In 2024, we have seen a shift in labels and packaging. Key challenges like labor shortages, rising energy costs, waste, and idle machines have come into focus. However, at drupa 2024, the industry’s transformation – foreseen by HP over two decades ago – became clear. Our vision for intelligent automation will guide the industry for decades to come, and HP remains committed to supporting converters on their digitalization journey.

Industry factors driving change in 2025
Alongside this clear vision for the future are some significant developments across the industry. Inventories are down, inflation has eased, and optimism is cautiously returning. Market consolidations continue across all industry segments. Over the next few years, packaging will embrace automated job management and prepress, dynamic job batching and scheduling combined with flexible pricing. E-commerce, while currently still low in labels and packaging, will develop, as well.

There is a strong focus on data collection and processing, powered with AI, to help printers execute better and faster. Multi-site operation will require software and workflow standardization.

And, of course, sustainability remains critical. Converters are prioritizing low-energy and waste-reducing production lines. Digitalized workflows will measure and cut CO2 emissions while still enabling shorter runs and faster turnarounds – meeting the demand for “next week,” “same week,” and even “next day” delivery to brands, both large and small.

Brand owners’ dynamic requirements are driving the need for fully integrated and standardized printing equipment, connecting with global MIS solutions and ERP systems. And as consumers and brands seek more than just information from labels and packaging, security and track-and-trace capabilities are becoming essential.

In labels, the adoption of digital printing, reaching more than 10% of the pressure sensitive label volume, will intensify going forward. HP Indigo’s technology quality – now available up to 120 m/m on the HP Indigo V12 – offers the most complete and proven printing portfolio, increasing profitability. “What’s great about the V12 is that it makes the whole site more efficient by moving jobs we used to print on flexo or other HP Indigo presses and optimizes them on the V12. This way we can allocate each job to the press that fits it best,” comments Peter Overbeek, CEO, Eshuis.

As printing is not enough, HP presses are developed to operate within the largest community of printing solution partners such as Esko, Hybrid Software, CERM, Label Traxx, ABG, and Infigo. With these partners and more, HP guarantees the highest level of automation across the largest range of substrates – today, more than 1,800 presses are the go-to digital technology for brand owners.

In flexible packaging, digital adoption is still at an early stage and accounts for less than 1% of the sector. HP Indigo and its customers started the journey of digitally printed flexible packaging 10 years ago; we end 2024 with 400 HP Indigo 25K and 200K digital presses installed. Digitally printed flexible packaging is the fastest growing segment in print, with a growth rate in 2024 above 20%. This trend will continue as more conventional flexible packaging converters require more agile production capabilities.

The HP Indigo 200K helps converters to deliver non-minimum quantities in a very short time across a breadth of products, which are becoming more and more popular. The complete HP Indigo solution also helps to reduce converters’ overall carbon footprint by reducing waste in setups. “HP Indigo’s exceptional high-quality impressions allow us to be more flexible and deliver on demand to our customers regardless of the quantity demand,” remarks Marti Alaball, project management director, Enplater, who recently acquired two HP Indigo 200K presses.

Evolving the label and packaging production floor with intelligent automation
In conclusion, 2024 has been a turning point. drupa demonstrated that digital printing is core to the labels and packaging industry, and the future lies in integrating digital and conventional equipment under a standardized intelligent automation infrastructure. HP Inkjet and Indigo LEP, along with advanced software and services, are driving the shift to fully automated, lights-out production sites, where machines, software and robots will take care of the entire production workflow with easier human interventions – from material handling to printing and finishing, to quality control and service routines.

Across labels and packaging and beyond printing technologies, new services are emerging to accelerate customer growth. In 2024, HP began testing AI capabilities to expand the functionality of its xRServices, with a full rollout expected in 2025. HP’s AI-enhanced mixed-reality service environment will elevate the entire customer journey, streamlining ramp-up, production, diagnostics, issue resolution, and system availability to maximize overall performance.

The key to this future lies in seamlessly integrating machines, software, and robots with partners under cloud-based workflows. Some may think, “That’s impossible for my shop,” but the challenges ahead demand more intelligence, and step by step, with HP, it will happen. Together, we will unlock profitable growth.