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      Print Decorating, Binding and Finishing

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        Industry Trends

        The Neuroscience of Touch

        September 16, 2024

        This example of elegance uses four-color process printing with a spot reticulating varnish, gold pearl UV coating and a rainbow foil.

        How the sense of touch creates physical and emotional experiences that engage customers, drive sales and build brand loyalty.

        By Vicki Strull, design strategist, Vicki Strull Consulting

        As designers, marketers, printers and converters, most of us can’t help but think about the power of touch when we think about the essence of print marketing and packaging. Over the past several years, the latest research attests to the relationship between touch and human emotional connection. The importance of special effects and embellishments for the entire print and packaging industry can be summed up quite simply: touch creates memorable customer experiences that build connection, sales and brand fans.

        To achieve credibility, this packaging, with bold typography and color blocks, is printed using a four-color process, chrome silver and a spot pearl UV coating.

        The Neuroscience of Touch

        There are dozens of studies on the sensory connection of touch. Neuroscientists have discovered that more than half of our brain energy is devoted to processing sensory input. The part of the brain that receives input from our sensory receptors is called the somatosensory cortex, and a significant portion of that is devoted to our sense of touch.

        Findings like these are revealed in “The Neuroscience of Touch,” an extensive piece on “neuroscience, communication, paper, persuasion and touch,” conducted by Sappi North America in conjunction with neuroscientist Dr. David Eagleman. ¹ For example, one of the questions explored in the research is whether or not we remember content differently when we read it digitally (such as online or on an iPad or Kindle) vs. when we read it on paper (such as a newspaper, catalog, magazine or book).

        When we consume content online, we tend to read or scroll pretty quickly. But when we read something on paper, we engage in touchpoints, such as folding down a page or marking an item or highlighting a passage. Actions like these help us remember the content better, longer and more accurately. That’s the mental sensory mapping that occurs in our brain when touch is involved. The answer is yes, we do remember content we read on paper better than content we read online.

        Following that study, researchers began to wonder if the medium of paper itself could explain the memory advantage of print vs. digital. Turns out, that is exactly what makes the difference. One theory is that the physicality – the realness of print and packaging – has a powerful effect on how we comprehend and retain messages, as compared to digital mediums. ² And, because more parts of our brain are activated when we are touching or holding a printed piece or packaging, we again are creating stronger memories and remembering the content better.

        Touch, Texture and Trust

        This tactile research also applies to substrates, special effects and embellishments. A texture on a package may encourage someone to take it off the shelf or hold it a little longer. That kickstarts a connection to the product or brand that is both physical and emotional. It affects our perception of the product’s quality and value, too. And since research shows that 95% of our purchasing decisions are subconscious and based on emotions ³, you can see how haptics drive sales. One more important finding is that because paper and paper-based packaging have a tangible quality – that realness mentioned above – humans also put greater trust in it. And trust is essential to building brand loyalty.

        Recently, Sappi partnered with Clemson University to undertake a series of custom research studies to compare premium packaging and non-premium packaging to see which sold better. For the studies, premium packaging was defined as printed on Sappi’s Spectro®, a solid bleached sulfate (SBS) paperboard of the highest quality, and with at least one special effect or embellishment – namely metallic foil, spot gloss or embossing. Non-premium packaging was defined as printed on coated recycled board (CRB), typically used for household goods or nonfood-contact dry food packaging, such as cereal, crackers or processed foods.

        To test the comparison, 60 participants shopped in a mock retail store. One data point became very clear: people overwhelmingly chose the premium packaging over the plain. They touched it, held it, turned it over in their hands. Specifically, 93% of people chose to purchase premium; they also chose the packaging with metallic foil 50% more often than any other packaging.

        “The Packaging is the Product.”

        Sappi North America’s Standard 7

        Twentieth-century graphic designer Saul Bass liked to say, “The packaging is the product.” For examples, see Sappi’s Standard 7, “A Guide to Designing for Print: Tips, Techniques and Methods for Achieving Optimum Printing Results.” On one page, a brand that uses a uniquely shaped box with subtle color and jewel-like metallic foil creates a sense of elegant luxury beyond the product itself. On another page, a package with bold typography, pearlized graphics and straight-forward information offers the credibility of a high-quality brand that reassures shoppers. In another instance, a package with muted gradations and a spot gloss wave pattern evokes serenity and tranquility. All of these examples show how packaging becomes the product, how it reflects the brand and how it creates a positive perception that gives the consumer confidence, builds trust and creates a memorable customer experience so people will choose that brand. Sensory embellishment can drive that.

        Although multiple techniques are both inspiring and effective, the Sappi and Clemson study showed that even just one embellishment, just one special effect, can have a very big impact on consumer behavior and conversion.

        Outside the Box: From Packaging to Other Touchpoints

        The data regarding the power of touch and the influence of haptic techniques also are relevant to general commercial print, marketing materials, direct mail, catalogs, magazines, hang tags and book covers. Marketers and printers recognize that these various touchpoints are all critical for creating a comprehensive customer experience of a product or brand. Consistency of design, story, color, quality and imagery across the digital and print world is imperative. Everything needs to work together as an integrated, omnichannel marketing strategy, with a cohesive look and feel, while sensory print and packaging reinforce the entire branding ecosystem and enhance the human emotional connection.

        With today’s competitive marketplace, brands continually are looking for new and more powerful ways to connect with their consumers and create memorable experiences. While digital may be an early impression consumers see via e-commerce or online ads, print marketing materials and packaging drive the connection, the engagement, the influence and the sale.

        Vicki Strull has more than 25 years of experience in the marketing and design industry as a brand strategist, creative director and packaging designer. She has advised both emerging and top-tier brands, such as Sappi, HP, Bayer, Coppertone, Pizza Hut and Wildfare, on how to leverage the power of design and packaging to increase sales, create new revenue streams and build brand loyalty. In addition to writing articles in global trade publications, Strull is an international speaker and an adjunct professor at Tulane University. Join fellow trendsetters at vickistrull.com or follow her on LinkedIn @vickistrull.

        Reprinted with permission from Sappi.

        See and feel how Sappi makes packaging come alive through “The Standard” by ordering your own copy at https://go.sappi.com/l/405492/2023-10-23/gnkx9c.

        References

        1. Dr. David Eagleman is a neuroscientist, author, and adjunct professor at Stanford University.
        2. “How the Medium Shapes the Message,” study referenced by Dr. David Eagleman; see more at www.SappiPops.com
        3. Harvard Business School Professor Gerald Zaltman, Working Knowledge, “The Subconscious Mind of the Consumer (And How To Reach It)”

        Trading Card Trends 2024

        June 11, 2024

        By Jeff Peterson, editor-in-chief, PostPress

        The trading card industry continues on a positive trajectory. Just the sporting trading card industry alone expects to reach over $2881.7 million by 2028. The industry was strong before the pandemic, but COVID-19 sparked a resurgence that has continued today and is expected to continue well into the future. Other trends that have sparked growth include NFT (non-fungible tokens) integration that offers a novel digital experience, increases in special editions and autographs, and the overall online marketplace that has facilitated the ease of buying and selling trading cards.

        At the core of the design of today’s trading cards is the use of specialty embellishments to help create differentiation and value. The creativity and application of metallics, specialty UV coatings, laminates and other embellishments continue to grow and prosper.

        At the recent 2024 Print Embellishment Conference (sponsored by FSEA), one of the panels included a group of experts involved in the production of sporting and gaming trading cards. With the conference taking place in Dallas, Texas, the epicenter for trading card production in the US, the event provided a perfect landscape to bring sources together from different sections of the production process. The panel included Brandon Lesley, Fanatics; Jim Singer, Brodnax 21C Packaging; Stefan Congram, Cartamundi; and Doug Fontana, Xplor Group.

