India’s label industry is set for ongoing growth in 2024: Samir Patel

What were the new services and technological innovations introduced by your R&D department in the last two years? 

In the last two years, Arrow Digital’s R&D team has been relentless in pushing the boundaries of innovation, resulting in the launch of cutting-edge products like the ArrowJet UV, ArrowJet Hybrid Pro+ M, ArrowJet Bolt, and ArrowJet VDP. Each of these technologies is designed to address the growing needs of the label and packaging industries. The ArrowJet UV offers advanced CMYK + White ink capabilities, enabling vibrant and detailed printing on transparent and dark substrates, perfect for industries like cosmetics and pharmaceuticals. The ArrowJet Hybrid Pro+ M combines high-speed digital printing with four inline flexo stations, allowing for special effects such as white, varnishes and cold foiling — all in a single pass. The ArrowJet Bolt focuses on high-speed production with water-based pigment inks, reaching speeds up to 150-m/min, resulting in unmatched quality output. Lastly, the ArrowJet VDP is built for industries that require security and traceability features, supporting advanced variable data printing for barcodes, QR codes, and serial numbers. Together, these innovations mark a new chapter in high-performance, efficient, and versatile printing technology.

The label market in India has grown in recent years because of the increasing demand for labels across various products. The label printing industry in India is valued at USD 2.3-billion and is expected to increase to USD 3.6-billion by 2025, growing at a CAGR of 7.3%. The per capita consumption of labels in India has grown from 0.25- sqm in 2008 to around one-sqm in 2023. What is your prediction for the label industry in 2024 and beyond? 

India’s label industry is set for ongoing growth in 2024, driven by rising demand for product differentiation, traceability, and regulatory compliance. Expanding sectors like eCommerce, food and beverages, and pharmaceuticals are fueling demand for high-quality, customisable labels produced efficiently and sustainably. With increased adoption of digital and hybrid presses, production will become faster and more versatile, supporting both short-run and high-volume needs while emphasising sustainability.

The sectors driving growth in labels are food and beverages (55%), cosmetics and personal care (17%), home care (15%), eCommerce (10%), and chemicals (3%).  What are the key factors contributing to the significant growth of labels in the food and beverages sector? How is the label printing industry in India gearing up to meet this growing demand?

The food and beverage sector is driving label growth as consumers demand transparency with detailed product information and traceability. Brands are also investing in vibrant, customised labels to stand out on shelves, while eCommerce has created a need for durable labels that endure handling. To meet demand, India’s label industry is adopting digital printing for quick, on-demand responses and prioritising eco-friendly inks and sustainable materials for environmentally conscious packaging.

Label production comprises pressure-sensitive labels (70%), shrink and stretch sleeve labels (12%), wet glue labels (10%), and in-mould labels (8%) and is manufactured by around 700 label printers that run one or more six-to-eight station flexo presses. There are about 1,800 flexo presses, 40 of which were installed in 2023. Similarly, there are 77 digital presses, 37 of which were installed in 2023, and one hybrid press (Gallus Labelfire) installed in 2023. What are the key factors driving the increasing installation of digital and hybrid presses in label production, and how do they compare to the traditional flexo presses in terms of efficiency and quality?

The increasing installation of digital presses has been driven by several important factors. First and foremost, the demand for customisation and variable data printing, particularly for short-run jobs, has made digital presses a more attractive option for label converters. Unlike traditional flexo presses, which are better suited for long runs of standardized labels, digital presses allow to produce highly personalised labels with variable data, such as barcodes, QR codes, and serial numbers.

According to WhatPackaging? magazine, the flexible packaging market in India was valued at USD 8.4-billion in 2020 and is expected to reach USD 12.3 billion by 2025, growing at a CAGR of 8.0%. Gravure continues to dominate. However, in the last five years, we have seen a linear growth of CI flexo machines. This has translated into approximately 15 CI flexo presses being installed every year. Experts opine that the key to investment is CI flexo's sustainability quotient compared to other processes. With flexible packaging runs becoming shorter, do you see technologies such as CI flexo and digital gaining popularity in the Indian market?

Absolutely. As the demand for shorter flexible packaging runs grows, both CI flexo and digital technologies are becoming increasingly popular in the Indian market. CI flexo is gaining traction due to its sustainability benefits, including reduced waste and the ability to use eco-friendly inks. Its precision and consistency also make it a strong choice for brands seeking high-quality, sustainable packaging options.

