Add Digital Capabilities to your Press

TLMI Digital label Survey - Digital Growth Rates to Eclipse Conventional

The North American Digital Label Study 2015, released by TLMI is sending some of the strongest indications yet of the growing importance of digital print technology to the label industry. The authors interviewed over 100 printers, 40% of which do not yet have a digital press, and 60 brand owners who represent over $1 billion in digital label demand. The goal was to gauge perceptions from both sides of the advantages and challenges of digital technology, and its value in use.

Key among the findings:

• The percentage of digitally sourced label volumes will more than double in five years jumping from 10.2% to 22.7% of the total.
• Brand owners anticipate that digital label consumption growth rates will be up to 7 times greater than those of conventional.
• In five years, digital installations will represent 3 out of every 4 presses sold.
• Inkjet systems growth will outstrip electro-photographic (toner-based) systems.

Production Impacts of Digital

Among the printers who print digitally today, an average of 15% of production had migrated to digital after one year; and after 3 years, digital accounted for an average of 19% of revenues.

On average, digital printers produced 13 jobs per shift, with run-lengths averaging 2,300ft – about one tenth of the average flexo run-length. The study does not examine the contribution to growth and to profit. However, computer simulation models and our clients' experiences have shown this to be a highly profitable business for the label converter.

 Eliminate a Second Pass 

 One significant finding for label printers who are looking for the most efficient digital workflow: “for over 70% of converters, most or all of their digital production requires a second pass for finishing and/or die-cutting.” By leveraging the hybrid printing method, mounting a digital print engine like the DICEweb onto an existing flexo press, no second pass operation is necessary, because the existing tooling is used in-line with hybrid printing. 

The hybrid approach can also help with the top two concerns cited by brand owners and packaging buyers: the perceived higher price of digital short-run production, and the need to re-specify label materials for digital. Not only is hybrid printing with the DICEweb more efficient than a stand-alone printer, but it has a lower investment cost than comparable UV inkjet machines. And, unlike water-based inkjet printers, no special label stocks are required.

Details of the study can be found by emailing info@tlmi.com.