance i.e. Heidelberg press labeled carbon neutral
• Linerless still being adopted, traditional material suppliers downgauging, recycling
• Opportunities beyond the label, many converters offering other decoration techniques i.e. cartons/flexibles
Trends
• Interactive labels and packaging growing• Inkjet becoming the new digital technology• Material costs rising
Trends
• Wine/spirits/beer growing opportunity for printers
• Brand protection/anti counterfeit, end users becoming more concerned
• Private label continues to get more market share
Trends
14
17
23
26
27
33
36
41
50
51
70
75
126
0 20 40 60 80 100 120 140
ITM (Intermarche) private label
Danone total company
Coca Cola total company
Metro Group private label
Royal Ahold private label
PepsiCo total company
Tesco private label
Aldi private label
Unilever total company
J&J total company
P&G total company
Nestle total company
Walmart private label
Worldwide sales $bn
‘Private labels’ are now the biggest brand in the world
52% of all brand product launches in 2011 were ‘Private Labels’
Production
Consumption
Number of companies and brands (microbreweries)
MORE COMPETION
The image, the label, is becoming more
and more important as happened in
the wine sectorSource: Manter
Major Beer Trend
Emerging Trends
• The rise of the marketing printer • The new mobile world• On the go products
Emerging Trends
• Out to share products• Speed to volume manufacturing• Multi purpose packaging
• Increasingly advanced digital toner label presses have been introduced over past five years
• Proliferation of new inkjet label presses coming to the market over the same period.
• Digital moving in to packaging
Digital Label and Package PrintingCurrent Status
• Major new press and finishing equipment for label printing launched at DRUPA in May 2012, e.g. Landa, HP, Xeikon, Domino, etc
• More new developments at Labelexpo 2013• Digital label printing now well established• Current installed base worldwide now over
2,300 machines
Digital Label PrintingCurrent Status
Market share of new digital presses installed worldwide as a percentage of total new presses installed
Digital Label Printing
0
500
1000
1500
2000
2500
3000
3500
4000
2010 2015
Electrophotographic Inkjet
Current and forecast growth of inkjet printing for labels to 2015
Where is inkjet in the label world?
Digital Label Printing
Digital Label Printing
Key Facts
• Global digital print market now estimated at over $3 billion
• Value of digitally printed labels growing at 15% + per annum
• Around 95% of gross billings from the installed base are currently for prime labels
Digital Label Printing - summary
Macro Trends for the future
FromInformation CarrierInactive Label or Pack Fixed Information Unsecured DataMinimal Food SafetyHigh Wastage TechnologyUnlimited Resource
ToCommunications MediumInteractive Label or PackVariable InformationSecured and Traceable DataHigh Food Hygiene/SafetyLow Wastage TechnologySustainable Resource
The role and function of labels and packaging will continue to change
Industry focus – How the industry is developing
Thank you for listening