Report Looks At Commercial Print's Packaging Role

Trendwatch Graphic Arts has released its first special report on the commercial printing industry's investment in the packaging marketplace.

Trendwatch Graphic Arts has released its first special report on the commercial printing industry's investment in the packaging marketplace.

The report, 'Printers Eye Packaging Diversification: Opportunities, Process, and Applications', takes a look at what percentage of shops are producing packaging, whether that production is in-house or outsourced, what applications are being produced, using what print processes and in what volumes.

It also looks at the perception of packaging as a sales opportunity, as well as the various challenges that create barriers to entry.

The data in the report are broken down by segment (commercial printers, trade shops), as well as provided in overall aggregate and broken down by shop size.

Current data are taken from the most recent TWGA Printing survey, 21, and compared to the data from TWGA Printing 20, six months ago.

What Trendwatch described as a special bonus section provides selected converter data from Trendwatch's exclusive 2003 survey of the packaging marketplace, providing insight in to how the perceptions, challenges and perceived opportunities of commercial printers and trade shops currently competing in, or looking to diversify in to, the packaging marketplace, compare to those of traditional packaging converters and what that means for the industry.

Trendwatch said that although there is an intimidating 'packaging culture' barrier between commercial print and packaging operations, it is not unscalable.

The number of commercial printers and trade shops with serious investments in the packaging marketplace is growing and they are producing a wide variety of applications beyond the traditional cartons and labels.

But Trendwatch added that the barrier is high and serves an important purpose - weeding out the serious potential players from those who are just playing.

According to Trendwatch, getting involved in packaging requires a dedicated effort in time, resources and sales and marketing.

It is a serious undertaking.

However, the report concluded that there are benefits for those who make the investment.

There are gaps and unfulfilled needs in the packaging marketplace that are well served by the skill sets brought by commercial printers.

Finding them takes time and educating the client base that a commercial printer, rather than a traditional converter, can handle those needs takes finesse.

But it can be and is being, done.

Amongst the report's highlights are the statistic that 24 per cent of commercial printers currently produce packaging in-house, whilst 15 per cent of graphic arts firms are currently producing flexible packaging (non-stand-up pouches) and 15 per cent of commercial printers are producing packaging on a flexographic press.

Further to that, 43 per cent of trade shops are using wide-format (inkjet) printers to produce packaging jobs and for 10 per cent of graphic arts firms overall, packaging is 50 per cent, or more, of their overall service mix.

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