Transcript Labels & Packaging Group – Gallus Annual Meeting

Industry focus – How the industry is developing
Mike Fairley
Director 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
Estimated worldwide print value 2012 in $B
100
90
Value in US dollars
80
$3 B
70
60
50
40
Digital Print
$89 B
$79 B
$73 B
Folding Cartons
Labels
30
20
10
0
Flexible Packaging
Total value
Market overview
The global label market by region
Estimated breakdown of the global label market in 2012. All
kinds of labels now in excess of 46 billion sq.m
Eastern Europe
7.80%
South America
5.6%
India 1.4%
Rest of World
0.6%
Japan 7.20%
China/Asia Pacific
21.9%
North America
28.4%
Western Europe
27.1%
Market overview
Global Markets Estimated per Capita Label Consumption
Scandinavia
17-18m2
USA 15-16m2
W Europe E Europe/ME
12-15m2
6-7m2
India 0.9m2
Brazil 2.2m2
China 0.9m2
SE Asia 2-3m2
Market overview
Total Western European label market by type of label
4%
7% 3%
45%
41%
Self-adhesive
Wet Glue
sleeving
In-mold
Others
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
‘Private labels’ are now the biggest brand in the world
Walmart private label
126
Nestle total company
75
P&Gtotal company
70
J&Jtotal company
51
Unilever total company
50
Aldi private label
41
Tesco private label
36
PepsiCo total company
Worldwide sales $bn
33
Royal Ahold private label
27
Metro Group private label
26
Coca Cola total company
23
Danone total company
17
ITM(Intermarche) private label
14
0
20
40
60
80
100
120
140
52% of all brand product launches in 2011 were ‘Private Labels’
Major Beer Trend
Production
Consumption
Number of companies and brands (microbreweries)
MORE COMPETION
The image, the label, is becoming more
and more important as happened in
Source: Manter
the wine sector
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
Digital Label and Package Printing
Current Status
• 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 Printing
Current 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 Printing
Market share of new digital presses installed worldwide as a
percentage of total new presses installed
Digital Label Printing
Where is inkjet in the label world?
Current and forecast growth of inkjet printing for labels to 2015
4000
3500
3000
2500
2000
1500
1000
500
0
2010
2015
Electrophotographic
Inkjet
Digital Label Printing
Digital Label Printing - summary
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
Macro Trends for the future
The role and function of labels and packaging will continue to change
From
Information Carrier
Inactive Label or Pack
Fixed Information
Unsecured Data
Minimal Food Safety
High Wastage Technology
Unlimited Resource
To
Communications Medium
Interactive Label or Pack
Variable Information
Secured and Traceable Data
High Food Hygiene/Safety
Low Wastage Technology
Sustainable Resource
Industry focus – How the industry is
developing
Thank you for listening