        Trading cards (both sports and gaming cards) have seen a new spike in popularity in the last few years. Can you discuss why you believe this has happened, and do you foresee this growth continuing in the future?

        Lesley: During the pandemic, people found new ways to spend their time and money, and people really got back into collecting. And, I predict the market will continue to increase and remain steady over the next 10 to 20 years for sure.

        Singer: We have been printing and embellishing trading cards for many years. We have moved to cold foiling even base cards that are not the main collectibles. We also have been building up our digital workload and recently added 40″ digital printing and digital embellishment processes to our operation.

        Fontana: I believe the pandemic certainly had a huge impact, with people staying at home and looking for hobbies. That clearly was the reason for the spike. We do a great deal of the finishing work on the trading cards, and the innovative ideas are amazing and are keeping the collectors interested.

        Congram: We work on the gaming side of trading cards, and the pandemic certainly had a major impact. A lot of people who played board games in the 1990s as kids were bringing the board games back out again. And, coming out of the pandemic, there have been new licenses and new entrants in the gaming market that are sparking even more growth.

        Both metallic and coating embellishment technologies continue to dominate the design and production of trading cards. Why do you believe this is the case? What drives the use of specialty effects and embellishments for cards?

        Congram: It is the nature of the product itself for both gaming and sports cards. Collectors receive the cards in a sealed pack, and it is all about the chase. It is a treasure hunt. So, the nicer the piece of treasure is, the more valuable that chase card is that you’re looking for. The embellishments elevate the aesthetics of the card of that player and directly drive up the value of the card.

        Fontana: Embellishments dominate the card world. It is the appeal and the hunt for the perfect card – a card that someone else doesn’t have. The trading card companies keep asking us to push the limits with specialty effects.

        Singer: With new digital embellishment technology, set-up time is very quick and the tooling is zero, so we can provide all types of samples and prototypes and do a lot of innovative things with the cards. This provides the trading card companies additional choices for foils and specialty coatings.

        Lesley: Collectors want to feel and touch things. We live in a digital world where everything is disposable. When people buy cards, they keep them. We discuss this with our designers all the time. You are designing something that someone can pass down to their grandchildren, as opposed to marketing materials or a digital asset. Embellishments make a difference because they create emotion for the collector as they go through packs – they are looking for something that really jumps out, as well as the texture and the shininess of it. People want something that makes them feel different as they break open a card pack.

        What types of embellishments are you seeing being used on trading cards? Are you seeing growth in any specific type of embellishment technique or process?

        Singer: We have invested a great deal in digital embellishment technology for trading cards, opening up new opportunities. We can create an etching effect using the raised polymer over the top of the foil with stunning effects. We also can get very fine line work with foil and spot coatings with our digital embellishment technology. We continue to try to innovate. Recently, we laid down a cold foil on a second surface so you can see through the adhesive to the foil. When you look at it from the front side, it looks like a piece of glass. The sky is the limit because our customers always are asking – what if we do this?

        Fontana: We have been seeing a great deal of clear plastic, synthetic paper and other variable stocks. There continues to be R&D on different substrates and embellishments.

        Congram: Certainly, different types of paper and substrates are being used. Some of our new games want a specific holographic pattern developed for them that has never been seen before. Three-dimensional holograms are making a comeback, too. I have seen new requests for registered holograms or patterns. The holograms also are important for authentication or anti-counterfeiting.

        How has the increase in digital embellishment processes enhanced the growth of digital for larger runs that are done more conventionally with hot or cold foil processes?

        Fontana: Digital embellishment technologies have allowed printers and finishers to be extremely creative for those special valuable cards in a pack. The lower-value cards go through embellishment processes as well – usually more traditional foil stamping, UV coating or cold foil. I believe that is where it is. The digital embellishment processes are being used for high-end, difficult-to-find cards in each pack.

        Singer: Even more standard cards include cold foil and other processes, so the expectations are higher for every type of card. We, hypothetically, can run a mass volume with our traditional platform and through our digital processes, adding additional embellishments on certain cards. All the processes are working together – conventional processes with digital – creating even cooler, more interesting cards.

        What types of changes do you predict for the trading card industry in the future? Do you believe embellishment processes will continue to be an important part of the industry moving forward?

        Lesley: In the next three to five years, embellishments will continue to be a very important part of the trading card market – probably the most important part. You have to create value in different ways, and I think you do that through embellishments. Innovations and new processes will continue to happen. We have done more testing in the last year than we have in the previous six years on new processes and ideas and how to use them on cards.

        Congram: I believe the complexity of processes will be a given. It’s not going to get simpler. We continue to have requests to make the creativity for our games and cards more exclusive. I predict more short runs and more frequent releases (drops) in the market. However, costs still will be a factor. We will have to find ways to keep costs in line. As the rarity model sort of shifts, and we want to give more people more rare cards, we are going to see the evaluation of production costs more heavily scrutinized.

        Steady Growth for North American Folding Carton Market Predicted Through 2027

        March 18, 2024

        Submitted by the Paperboard Packaging Council

        As the world began to move on from strict measures to control the spread of COVID-19, 2022 started to provide the first insights into what the ‘new normal’ would be. Stuck in quarantine and flush with stimulus cash, consumer spending on goods during the pandemic drove an unexpected surge in carton demand. Normalization trends have seen that spending shifting away from goods and back toward services. How will different end-use markets react to the shifting spending? What trends will drive carton shipments in the coming years?

        The past year also has forced consumers to deal with levels of inflation unseen for decades. How will the market react to inflation many consumers have not seen in their lifetime? In this uncertain environment, understanding the underlying trends that drive the industry is more important than ever. This report provides a detailed examination of the US and Canadian carton markets, how they operate and the factors driving future trends. It also contains a deep dive into the 17 end-use markets that are the primary sources of demand for folding cartons, with an investigation into past and future trends for spending, trade, production and carton shipments to each end-use market. Additionally, the report includes key takeaways that summarize the study findings for the cartonboard market in the United States and Canada as well as for each of the end-use markets that drive carton demand.

        Outlook summary

        In 2022, as the world began to move past the COVID-19 pandemic, there were concerns about how markets would react as the economy moved toward a ‘new normal.’ Carton shipment growth had been in decline since the Great Recession. Prior to 2020, losses in shipments largely were the result of continued headwinds facing major processed food and consumer product companies. Processed food exports were challenged by the appreciation of the US dollar in 2015, which trickled down to recycled boxboard demand and folding carton shipments. Over the last decade (2010-19), folding carton shipments were under persistent downward pressure and declined at an average annual rate of 1.2%. Since the Great Recession, only four years have not experienced a decline in shipments: 2014, 2017, 2020 and 2021. When COVID-19 hit in 2020, industrial production dropped 7.2% and consumer spending fell 3%. Consumers, however, flush with stimulus money and stuck in lockdown, greatly increased their spending on goods, helping boost carton shipments to some of the strongest years in recent history. Carton shipments recorded extraordinary growth of 5.5% year on year in 2020. These gains were maintained in 2021 when shipments grew another 0.2%. With the remaining pandemic restrictions lifted in 2022, spending started to shift away from goods and back toward services, but strong inventory rebuilding throughout the supply chain helped push shipments up another 4.5%. While 2022 had the highest volume of carton shipments since 2010, it still was 8.7% below the pre-recession peak in 2007.

