Understanding the hidden ROI of digital label printing

Many converters believe that digital printing technology is expensive. This misconception is often based on the higher initial investment for the technology and a belief that digital printing consumables are too expensive when compared with flexo or other analogue technologies. 

However, converters assessing the business case for their investment in digital printing on these metrics alone are missing a trick. While consumable cost is an important consideration, there are hidden costs associated with traditional methods and value-added opportunities to be gained from digital printing, which add up to a more accurate assessment of the total cost of ownership.

Therefore, converters must consider their potential investment holistically – assessing market dynamics and evolving customer needs, potential new revenue opportunities, and operational considerations – as Russell Weller, Head of Product – Digital Colour, Domino Printing Sciences, outlines.

Evolving brand customer needs

According to FINAT, the main driver of brands’ requests for digital printing is shorter print runs, which are driven by waste reduction and sustainability objectives as well as growth in the number, variability, and personalisation of SKUs. Indeed, conversations with brand owners indicate that, historically, more than 30% of labels printed are discarded because of legislative or ingredient changes, causing label design obsolescence and necessitating the creation of new print runs with up-to-date information.

Digital printing’s ability to better accommodate short print runs and fast turnaround times effectively eliminates the need for brand customers to rely on large label orders that risk obsolescence to meet demand – this is also known as ‘just-in-time’ label printing. With just-in-time production, brands request only what they need to fulfil demand and can quickly and easily respond to evolving label requirements. Converters can use their digital printing assets to respond to increasing demand for shorter runs at short notice, securing new business and retaining existing customers with the flexibility of delivering stock as and when needed.

Digital presses can also add value by meeting brands’ variable data printing needs in the long term. The technology will play a key part in meeting the increased demand for variable 2D codes as brands prepare for Sunrise 2027, bringing together promotional, supply chain, and point-of-sale information in QR codes powered by GS1.

What’s more, digital printing can add financial and waste reduction benefits. Placing more frequent orders for shorter runs – even at a higher price – could save brands money, provided the overall price paid for the digitally printed labels is lower than the value of the labels that converters or brands would have discarded. Considering that, it’s possible to justify a higher price per label, negating the direct cost-per-label comparison with traditional, analogue technologies.

Operational downtime

Time is money. Maximising press run time is key to maximising the number of labels converters can produce daily. Any machine downtime is a potential problem for converters looking to maximise the return on their press investment.

When compared with analogue technology, digital presses typically require less downtime between print runs to allow for job set-up. Inline, real-time image processing facilitated by digital technology can be a great asset in minimising press downtime and maximising productivity, enabled by convenient set-up via the digital front end (DFE). In addition, there is no need for printing plate creation, the time spent on mechanical set-up is minimal, and it is easy to rearrange the production schedule to accommodate another run at short notice.

In comparison, flexo press set-up can be time-consuming. Each job changeover on a flexo press will take time for mechanical set-up and print testing – the latter of which will also increase the volume of consumables used, as both ink and materials are required to test print quality, colour, and registration.

Flexo converters producing a variety of jobs might find that set-up for changeovers exceeds the running time required for printing a job, making changeover time rather than press speed the critical factor for maximising total output.

In contrast, converters using both technologies know that digital and flexo will deliver the best results when used as complementary technologies, with digital printing a highly effective tool to boost the productivity and profitability of existing flexo assets. Digital technology can be used to free up flexo capacity to focus on more profitable longer runs while opening doors to new, shorter-run business opportunities, which will only add positively to a converter’s bottom line.

Staff shortages and operator skills 

Labour can account for the most significant proportion of a converter’s total operating costs. Indeed, recent interest rate increases and inflation made wage pressures the top business concern for 71% of printing service providers surveyed in the BPIF Printing Outlook Q1 2025.

Staff and skills shortages in the print industry have increased the costs of hiring professionals experienced in setting up flexo technology while simultaneously presenting challenges in finding personnel with the correct skills.

By comparison, recruiting operatives to run digital printing and finishing equipment is simpler. Digital printing technology is typically much easier to run than traditional flexo technology, and technologically savvy candidates (as most new operatives will be) often find it easy to adapt with minimal training needed.

These issues with staff recruitment are driving an industry mindset change, with converters that might not have the local labour required to run another flexo line turning instead to digital technology. Indeed, one-quarter of the respondents in the BPIF survey plan to invest in digital technology in 2025, while half of respondents are investigating automation and workflow improvements that could help them mitigate labour shortages and enhance efficiency.

The bottom line: don’t get left behind and limit your chances of attracting new workers into a forward-looking working environment.

Understanding the complete label production workflow

Once a converter has decided to invest in digital printing technology, it is important to consider all the steps involved in creating the finished label to determine what type of press will achieve the best results.

While a new hybrid printing and finishing line will typically deliver a process where all elements work together with optimum performance, adding a digital roll-to-roll press to an existing multi-step process is complex, requiring a closer look at the complete label production workflow.

A multi-step process could include several pieces of upstream and downstream equipment connected by manual handling processes. While upstream converting equipment can typically maintain a constant supply of prepared substrate to a label press, downstream finishing equipment could cause bottlenecks, lowering productivity and reducing the return on investment. Converters looking to take advantage of higher press speeds should ensure that finishing equipment always matches or exceeds the production speed of the label press to maximise the number of finished labels produced per shift.

Converters purchasing a high-speed press should also be confident that they will be able to generate the orders needed to make use of the additional capacity – as a press that is underutilised will not be able to deliver the desired return on investment. This can also be an issue with digital/hybrid label printing processes, where integrated digital print engines – the most significant investment in the line – can be subject to considerable periods of downtime during flexo-station set-up. Where suitable offline finishing equipment and personnel are available, a roll-to-roll press could be the more efficient choice, delivering a faster payback thanks to near-continuous production and offline finishing.

Conclusion

Converters considering investing in a new digital label printing press need to take into account the whole picture, focusing on the overall value a press could deliver to their business as well as the initial investment, consumable costs, and press speed.

A digital printing press supplier offering reliable solutions, backed by a service offering tailored to a converter’s needs, will be a strong partner that can support converters in scaling their business and maximising the return on their investment.

ENDS