The eighth Drupa Global Printing Industry Trend Report is released, and the printing industry releases a strong recovery signal
The latest eighth drupa global printing industry trends report has been released. The report shows that since the release of the seventh report in the spring of 2020, the global situation has been constantly changing, the new crown pneumonia epidemic has become difficult, the global supply chain has encountered difficulties, and inflation has increased… Against this background, more than 500 printing service providers from around the world In a survey conducted by senior decision makers of manufacturers, equipment manufacturers and suppliers, the data showed that in 2022, 34% of printers said that their company’s economic situation was “good”, and only 16% of printers said it was “relatively good”. Poor”, reflecting the strong recovery trend of the global printing industry. The confidence of global printers in the development of the industry is generally higher than in 2019, and they have expectations for 2023. Candle box
The trend is improving and confidence is increasing
According to the drupa printers economic information indicator net difference in percentage optimism and pessimism in 2022, a significant change in optimism can be seen. Among them, printers in South America, Central America, and Asia chose “optimistic”, while European printers chose “cautious”. At the same time, from the perspective of market data, the confidence of packaging printers is increasing, and publishing printers are also recovering from the poor performance of 2019. Although the confidence of commercial printers has declined slightly, it is expected to recover in 2023.
A commercial printer from Germany stated that “the availability of raw materials, rising inflation, rising product prices, falling profit margins, price wars among competitors, etc. will be factors affecting the next 12 months.” Costa Rican suppliers are full of confidence, “Taking advantage of the post-pandemic economic growth, we will introduce new value-added products to new customers and markets.”
The price increase is the same for suppliers. The price item has a net increase of 60%. The previous highest price increase was 18% in 2018. Clearly, there has been a fundamental shift in pricing behavior since the start of the COVID-19 pandemic, and if this were to play out in other industries, it would have an impact on inflation. Candle jar
Strong willingness to invest
By observing the operating index data of printers since 2014, it can be seen that the volume of sheet-fed offset printing in the commercial market has dropped sharply, and the rate of decline is almost the same as the increase in the packaging market. It is worth noting that the first negative net difference in the commercial printing market was in 2018, and the net difference has been smaller since then. Other areas that stood out were significant growth in digital toner cut sheet pigments and digital inkjet web pigments driven by significant growth in flexo packaging.
The report shows that the proportion of digital printing in total turnover has increased, and this trend is expected to continue during the COVID-19 pandemic. But in the period 2019 to 2022, apart from the slow growth of commercial printing, the development of digital printing on a global scale appears to be stagnant.
Since 2019, capital spending in all global printing markets has retreated, but the outlook for 2023 and beyond shows relatively optimistic sentiment. Regionally, all regions are forecast to grow next year except Europe, which is forecast to be flat. Post-press equipment and printing technology are the more popular investment areas. Jewelry box
In terms of printing technology, the clear winner in 2023 will be sheetfed offset at 31%, followed by digital toner cutsheet color (18%) and digital inkjet wide format and flexo (17%). Sheet-fed offset presses are still the most popular investment project in 2023. Although their printing volumes have declined significantly in some markets, for some printers, the use of sheet-fed offset presses can reduce labor and waste and increase production capacity.
When asked about the investment plan for the next 5 years, the number one is still digital printing (62%), followed by automation (52%), and traditional printing is also listed as the third most important investment (32%). Watch box
From the perspective of market segments, the report said that the net positive difference in investment expenditure of printers in 2022 will be +15%, and the net positive difference in 2023 will be +31%. In 2023, investment forecasts for commerce and publishing are expected to be more moderate, and investment intentions for packaging and functional printing are stronger.
Encountering supply chain difficulties but optimistic outlook
Given the emerging challenges, both printers and suppliers are grappling with supply chain difficulties, including printing papers, substrates and consumables, and raw materials for suppliers, which are expected to persist until 2023. 41% of printers and 33% of suppliers also mentioned labor shortages, wages and salary increases may be important expenses. Environmental and social governance factors are increasingly important to printers, suppliers and their customers. Paper bag
Considering the short-term constraints of the global printing market, issues such as intense competition and declining demand will still dominate: packaging printers place more emphasis on the former, while commercial printers place more emphasis on the latter. Looking to the next five years, both printers and suppliers highlighted the impact of digital media, followed by a lack of specialized skills and industry overcapacity.
Overall, the report shows that printers and suppliers are generally optimistic about the outlook for 2022 and 2023. Perhaps one of the most striking results of the drupa report survey is that confidence in the global economy in 2022 is slightly higher than in 2019 before the outbreak of the new crown pneumonia, and most regions and markets predict that the global economic development will be better in 2023 . It’s clear that businesses are taking time to recover as investment falls during the COVID-19 pandemic. In this regard, both printers and suppliers said that they decided to increase their business from 2023 and invest if necessary. Eyelash box
Post time: Feb-21-2023