        The COVID-19 pandemic and the associated recession saw spending shift from services to goods, which had a significant impact on folding carton shipments. While consumer spending in 2020 declined 3% and spending on services dropped 6.2%, nondurables spending increased 2.7%. In 2021, consumer spending rose 8.3%, with nondurables spending increasing 8.8%. Spending on services in 2021 saw a partial recovery, rising 6.3%. In 2022, spending grew 2.7% but began to shift toward services, which increased 4.5% for the year. While still elevated, non-durables good spending dipped 0.5% in 2022. Consumer spending on processed food witnessed strong growth of 5.7% and 3.7% in 2020 and 2021 respectively. With people returning to restaurants and fewer people working from home in 2022, processed food spending dropped 4% in 2022. Lockdown measures and consumer wariness to return to in-person dining caused spending on food service to contract 21% in 2020. Food service spending grew 23.5% in 2021 and another 9.8% in 2022, finishing the year 7.2% above 2019 prepandemic levels. The gains in folding carton demand reflected consumer spending trends. The restocking seen during lockdowns fueled a lot of the growth in shipments. While e-commerce supported some growth in folding carton demand, this will change in the medium term. Folding carton is best suited for shelves in brick-and-mortar stores. However, the shift to e-commerce for dry foods and non-food products could create a separate packaging and delivery channel, which could shift market share from recycled boxboard to corrugated packaging.

        Additional headwinds include changing consumer behavior and the increasing demand for non-carton-intensive products, such as liquid soaps and detergents.

        Economic uncertainty, lower levels of consumer spending on goods and an end to the inventory rebuilding cycle, which helped drive carton demand higher in 2021-22, will cause carton shipments to drop an estimated 3.8% in 2023. In the years that follow, however, macroeconomic indicators suggest that demand for folding cartons should continue its positive, albeit slow, growth. Over the forecast period of 2022-27, we estimate that folding carton demand growth will average 0.4% annually, reaching 5.4 million tons by 2027. We anticipate output growth in nondurables, which comprises many carton-packaged goods including processed foods, will expand 0.7% over the forecast. General economic fundamentals in the US economy, such as the unemployment rate, will remain strong. A potential recession is becoming more of a concern for the near future as inflation eats into consumer budgets, but growth will remain strong over the forecast, with consumer spending growing 1.7% in 2022-27. In addition to the overall economic performance, there are other factors that play an essential role in folding carton growth dynamics, such as shifting consumer spending habits, substitution away from plastic packaging and efforts to reduce packaging waste.

        In 2020, Canadian folding carton shipments increased significantly by 3%, but decreased 0.3% in 2021 before jumping 3.7% in 2022. Tonnage volume reached 446,000 tons, translating to C$1.25 billion. The macroeconomic environment in Canada over the outlook will be supportive of carton shipment growth; however, the planned closure of a cartonboard mill in 2026 will reduce Canadian folding cartonboard capacity by nearly 30%.

        This will greatly reduce the amount of folding cartons that can be produced and shipped in Canada. As a result, folding carton shipments are expected to decline by 2.7% per year over the next five years and fall to 388,000 tons by 2027.

        On prices, the situation is somewhat challenging, particularly for independent converters, mainly due to cartonboard prices consistently outpacing actual folding carton prices for several years. To provide some perspective, market prices for cartonboard grades increased at a 5.1% average annual rate from 2012-22; over that same 10-year span, folding carton average values per ton increased by an average of 2.3% annually. Coming out of the recession, average carton values were relatively stable in 2009 and 2010, but average boxboard prices in 2010 were 5.3% higher than in 2008. After boxboard costs increased another 7.4% in 2011, converters were forced to raise folding carton prices to prevent any further margin erosion but only gained 2.3% in average carton values. From 2012-17, the folding carton average value per ton fell at an average of 0.5% per year, losing ground on boxboard prices, which grew at a 1.5% rate. Around 2014-16, the flood of folding boxboard entering the global market provided some temporary leverage to independent converters in price negotiations with suppliers. However, mill closures reduced capacity, and with demand and producer costs rising, boxboard prices shot up significantly, swinging the market back in favor of integrated producers and sellers of boxboard to the open market. Over the past five years (2017-22), prices have become a more significant challenge for independent converters, as boxboard prices grew at an average rate of 8.9% per year, while the average value per ton for folding cartons rose just 5.2%.

        The US folding carton end-use markets can be grouped into three broad categories: growth, mature and declining. Growth markets are classified by average annual growth of 1% or more. According to our analysis, four end-use markets are poised to grow by more than 1% per year. Nine end-use segments are classified as mature markets and are expected to maintain current levels of demand over the five-year forecast cycle. The remaining four market segments are classified as a declining market this year. The end-use markets analyzed in the full 2023-24 Trends Industry Outlook & Market Data Report are:

        Food products 

        • Beverages
        • Cereals /milled grains
        • Confectionary
        • Dairy
        • Dry foods
        • Frozen foods
        • Meat
        • Perishable baked goods
        • Retail carry-out

        Non-food products

        • Cosmetics & toiletries
        • Hardware & household supplies
        • Converted paper products
        • Pharmaceuticals
        • Recreational & sporting
        • Soap & detergent
        • Tobacco
        • Miscellaneous

        The entire 2023-2024 Trends Industry Outlook & Market Data Report for the folding carton industry is available through the Paperboard Packaging Council (PPC). For over 90 years, PPC has been the North American association for converters of paperboard packaging and their suppliers. PPC works to grow, promote, and protect the paperboard packaging industry while providing its members with resources and tools to compete successfully in the marketplace. For more information, call 413.686.9191 or visit www.paperbox.org.

        From Print to Finishing: 4.0

        December 11, 2023

        Submitted by Messe Düsseldorf

        Continuously networked, digitally controlled, quality-monitored, fully automated, vertically integrated from the sensor to the cloud, and horizontally integrated across company boundaries – these buzzwords summarize the most important technology trends on the way to Industry 4.0. What is more important for users is what concrete benefits they will derive from this. Answers can be found by looking at the economic development in the print and packaging industry:

        • Cost pressure and competition are increasing.
        • The globalization trend continues.
        • Customers are becoming more aware of quality and the environment.
        • Run lengths are falling, large orders are being called off in batches as required.
        • Demand for individualized/personalized print products is increasing.

        Print and Finishing 4.0 provide the right answers to these challenges. Automated, inline, quality-monitored data and process chains simultaneously guarantee maximum efficiency and maximum quality. Inspection systems detect minute color and position deviations in print, embossing or finishing at every stage from artwork to postpress and find missing dots, commas and faulty characters across all languages.

        Where the human eye cannot keep up at all or only slowly, image processing ensures process reliability, precision and efficiency when setting up new print jobs. Startup waste and misprints can thus be reduced to a minimum. This fully automated makeready of new jobs and the seamless linking of previously separate work steps to form continuous process chains are the keys to successful, high-quality production, despite falling run lengths. The more intelligent and autonomous the print and packaging technologies, the less dependence there will be on the experience of qualified specialists, which only is accessible to a limited extent in many places.

        Thanks to international standardization efforts, machines and systems from different suppliers usually now can communicate smoothly. The Open Platform Communications Unified Architecture (OPC UA) provides the appropriate framework that is being recognized by more and more industries and players. Where a continuous flow of data from prepress to postpress is ensured, process linkage quickly follows suit. Instead of the usual stagnations between individual process steps, the duration of which depended on employee availability, a continuous production process is established. Capacity utilization increases, the need for storage space decreases and monotonous tasks, such as breaking out punched folding boxes, no longer have to be done by hand.

        At the same time, data-based processes increase flexibility. Finishing 4.0 solutions compete with the claim to produce error-free from the very first copy – and thus to reduce to a minimum the expensive rejects of the already printed, cut and finished intermediate products at the end of the 4.0 process chain.

        But this only covers part of the novel structures. In the background, sensors along the process chain continuously collect machine and production data. Some of this data is processed decentrally and cost-efficiently with edge computers close to the production line in order to feed the information obtained back to the control and regulation systems in the process without any loss of time. The larger, less time-critical part of the data flows into the cloud for further use and now increasingly AI-supported analysis.

