VARIABLE DATA PRINTING LABELS MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Variable Data Printing Labels Market Size and Trends

The global variable data printing labels market is estimated to be valued at USD 18.89 Bn in 2024 and is expected to reach USD 45.83 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 13.5% from 2024 to 2031.

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Variable data printing labels help companies to customize their product labels as per individual customer requirements. This enhances customer experience and brand engagement.

Market Driver - Growing demand for customized labels

Changing consumer preferences have put forward new challenges for brands and companies. With rising disposable incomes and easy access to vast information through internet, consumers today want products that match their individual needs and requirements. They demand highly personalized experience at every step of customer journey. This rising demand for hyper-personalized offerings is compelling companies to move from 'one size fits all' approach to more customized solutions. Variable data printing labels have emerged as an effective way to tap into this consumer shift and deliver personalized labelling experience.

Customizable labels allow companies to print variable text, images, or barcodes on each label based on unique product or customer specifications. This helps brands develop much closer connections with their customers by addressing them with their name, preferred design, or in their preferred language directly on product labels. Especially consumer goods and retail companies are increasingly leveraging variable data printing to print bespoke labels for special orders, gifts sets, loyalty programs, or limited-edition products. Even commodity products are seen advantages when printed with personalized touches. Companies have realized that simple customization on labels can significantly boost customer satisfaction levels and increase brand affinity.

Moreover, just-in-time printing capability of digital printing technologies facilitates on-demand customization. Companies can now design, produce, and distribute highly personalized labels much faster than traditional printing methods to quickly act on market trends or launch regionalized product lines. This agility enables companies to test smaller custom label runs at lower costs. Variable data printing labels allow gathering deeper customer insights through one-to-one engagement and experimentation with different messaging, designs or languages on labels. All these advantages have encouraged widespread adoption of variable data printing across industries that aim to enhance customer relationships through hyper-personalization. The demand for customized labels is poised to grow further as personalization gains more ground in the packaging landscape.

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Increasing adoption of digital printing technologies

Cutting edge digital printing technologies have revolutionized the label printing industry in the last few years. While traditional printing like offset or flexography continue to serve mass production needs, digital printing methods have disrupted the market with their superior capabilities for variable, small-run, and personalized printing. Inkjet and toner-based digital presses offer programmability, flexibility, and versatility that has attracted many new users from label converting and brand owner companies. Digital printing eradicates the costs associated with set-up, plate-processing, and minimum runs of other conventional processes.

Digital printers can be instantly reprogramed between different jobs and print runs as small as one, enabling truly variable and on-demand production. This just-in-time printing reduces inventory holding costs significantly for companies. Digital technology allows the inclusion of variable data elements like variable texts, graphics, barcodes, or serial numbers directly in the print stream from digital files. Sophisticated front-end workflow software further simplifies the process of variable data printing and integration with enterprise resource planning (ERP) systems. The automated process minimizes human errors and improves version control for variable content.

Additionally, new application areas are emerging for short-run digital label printing that were previously not addressed by traditional plate-based processes. For instance, prototyping of labels before mass production, version testing, individualized marketing labels, and similar low-volume, high-mix printing needs are now catered through digital label printers. Various technology giants have also introduced new digital label printing products, further broadening access to this technology. Driven by versatile capabilities and user-friendliness, digital label printing is being embraced across industries like food & beverage, personal care, chemicals, and pharmaceuticals. The rapid proliferation of digital technologies across the value chain is a key driver augmenting the prospects of variable data printing labels globally.