Explore the topics in this article:
- Introduction: The state of the printing industry
- Publishing adopts short-run printing and sustainable print practices
- Direct mail production printing makes a strong comeback
- Commercial printers diversify with web-to-print offerings and explore new business models
- Print automation and digitalization will accelerate in 2024
- HP innovations demonstrate the future of commercial printing
Introduction: The state of the printing industry
In the wake of digital transformation, the global commercial printing and publishing sectors are undergoing a significant shift in demand patterns.
Historically characterized by its reliance on large-scale standard prints, the commercial printing industry (including advertising, promotional products, security, transactional mail, and other forms) is experiencing declining volumes.
Similarly, most of the print publications, such as newspapers, magazines, directories, and catalogs, are also seeing a decline, except for book printing, which is returning to growth.
First, the pandemic-enforced lockdowns and supply chain disruptions reduced the appetite for physical print demand in many of its traditional forms. Then digitalization of products became a matter of survival, given the demands of the “new consumer.” And while the direct impact of Covid continues to dissipate, some resulting shifts appear to be more permanent, changing consumer patterns and the products they use.
What is evident though, is that in specific market segments, digital print has successfully captured the high-volume markets. Thanks to a more targeted, customized communication process and through shorter print runs, print-on-demand books, and variable data capabilities, commercial digital print is now widely considered the leading choice for modern printing needs.
Let’s look at the key emerging trends shaping future market opportunities and the segments where print service providers (PSPs) can adapt to deliver higher value in 2024 and beyond.
Publishing adopts short-run printing and sustainable print practices
The publishing industry is moving towards more sustainable production and shorter print runs. In 2022, faced with excess inventory and lower sales volumes, publishers are right-sizing practices to adapt.
Book publishers, for instance, are offshoring initial print runs of just a few thousand copies to overseas printers to offset higher domestic printing expenses. However, they then leverage print-on-demand (POD) technology to produce subsequent small batches or single book orders cost-efficiently closer to the buyer. This ‘gap’ strategy allows publishers to bridge inventory shortfalls nimbly while controlling outlays.
For example, Alexander’s Print Advantage, a specialist print-on-demand book producer, recently implemented an HP Indigo 100K. This automated printing press improved productivity and empowered rapid business growth through on-demand book printing. Similarly, trade publishers now focus on digitally printing limited runs of a few hundred copies. They utilize special finishing techniques like textured covers to enhance the perceived value of print books amidst a growing consumer focus on tangible experience over volume.
Academic and scientific publishers prioritize sustainable materials and practices like right-sized runs using recycled paper, paperback eco-friendly bindings, and soy-based inks. This shift towards reducing environmental impact aligns with rising consumer and institutional demand. For instance, Cvent, a leading events management firm, switched to 100% recyclable paper badges printed with HP PageWide presses for all events.
Moreover, customers are increasingly investing in HP Indigo digital printing for its offset-matching quality and lower energy consumption. COPYTOP conducted an environmental impact study showing the HP Indigo 15K significantly reducing emissions and energy usage versus older presses. West Canadian Digital Imaging also added an HP Indigo 15K to bring outsourced work in-house sustainably.
In essence, the publishing sector is adapting through economically and ecologically conscious digital production focused on targeted print runs. This approach allows for inventory flexibility, upholds profitability, and ensures positive environmental and social impact.
Direct mail production printing makes a strong comeback
Direct mail is undergoing a resurgence as a key component of omnichannel marketing efforts. Despite postal rate hikes temporarily slowing growth, direct mail volumes are rebounding thanks to its proven value in reaching target audiences.
In the UK, 80% of advertisers already use mail marketing door drops, demonstrating this channel's effectiveness. More brands now recognize that strategically combining physical direct mail pieces with online ads is pivotal in connecting with consumers across critical touchpoints.
Moreover, rising digital advertising costs on platforms like Facebook and Google are compelling brands to seek alternatives and embrace direct mail within integrated strategies. This segment includes digitally native direct-to-consumer companies who realize that while online channels drive awareness, tactile catalogs and mailers better drive conversions and sales. For instance, printed pieces can leverage multiple senses–sight, smell, touch–in a way pixels on a screen cannot.
America's leading niche magazine franchisor, The N2 Company, validated this strategy. The company recently installed two HP PageWide Advantage 2200 presses to elevate client brand visibility through print innovation. N2 called out how the presses guaranteed production efficiency, print quality, and flexibility to tailor solutions–and proven invaluable for enabling clients’ marketing success and the growth, evolution, and strategy of N2’s own business.
In essence, direct mail provides a unique tangible customer connection lacking in an all-digital approach. As part of omnichannel campaigns, it helps stabilize the commercial print market. Marketers are reaffirming direct mail’s endurance while investing in advanced production printing solutions like HP PageWide presses to drive value on top of volume.
Commercial printers diversify with web-to-print offerings and explore new business models
Commercial printers are also diversifying by expanding offerings for current clients and exploring new business models. Many are installing web-to-print interfaces to not just enable customers to automate ordering, but also upload designs to produce marketing collateral, promotional items, apparel, and more.
- Web-to-print platforms drive increased customization, speed, and an enhanced customer experience within the commercial printing sector. As printers adapt to changing dynamics, web-to-print allows them to efficiently handle numerous short and customized print runs on demand.
Saal Digital deals with approximately 5,000 online orders daily. To meet the growing demand for same-day service, it has implemented HP Indigo 15K and HP Indigo 12000 advanced digital presses, seeking its software automation and overall equipment effectiveness.
- The labels and packaging industry continues to outgrow the market, driven by trends such as SKU proliferation and the ability to optimize supply chains with on-demand printing and fast turnaround. Customers enjoyed a robust double-digit growth in flexible packaging, particularly folding cartons and premium labels.
Other printer services leverage web-to-print platforms to offer clients on-demand label and package production in ultra-short batches. As runs shrink to 50, 100, or less, fast makeready and changeover are mandatory. HP Indigo’s automated workflows allow cost-efficient short runs, empowering commercial printers to penetrate the lucrative packaging space profitably.
Print automation and digitalization will accelerate in 2024
While 2023 saw meaningful progression in automation across finishing and pre-press workflows, we anticipate an even greater push next year. Customers especially want to minimize human touchpoints in production to optimize efficiency, capacity, and cost as volumes rebound.
HP is facilitating the drive towards ‘lights out’ manufacturing capabilities. One such example is the HP Site Flow, a manufacturing execution system that is fully integrated with HP Indigo digital presses, available through PrintOS, HP’s cloud-based platform. This system enables the automation of print workflows and the processing of volume-driven print jobs in an efficient and timely manner, allowing for unattended operation and scalability to handle varying workloads.
HP Innovations Demonstrate the Future of Commercial Printing
HP has led the commercial print sector’s digital transformation for over 30 years and continues pioneering cutting-edge innovations as we enter 2024:
- HP PageWide Advantage 2200 Series Press meets the needs of print service providers of all sizes. This press offers industry-leading productivity, quality, and media versatility for those in publishing, direct mail, and commercial print, aiming to help grow their business.
- HP Indigo's latest innovations, including the upgraded HP Indigo 100K Digital Press and new innovations to xRServices procedures, empower customers to self-maintain and reduce machine downtime.
- HP PageWide Web Press T485 HD with HP Brilliant Ink delivers a wide range of applications, including commercial, direct mail, publishing, and transactional, providing print service providers with the versatility to meet the needs of their customers on uncoated and coated papers.
At drupa 2024, HP’s advances will spearhead the future of commercial printing, expected to be driven by automation, finishing, and sustainability initiatives that together promise new possibilities for print service providers and their customers.