        Analogous to this vertically integrated data chain, horizontal integration ensures close organizational networking of the players along the value chain. This allows previously separate competencies and know-how to be brought together. Users, suppliers of production hardware and software, developers of a wide variety of substrates and consumables, and research institutes form cooperation networks to jointly further develop print and packaging technologies and process chains and better align their respective products and processes. In addition, data integration and networking create the necessary transparency for efficient recycling and longer machine service lives, for proactive maintenance, refurbishing – and thus for the transition to the circular economy.

        Last but not least, horizontal integration paves the way for simplified digital order processing, accounting, costing, personnel and order planning, benchmarking, inventory management and much more.

        A final important aspect concerns the operation and service of print, packaging and finishing technologies. As the database continues to grow, the effort required to integrate new human-machine interfaces (HMI) and workflow solutions is decreasing. Via smartphone or tablet, operators, service specialists, production planners and managers can access current machine and production data at any time. They carry the control station of the smart process chain with them at all times. Whether it’s troubleshooting or planning maintenance and repairs; an overview of spare parts, consumables and operating material availability; documentation; track and trace functions or forwarding printed rolls and sheets to finishers and postpress – in the process world of Print, Packaging and Finishing 4.0, all that’s needed for manufacturing execution is the mobile device in a pocket. This also is an effective antidote to unproductive downtime in analog, highly segmented production.

        Meanwhile, the trend is toward HMI solutions that support operators and assemblers in maintenance procedures and repairs via augmented, mixed or virtual reality (AR/MR,VR). Especially where skilled workers are scarce, this use of data and digital networking also opens up potential for a highly productive print and packaging world of the future.

        Source: Messe Düsseldorf. For further information about drupa 2024, contact Messe Düsseldorf North America; telephone: 312.781.5180; email: info@mdna.com; visit www.drupa.com.

        The Importance of Paper in Learning and Literacy

        December 11, 2023

        By Kathi Rowzie, president, Two Sides North America

        Over the last two decades, technology has become part of almost every facet of our lives. The expansion of broadband, smartphones and portable technology has changed how we communicate, access information, work and learn.

        While many of these changes are positive, there is growing evidence that this isn’t always the case. In recent years, there has been a gradual shift away from paper-based learning materials in schools toward digital and online tools. This shift accelerated rapidly during the pandemic when almost all schools moved lessons online. Research has shown that this increasing reliance on digital methods and resources may be negatively affecting the ability of students to learn and remember information. There is also growing concern about the impact of digital technology on mental and physical health.

        Digital vs. paper-based materials: Learning

        A 2018 meta analysis examined 54 studies involving more than 171,000 readers that compared reading from digital text with reading from printed text. The analysis found that comprehension was better overall when people read printed as opposed to digital texts.

        Similarly, a study involving millions of high school students in the 36 countries of the Organization for Economic Cooperation and Development (OECD) found that those who use computers heavily at school “do a lot worse in most learning outcomes, even after accounting for social background and student demographics.” Another analysis revealed that fourth-grade students (approximately 9 to 10 years old) “who used tablets in all or almost all their classes had, on average, reading scores 14 points lower than those who never used them – a differential equivalent to an entire grade level.”

        Patricia Alexander, a psychologist at the University of Maryland who studies how we learn, discovered that although students think they learn more reading online, tests show that they actually learn less than when reading print. Part of the problem can be attributed to the speed with which we typically read text on a screen, much of which is easy-to-understand text messages or social-media posts. When it comes to reading more complex information on screen, which requires more attention and thought, people still tend to scan it rather than read it properly.

        As well as encouraging us to read quickly, reading online usually involves scrolling, which can make it hard for the brain to create mental maps that help us to remember. When reading a printed book, for example, it’s easy to know roughly which page you’re on, but that’s far more difficult when scrolling through text on a screen.

        A 2019 study revealed that it’s not just when scrolling that the brain struggles to make mental maps. When a group of 50 participants was asked to read a 28-page story, half of them read a printed version and the other half read the story on an e-reader. Those reading the printed version understood the chronology of the plot better than those reading the digital version. The researchers suggest that “the haptic and tactile feedback of an e-reader does not provide the same support for mental reconstruction of a story as a print book does.”

        The benefits of paper-based learning materials aren’t restricted to reading; writing on paper rather than typing on a keyboard can also produce better results. A 2014 study compared the outcome of students taking lecture notes by hand with those who took notes on a laptop. When it came to testing the students on their knowledge of the information, they were allowed to review their notes for 10 minutes before the test. Those who took longhand notes performed better on both factual and conceptual questions.

        The authors of the study concluded that “laptop use can negatively affect performance on educational assessments, even – or perhaps especially – when the computer is used for its intended function of easier note taking. For that reason, laptop use in classrooms should be viewed with a healthy dose of caution; despite their growing popularity, laptops may be doing more harm in classrooms than good.”

        Perhaps one of the most noticeable differences between reading printed matter compared to reading on a screen is distraction. When reading from a screen, we’re more often than not connected to other services, which bring with them pop-ups and pings from social media, emails and text messages, all of which divert our attention and break concentration. Even in schools, depending on the school’s policy, this can be an issue, particularly when tech-savvy students know how to bypass firewalls and other restrictions.

        Digital vs. paper-based materials: Mental and physical health

        There is growing concern about the impact of digital devices on mental health, including increased rates of anxiety and depression. With devices now being used by students in school as well as outside the classroom, there is little respite from the constant stimulation they deliver. Paper-based learning materials, in addition to providing cognitive benefits, also provide a much-needed break from the digital world.

        A study conducted by researchers at the University of Washington found that students who used paper-based planners were less likely to experience symptoms of anxiety and depression than those who used digital planners. Published in 2017, the study involved 264 undergraduate students who were randomly assigned to use either a paper-based planner or a digital planner. The researchers found that the students who used the paper-based planner reported lower levels of anxiety and depression than those who used the digital planner.

        The negative effect of digital devices isn’t limited to their use during the day. The blue light these devices emit also affects how well we sleep. A study conducted by researchers at Harvard Medical School found that those who read from a tablet took longer to fall asleep, had less REM sleep, and felt less rested in the morning than those who read from a paper book.

        Poor sleep quality can bring with it a range of negative health consequences. In addition to the effect poor sleep has on mental well-being, it also increases the risk of obesity, diabetes and cardiovascular disease.

        Conclusion

        Compared to centuries of paper use, digital and online educational tools are very much in their infancy, with much research still to be done on their impacts. A growing body of research suggests that a switch to electronic learning materials from paper-based materials may be detrimental to students’ ability to learn and remember information, as well as to their overall health and well-being. With healthy, well-educated students as the ultimate goal, perhaps we should slow or even pause the shift to digital materials in schools until we more fully understand their effects on learning and literacy.

        Two Sides is a global, member-funded non-profit organization dedicated to promoting the uniquely sustainable attributes of print, paper and paper-based packaging. Two Sides’ 600+ members span the entire print, paper and paper-based packaging value chain, including forestry, pulp, paper, packaging, inks and chemicals, finishing, publishing, printing, envelopes and mail operators. For more information about Two Sides North America, visit www.twosidesna.org.

        Year-End Economic Outlook: Here We Go Again

        December 11, 2023

        By Chris Kuehl, managing director, Armada Corporate Intelligence

        Rather suddenly, the threat of recession is back. Many had been predicting the downturn would occur as early as Q3 of last year. However, growth numbers consistently exceeded expectations (2.6% in Q3, 2.9% in Q4, 2.3% in Q1 of this year and another 2.3% in Q2). Then the biggest shock yet – growth in the third quarter of 4.9% (with Q4 estimates of 5.4%).

