Label Converting Equipment Market Size

Label Converting Equipment Market Analysis

The label converting equipment market is expected to register a cagr of 4% during the forecast period 2021 - 2026. Primarily a technologically-based industry is using conventional letterpress or flexographic printing for label conversion. Today the demand of brand owners for adding value in the label is becoming almost limitless with all in shorter and shorter runs with reduced lead times. While conventional servo drive flexo and offset presses will still continue to have a dominant place in the installed base of label presses for many years, it is digital, particularly inkjet, that will undoubtedly become a longer-term market leader as quality and performance continue to improve. Most certainly, hybrid conventional and inkjet presses will find a growing market alongside stand-alone digital presses in the future. Everything will continue to become more automated which reflects a future trend of the market.

• The rise of customization and premium labels drives the market. The demand is evolving rapidly towards more customization and promotion, which means smaller runs, greater cost constraints and eventually the transformation of the entire digital workflow. According to Big Presence, a digital marketing and sales solutions firm, says that 82% of investors want the companies they invest in to have a strong brand. Brands, small and large, are promoting so-called 'targeted campaigns', where the labels alone can enhance the apparent quality of a product which eventually increases the brand image. Different print effects, such as hot foil stamping, cold foil stamping, and gravure printing are used to embellish the labels to give them a more 'premium' appearance, as are tactile or haptic effects using processes like spot varnishing. Some of these enhancements can even be done digitally. This effectively drives the demand for label converting equipment.
• Increasing automation in machinery drives the market. The growing demands on label converting and greater flexibility and customization are driving the industry towards higher levels of automation across the machinery. Automation has also rapidly spread into the equipment world, reducing plate handling, plate room labor, and eliminating key areas of potential plate damage due to constant handling in label converting machinery. Moreover, the integration of newer technologies, such as UV LED technology, is also rapidly gaining adoption in the equipment world.
• The companies are adopting the solution towards automation. For instance, in 2017, Esko showcased solutions designed to improve lead time and equipment utilization, reduce errors and ensure consistent output quality regardless of the printing technology used. The company highlighted WebCenter QuickStart for Labels which is a communication bundle for label production with pre-configured process flows targeted at label converters of any size.
• The high cost of label converting equipment is restraining the growth of the market. As mostly this machinery is linked with flexographic printing for conversion, the printing plates are the most important and cost of reprographics to get to the final print stage There are also high operational costs that are linked to the use of machine. These relate to things such as costs of electricity which is used to run the machines as well as regular maintenance.