Research Reveals Pathways to Success in 2025

The upcoming year presents numerous opportunities for print service providers to leverage emerging trends, improve operational efficiency, and drive sustainable growth. Success in 2025 will depend on identifying and implementing strategies aligned with key market forces shaping competition and growth.

A NAPCO Research report, Production Digital Printing 2025: Setting the Course to Thrive in the Year Ahead, outlines 11 key trends expected to impact industry competition, guide the competitive landscape, and identify critical strategies for print service providers.

Here is a summary of key trends featured in the report.

Preparing for a New Generation of Workers

A NAPCO Research survey found that 72% of commercial printers view hiring production staff as a significant challenge, with 63% citing similar difficulties in hiring sales staff. To address this, print providers must focus on attracting and developing Gen Z workers, who are expected to make up nearly a third of the U.S. workforce by 2030. Aligning recruitment strategies with the values of Gen Z—such as offering appealing career paths and a culture that resonates with this demographic—will be key to building a strong workforce.

Harnessing AI to Drive Operational Efficiency and Marketing Success

According to a McKinsey & Company report, generative AI offers the potential to automate up to 70% of work activities. According to NAPCO Research’s Artificial Intelligence in the Printing Industry: The Journey Begins study AI tools and technologies are available for print service providers, and adoption has begun. Print providers are using AI to automate tasks such as job ticketing, inventory management, quality control, and equipment maintenance. In marketing, AI enables personalized services through content creation, video production, and customer segmentation. Print providers adopting AI technologies are likely to see improved efficiency, profitability, and a competitive edge.

Next-Generation Inkjet Investment

Advances in press technology, substrates, and inks, along with customer acceptance of the quality of output, are driving increased investment in production inkjet presses. The 2024 NAPCO Research study The Production Inkjet Application Revolution shows 57% of print buyers specifying inkjet presses. Print providers cite benefits such as higher productivity, shorter run lengths, faster turnaround, and reduced costs. In 2024, over half of print providers plan to expand inkjet investments, expecting lower costs, reduced waste, and increased profits.

Digital Printing’s Expanding Role in Book Manufacturing

According to the PRINTING United Alliance State of the Industry Update, Second Quarter 2024 (sponsored by Canon U.S.A., Inc.) demand for books continues to grow, with a projected annual growth of 2.1% to 6.4% compounded annually during the next three years. Printed books remain highly popular, and AI is driving demand for print-on-demand services. Digital printing, particularly production inkjet, is transforming book manufacturing by reducing costs in printing, inventory, shipping, and warehousing. 

Direct Mail Marketing: Innovation and Personalization

Direct mail will continue to evolve in 2025, driven by technology and a focus on integrating print with digital media. According to Sequel Response’s 2024 benchmark report, 61% of marketers are increasing investments in direct mail. Key trends include the use of AI for hyper-personalization and real-time performance tracking, enabling marketers to measure and optimize campaigns. Sustainability efforts, including eco-friendly materials and inks, will also be a priority, ensuring direct mail remains a powerful marketing tool.

Rejuvenating Transactional Documents with Versioning and Color

Digital printing is revitalizing transactional documents like bills and invoices by incorporating color and personalized messaging. According to NAPCO Research’s The Production Inkjet Application Revolution, 91% of transactional buyers include targeted marketing and customer service messages. Production inkjet is expanding color and customization opportunities for transactional documents. First, webfed production inkjet presses made color communications affordable and endlessly customizable. As the volume of printed transactional documents continues to decline (as organizations opt for digital alternatives), sheetfed inkjet is now an attractive option for printing transactional documents. This shift toward color and personalization in transactional printing is expected to grow as companies seek to improve communication impact.

Streamlining Success with Workflow Automation

Print service providers are turning to workflow automation to reduce costs, increase efficiency, and address labor shortages. NAPCO Research finds that 77% of print providers are automating workflows to enhance profitability, and 88% of survey respondents plan to make capital investments in automation. Workflow automation helps reduce bottlenecks, speed up production, and scale operations without increasing labor costs. In 2025, investing in automation will be essential for meeting customer expectations and improving operational performance.

Expanding Services Beyond Print

Print service providers are diversifying their offerings to capture new revenue streams and expand their customer base. According to NAPCO Research’s 2024 Annual Commercial Print Trends and Strategy Service survey, many companies are either expanding or planning to expand their services to include creative, data, mailing, and fulfillment. Specifically, 74% of survey respondents report their company has already expanded services, 65% plan to expand their product offerings, and 64% aim to diversify production capabilities within the next 12-24 months. Service expansion is seen as essential for long-term business sustainability.

A key area of expansion is offering omnichannel communications. Demand for omnichannel marketing is projected to grow, with businesses employing these strategies seeing higher revenue growth. Print service providers are increasingly recognizing the value in supporting clients’ communication needs across various channels. Overall, the trend toward expanding services beyond print, particularly with omnichannel solutions, presents a major opportunity for print service providers to grow their businesses in the coming year.

Digital Printing Enabling Migration into Packaging

Digital printing is continuing to remove entry barriers and enable print providers to move into the package printing segment. As many commercial printers have experienced the digital replacement of traditional print products, packaging is an attractive product offering because there are no electronic alternatives, and it is on a growth trajectory. In addition, NAPCO Research’s 2024 study Digital Packaging: The Pursuit of Prosperity finds that brand owners are familiar with digital printing and prefer working with providers that offer production-level digital printing and the ability to produce personalized or variable packaging. Advances in digital press technologies are making digital printing more competitive and versatile, driving significant growth in the packaging market.

Final Thoughts

The year ahead presents print service providers with many opportunities to grow, enhance productivity, enter new markets, and integrate AI into their operations. Success in 2025 will occur by identifying key market trends and aligning strategies to capitalize on emerging opportunities. Download the full report and use its trends, data points, and insights to develop strategies and support decisions for investing in operations, equipment, staff, and market expansion.