        This does not mean that analysts are ready to dismiss the recession threat, and several factors are feeding this glum outlook. The impact of higher interest rates now is being felt, banks have been aggressively tightening credit standards and inflation has ebbed but still is far too high for the Fed. Then, perhaps the most important development, there was an outbreak of major strikes and threatened strikes, as well as a delay in the GOP naming a Speaker for the House of Representatives – a series of self-inflicted wounds that is carrying the overall economy off the proverbial cliff. The government was in total paralysis at a time when steps needed to be taken to keep the system functioning, and the threat of a shutdown now is greater than ever. The last extended shutdown in 2019 cost the country $14 billion.

        All of this is convincing investors (stocks and bonds) to react. Treasury yields now are as high as they were during the last major recession, as the expectation is that interest rates will stay high.

        The supply chain crisis has faded, but there still are issues. The majority of the business community has been very active in looking at alternative supplier nations and exploring extensive reshoring. These responses to the crisis have not been without challenges. India, Mexico and Vietnam have become popular alternatives to China, but India’s infrastructure is woefully inadequate, Mexico has seen massive levels of development but now has a worker shortage and still is affected by political decisions by the government of Andres Manuel Lopez Obrador (AMLO), and Vietnam is short of power generation and lacks modern workers. Reshoring in the US was worth a trillion dollars last year and three times that this year, but this is not a rapid process. Labor shortage is a factor, and so is having money to build out the capacity needed in machinery and technology.

        The most vulnerable industries are those with complex networks – automotive and aerospace are the classic examples. The major assemblers rely on hundreds of intermediate suppliers, and any disruption in these will cascade through the entire network, as seen with the UAW strike. There still are lingering issues in the plastics sector, including a higher price of feedstock as oil prices rise.

        One silver lining has a move toward greater diversity, which is dovetailing with the need to bring more control over the supply chain – and that promotes rapid domestic expansion. The key limiting factors in the US are very familiar by this point. At the top of the list is the availability of workers with the needed skills in the areas where the expansion is slated to take place. The second major barrier is financing. The construction sector had listed worker shortage and commodity costs as the number one and two problems as recently as six months ago, but now the availability of financing is at the top of that list – and by all accounts it is going to worsen before getting appreciably better.

        Inflation has not increased to the levels previously seen. The latest report revealed that the core CPI, excluding food and energy, increased by 0.2% to 4.8% since the first of the year. The rate used by the Federal Reserve is Trimmed Mean Personal Consumption Expenditures (TMPCE), a more reliable measure than the Consumer Price Index. As of May 2023, the rolling 12-month trend was 3.9%, which is down significantly from this past spring. The drivers of inflation have changed in the last year as well – today, it is primarily driven by labor rates – as there have been declines in everything from commodity prices to logistics to producer prices. In recent weeks, there has been more commodity price acceleration and slightly less wage pressure.

        The crucial issue as far as employment is concerned remains worker shortage. There are approximately six million people theoretically in search of work, but the vast majority of them are unskilled. There has been a slowdown in job offers, as companies have become frustrated with seeking people who just don’t seem to be available. The most common method for hiring has been poaching from other companies. Lately, more women have been entering the workforce again, but many of them still are demanding the opportunity to work remotely. The U-3 rate of unemployment remains historically low at 3.8%, and U-6 now is at 6.7%. The U-6 measure includes discouraged workers and involuntary part-time. There has been reluctance to engage in layoff activity as it has been so hard to find the appropriate employees, but that will change as pressure mounts.

        Commodity prices have been, more or less, stable, but there have been short-term periods of volatility. The producers are looking ahead with some trepidation and worry that an economic slowdown will manifest in 2024 and affect demand. The pricing for copper, aluminum, nickel and others has been lower of late, but there is concern that production cuts will force these numbers back up by the start of next year.

        Oil has been very volatile as the OPEC+ nations are cutting production. The per barrel price is almost $15 higher than had been predicted, with WTI in the high 80s and Brent crude in the low 90s. US production has started to ramp up but will not make much of an impact for a few more months. The Hamas war has thrown the entire oil market into disarray. Thus far, prices have not moved much, but the World Bank has warned the war could escalate fast and drive prices as high as $130 per barrel.

        Industrial production was up by 0.4% in the latest numbers. The manufacturing part of this data was up a meager 0.1%, almost entirely due to a shrinkage in auto-related production (down 5.0%). If the decline in automotive is pulled out of the data, there was growth of 0.6% in overall activity. The end of the UAW strike should be reflected in better numbers next month.

        What does all this mean for 2024? It would be tempting to just assert there will be more volatility and leave it at that, but the lesson from the last year has been that the US economy has been remarkably resilient. The majority of that can be laid at the doorstep of a determined consumer. This is good news, but it also means that consumers are running up substantial debts to maintain that level. This could be the factor that drags growth down in 2024.

        This article is reprinted with permission from Plastics Business, www.plasticsbusinessmag.com.

        Chris Kuehl is managing director of Armada Corporate Intelligence. Armada executives function as trusted strategic advisers to business executives, merging fundamental roots in corporate intelligence gathering, economic forecasting and strategy development. Armada focuses on the market forces bearing down on organizations.

        More information: www.armada-intel.com

        Looking to Shine in 2024? The Latest Trends in Finishing, Embellishment

        December 11, 2023

        By Erin Judge, writer, PostPress

        In a world mired in digital proliferation, brands continue to seek out innovative ways to make a lasting impact with consumers. Instead of digital disruption, many are turning to creative print and finishing techniques to appeal to buyers. Embellishments like foils, embossing and specialty coatings bring value and life to folding cartons, direct mail and other printed pieces, but now brands are demanding these “value adds” with the highest quality and lowest cost amid today’s economic volatility, skilled labor shortage, and demand for sustainable production processes and materials – a challenge for even the most skilled print and finishing providers or folding carton converters. PostPress assembled a panel of industry experts to shed light on where they see the greatest opportunities for finishing and embellishing in the next year and how best to navigate the challenges that lie ahead.

        Metallics

        Photo provided by Hippo Packaging

        “Great packaging sells products and inspires trust,” said Kary Radestock, CEO of Hippo Packaging, a cannabis branding and packaging agency. It’s why many in consumer-packaged goods (CPGs) continue to choose embellishments like foils, embossing and specialty coatings to elevate their brands amongst their competitors on the shelf.

        “During that first moment of truth (FMOT), embellishments immediately can increase the value proposition of their products,” said Dennis Bacchetta, director of marketing at Diamond Packaging, a WBENC-certified company specializing in sustainable folding cartons. “Foil adds texture and dimension to a printed piece or folding carton and reinforces its premium positioning.”

        The hot foil stamping market size is expected to grow by $77.96 million from 2022 to 2027. 1 As brands push for creativity and differentiation, equipment suppliers continue to innovate both in terms of equipment and the ancillary items needed for production (tooling, foil types, varnish types, etc.)

        According to Chris Raney, vice president of postpress and packaging for Heidelberg USA, “Finishing companies should work with the best suppliers to constantly push the boundaries of new products and techniques.” He added that where higher embellishments are used, absolute production speed is less important than the quality of the machine, tooling and materials used.

        Digital embellishments

        For brand owners without the long runs to justify the tooling costs for foil stamping or embossing, digital embellishments are becoming increasingly popular. According to Matt Greer, CEO of DMS Color and an expert in digital print technologies, “As the market has become educated on the proper set-up and how digital foil is best utilized, it is clear we are out of the early adoption phase. The ‘bang for your buck’ for shorter runs is driving a lot of adoption.”

        Photo provided by W. H. Leary

        Digital embellishments can add the same feeling of luxury to a brand as traditional embellishments but at a more approachable price point (dependent on run length) and with the ability to create variable, personalized foils or finishes. “Digital foils and coatings offer a unique combination of aesthetics and practicality that traditional methods struggle to match,” said Kevin Abergel, CEO of Taktiful, a consulting company specializing in print embellishments.

