World ink market situation

In recent years, the packaging of the ink industry has outperformed publications. Driven by the development of flexible packaging and radiation curing, ink manufacturers continue to find market opportunities. The expanding packaging market brings ink companies an opportunity to develop new technologies and differentiate products and services

The data collected by the National Association of Printing Ink Manufacturers of the United States (NAPIM) in the first half of 2005 showed the changes in the market. According to NAPIM's data, compared with the first half of 2004, the total volume of packaging inks fell by 1.4%, while sales increased by 1.5%, reflecting the decision of ink manufacturers to raise prices due to their higher raw material and operating costs.

There is a lot of good news in most packaging ink businesses. The total amount of sheetfed inks decreased while sales increased. The increase in the price of gravure printing solvents was faster than that of the total volume. The largest profits were obtained in flexo printing solvents. The total volume increased by 5.1%, and sales increased by 6.6%. The only bad news was waterborne flexographic printing inks, which suffered a 5% decline in total volume and sales fell 2.5%. This is due to the challenges faced by the corrugated and folding cartons business.

Further price increases are imminent. Flint Ink Company announced that as of October 1, its packaging inks vary by type. Prices increase by 6% to 10%. An additional 4 cents per pound additional cost has also been appropriately invested to bear higher transportation costs. Sun Chemicals will raise its prices by 9% to 11%, and will also invest additional costs in appropriate places.

In the recent Siegwerk Group's acquisition of the SICPA Packaging Ink Company, one can see a clear signal that the packaging ink market has great promise. Through this acquisition, Siegwerk Group became the second largest manufacturer of packaging inks with sales of 613 million euros.

For all packaging ink manufacturers, there are plenty of opportunities to differentiate their products and services. Every day there seems to be a new packaging application, and these often require unique technologies. For ink companies, developing new products and providing quality services are the key to continuous success in the packaging market.

2004 Packaging Market: As the consumer goods companies pay attention to attract customers, the packaging market continues to prosper.

The strong economy in the United States continues to promote the growth of the packaging market, especially flexible plastics and rigid plastics. Much of its growth is attributed to the desire of brand owners for increasingly sophisticated, attractive and innovative packaging. At the same time, processors demand efficiency, including optimizing printing speeds, to help them face excess production capacity in the industry.

The global packaging industry is also growing, especially in those areas that are rapidly developing, with increasing domestic demand for supplies and increasing export packaging needs. Overall, the packaging market is doing well. Even if the entire North American printing market gradually ceases to grow, the packaging market has always been an area of ​​growth and technological innovation. However, people in the industry have to keep in mind that even if packaging consumption is climbing, the threat to the domestic manufacturing industry is that everyone must compete with them because external procurement is becoming more common.

It is worth mentioning that flexible packaging and radiation curing are two areas where growth is strong. Soft packaging has always been a major growth area, and the bottle packaging and shrinking sleeve labeling market is the highest growth area. Radiation curing products also continue to gain momentum. In terms of flexible packaging, bottle packaging, stand-up pouches, drug packaging, and heat-shrinkable sleeve labels have all shown the greatest growth, and in the FPA 2005 annual report, the packaging of drugs made by processors ranks as the number one growth area. . The same report also shows that imports have increased by 11% over the past four years. Another study pointed out that until 2008, the average annual growth rate of the North American rigid plastic food packaging market was 5.8%, which is also favorable for the label part, because many of these packages use labels.

The biggest growth in the packaging industry is in flexo printing. Many new high-speed presses are being installed, and there has been a great improvement in graphics printing, although this in turn will increase costs and require more technology in the process. In terms of paper packaging, the market is expected to be stable, with a large number of mergers among processors, and the threat of imported paper packaging containers is also increasing. The use of better graphic printing technology and some digital printing technologies bring added value to the paper packaging section. Industry reports showed that the corrugated carton shipments in the United States fell by 3.6% in August. At the same time, according to the Paper Packaging Association, shipments of folding cartons rose by 2.1% in the first half of this year.

