2022 may affect printing and packaging trends-The Noel D'Cunha Sunday Column

2021-12-13 20:31:47 By : Ms. Ann Ann

The year is approaching, and the question in everyone's mind is whether 2022 will bring some much-needed respite to the industry after the difficult years of the first two years. First, the blockade has greatly weakened the industry. This year, as the blockade eased, the industry faced rising prices and insufficient supply of raw materials. So, what issues or trends are most likely to fundamentally shape India's printing/packaging in 2022? The industry insiders we inquired put forward different proposals. Some people say that 2022 will be a year of revival and turnaround. Others believe that there will be consolidation in the packaging sector. It seems that 2022 will also be the year of short-run digital printing, especially in the packaging sector. However, others warned about the dire situation regarding the availability of skilled labor. Availability of skilled labor

(lr) Anuj Bhargava and Arjun Dewan

Anuj Bhargava, managing director of Kumar Labels, said the availability of a well-trained workforce in all fields will be a major issue next year. “There will be a tug-of-war for high-quality resources between family businesses and PE companies. Resource tightening is inevitable, especially when there is no printing company that actively invests in human training,” he added. Arjun Dewan, partner of Nandini Aakarshita, agreed. "At the grassroots level, non-skilled and semi-skilled workers are getting other opportunities to either return to their villages or engage in other entry-level jobs. Traditionally, operators learn on the job, starting from junior to senior. As the basic level is eroded, the workforce The balance is reversed. I see that the high-quality machine does not provide the required output because the operator is not skilled enough. So imagine when the material rate continues to rise, the quotation rises simultaneously and the machine cannot be delivered because the labor is not skilled enough to operate the machine Challenges in expected output," he said. Digital short-term

(lr) Tushar Dhote, Manish Sharma and L Ramanathan

Tushar Dhote, director of Dhote Offset Technokrafts, said that in the last two years of the pandemic, printing requirements have undergone a paradigm shift, which is conducive to digital short-run packaging and labeling. On-demand printing of books has increased more than ever. "The future of high-end printing marketing will be transformed by digital printing and digital decoration. Customized packaging solutions will be required to meet the different needs of contemporary youth," he said. "In future printing applications, one thing I look forward to is the versatility and economical solution for short-term printing and finishing." Printo's Manish Sharma also mentioned that short-term packaging with increasing levels of personalization and decoration is Trends to watch out for in 2022. "Globally and in India, we are seeing the booming of D2C (direct-to-consumer) brands. This "creator economy" is built around creating products that focus on serving small target audiences, and scale is not considered An established desire. From home bakers to organic farmers to boutique designers, niche brands are taking off. They need attractive packaging, but in small quantities," he said. Especially in the field of commercial printing, L Ramanathan, managing director of Sree Vinayaga Screens, sees an unpredictable influx of jobs. "Once upon a time, we knew exactly how much work to be completed next month. This has completely changed. Therefore, by 2022, the winning weapon for commercial printing will be "speed." Your efficiency in completing work faster will bring you More work. The theme for 2022 is to achieve it when the sun is shining," he said. He said that from the perspective of packaging processors, the short-term gap in high-end cartons is widening. "This gap has not been filled. Packaging will definitely flourish in 2022, but only for organized companies. Packaging integration

(lr) Faheem Agboatwala and Tejas Tanna

According to Tejas Tanna, Director of Printmann Offset, the New Year is a year of revival and turnaround. But he warned that this is not easy. In order to cope with rising prices, packaging processors also need to automate workflows to increase production efficiency, and they need to find ways to reduce downtime and reduce waste. "Another aspect that the industry must invest in is wise recruitment, training and skills upgrading, and talent retention. The benefits of doing so will not be immediate, but will become apparent in the next few years," he said. "That said, 2022 will still be the year of integration. Many companies hope to gain advantages and advantages through strategic partnerships and alliances." Faheem Agboatwala, director of Hi-Tech Printing Services, also believes that there will be more integrations. "The instability of raw material prices will affect profits in the coming year. I look forward to continued integration in the packaging sector. We need fewer but stronger players," he said, adding, "I also look forward to the implementation of the ban on single-use plastics. And its positive impact on our industry." Packaging issues  

