The global market for ink is expected to reach US$17bn by 2010 according to a new report by Global Industry Analysts, Inc (GIA).
Increasing globalisation, and internationalisation has been a key trend shaping the global printing ink industry in the new millennium.
A key result of globalisation is the transfer of production bases, especially of time sensitive materials to cost effective Asian markets.
In volume terms, the worldwide printing inks market is projected to register a CAGR of about 2.8 per cent for the period 2000-2010.
The global printing ink market is dominated by the world's most affluent economy, the United States, which flaunts hundreds of companies engaged in manufacturing of printing inks.
In terms of market size, United States is followed by Europe. In value terms, Europe is expected to emerge as the largest market by 2010, currently holding a share of about 29 per cent.
Asia-Pacific is expected to be the fastest growing printing ink market followed by Latin America. In Asia, publication and commercial printing is a growing business fuelled by developing markets such as China and India.
Opening up of these economies has ushered in ample opportunities for demand expansion. The printing ink industry in Asia is poised for a period of vibrant growth, driven partially by high-end packaging applications, especially in Vietnam, Philippines, Thailand and Malaysia. In Indonesia, refillable packages are on a steady rise.
Lithographic ink represents the largest product segment for printing inks capturing over one-third market share.
Globalisation in the printing ink industry is a trend ignited by the sheer number of multinational printing and publishing companies going global. Customers for printing ink are on the lookout for a single global integrated supplier.
Despite being an appealing concept from a commercial standpoint, globalisation has its own challenges and a company seeking to go global with its operations stands to contend with varying technical standards, diverse region specific legislations, and raw material availability.
Printing ink consumption is highly interlinked to end-user needs, and is tailored and custom made to meet individual consumer needs and technologies.
Traditionally, price in the printing ink industry was determined through negotiated contracts. The extreme price sensitivity of printers has kept ink prices on a tight leash, with no major variation over the last decade. However, the scenario is all set to change with price hikes being declared across the industry, largely due to skyrocketing costs of raw materials and the resultant squeeze on profits despite every attempt to hedge its impact on profit margins.
Finally catching up with the printing ink industry is the economics of supply and demand. Ink prices, which were hitherto artificially maintained at low levels by ink manufacturers seeking to offer value addition through low-priced high quality products, is now an unviable strategy. And the insurmountable pressure of rising costs of raw materials is a key reason underlying the problem.
GIA's comprehensive research report, Printing Inks: A Global Strategic Business Report, analyses similar market trends with hard-to-find data and analytics for key regions such as the United States, Japan, Germany, France, the UK, Italy, and others alongside up and coming markets such as Asia-Pacific (excluding Japan) and Latin America.
The study also sheds light on trends, issues, and price dynamics prevalent in the industry. Also discussed is the competitive analysis of leading manufacturers in the printing inks industry, amply illustrated with numerous data rich, market data tables depicting major research findings.
Demand patterns quantified both in value and volume terms across major product segments include, Lithographic Inks, Flexographic Inks, Gravure Inks, Letterpress Inks, and Digital Inks among others.
The report sells for US$4450 and profiles 252 companies including Brancher Company, Cromos SA Tintas Graficas, Dainichiseika Color & Chemicals, Dainippon Ink and Chemicals, Sun Chemical Corp, Environmental Inks and Coatings Corp, Encres Dubuit, Epple Druckfarben AG, Flint Group, Huber Group, Inctec, Inc., Micro Inks Ltd, Royal Dutch Printing Ink Factories Van Son Holland, Ruco Druckfarben/AM Ramp & Co GmbH, Sakata Inx Corporation, INX International, Sanchez SA de CV, Siegwerk Group, Sicpa Group, Sicpa Securink Corporation, Sicpa North America.Inc., T & K Toka Co Ltd, Tokyo Printing Ink Mfg Co, Toyo Ink Manufacturing Co Ltd, and Zeller+Gmelin GmbH.
