The printing industry currently stands at a critical juncture, facing profit pressures from rising labor costs and material prices while simultaneously holding immense growth potential due to low digital printing penetration rates. During the 32nd South China International Printing Industry Exhibition, executives from HP Inc's Indigo/PWI Digital Printing Division highlighted digitalization, intelligent automation, and sustainability as core drivers transforming the industry.
Xu Shun'an, General Manager for Greater China of HP's Indigo/PWI Digital Printing Division, acknowledged that rising operational costs have forced the industry to pursue transformation. Concurrently, changing consumer habits, particularly among younger generations born after 1990 and 2000, are reshaping industry dynamics. These consumers increasingly demand personalized and customized products, from beverages to consumer goods, fueling trends like collectible blind-box packaging that serves as social currency.
This shift toward "small batches, high variety" orders challenges traditional large-scale printing models while creating natural opportunities for digital printing. Xu emphasized that digital printing excels in small-batch, customized production with faster delivery cycles and shorter time-to-market. Unlike traditional offset printing requiring plates, digital printing directly transfers digital files to substrates, offering quicker setup, on-demand printing, and superior flexibility for small batches.
Despite years of digital advancement, China's digital printing penetration remains low—below 3% by output volume, compared to over 20% in Europe and the U.S. Xu views this gap as an underestimated blue-ocean market worth billions. While penetration has only risen from ~1% to ~3% in recent years, each percentage point represents over RMB 10 billion in incremental market value within China’s RMB 1.5 trillion printing industry.
Key barriers include traditional printers' mindset and cost misconceptions. Many still serve large brands and compare per-sheet prices without accounting for high setup costs (e.g., plate-making) in traditional printing or the zero-inventory and rapid-delivery advantages of digital printing. Xu clarified that digital printing targets small-batch customization, while bulk orders remain more cost-effective for traditional methods.
Although digital printing’s overall share in China is modest, it is growing rapidly in commercial printing, labels, personalized products, and packaging. HP dominates key segments: 30–40% in commercial printing, ~70% in labels, nearly 100% in flexible packaging, and over 60% in folding cartons.
Competition intensifies through price wars, with hardware and ink costs declining, and zero-down-payment equipment leases. However, Xu noted healthy competition in technology and quality. He also highlighted fierce rivalry among digital printing clients, such as flexible packaging producers in Guangdong competing for overseas orders.
HP maintains a premium, end-to-end solution strategy against rising domestic competitors, focusing on innovation and sustainability. Newer HP Indigo models reduce energy consumption by 24–26% and minimize ink waste. Xu stressed that HP’s rapid innovation cycle—releasing new models every few years—differentiates it from rivals.
Looking ahead, AI integration and automation will address labor shortages and boost efficiency. HP’s AI applications range from design assistance to production optimization, such as color reduction to cut costs. The company aims to further lower total cost of ownership through advanced materials and能耗-efficient technologies.
While digital printing costs have fallen significantly over the past decade, matching traditional printing for bulk orders remains a long-term challenge. Nonetheless, HP executives express confidence in Asia-Pacific and China’s growth, driven by urbanization, e-commerce, and demand for customization.
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