At the same time, digital printing technologies like the ArrowJet UV and ArrowJet Bolt are being recognised for their ability to handle short-run jobs with high efficiency and minimal setup times. Digital presses offer the added advantage of variable data capabilities and the flexibility to print on a wide range of substrates, making them ideal for brands looking to create personalised, eye-catching packaging. The combination of these factors makes digital printing an attractive option for converters aiming to meet the evolving demands of the flexible packaging market, and we expect both technologies to continue gaining ground in the coming years.

However, gravure printers attempting to use flexo presses have stated that it is challenging to replicate the quality of gravure samples on flexo. Furthermore, when they are successful in doing so, brands expect their other converter suppliers to achieve the same level of quality using flexo, which may not always be feasible. Given this situation, how can printers expand their capabilities with flexo and other emerging technologies? 

While flexo printing has advanced, matching gravure's fine quality remains challenging. A hybrid approach, like the ArrowJet Hybrid Pro+ M, combines flexo’s precision with digital’s flexibility, offering converters high-quality, versatile solutions. Investing in advanced flexo presses, high-res plates, and colour management software helps close the quality gap, while automation enhances precision and reduces variability. Collaboration with substrate and ink manufacturers further ensures consistent print quality. By adopting digital, automation, and hybrid presses, printers can blend flexo’s efficiency with gravure-level quality to meet brand demands.

Today, the mono-carton packaging segment is valued at USD 2.4-billion and is expected to reach USD 4.1-billion by 2025, a CAGR of 9.7%. The market is highly fragmented, with a large number of players across the country. The industry comprises around 3,300 units, with small and medium-sized enterprises (SMEs) accounting for a significant share of the market. While the offset process is deployed for producing mono-cartons, an industry roundtable discussion revealed that narrow-web flexo was also used. Among the users were reputed players such as Pragati Pack, ITek, Zircon Technologies, and Any Graphics. Do you expect this trend to gain speed?

The use of narrow-web flexo in mono-carton production is set to grow, driven by a 9.7% CAGR in the segment due to rising demand from FMCG, pharmaceuticals, and eCommerce. Narrow-web flexo presses offer faster setup, less waste, and better customisation for short runs, making them ideal for brands seeking differentiation and quick turnarounds. Enhanced ink systems, higher resolutions, and hybrid flexo-digital solutions now deliver offset-quality results, positioning narrow-web flexo as an efficient, versatile option for mono-carton packaging in a competitive market.

Has the pace of new capacity addition been different pre- and post-Covid?

New capacity additions in printing and packaging have shifted pre- and post-Covid. Before the pandemic, capacity expanded steadily for sectors like food, beverages, and eCommerce. Covid-19 disrupted supply chains and paused investments. Post- Covid capacity growth resumed with a strategic focus on flexible, on-demand solutions. Digital and hybrid presses like ArrowJet UV and ArrowJet Hybrid Pro+ M gained traction as companies prioritised efficiency, flexibility, and automation over sheer volume. Today, capacity additions emphasise technological upgrades to meet fast-changing market demands.

How are the companies that are primarily into export/import dealing with continuous disruptions caused due to war in several regions? The disruptions have often led to rapid price fluctuation and delays in the transport of goods. Your comments?

Export and import companies are adapting to regional conflicts by diversifying supply chains, sourcing from multiple regions, and relocating some production closer to core markets. They are leveraging technology for improved forecasting, collaborating with logistics partners to optimise shipping, and using flexible contracts to manage price volatility. Risk strategies, such as buffer inventories and insurance, support resilience, with adaptability and proactive planning helping businesses navigate these disruptions.

When innovative solutions are being implemented, converters require capital investments. Some converters are willing to make this investment only if there is an end-user on the other side prepared to commit to assisting them in justifying the investment. It's a three-party scenario: we possess the technology, we require the brand to generate interest, and then the converters will respond. What strategies can be employed to ensure that both the technology and the brand are effectively aligned to attract and engage converters in the three-party scenario?

In a three-party setup, alignment among technology providers, brands, and converters is essential for successful capital investment in new solutions. Collaborative partnerships, such as showcasing ROI through case studies and demos, build trust with converters. Co-investment models and joint marketing efforts can reduce converters' financial risk, while flexible financing and incentives further ease adoption. Training and support ensure converters feel confident with the technology. By aligning each party’s interests, investment becomes mutually beneficial, making converters more competitive and delivering enhanced products to end-users.

You have interactions with customers from different parts of the world. What are the top challenges the Indian label industry faces? 

