The digital transformation of the printing industry

Do you know that? Do you know this? You are standing in front of the supermarket shelf and every packaging is looking the same. Brand owners realize this, too: They are looking for ways to differentiate from their competitor's in a cost efficient way They are looking for ways to directly engage with the final users Image Source: Siegwerk Druckfarben

How would you decide? What makes us selecting the “right product”? Digitally printed packages allows the Brand Owner to achieve a “one-to-one” vs. “one-to-many” communication: Each package can look differently by having your name on it Reduction of printed material stock Short runs become economically viable Image Source: Siegwerk Druckfarben

Analogue vs. Digital Printing cost per m2 Digital printing does not require preparation of a print object (as e.g. cliché, screen, cylinder …) Digital is cost competitive for short runs Break-even is heavily dependent on application Analogue Digital printed surface The difference in the preparation of the print can also be represented in the cost related to a print: Analogue: The cost of the first printed m² is very high because the cost for the object preparation need to be distributed on very little output. With increasing job length the cost get distributed on more output and decreases per m² printed Digital: Since no object preparation is needed the price for every m² is the same Digital printing has constant costs over print output

Technologies in digital printing Electrophotography Print image is “drawn” on a photo-conducting roll by electrostatic charge Liquid or dry toner is held to the roll by the charge Toner is transferred to substrate by “counter-charge” and fixated by heat and/or pressure Inkjet Droplets are produced as required by an image signal projecting a positive image UV, solvent based and water based inks are used today to print designs Inkjet is able to print flat substrates as well as 3D objects Image Source: Siegwerk Druckfarben Digital printing is composed of two distinct technologies: Inkjet Electrophotography

High value prints with Digital Global print market 2014 (split by printing technologies) Volume CAGR (%) 2013-2018 CAGR (%) 2013-2018 Value +1,0% +0,5% +4,0% +6,0% +13,5% +4,1% 100% = 2.910 bn. m2 100% = 750 bn. € Analogue printing Electrophotography Inkjet Source: Smithers Pira (2014) Digital printing is low in volume output but significant in value Digital printing (EP & Inkjet) are the only growing segments

Main applications of digital printing Share of digital printing from global market value 2012 - 2016 (by end use markets) mio. € Media & Documents 290 2012 288 2016 Advertising 2012 102 2016 104 Labels & Packaging 2012 330 2016 380 Source: Smithers Pira (2014) Image source: Siegwerk Druckfarben Inkjet Electrophotography Analogue printing Penetration of digital is not equal on all segments: Advertising and document printing are today the mains segments for digital printing Labels and packaging are still at their infancy but fast growing Composition of “segments”: Media/Document printing includes: Books, Magazines, Newspapers Forms and Bills Calendars and Newsletters Advertising includes: Banners, Leaflets, Signage, Point of Sale/Point of Purchase

Wide & large format printing Posters Banners Point of Sale Image Source: SCREEN EUROPE, NL

Digital printing: Wide & large format Why Digital? Market highlights Mass customization with very little downtime Low total cost of ownership Advances in drying / curing technology for broader range of substrates Increasing number of applications in areas of conventional and industrial printing Worldwide installed base over 350.000 printers First choice for point of sale, windows graphics, decals, backlit and vehicle graphics Growth in UV, eco-solvent and water based technology Both OEM and 3rd party ink supply options available

Printing on 3D containers Bottles Caps Tubes Image source: Till GmbH

Digital printing: 3D containers Why Digital? Market highlights Minimal batch sizes and zero set-up time Suitable for glass and plastic materials Potential alternative to label or replacement of analogue direct printing Regionalization (language) & Personalization (designs) Still in its infancy, modest number of installed bases as of today Significant growth potential in one- way container segment Printing speed able to cope with filling line speed Already multiple ink and system solutions available for broad range of applications

Printing on Labels Self-Adhesive Labels Wet-Glued Labels Image source: Siegwerk Druckfarben

Digital printing: Labels Why Digital? Market highlights Demand for short runs is supported by major brands’ differentiation strategy Local brands’ growth boosting short run label production Narrow width fitting with digital single pass printing solutions Leaner production and shorter time to market Around 2.000 digital presses installed globally Print quality able to cope with most of the industry standards Press flexibility continuously improving: finishing stations, laser cutting and workflow software Multiple press OEMs serving Label market

Metallic Effect Inks Metallic effect inks for Inkjet printing Quelle: VdL e.V.

Inkjet – Metallic Effect Ink Metallic Effect Ink in Digital? Market highlights Metallic effects are printable with Inkjet inks today Solvent based and radiation-curable inks are available for different print heads Use of metallized substrates can be avoided by selecting metallized spots on demand Digital printing is asking for advanced finishing features like analogue Metallic effects are desired in market segments like e.g. wide & large format, labels, document printing Metallic effects give an unique added value to the products

Conclusion What is digital printing today? Digital printing technologies are the fastest growing printing methods Digital is today already used in mass markets asking for short printing runs: media, documents, advertising and label & packaging printing Digital is offering a unique proposition for brand differentiation, lean production and shorter time to market