Tapping Into New Revenue Streams with Labels and Packaging
As the world leans more heavily into digitization, print service providers are on a constant quest for growth and adaptation. In the midst of these shifting sands, the labels and packaging industry has emerged as a lucrative territory. Smithers projects the global value of the print labels market to reach $41.02 billion by 2024. A vital communication tool between the brand and its consumers, packaging provides crucial information about the product, from its ingredients or materials to its origin and usage instructions. Furthermore, labels are increasingly being used to convey a brand’s values, such as its commitment to sustainability or inclusivity. This thriving market is energized by developments in web-to-pack e-commerce, retail packaging, sustainability, embellishments, personalization, and interactive print elements like QR codes and augmented reality.
E-commerce and Retail Packaging: A Golden Age for PSPs
With the explosion of online shopping, the demand for packaging and labels has soared. According to the Adobe Digital Economy Index, U.S. online spending reached a staggering $73.2 billion in June 2021, marking a 76.2% year-over-year growth. As this e-commerce train charges full steam ahead, PSPs have a golden opportunity to broaden their services into packaging, spawning a profitable revenue stream that meets the thriving needs of e-commerce businesses.
Sustainability: A Green Revolution in Packaging and Label Production
A green revolution is underway in consumer behavior. One Nielsen study revealed that 73% of global consumers are willing to adjust their consumption habits to lessen their environmental impact. This new wave of environmental consciousness is fueling demand for eco-friendly, recyclable and compostable packaging. PSPs who ride this wave by offering sustainable packaging solutions will draw in a fresh client base and tap into an additional revenue stream.
Embellishments and Personalization: A New Era in Consumer Experience
As brands vie for consumer attention, embellishments and personalization in label and packaging design have emerged as potent differentiators. The Deloitte Consumer Review: “Made-to-Order: The Rise of Mass Personalization,” uncovers that one in five consumers is willing to pay a 20% premium for hyper-personalized products or services. Harnessing this insight, PSPs can offer customizable label and packaging solutions, empowering clients to create unique, premium packaging that captivates buyers.
Read in full: Check the Label: How to Capitalize on Labels and Packaging for New Revenue Streams – written exclusively for WhatTheyThink*
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