Disruption as a growth driver
Increased demand for a particular product or service represents both an opportunity (for increased revenue) and also a challenge (competition to meet the need is likely to increase, meaning that not everyone will benefit). Flexible packaging is a case in point – strong growth has been recorded in this sector, so how can converters exploit this?
Adopting digital printing presses is already emerging as a differentiator, with HP Indigo digital press customers growing their volumes much faster than their analogue-only competitors.
Factors driving the growth of flexible packaging
Generational shifts in consumer behaviour and priorities explain much of the explosive growth in flexible packaging. These trends were all in evidence prior to the pandemic, but have since become entrenched. Long runs are becoming shorter and the number of SKUs has increased substantially, all by brands looking to attract consumer engagement through the increase in online purchasing.
Flexible packaging has benefited from a general decline in trust of traditional brands and shopping experiences. Pouches and other flexible solutions are aligned with consumers abandoning larger brands in favour of artisanal and small-batch products, opting to shop from home instead of in malls and taking a more critical look at companies’ sustainability claims and credentials.
The ground is moving beneath our feet
FMCG is by definition a dynamic sector, and the ability to be first to market in response to a pivot in priorities – and to be agile if not proactive in terms of meeting or anticipating changing demand – plays into the hands of flexible packaging solutions, and call for the minimal lead times and short run prowess of digital printing presses.
Reduced lead times also enable converters to help their customers meet brand requirements for personalisation and smart packaging. These enhancements offer enhanced experiences for consumers and strengthen and deepen brand loyalty.
Digital print also offers benefits to companies that produce small quantities of multiple SKUs or which change their product line-up regularly.
The ability of digital print to disrupt the packaging sector mirrors the way that consumer trends are disrupting established retail industry patterns.
Additional benefits of digital printing
When it comes to flexible packaging production, most converters still rely on analogue printing technology. However, the clear benefits of digital printing presses are starting to tip the scales in favour of newer technology.
Digital presses completely alter the economics of short runs and frequent design changes, making them profitable while still offering excellent value to customers. Being able to switch seamlessly between jobs means that converters can complete more jobs per day and offer shorter lead times to their customers.
Increases in productivity can be achieved at lower price points and without the need to hire additional staff. Digital also enables more sustainable packaging options – a key consumer concern as people look more closely at the ‘green’ promises made by brands.
In our always-online, hyper-connected world, digital printing makes smart packaging a reality. Immersive encounters with packaging can motivate purchase and repurchase decisions, contributing to sales and turning the curious into repeat buyers.
The role of HP Indigo
As a global leader in digital printing presses for flexible packaging, HP Indigo develops technology solutions that allow for the optimisation of many different kinds of flexible packaging. HP Indigo has been driving innovation in the sector since 2014 and customers can point to unprecedented volume increases.
The number of HP Indigo customers that subsequently order additional digital printing presses is a testament to the compelling business case for converters to switch to digital in order to take advantage of the rise of the pouch (and other forms of flexible packaging).
To learn more about Kemtek’s range of technology solutions, contact Carl Zerle on (+27) 083 632 3232 or by e-mail at carlz@kemtek.co.za, or Wendy McLoughlin on (+27) 082 417 7188 or by e-mail at wendyl@kemtek.co.za, or visit https://kemtek.co.za/prod_brand/hp/.
Gain more insights from Wendy and Nici here: PPM – February 2023 Magazine – Packaging And Print Media (packagingmag.co.za)
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