        Growth opportunities for digital embellishment virtually are limitless as markets begin to embrace this relatively new technology. Abergel and Greer noted that digital embellishments can be used anywhere conventional foils and coatings are used – like folding cartons and greeting cards – but are more flexible for companies seeking smaller quantities. Additional opportunities lie in markets where personalization is important and can create higher engagement rates and lasting impact, including wedding and event stationery, direct mail and marketing collateral, and corporate collateral like business cards or annual reports. Digital embellishments also can be incorporated into special-edition games or publications to increase their perceived value and appeal to collectors or enthusiasts.

        Still a growing market, digital embellishments do pose current challenges like higher cost implications for longer runs and technical limitations due to substrates and inks and coatings. Abergel added, “While the future of digital embellishments is promising, success depends on thoughtful application, ongoing innovation and a commitment to balancing aesthetic appeal with practical and environmental considerations.”

        Opportunities in cannabis

        The cannabis market has undergone some difficult economic times over the past two and a half years, but new future regulatory shifts will help boost the industry. “Even during hard times, our customers always have prioritized their packaging,” Radestock said. “As we see the industry begin to grow again, embellishments like metallics are likely to be revived as brands look to regain market share and capture client loyalty.” According to Statista, cannabis revenue is expected to show an annual growth rate (CAGR 2023-2028) of 14.66%, resulting in a market volume of $67.15B by 2028. Bacchetta sees the use of metallics and other embellishments in cannabis packaging to continue to grow as the market evolves and more retail dispensaries open throughout the US. He noted, “Today, more and more cannabis brands design packaging luxurious enough to rival that of high-end cosmetic brands.”

        In regions without access to full-fledged cannabis, Radestock said hemp and CBD products currently are popular with consumers. “Those brand-owners are duking it out at retail and decorating every packaging surface that will pack a punch.”

        Sustainability

        Photo provided by Diamond Packaging

        While brands seek to differentiate themselves through specialized finishing, a growing number are requesting that the production processes and materials used are sustainable. According to Bacchetta, “The challenge is how to produce environmentally friendly packaging that also beckons from the shelf.” For Diamond Packaging, a Zero Waste to Landfill and Carbon Neutral (Scope 1 and 2) facility, the company has adopted inline finishing processes that result in less energy usage and less material waste in comparison to offline processes. Additionally, Diamond’s packaging is produced using recyclable or recycled paperboards (many FSC certified) and manufactured with 100% renewable wind energy.

        The Foil & Specialty Effects Association (FSEA) looked deeper into the recyclability factors of materials when a metallic foil is added. In a study conducted in partnership with Georgia Tech’s Renewable Bioproducts Institute, paper stock that includes metallic transfer foil could be repulped to yield 75% fibers with low rejects. Additionally, the study found that it is feasible to repulp the metallic foil decorated papers as it is done in common recycling settings. Additional information about the study can be found at www.fsea.com.

        Another trend in the marketplace is companies moving to modern finishing and converting equipment that run much more efficiently than older manual machines. According to Raney, “Today’s machines allow for automated makereadies, which reduce set-up time and shorten production time per job.” Jeff Bates, national sales manager for W. H. Leary, added “Finishing plants can streamline processes and automate production processes with software settings and hardware components, which can improve quality production and remove any human error.” He added that companies that set benchmarks for quality are better able to minimize carton and material waste.

        For digital embellishments, sustainability considerations still are being explored. Aberegal said, “There might be scrutiny on the environmental impact of digital embellishments, especially if they make recycling more complicated or use materials that are not environmentally friendly, like plastic lamination or UV-based products. Overcoming these challenges will require constant innovation.”

        Overcoming economic and labor challenges

        Outside of brand demands, additional factors like today’s difficult economic environment and the skilled labor shortage will continue to create challenges into 2024. The increased automation of modern finishing equipment not only helps with the sustainability aspects of production but also from an economic standpoint. As material costs continue to rise, both brands and manufacturers are seeking ways to save money. According to Bates, “The adoption of automation technology has revolutionized the landscape of folding carton manufacturing plants. This shift not only optimizes the manufacturing process but also minimizes costly errors and material wastage, resulting in both economic and environmental benefits.”

        Many brands may choose to completely eliminate finishing embellishments on pieces to save money due to their own rising costs. Radestock said, “Economic pressures will continue to challenge the necessity of the decorating.” She advises developing and sharing case studies and white papers to educate brands about the value and shelf impact of decorated packaging, proving that embellishing improves ROI and, ultimately, the bottom line.

        To achieve the high-end embellishments that many brands are seeking, operator skill level must be high. This proves challenging in today’s environment as the level of skilled workers continues to dwindle and attracting new and younger talent is difficult. Raney said, “The biggest challenge that every finisher and carton manufacturer will face in the coming years is operator skill level and the cost and reliability of these personnel.” He advises that creating a good work environment that is safe and appealing (clean and climate controlled), competitive salaries and investing in employees through training will be vital to employee retention. Additionally, modern equipment that is automated and well-maintained will reduce the labor required to run machines while maintaining throughput levels.

        Brands’ needs for differentiation through finishing and embellishment will continue to drive innovation and creativity from all parts of the industry. Finding cost-effective, efficient ways of creating and maintaining quality products will be key in 2024.

        References

        1. Technavio Research, “Hot Stamping Foils Market by Product, End-user, and Geography – Forecast and Analysis 2023-2027,” 2023.

        The Label Printing Industry, an Ever-Evolving Market

        November 7, 2023

        This article is from the drupa Essentials of Print article series

        by Chiara Bezzi editor-in-chief of Rassegna Grafica

        The label printing sector has always been a dynamic market. Brand owners are looking for increasingly innovative labels to differentiate themselves and convey current and targeted messages to consumers. The current trends are leading suppliers and converters towards solutions that focus on sustainability and innovation. In the last years label converters felt the need for automation at various product life cycle stages.

        Photo created through artificial intelligence

        A printed label is the visiting card of a product, the primary step in communication between the brand owner and the consumer. On the shelf, the label contributes to the buyer’s perception of a product. Looking at a product label, the customer can be caught by graphic design, colors or embellishment, and certainly the label has an impact on his purchase choice.

        But how do papers and embellishments influence the perception of a product? What elements of a label can visually express and summarize its essence? We know that for the same price and brand, it is the label that is most liked and able to create positive expectations about the product that is chosen. To explore the role of this communicative tool in wine purchasing, UPM Raflatac, leader in sustainable labelling, commissioned a neuromarketing research from research and consulting firm SenseCatch, in partnership with Argea, the largest Italian wine group, KURZ, world’s leading manufacturer of hot stamping and cold stamping technology, and Krämer Druck, one of Germany’s leading printers in the sector of wine labels.

        The study was conducted in Germany, an attractive market for wine exporters. A group of German consumers was shown 32 labels on the shelf, with the same design but different from each other in terms of paper type and refinishing. The entire customer journey was reconstructed, from shelf observation and wine choice to product tasting. After choice, participants could observe, touch, and evaluate the bottles one at a time. Throughout the entire decision-making process, from the shelf choice of the bottle to the moment of tasting, consumers’ experience was analyzed using neuromarketing methodology.

        In the first “moment of truth,” in front of the shelf, the results showed that during the choice in the first five seconds of observation, the bottles that attracted consumers’ attention the most were those characterized by visual, color, or material juxtaposition contrast, such as those with dark paper and shiny, metallic ennoblement. On the other hand, the most observed labels were those characterized by light-colored paper with gold or bronze ennoblements. In addition, consumers’ attention focused on bottles labelled with rough and textured papers, with obvious texture to the eye and embossed embellishments with a glossy effect.

        During the second “moment of truth,” which is when the consumer physically interacted with the bottles, labels with textured papers and embellishments of the same color actually enhanced the embellishments themselves and were considered interesting and mysterious. The study found they stimulated the “tactile imagination” that anticipates the interaction experience.