Despite its rapid growth, the Indian label industry faces significant challenges. Cost pressure is a major concern, as rising demand for high-quality labels pushes converters to offer competitive pricing, straining margins amid increasing raw material costs and global supply chain disruptions. Additionally, technology adoption poses hurdles; many converters are reluctant to invest in digital and hybrid printing due to high upfront costs and uncertain ROI, particularly among small and medium-sized enterprises (SMEs). Sustainability is another critical issue, with brands and regulators demanding eco-friendly materials, complicating the balance between compliance and cost-effective production. Finally, skilled labour shortages and the need for automation create operational challenges, as finding qualified workers for new systems is difficult and transitioning to automation requires substantial investment.

Sustainability involves decisions made in daily life and business. The actions we take, or choose not to take, today, will significantly affect our environment in the future. How do you think businesses can incorporate sustainability into their operations?

Businesses can take meaningful steps toward sustainability by using water-based inks, which are better for the environment, and investing in low-power technologies to cut down on energy use. Switching to paper-based materials for packaging is another simple but impactful change, as they’re easier to recycle and much more eco-friendly. Pairing this with waste reduction efforts and using recyclable substrates helps keep production more efficient and greener. Ensuring the supply chain follows these sustainable practices creates a consistent, environmentally conscious approach from start to finish. Not only do these steps benefit the planet, but they also boost a brand’s reputation, appealing to eco-conscious customers and keeping the business competitive while engaging employees in a positive cause.

How do papers/films and embellishments influence the perception of a product? What elements of a label can visually express and summarise its essence? 

Papers, films, and embellishments significantly shape consumer perceptions of products. The choice of materials—like premium textured paper or glossy films—immediately conveys quality and character; for example, textured paper suggests luxury, while high-gloss film offers a modern look. Embellishments such as foiling and embossing add depth and tactile appeal, enhancing the product's perceived value. The ArrowJet Hybrid Pro M+ excels by integrating inline flexo stations to apply effects like varnish, foiling, and white ink in a single pass, boosting efficiency while elevating label design. Visual elements such as colour, typography, and imagery also play crucial roles; bright colours convey energy, muted tones suggest sophistication and the right typography reflects brand personality. Together with the Hybrid Pro M+'s capabilities, these design tools help encapsulate brand identity and make products stand out on shelves. 

In the food industry, designers and printers encounter a new obstacle related to the limited space available for labels. Global health and safety regulations will necessitate additional space on labels. What strategies are designers and printers in the food sector considering addressing the challenge of limited space on labels while meeting international health and safety legislation requirements?

In the food industry, limited label space poses challenges as health and safety regulations demand more information. Designers and printers address this by using multi-layer or peel-back labels for essential details, minimalistic layouts, and QR codes for online information. Innovative solutions like the ArrowJet Hybrid Pro M+ enable high-resolution printing with inline effects, allowing brands to highlight key details creatively. The ArrowJet VDP enhances security by integrating variable data, barcodes, and anti-counterfeit measures into labels. Meanwhile, the ArrowJet UV ensures vibrant, high-quality prints that comply with regulations while maintaining an attractive design. These technologies help meet international standards without compromising on aesthetics.

Label converters have increasingly sought automation for different stages of the product life cycle in recent years. With a shortage of labour in the industrial sector, human involvement has become a bottleneck in the production process. Automation and connectivity have shifted from being a cost-saving measure to a crucial requirement for industrial survival. What specific types of automation have label converters been implementing to address the challenges in the production chain? 

Label converters are increasingly adopting automation to tackle labour shortages and enhance production efficiency. The ArrowJet line, including the Hybrid Pro M+, VDP, and UV models, spearheads this trend with features that streamline processes and reduce manual effort. The Hybrid Pro M+ combines high-speed digital printing with inline finishing—such as white ink, varnishes, foiling, and roll lifting—all in a single pass, speeding up production and minimising labour. The VDP offers flexibility as either a standalone or integration-ready solution, allowing for variable data and security features without disrupting workflows. With sensors and a web guide system across the ArrowJet line, these automated tools are crucial for converters looking to remain competitive.

How are you addressing the need for faster production speeds in digital label printing?

At Arrow Digital, we meet the demand for faster production speeds with the ArrowJet Bolt, which prints at 150-m/min, perfect for high-volume production without compromising quality. This machine is tailored for converters, aiming to achieve quicker turnarounds in a competitive market. Additionally, the ArrowJet Hybrid Pro M+ combines high-speed digital printing with inline flexo stations for premium applications like white ink, gloss and matte varnishes, and foiling—all in one pass. This integration accelerates production, reduces labor costs, and maintains high-quality output, offering converters exceptional flexibility and efficiency to meet diverse customer needs.

What innovations are you introducing to expand the range of substrates compatible with digital printing? 