The corrugated packaging market is flat, with growth at most in GDP, but it will always exist in the packaging market. Due to the continuous transfer of hard packaging to flexible packaging and the drive of some external procurement, the folding carton market is currently stable or in decline. Folding carton has some major uses, but it will not be a growth area unless some unexpected technological innovation can make the market active. ”

Color Flexible Packaging: Flexible packaging has become the most vibrant area for printers and ink companies. In recent years, gravure printing has significantly shifted to flexo printing due to lower costs, improved graphic printing technology, and the need for small batch production. However, digital printing may soon begin to gain market share. The ever-improving graphics capabilities and a good cost structure have helped flexo printing gain market share from gravure printing. However, the speed of this change has slowed down and will continue to slow. Because you have already transferred most of it.

A recent study by the US print market information service company (GAMIS) shows that nearly 80% of the flexible packaging market uses the flexographic printing process for printing. The same study also showed that due to the growth in the use of digital printing, both flexographic and gravure printing in flexible packaging may experience slight declines. Although digital printing has a small market share. However, if technology develops rapidly, it does have potential.

Gravure printing does provide excellent print quality and is competitive in mass production. However, flexographic printing has been reducing the distance from the quality of gravure printing, and the cost is lower for small to medium print volumes. Flexographic printing continues to gain market share from gravure printing, and flexo printing is more competitive. For gravure printing, a more simplistic process is required, requiring less human input to work. It must challenge those that do not have cost competitiveness. The most important aspect is coloring. In this respect, the ink cost is typically 30% to 40% higher than flexographic printing.

New applications: A trip to the supermarket will confirm the changes in the packaging industry. Ten years ago, folding cartons were almost everywhere. Today, flexible packaging, shrink sleeves, and self-supporting bags are the current standards. This can be seen in the growth of the flexible packaging market from the $12 billion business in 1990 to the $20 billion in 2004.

New developments have emerged in areas such as heat-shrink sleeves and stand-up bags, at the same time. Packaging that allows food to be packaged in packaging has won a large market in Europe and Asia and will eventually move forward in the United States. There are several opportunities for growth in the packaging market. Flexible packaging still does not reach its full potential. There are considerable opportunities in areas such as stand-up pouches and bottle packaging, as well as rigid plastic packaging. New heat-shrink sleeves can be seen on retail shelves almost every week.

Bottle packaging will continue to grow, and shrink sleeves and RFID will continue to grow despite slower. To some extent, the same is true of trademark security. The latter will eventually be canceled, but it will take a long time, perhaps more than a decade, before there is some kind of trademark security becoming mainstream in the packaging and printing industry. The use of digital ink on packaging will certainly continue to grow.

The Opportunity to Make Products and Services Stand Out: The packaging industry is a challenging area that requires innovative designs that are functional and appealing. For example, in the bottle packaging market, cooking will be done with the package. At the same time, it must attract consumers.

For ink manufacturers. The packaging ink market offers them the best opportunity to differentiate their products and services. Far from being a size that can satisfy all markets, the projects that provide services will not necessarily be limited to printers. Focusing on this, ink manufacturers emphasize the value they bring to their customers.

Packaging inks are highly specialized products designed to meet the technical requirements and requirements of processors and consumer product companies. By formulating high-performance inks to trademark owners; bringing some success on supermarket shelves, ink manufacturers can differentiate themselves clearly from others. If ink manufacturers can provide reliable services for these inks back then they will have a more competitive advantage. Providing the best printing performance is essential for the packaging market. Naturally, ink companies provide expert-level friendly support to every customer, which is necessary to optimize all print production.

Allows processors to quickly produce high-quality cartons and boxes on a small-scale basis. The printing presses and inks have the potential to drive the secondary packaging market. This will help satisfy the needs of consumer goods companies that demand market speed and attractive, quick-moving secondary packaging. As demonstrated in the growing store-like store. It can also be applied in the production of goods with selling points. They have very clear in-plant operating philosophy and bring value to customers.



Source: China Ink Technology Network

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