Latest Research on the Label Market Now Available for Sale at PRINTNG United Alliance’s iLearning+ Center

While the label market has been among the most consistent segments of the print industry, the past few years have shown that label printers and converters still need to be prepared for the unexpected. In a recent report from NAPCO Research, data on and insights into the rise of versioning, changes in run lengths, and output trends are revealed, along with the strategies label printers are taking to contend with these pressing issues. For the first time, NAPCO Research is making this valuable research available for sale in PRINTNG United Alliance’s iLearning+ center.

SKU proliferation among brand owners has been a catalyst of versioning and short runs for several years now, but the evidence put forth in this report demonstrates that this trend is continuing to impact label converters’ workflows. For example, when asked to indicate whether their total label versions have increased, decreased, or stayed the same over the past two years, respondents overwhelmingly indicated that versioning has increased in their label businesses, with 84% of respondents citing an increase.

This was not a small increase either, with the average being a 30% bump in total label versions experienced over the past two years. As a result of this ongoing trend, label printers and converters are eying technological solutions that can help them process this influx of unique labels. More than one-third of respondents (35%) that stated they have seen an increase in versioning have invested in digital printing and automation solutions as a result.

On the run length side, an ongoing decrease in run lengths has also served as a catalyst to the rise in digital printing adoption throughout the label segment. However, despite the rise of short runs, 71% of respondents to this survey largely indicated that their run lengths had actually increased over the past two years. This increase is evidence of the impact that material shortages had on the label segment due to the pandemic. With converters buying as much material as they could during the height of the shortages, it shifted converters’ and brands’ approaches away from just-in-time ordering. It is also important to note that while more than 70% of respondents stated their average run lengths increased, that does not mean they are long runs. In fact, 34% of respondents stated their average run lengths were between 1,001 and 5,000 linear feet.

Click to enlarge.

Click to enlarge.

With these ongoing trends impacting the label industry, this study sought to understand the strategies and investments label converters have taken on to contend with these evolving times. Investing in digital printing and production solutions emerged at the top of the list, with inkjet specifically receiving a great deal of interest. In fact, nearly one-quarter of respondents (24%) are considering a purchase of a standalone inkjet press, while 23% are exploring hybrid, and 27% total considering dry toner, liquid toner, or both.

For an in-depth analysis of the label printing industry, check out Trends and Strategies in Label Printing and Production, available now in the iLearning+ store from PRINTING United Alliance.