(lr) Deepanshu Goel, KR Chandrashekar and Sandeep Jain

Regarding the future of the packaging market, Deepanshu Goel of Creative Graphics said that sustainability will play an important role in the future development of the packaging industry. "The structure of flexible packaging materials will become a revolutionary change in the industry, affecting product shelf life, design and color sequence, as well as other parameters that trigger many other changes," he said. KR Chandrashekar, partner of Esscee Enterprises, said: "The increase in life expectancy will increase the demand for healthcare and pharmaceutical products, as well as over-the-counter drugs and nutritional supplements." In addition, there will be more consumers next year. "The rise of nuclear families and single lives will lead to more consumers-especially young people-tending to purchase all their needs in smaller quantities and more frequently, which will have a significant impact on packaging volume. We look forward to this An exciting market," he added. But it's not all clumsy in the packaging field. Sandeep Jain, managing director of Manali Cartons, said the industry has been facing many problems for some time. First of all, the main raw materials here are paper and cardboard. Art paper and art cards are mainly imported from India. In the past 8-10 months, the prices of various paper and cardboard have risen by 50-60%. "The cost of UV inks and varnishes has also risen by more than 80%," he said. "The same is true for all inputs, such as inks, chemicals, films, printing plates, adhesives, etc." Jain said that the factors leading to this growth are the increase in shipping; the low production due to the Covid blockade leads to scarcity of materials; and the scarcity of imported waste; Rising fuel costs; rising costs of other domestic inputs, etc. "We also rely on China to provide inputs such as photoinitiators and chemicals," he said. The government once again increased the goods and services tax on large quantities of printing and packaging materials (corrugated boxes) from 5% or 12% to 18%. "All of the above factors have led to an increase in the demand for working capital. But now, printing and packaging factories are now sandwiched between large suppliers and large customers," said Jain. "We need to wait and see how we can handle this in the coming year."

At the same time, Swadesh Sharma, director of Atharva Packaging, believes that the growth of the printing and packaging industry is directly proportional to the overall growth of the economy. He added that in the new year, India’s economy will grow by more than 8% due to the stability of the government; control of Covid-19 through vaccination; government policies/incentives for new investment; infrastructure costs, etc.

"All these factors generate demand for various commodities," Sharma said. "In addition, most countries are looking for alternative production methods in China, and India is the best choice. Therefore, I believe that it is time to increase our production capacity through high-quality products."  

According to Jinesh Mehta, President and CEO of Unitrade Group UT Pack Industries and Co-founder of Scientials, UAE, overall, consumer habits have changed significantly during the pandemic, which has affected the packaging industry. Door-to-door delivery of food and consumer goods has increased the demand for packaging containers, followed by an increase in the unpacking experience. “The e-commerce aspect of consumer goods broke out during and after the pandemic, and a large number of consumers turned to online shopping. It is undeniable that this trend will continue. It is expected that by 2021, U.S. online grocery sales will account for the country’s e-commerce sales. 12.4%. Another report indicated that the number of digital grocery buyers in the United States will increase from 131.6 million in 2020 to 137.9 million in 2021. A year-on-year increase of 4.8%," he said. Therefore, Mehta believes that e-commerce is the new trend to be mentioned here. He said that in addition, the entire digital platform is also looking for new technologies-augmented reality (AR), virtual reality (VR), mixed reality (MR) and social media will all become the focus. "The company is using this low-cost but fascinating resource to handle almost everything under the sun-from new concepts to learning to products and services. In addition, artificial intelligence has been developing for many years, but the post-locking era seems to be accelerating. It is used in more printing and packaging departments, including post-press, accounting, etc.," he added, "I will say that these trends will not only continue, but people can expect them to have a new and innovative image in the next few years. ."

Kuldip Goel of Any Graphics believes that 2022 will definitely encounter challenges, but these challenges will be of different types. For example, customer loyalty to suppliers may change in the next year. "We have started to see this," he said. "If you ask for a price increase, your competitors are ready to seize the opportunity, even if there is no profit, just to grab customers. How we deal with this price increase will vary between customers and suppliers. We need to minimize management Cost, reduce waste, and provide cost-effective solutions." His solution? "The next few months will be critical. No need to follow trends, no need to react quickly. Let the situation stabilize, then develop a long-term strategy and start taking action," he suggested.

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