A recent survey from Packaging World and The Graphic Communication Institute at Cal Poly sought to find out how companies are approaching new technology and packaging tools. According to Packaging World, the survey had two primary aims. First of all, to determine what print-related digital tools can help Consumer Packaged Goods manufacturers market their products more effectively. Secondly, the organizations wanted to determine what the perspectives of CPG companies and suppliers when it comes to this space.
What innovations are coming?
The majority (48 percent) of CPG companies said they actively use packaging as a central tool in marketing and messaging, which means they could be on the lookout for innovative methods. However, more than 40 percent of CPGs were not looking into significant digital trends at all. Companies that were looking into to digital trends were actively devoting resources and funding for the following:
- Digital Printing
- Near-field communication
- QR codes
- Augmented reality
- Printed electronics
- 3D printing
Greater digital adoption is on the way. The survey also found that 25 percent are currently printing at least some SKUs with digital methods. Ten percent have purchased a digital press for use in house. Another 26 percent are researching or plan to start researching digital. Only 19 percent are not planning to do so.
A whopping 80 percent of convertors say that flexographic and traditional printing are enough to meet customer needs. However, 62 percent of this group also indicated that they struggle with short runs and 94 percent agree that lead times are getting shorter.
Digital is on the brink of wide-scale adoption
According to What They Think, one conclusion that may be drawn from the study is that the greater adoption of digital technology is inevitable. In other words, customers increasingly want what digital is able to offer: quicker turnaround and more cost-effective short runs.
Packaging companies that put effort into researching upcoming technology will end up pulling ahead when it comes to meeting customer needs, whether it’s finding more uses for digital printing, or looking further toward augmented reality and near-field communication or even utilizing 3D printing for more effective prototyping.
Digital printing is the closest to wide-scale adoption out of any other technology listed. Packaging World Cited several comments from CPG companies.
“Digital printing has improved to the point of challenging litho processes,” said one responder. It accommodates faster turnaround, lower runs, and customization for the demands of the customer. It has enabled us to react to urgent demands, such as regulatory revisions, trial packaging, bonus packaging and promotional materials for shows, demos, focus groups, national meetings, training sessions, etc.”
CPG perspectives
CPGs have a positive outlook on digital printing overall. Almost 90 percent agreed or somewhat agreed that digital printing equipment manufacturers understand regulations in their industry. In addition, companies agree that manufacturer do a good job of educating companies on their capabilities. Finally, 83 percent of companies indicated that if education regarding marketing innovation through packaging were available, they would consider participating.
Overall, most companies that aren’t already using digital printing technology for some SKUs are seriously considering doing so. As the marketplace continues to change, digital printing tools could be the best choice. Digital printing allows just-in-time manufacturing, which is catching hold as the consumer desire for a greater number of products increases. Another notable benefit of digital is the ability to personalize it to individual customers or customer groups.
Nosco has always been at the forefront of the digital revolution, and it's good to know that more companies are interested in these new trends. Once customers embrace what digital has to offer, this technology could be a serious game changer for many companies in the CPG sector and beyond.
