Digital Cartons 2016 is a Good Time. Dr Sean Smyth

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1 Digital Cartons 2016 is a Good Time Dr Sean Smyth

2 Agenda Drupa launches the Digital Packaging show The Carton Market, digital is arriving! Drivers what do brands and retailers want? Barriers Futures

3 Who we are 3 Information Hubs in Europe and the US Working with a Global Network of associates consultants, freelancers and experts Delivering high value information enabling you to make better decisions, faster To serve a World-wide Customer Base

4 Who we serve

5 Dr Sean Smyth Printing technologist Smithers Pira consultant and analyst Research and author Future of Digital Print for Packaging to 2020 Journalist: Smithers Pira; WhatTheyThink; FlexoTech; Digital Labels & Packaging; RadTech; Ink World; PIA Non-exec Director at printing companies

6 Packaging is changing Packaging protects goods, promotes them and informs customers Helps reduce waste It has fed & protected mankind, enabled social changes New upstart brands want professional, high quality packs (for the minimum cost!) In 2016 brands (and retailers) want more: to sell more volume to sell at higher prices Digital packaging can help achieve these aims

7 Packaging is changing More SKUs more variants (size, colour, allergen free, no-fat, no-sugar) more regulation (ingredients, legibility, FIR, pharma regs) event driven (Euro 16, Rugby World Cup, Olympics, movie/tv) more languages Falling run lengths Interacting with the digital world

8 Big brands want to change...

9 Big brands want to change...

10 Big brands want to change... Advertising is almost as important as packaging AG Lafley Chairman of the Board, President, and CEO of P&G

11 Big brands want to change....

12 Big retailers want to change....

13 Brand owner requirements To build emotional involvement with the customer through packaging To Premiumise their brand To gain approval of their brand Its not just cost reduction

14 Personalised dog food JUST RIGHT Purina premium brand Allows them to know the pet Huge owner involvement

15 Digital packaging allows a 50% premium price!

16 Applications personalised condoms anyone?

17 Market Data Constant (2015) value in real changes, eliminates inflation/currency exchange fluctuations Value of cartons from converter includes substrate, design & prepress where converter supplies, not filling Digital includes prototyping Print volumes, equivalent A4 single prints

18 W European folding carton market

19 W European Digital carton market forecasts

20 Why the change now? Remember drupa?

21 Why the Growth in digital? Market drivers technology pull Use digital beside analogue to benefit both New technology coming to market technology push Investment in developing digital packaging solutions is growing New systems in the pipeline Bespoke integrations in place

22 Market drivers for adoption Economic short runs Fast turn round Security and brand protection Engagement Environmental benefits

23 Small agile company response

24 Drivers for Adoption Rapid response

25 Supply Chain pressures Current model is under pressure Many stages & players Too much time Too much cost Too much waste Retailing is changing as consumption changes Upstart brands

26 Agility is important Powerful mantra, be agile Test new ideas rapidly, discard ones that don't work Learn and succeed Workflow, colour management Low/no touch automation of order processing Evolving into a Darwinian Selection Engine Formal innovation processes, there are many techniques to minimise risks

27 Brand owner requirements To build emotional involvement with the customer through packaging Digital cartons do this To Premiumise their brand Digital cartons do this To gain approval of their brand Digital cartons do this Its not just cost reduction Digital cartons add more value

28 Conclusion Digital cartons opens new opportunities and will grow rapidly Understand market dynamics more than litho replacement Workflow, board, print, coating, cut & crease, fold & glue DON T IGNORE THIS OPPORTUNITY!

29 Thank you for your attention Dr Sean Smyth Print Consultant Smithers Pira Leatherhead, Surrey, KT22 7RU UK Phone: www. seaninprint