While analog presses continue to represent the bulk of new press installations, the adoption of digital presses shows consistent growth that bodes well for digital press distributors. According to InfoTrends’ 2014 Label Market Overview and Outlook, digital presses now account for approximately 25 percent of all press installations worldwide, more than double the rate of placement the industry saw ten years ago.  Valued for their efficiency, ease of use, and operational cost-savings, digital presses are gaining ground. Though analog will likely continue to lead the industry for years to come, brand owners in particular are embracing digital because of its ability to allow them to customize labels for a rapidly changing, consumer-driven global market that demands segmentation and choice.

A “one size fits all” approach to labeling no longer makes sense for many brand owners struggling to connect with increasingly diverse and demanding consumers. Accordingly, long run capabilities may be less in-demand as short run capabilities present more opportunities for brand owners to experiment to reach their audience. This is vital, due in large part to the Millennial-driven consumer economy that expects a personalized, one-to-one relationship with brands. To meet that demand, brand owners are customizing labels in very specific ways to engage subsets of their target markets. For example, they may wish to create labels for one part of the country that differ in tone or style from labels printed for another region. Perhaps they simply wish to expand the flavors or varieties of their product for different demographics and prepare multi-SKU, low volume print applications for these products. Regardless of tactic, a tailored approach demanding short-run production is one benefit driving many brand owners to explore digital capabilities.

The Internet of Things and smart packaging are also offering brand owners more options for personalizing their customers’ experience, and creating more reasons for brand owners to get excited about the short run performance capabilities offered by digital. By 2017, the intelligent packaging market is expected to grow to $1.7 billion. Going beyond QR codes, packaging that can interact with the product inside or the consumer outside is becoming increasingly popular and in-demand. Motivated by a consumer marketplace that is overwhelmingly tech-savvy and constantly evolving, smart packaging demands the short run printing that digital supports. As apps are developed and revised, or new SMS campaigns are developed and launched, brands will seek to showcase their latest high-tech promotions on their packaging and static labels will become less practical. Accordingly, the flexibility and immediacy provided by digital presses allows brand owners to limit their preprinted inventory and reduce costs while keeping the latest technological trends in packaging front-and-center.

In addition to what’s printed on the label, the construction of the label is also influencing digital’s growth as brand owners opt for self-adhesive labels with more frequency than ever before. Although self-adhesives only account for 40 percent of the entire label market, 99 percent of digital printing’s label market is coming from self-adhesive runs. Combining the efficiencies of digital printing with the flexibility of self-adhesive labels offers brand owners operational improvements that can move orders more quickly than analog printing.

The digital printing industry is also on the rise due to its rapid adoption in emerging nations. In 2014, digital printing saw a 10 percent growth in Asian Pacific and Latin American countries, compared to 3 percent growth in Europe and North America. Digital’s ease-of-use, streamlined functionality, and cost-saving potential are of particular interest to printers and converters operating in developing economies. In fact, as businesses develop in these countries, owners are more often than not bypassing traditional flexo presses in favor of digital installations when they expand their operations. It’s a “skipped step” approach that favors digital distributors and makes sense for small start-ups in these newly burgeoning economies.

As digital continues to be adopted on a larger scale, digital press suppliers are cognizant of protecting the investment brand owners, printers and converters are making in their equipment by ensuring that technology purchased today can be easily upgraded tomorrow. For instance, Colordyne Technologies™ 3600 Series allows for digital upgrades and enhancements to be implemented easily and cost effectively as they become available, which protects customers’ investment and ensures that what customers purchase today will remain relevant and usable for years to come. Modular print solutions such as those offered by Colordyne can be tailored to a wide array of in-house printing applications, offering convenience and longevity to users. . By proactively anticipating the technological changes digital will undergo in the years to come, suppliers are laying the groundwork for more and more brand owners to understand the value in adopting digital print technology.

Considering the rapidly changing consumer and business environment, digital printing can certainly be considered a youthful industry with plenty of room to grow. Because technology in general has become so agile and responsive, digital will continue to evolve and improve rapidly in upcoming years, bringing more change and opportunity to the industry than we’ve ever seen. Its capabilities will offer brand owners the ability to customize their labels and operations in affordable ways that analog never could. For brands intent on developing personalized opportunities for end-users to interact with them, the short run and flexible capabilities inherent in digital will continue to hold appeal. And as more and more businesses headquartered in emerging nations gain a foothold within the global economy, so too will the efficiencies and cost-effective benefits of digital continue to attract new users. While analog will continue to be a vital player in the print industry, digital is decidedly on the move.

Taylor Buckthorpe serves as Director of Marketing for Colordyne Technologies Inc., a manufacturer of high speed digital color print solutions powered by MemJet Technologies and headquartered in Brookfield, Wis.