The printing industry is growing all over the world and so it does in India. On a global perspective the market is about to hit $ 980 billion in 2018. India’s is thereby ranked as the second largest printing market and looks back on an overall growth rate of 12 to 14 per cent per year since 1990, nowadays with an annual turnover of more than $ 11 billion. So it remains one of the biggest and fastest growing sectors within the country with its allied industries like Printing Machinery Manufactures, Packaging industries, Paper manufacturing, Ink manufacturing, manufactures of raw material and consumables. Concerning exports, mostly IT-related pre-press services are shifted to the English speaking world and then again large U.S. printing and publishing firms are settled in India. Fortunately even the threat of TV and Internet towards the global printing industry did not keep the Indian sector from growing. On the contrary innovations of machinery in terms of the scope, the technology and the speed in order to enhance costs were promoted. A Characteristic for the market is further the large number of publishing firms in the private sector to a small number in operating, 75 % of the printing presses are thereby family owned.
A reason for the sustainable growth among other things is the large and growing young population with an increasing literacy level, which drives the demand for consumer products eventually. This fact further drives the expansion of retail sector and therefore the demand for labels increases as well. This label industry in India is characterised by a high amount of investments. Either taken by existing printers in order to create further capacities as a response to the need of their natural growth, or by commercial offset printers facing the slowdown in their sector due to the impact of the internet and nowadays expand into label industry. New investors as well enter the market and partly use thereby the help of partners while acquiring label presses. So each branch of the Indian label industry today registers growth and by the passage of time and investments the previous sticker called product was developed to the engineered product called label. Segments within are for example plain labels or variable information labels, pharma labels, product labels and innovative or security as well as special labels. The largest consumption of labelstock is registered in a segment which requires the least investments in equipment and provides the least margins: the plain label segment producing price or gun labels, A4 labels and barcode labels. To enter this market neither high-end machines with enhanced capabilities nor inspecting equipment is needed which drives the number of entrepreneurs who start their business in the micro and small sector.
For foreign investors the segment of pharmaceutical labels holds high potential as therein sophisticated European and American branded label presses are required in order to produce highly engineered, converted and decorated labels. To meet the demand of customers label printers today invest in upgrading their capability of printing, its inspection and in the quality of enhancing finishing equipment. The growing health concerns of the Indian population thereby induce printers to continue their investments.
The increased spending by the new government encourages further the growth and the attractiveness of the Indian label industry.
To read the latest news on the Paper & Print Industry in India click Paper & Print Newsletter