        The thicker, embossed paper and the embossing made the lettering more visible and enhanced the design, changing the perception from an empty and unattractive label – in the case of an embellishment of the same color as the paper, devoid of embossing – to a label that was instead curated and intriguing, enhancing expectations about the product. In this case, consumers imagined a higher quality wine, a premium product.

        Finally, the results showed that the combination of paper and embellishing influences expectations and has a positive effect on the perceived liking and taste of the wine. The same wine served from the bottle with the most appreciated label obtained a higher rating than when it was served from the bottle with the least appreciated label.

        The effect also occurred at a subconscious level; in fact, the emotional involvement measured through psychophysiological parameters was higher (+13%) when tasting the wine served from the bottle with the preferred label. In addition to influencing the likeability of the wine, the label also influenced perceived taste.

        Market trends in label printing

        According to Mordor Intelligence, the print label market is expected to grow at a CAGR of 4.2% over the forecast period 2023 – 2027. Different factors are driving the growth during the forecast period, such as an increasing demand for more attractive brands from print label customers, and a rising demand for manufactured goods. The growth of the e-commerce industry is another significant factor that is expected to fuel the adoption of printed labels over the forecast period. Challenges that the sector is facing are evident: a reduction in average job lengths and life cycles for mass-produced products, and an increase in the regulatory content on the label. In the last years, digital printing has been entered in this sector. This technology enhanced the possibilities to provide new applications in label design, meeting a growing market demand.

        Today printing technology suppliers are developing hybrid solutions, at drupa 2024 new developments in hybrid presses will be shown. In the last years label converters felt the need for automation at various product life cycle stages. Because of less labor available for the industrial sector, human intervention becomes the bottle neck in the production chain. Automation and interconnectivity turn from a cost saving topic into a necessity for the industrial survival. In the area of workflow, the trend will be toward a cloud-based ecosystem. Today automation and digitalization in the printing processes are a must have. Automation means integration of the systems into the factory production processes that allows remote service, real-time machine monitoring and reporting production data. Among the advantages of automation there are waste reduction, fast set-up, automated color management, and reduced manual interventions. Other possible steps in advancing technology will happen through the application of artificial intelligence and machine learning. For example, AI tools and programs make the design procedure autonomous; at the same time those tools can help by enabling identification of defective products so they can be easily removed from the final product.

        Sustainability factor

        The biggest challenge facing brand owners is meeting the changing landscape regarding packaging sustainability, and in particular embracing the complexity of emerging directives if operating across different countries and regions. Just thinking about the recent updates of the Packaging & Packaging Waste Regulation in Europe that has brought new challenges which will clearly need to be addressed in the coming years. The introduction of design for recycling requirements will draw attention to label and container compatibility, in terms of material, inks, adhesive, and size coverage.

        Following customers’ requirements, self-adhesive label manufacturers are approaching and developing new solutions that are more ecological, but at the same time are also more economical and efficient. In order to achieve these goals, the main way is to reduce  the amount of material used. Release liner, that is used as carrier for labels, fulfil a crucial role in the production, conversion, and application of self-adhesive products. But after fulfilling their role in this process, used liners still have a role to play as valuable feedstock for new processes and products. Currently, many projects based on release liner recycling have been developing, in order to collect proportion of spent release liner for reuse or recycling. Release liner recycling is environmentally friendly: it contributes to the reduction of the ‘footprint’ of the label company.

        During the last edition FINAT European Label Forum, it emerged that label waste has been a challenge for the labelling industry for decades. Each year, millions of tons of label waste are sent to landfills and incinerators. Recycling programs like CELAB can reduce label waste. But the best solution – for our industry and for the planet – is to ultimately eliminate liners altogether. Particularly in the food sector, designers and printers are facing another challenge regarding the finite space limits of labels. In fact, international health and safety legislation will require space on labels. This will encourage the use of multilayer leaflet labels and clear-film labels on clear-container substrates, giving products the ‘no-label’ look and making back-printing on the label possible. Label printing is reflecting the important role of digital technology in everyday life.

        From May 28 to June 7, 2024 in Düsseldorf, Germany, exhibitors at drupa will present new printing and finishing systems for labels production. Visitors will discover sustainable and innovative solutions for the future of the label industry.

         

        Folding Carton Market to Enjoy Measured Growth Through 2026

        March 15, 2023

        Submitted by the Paperboard Packaging Council

        According to the Paperboard Packaging Council’s (PPC) recent Trends: 2022-23 Industry Outlook and Market Data Report, US demand for folding cartons will grow on average by 1.3% annually, with the market reaching 5.4 million tons by 2026. Output growth in nondurables, comprised of many carton-packaged goods, is expected to expand by 0.8% over the five-year forecast.

        Prepared for PPC members by RISI, a provider of pulp and paper industry intelligence, the Trends Report describes how overall economic trends will affect the folding carton market in the near and far terms. The report states that general economic fundamentals in the US economy will remain strong throughout the coming years, for example, with consumer spending growing by 1.8% from 2021-26.

        In addition to the overall economic performance, other factors play an essential role in Trends’ growth forecast for the next five years, including changing consumer spending habits, substitution away from plastic packaging and efforts to reduce plastic waste. Shipment growth will be healthiest at the end of the five-year forecast, as the current business cycle is predicted to peak in 2026. The total value of US carton shipments is predicted to grow from an estimated $9.5 billion in 2021 to $13.3 billion in 2026.

        The folding carton industry is not without near-term challenges. A short, two-quarter downturn in economic output is expected in 2023, likely due to a recession becoming more of a concern as inflation eats into consumer budgets. Economic growth will provide a boost for folding carton producers in the coming year, but overseas production will continue to challenge the domestic market as competition with imports persists over the next five years. Competition from alternative packaging methods and materials also will remain a challenge for domestic folding carton producers, especially with increasing prices of boxboard substrates.

        On the flip side, decisions by some of the largest fast-food companies and municipalities across the country seem to be providing hope that paperboard packaging materials are poised to benefit from their environmentally friendly profile. Plastic substitution and environmentally friendly packaging trends should provide a tailwind for carton growth over the forecast.

        “Trends equips leaders in the folding carton industry with the knowledge they need to prosper in the changing marketplace,” said Ben Markens, PPC president. “Should they make an offensive move? Should they ramp up their defense? Trends helps them figure it all out.”

        In addition to forecasts for the overall folding carton market, Trends also analyzes 17 end-use segments, including confectionery, dairy, dry foods, cosmetics, pharmaceuticals and recreational products. This year, nine categories were classified as growing markets, seven as mature and one as declining.

        The entire 2022-2023 Industry Outlook and Market Data Report for the folding carton industry is available through the Paperboard Packaging Council (PPC). For over 90 years, PPC has been the North American association for converters of paperboard packaging and their suppliers. PPC works to grow, promote and protect the paperboard packaging industry while providing its members with resources and tools to compete successfully in the marketplace. For more information, call 413.686.9191 or visit www.paperbox.org.

        2023’s Hottest Print Design Trends

        March 15, 2023

        By Sabine Lenz, PaperSpecs

        Each year, a handful of printing and finishing techniques set the industry on fire, transforming the way designers create their work and spread their message – and even the way they think. If you’re looking for a way to help your clients jumpstart their creativity while giving you a competitive edge, you really can’t afford to ignore them.

        1. Hand-sewn look and feel

        We all like to feel we are part of a select few; that we have come across something rare and handcrafted – that we are one of the lucky ones to get our hands on it. While by no means purely handmade, Singer sewn and exposed Smyth binding convey this feeling to clients and consumers, and that’s what matters.

        The handmade look and feel instantly gives them a sense of the product and company – its culture and history. As a result, they feel a strong connection to the brand. Make this trend your own by using contrasting threads to make it stand out even more.

