Results from One-of-a-Kind Print On Demand Label Study

Infotrends: Dedicated full-color Print On Demand (POD) label presses generated $246 million in label sales in 2005, a total that InfoTrends forecasts to be $393 million in 2006 and over $1.7 billion in 2011. In a world market valued at nearly $63 billion for all types of labels in 2005, labels printed on POD label presses for use on consumer goods are a small but quickly-growing part. In its new research, InfoTrends further estimates that the installed base of POD presses is currently less than 2% of all label presses, but that this share will grow to 7% by 2011.

Ten years after the first POD label press was introduced, this category of digital printers has hit its stride. “Right now, enhanced products from experienced vendors are meeting markets hungry for equipment to print short runs of high-quality labels, Not only can POD label presses do that, but the newest ones are proving to be profitable for longer runs as well, up to 30,000 or more labels.

POD label presses are full-color digital print systems built for printing labels in particular, but also capable of printing tickets, tags, and even folding cartons. These POD label presses print short and medium length runs of full-color, spot-color, and even variable-color labels. They offer greater flexibility than conventional label presses, especially in terms of job setup and changeover times. InfoTrends estimates that revenue to OEMs from POD label press sales will total $90 million in 2006 and $154 million in 2011.

While the installed base of POD label presses is growing quickly, the label converters installing this equipment are also growing their use of it—selling more jobs, running the presses longer, using more supplies. This is a great situation to be in, not just for OEMs, but also for the makers of all the related media and software.

InfoTrends’ study, , provides production printing equipment, supplies, and software manufacturers the information necessary to understand the nature and extent of the opportunity that full-color on demand label printing presents, and how to address that opportunity most successfully.

Research for the study includes a detailed survey of 213 label converters worldwide. The Opportunity for Print On Demand Solutions in the Label Industry

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