We are expanding substrate compatibility across our new products, including the ArrowJet UV, Hybrid Pro M+, VDP, and Bolt. The ArrowJet UV excels at printing on challenging materials like transparent films and dark substrates using advanced CMYK + White ink technology for vibrant prints. The Hybrid Pro M+ features a built-in priming station, allowing printing on non-porous surfaces like plastics, broadening its application range. The VDP offers exceptional versatility for variable data printing on various substrates, ideal for personalised and security printing. Together with the high-speed performance of the Bolt, these innovations ensure our digital printing solutions can handle a wide array of materials, helping converters deliver premium, customised label and packaging solutions.

How are you helping printers seamlessly integrate digital and conventional printing workflows?    

We simplify the integration of digital and conventional printing workflows. The ArrowJet Hybrid Pro M+ combines high-speed digital printing with optional inline flexo stations for white ink, varnishes, and foiling — all in one pass, allowing seamless transitions without multiple setups. The ArrowJet VDP offers flexibility as a standalone system or as part of your existing setup, making it easy to add variable data or security features. Both the ArrowJet UV and ArrowJet Bolt can be customised to your needs, with the option to include inline flexo stations for hybrid printing. This approach streamlines production while delivering high-quality, customized label and packaging solutions.

Let me ask you about volume growth and competition challenge given that there are lots of Chinese and Western players now offering digital solutions, but still limited mostly to specialised short runs or VDP. When will digital finally be mass market, especially in packaging? 

Digital printing is gaining momentum, primarily in specialized short runs and variable data printing (VDP). However, rapid advancements in speed, substrate compatibility, and cost-efficiency are bringing digital closer to mass-market viability, particularly in packaging. At Arrow Digital, our ArrowJet Hybrid Pro M+ and ArrowJet Bolt are engineered for high-volume production at impressive speeds, while retaining the flexibility that digital printing provides.

As converters increasingly adopt these high-speed, high-resolution systems with inline finishing capabilities, digital printing will better meet the demands of larger-scale packaging production. We’re also observing a rising interest from brands for on-demand, personalized packaging, further fueling this trend. While we haven’t reached mass-market application yet, ongoing innovations in cost, speed, and versatility suggest that digital printing will become a mainstream packaging solution in the coming years. The ability to offer customization, reduce waste, and ensure quicker turnaround times is making digital printing increasingly appealing across various industries.

How do your digital printing machines compare to flexo machines in terms of cost-efficiency for short-run jobs? 

Our digital printing machines offer significant cost advantages over flexo for short-run jobs. Unlike flexo, digital printing eliminates the need for plates and lengthy setup times, allowing for immediate printing and making it more cost-effective for short runs and on-demand projects.

Machines like the ArrowJet Hybrid Pro M+ and ArrowJet Bolt are specifically designed for precision and speed in short-run jobs, enabling quick turnarounds without the extra costs associated with plates or material waste. Additionally, digital printing allows for easy customization, such as variable data printing, without requiring additional setup—something not feasible with flexo. Overall, digital printing enhances flexibility and efficiency for smaller volumes or personalized labels, making it the more economical choice for short runs.

What materials can your digital printers handle? 

Our digital printers are designed for versatility, capable of handling a wide range of materials. The ArrowJet Hybrid Pro M+ and ArrowJet Bolt print on substrates like paper, synthetic materials, transparent films, foils, and label stock, making them suitable for industries such as food, beverage, cosmetics, and pharmaceuticals. 

The ArrowJet UV enhances this capability by printing on challenging materials, including dark or transparent substrates, using CMYK + White ink technology for vibrant, high-quality results. Additionally, printers with priming stations, like the Hybrid Pro M+, ensure excellent adhesion on non-porous surfaces such as plastics and flexible packaging. This flexibility allows converters to meet diverse customer demands across both standard and specialty substrates.

How do your digital printers ensure colour consistency across different print batches? Can it withstand tests that flexo colours can withstand?

Our digital printers are designed for exceptional colour consistency across print batches, ensuring high-quality results every time. Models like the ArrowJet Hybrid Pro M+ and ArrowJet UV leverage advanced colour management systems and automated calibration to reproduce vibrant colours accurately. Inline sensors monitor and adjust colour output in real-time, maintaining consistency even in complex or lengthy print runs. 

We also utilise software solutions like Fiery Impress and Xitron to optimize efficiency and quality. Our high-quality water-based and UV inks provide durability and vibrancy that often exceed traditional flexo printing. Whether maintaining precise brand colours or managing intricate gradients, our digital solutions ensure stable and reliable colour output. Additionally, our printers withstand rigorous testing, demonstrating resistance to fading, scratching, and environmental factors.