        2. High-end binding

        On the flip side, high-end binding elevates elaborate artbooks and high-end brochures and allows even marketing materials to feel more like coffee table books.

        Binding for these is done in the known hard case fashion, with the case being covered in tactile cover materials and embellished with hot foil stamping, or in the increasingly trendy Swiss binding style. Instead of being inserted and mounted in casebound fashion, in Swiss binding the text block is glued right on top of the inside back cover of the book’s case.

        While from the outside the book looks like a nice casebound book, once the cover is opened, the text block’s spine is revealed. In most cases, the text block is Smyth bound, yet feel free to use perfect bound or saddlestitched text blocks, too.

        3. Haptic

        In this over-digitalized world where everyone is glued to their smartphone or computer screen, people yearn for a tactile experience. Tactile effects on marketing materials and packaging, in particular, have become increasingly popular. These can stimulate our non-visual senses and create a stronger emotional connection with the product or brand.

        The easiest way to add a haptic experience to a printed piece is with our choice of substrate, with classic finishes like linen and laid experiencing a resurgence. Even the choice of printing technique can provide a “built-in” haptic feel. Letterpress printing, especially when using a soft sheet, allows for a nice impression similar to a light deboss, while engraving – where the ink sits on top of the sheet – provides an embossed feel.

        And, of course, there are numerous finishing techniques that add that extra tactile experience, from traditional embossing, debossing, raised UV and polymer options to a suite of laminates that offer more than just a soft-touch finish. There also are specialty coatings, including sandpaper and leather textures, that provide intriguing options and can be applied inline.

        4. Scent

        While scented inks have been around for a while, they now are– finally – trendy, from offering an intriguing aroma right out of the box to “scratch-and-sniff” or Rub’nSmell options. Depending on the effect desired, the scent can be added to the coating or varnish and thus applied inline with the print run.

        And this is not just for packaging or marketing pieces. All of the trends we are talking about today also are applicable to envelopes. Case in point: Until the end of July 2023, the United States Postal Service is offering the Tactile, Sensory and Interactive (TSI) mail piece promotion, with the goal of encouraging mailers to utilize the power of the senses in their mail pieces to increase response rates.

        Lemon, piña colada, leather or… There are so many scents to choose from that enhance the printed piece and tickle the nose.

        You can be forgiven for thinking that this is a passing fad, but when companies like Starbucks have their own aroma task force – yep, there is an actual department for this – you should take the science of scent seriously.

        5. Vivid colors

        As the value of design rises, brands are going crazier than ever with colors in an attempt to stand out from the crowd.

        While bold colors have been trending in the online world for a while – thanks to enhanced print technologies, we now see designers going bold, loud and brighter than ever in their printed pieces. The secret sauces (or in our case, inks) are neon or fluorescent inks.

        Naturally, you can apply them with traditional printing techniques – offset, letterpress or silk screen. But what’s fueling the popularity of this trend now is the ability to print these colors digitally. Depending on the press provider, you can add neon yellow, pink, orange, violet, green… Encourage your clients to crank up their design’s “look at me” factor by using these vibrant neon colors as spot colors.

        But it is not just about the neon effect. It also is about extending the overall color gamut you can achieve. When we are talking 5-, 6- or 7-color printing, we are adding more colors to a conventional 4-color process.

        This is popular for two reasons:

        1. We can increase the overall range of colors, which allows for really rich hues.
        2. The extra colors (and thus enhanced gamut) can be used to reproduce a special hue that is out of range of the normal CMYK mix; meaning you can match around 94% of Pantone colors.

        Thanks to those expanded color options – even in the digital printing world – expect color schemes in 2023 to get even more vibrant and luminous.

        6. Shimmer and foil

        Metallic effects in design are becoming uber-trendy. From packaging to business cards, the metallic shimmer gives any printed item a luxurious, expensive feel.

        Granted, the shimmer that foil brings has been on trend for a while now. But beyond foil stamping, several newer technologies are becoming more widely available, offering creatives new possibilities and creating a resurgence for this high-end look.

        From hot and cold foil to metallized substrates and digital foiling options, there is a “shimmer” for every print run and budget.

        7. Personalization

        A 2020 McKinsey study found that personalization will be the prime driver of marketing success within five years. Which means, we are just in time.

        Nobody wants to be bothered by irrelevant coupons, emails or texts, but we all do want to be informed of offers that meet our needs. Personalization beyond a simple mail-merge approach offers meaningful, relevant customer communication.

        While the technology for this – variable data printing – has been around for a while, few brands are fully embracing it. Successful brands need to focus on good customer data, insightful analytics and, above all, ensuring that they protect customer privacy.

        8. Augmented reality (AR)

        As you know, AR enhances the user’s perception of the real world by adding a computer-simulated layer of information on top of it. In print, one of the most used interactions is when the activation is triggered by scanning a specific item or “marker.”

        But trying to convince customers to download an app can be tricky, let alone providing an app that’s compatible with all the different types of phones and operating systems out there.

        That’s why marketers have started looking seriously into WebAR; it may not have the power of full AR, but it still has plenty of potential.

        WebAR refers to augmented reality experiences that are accessed through a web browser rather than an app. This means all you need is your smartphone or tablet and an internet connection – no apps required.

        With the introduction of ARKit and ARCore (the Apple and Google AR developer platforms) and web-based AR platforms such as the 8th Wall, marketers now have a big opportunity to create innovative campaigns that integrate the digital and physical worlds.

        Whether it’s through augmenting product packaging with interactive content, virtual tours in brick-and-mortar shops, or “try before you buy” at-home opportunities (Starbucks and IKEA are two obvious examples), augmented reality is enriching the customer experience digitally in a way that few technologies can.

        9. Sustainability

        Sustainability is an overarching trend – one that goes beyond recycled paper but encompasses the whole printed piece. No, this trend does not sparkle or shimmer, but I encourage you to be aware of the sustainability, recyclability, etc. of the papers, printing and finishing techniques and embellishments you offer.

        For any print project this means:

        Reduce. The most effective way to reduce waste is to not create it in the first place.

        • Right-size. This is not only important to the final cost of the product, but also to its perceived environmental impact.
        • Print on demand. Ask yourself: What is the quantity my customer needs right now? What is the longevity of the piece? Thanks to digital printing and finishing, there really is no need to overproduce.
        • Reduce overall waste. Here is your chance to help creatives understand how to best utilize a press sheet. They’re eager to be more sustainable and open to your advice.

        Reuse. Help your customers explore ways in which they might be able to repurpose their packaging and materials – and, yes, this includes dielines and other tools.

        Recycle. From recycled papers to substrates made with recycled jeans, T-shirts and even coffee cups, there is no shortage of innovative materials. Be the one to bring these exciting options to your clients; they will appreciate your forward, sustainable thinking.

        And beyond simply using recycled materials, ensure that the packaging or marketing materials you help create are recyclable.

        There are misconceptions aplenty about recyclability of transfer foils and laminates, to name just a few. Be ready to provide your clients with insights and statistics to help them understand that we as an industry are pulling in the same direction they are, and we’re doing everything we can to ensure our materials and technologies are used in the most economic and sustainable ways possible.

        These are the nine top print design trends, but are they all for you or your clients? Probably not. But mix and match two or more of these trends and you will delight your customers with the opportunities you can provide.

        PaperSpecs.com is an innovative online hub for brand owners and graphic designers who actively spec paper and print, and refuse to be limited by short print runs or tight budgets. Through videos, hands-on/virtual “[unboxed]” events, blog posts and more, PaperSpecs provides trends, insights and access to crucial, hands-on tools and resources to help creatives craft printed pieces that WOW their clients. Learn more at www.paperspecs.com/get-weekly-tips.

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