6 Feb. 2023: The next 12 months will see plenty of opportunities for the print, paper and packaging industries, as well as an increased focus on sustainability. We gather a number of experts to make their predictions for 2023.
SIMON PILKINGTON (UK DIRECTOR, FEDRIGONI)
“Predicting the next 12 months remains as challenging as anticipating the events of the past few years! The uncertainty continues, and customers’ and manufacturers’ order books are the biggest concern. The country is tipping into a recession, which clearly impacts demand. Coupled with the excess stocks in the supply chain arising from the shortages and extended lead times earlier in 2022, it means that the first quarter of 2023 will be a period of readjustment.
Several economic forecasters are speculating that whilst this recession may be longer than usual, it will not be as deep as previous recessions. This should encourage printers to diversify and develop products and service offerings for niche areas. Many printing equipment and paper manufacturers like Fedrigoni have invested heavily in technical developments that allow printers and their clients to move into new areas. For example, fiber-based alternatives to plastic such as Paper Snap®.
My advice is to focus on speciality areas and products, providing clients with sustainable, inventive and fit-for-purpose products. Another example of innovation in paper and board is the development of RFID [Radio Frequency Identification] in print and packaging production. Today’s customers expect packaging to be smarter, personalised and reusable, and RFID has a role to play in helping the customer to interact with the packaging – from the outset to the point at which it is recycled. RFID technology doesn’t just benefit consumers, it benefits businesses too, helping with inventory management and tracking the progress of deliveries.”
LUCY SWANSTON (CHAIR, STRATEGIC MAILING PARTNERSHIP)
“History and recession planning tell us that we must market our way out of economic uncertainty, to keep our eye on long-term goals rather than just focus on immediate issues, and that’s certainly the strategy of the Strategic Mailing Partnership (SMP). The past 12 months have been tough for the supply chain and I believe that we’ll see more companies accelerate plans to automate business processes such as workflows to improve efficiencies, maximise profitability and increase agility.
I also think we’ll see more industry collaborations like Canon’s amazing Creatives Futures award run in partnership with The Drum, and our 35% increase in membership suggests that there’s an appetite for more working together, sharing learnings and best practice. Sustainability goals such as enabling high levels of packaging recyclability will continue to drive change across all our industries, but I expect our members will meet them with the same resilience and perseverance they have shown with other challenges.
There’s little doubt that 2023 is going to be tough, and many printers will have to diversify their services in order to survive. But it’s achievable if we all pull together to promote the work we are doing to help create an even better industry.”
CHARLES JARROLD (CHIEF EXECUTIVE, BRITISH PRINTING INDUSTRIES FEDERATION (BPIF))
“It’s fitting that one of the words for 2022 was permacrisis, as it feels that dealing with exceptional circumstances has become the new normal. That said, our sector is nothing if not entrepreneurial and adaptable, and it’s continued its post-Covid bounce-back. Short-term pressures abound, energy prices notably, and at the time of writing, we await news on the energy crisis support schemes.
What really matters is what happens over the medium and long term, and we should be optimistic. Developments in existing and new technology are happening across the industry, and I’ve been impressed with the scale of investment throughout our supply chain.
In a broad sector, there’s still huge opportunity in the use of print as an engaging channel, especially when targeted carefully. We’ll be working with partners throughout the supply chain to raise knowledge and understanding of how to use print as a brilliantly creative option. We’ll also continue our strong focus on print as a sustainable channel, building on the use of our Environmental Roadmap to support the sector in continuing to improve both efficiency and sustainability. And, of course, we will continue to develop and promote print as a great career option. The sector’s apprenticeship training schemes are outstanding, and we have National Apprentice Week in early February, which presents the perfect opportunity for us all to bang the drum about the print industry as a great place to be!”
PATRICK HEADLEY (CEO, GI SOLUTIONS)
“I feel that direct mail is the most penetrative marketing channel of all the channels, and it will remain so. The key question for 2023 is how do retailers remain popular, relevant and successful? Using print as a penetrative medium to get people to transact online is what it’s all about, because it’s the easiest way of doing it.
One of the challenges on the horizon is the fact that print is becoming an increasingly expensive medium. Whether you’re posting it, door-dropping it, or any one of the other ways of using print, the cost of paper and energy had a significant effect in 2022, and will continue into 2023. As we’re now in a recession, it’s marketing spend that will be examined the closest.
However, I do think that it’s an exciting time for print, as some of the older, more traditional advertising channels will triumph over the new digital forms. The fact that third-party cookies are now being abolished has really hit digital advertising. Also, advertising on the internet and social media is increasingly expensive. The cost of a digital campaign has gone up fourfold in the last four years.
The whole opportunity is in getting a new product in front of people who didn’t know they wanted that product, whether the information comes through the door, in a catalogue or online. That’s the reality. I see a lot of targeted digital ads that are absolutely wasted because the critical information is too late. Print has the ability to get information in people’s hands, in their own home, at the right time, which is a very powerful sales tool.”
JONATHAN TAME (MANAGING DIRECTOR, TWO SIDES)
“Two Sides was founded in 2008 to tackle negative statements about our products and promote the unique sustainable and attractive attributes of print, paper and paper-based packaging.
Today our activities are more important than ever, with our Anti-Greenwash campaign challenging companies such as British Gas that make misleading statements about the use of paper – for example, that going paperless will save the planet. The idea that a fossil fuel energy provider whose paper use is negligible compared to its overall environmental impact can make these statements without scrutiny is one that needs to be challenged. Just last month, BT withdrew the same statement following engagement by Two Sides.
With a tightening economy, companies will be looking to reduce their costs, and we are bracing ourselves in 2023 for an onslaught of sensational marketing statements to justify pushing customers online or reduce packaging. Imminent changes to the EU Packaging and Waste regulations will also see brands and retailers across Europe having to reduce their use of secondary packaging.
Whilst calling these companies out, we also inform consumers about the positive messages of our products through our Love Paper initiative. Well-known brands such as Argos, Sainsburys, the RSPCA and Habitat are increasingly using Love Paper to tell the sustainable story of their paper use.
It is up to us, and together our industry must tell the true story of our products. Two Sides has the facts, messages and materials for the industry to use, so let 2023 be the year that people and companies fully understand the positive aspects of paper use.”
Submitted by: Sam Upton February 6, 2023, TwoSides