Analysis of Asian ink market
sustained economic growth and improved living standards have driven the printing demand in the Asia Pacific region
after an economic twists and turns, the Asia Pacific region began to show signs of recovery, but the rising raw material prices discounted the large pendulum of profit spaceHisato Tanemura, Asia Pacific Marketing Director of DIC, said, "for example, the technology industry called" baypreg "(registered trademark of covestro) or" elastoflex "(registered trademark of BASF polyurethane) in the industry has recovered from the market twists and turns caused by the Iraq war and SARS in 2003. The overall situation in 2004 was good, but after midsummer, the profits of the industry were affected by the soaring solvent prices, and the source was of course the rise in oil prices. With the rising price of raw materials, the appreciation of the euro and the yen has also impacted the industry. " However, the growth of the ink industry in this region has been good in the past year
Henry Leong, President of Fulin Asia for industrialization and scope utilization, pointed out: "in general, except India, the printing industry in Asia increased by 5%-6% in 2004, mainly in China and Vietnam."Toshiyuki Sawada, general manager of international operations of Sakata INX, said, "the growth of the ink industry in 2004 seems to have exceeded the growth rate of GDP."
coumara radja, general manager of micro inks international business and corporate media, said, "because India and China are the same major countries, the growth situation of the printing industry is better than that of Europe and the Americas. The significant growth of GDP in India and China has created conditions for the growth of the printing and printing ink industry, which has almost reached 7% to 9% in these two countries."Radja believes that India and China have experienced the largest growth. "In fact, China's GDP grew by 9.25% in the first quarter of this year, and India's sustained growth rate of more than 7% of GDP has also attracted world attention," he said
tanemura said, "India's economy grew by about 6% in 2004, but its printing ink industry reached double-digit growth, with packaging and newspaper printing growing the most."
in addition to China and India, other countries also experienced strong growth, but Tanemura stressed that China and India had the largest growth, followed by Thailand and VietnamLeong said, "Vietnam's GDP grew by about 10% last year, and foreign investment increased a lot. These factors have promoted the rapid development of Vietnam's printing industry."
when it comes to growth, the Japanese market is mixed. Tanemura said, "with the recovery of Japan's economy, the rotary offset printing market in 2004, mainly newspapers and bulk printing, achieved a small amount of growth. The sheet fed market continued to shrink by 2%-3% in 2004, and the liquid ink market was relatively better"
Sawada said: "In Japan, commercial printing has the best performance, while metal decorative printing has declined on the contrary, while gravure printing and flexographic packaging have increased. The decrease in metal decorative printing is due to the gradual replacement of beverage cans by PET bottle gravure printing."Radja said that the Australian economy has generally performed well in the past year. Radja said: "The printing industry has been very stable in 2004, but compared with the trend of the past few years, we have noticed that many printing activities have shifted to more economical overseas markets, such as Singapore, Thailand and Hong Kong, which has an impact on medium-sized printing plants. We have also seen mergers and acquisitions and integration among enterprises. As a result, large printing plants gain market share by purchasing small printing plants, thereby consolidating their position. Medium-sized printing plants are always in Under the dual pressure of the strength of large factories and the low cost of small factories. "
tanemura said, "last year, due to the appreciation of the Australian dollar, the industry lost some overseas orders, which caused the printing industry to stagnate in 2004. The sheet fed market suffered the most, and the demand fell by more than 5%Radja pointed out that due to fierce competition, ink suppliers are under great pressure, especially on sheet fed ink
radja said: "The sheet fed printing market is monopolized by DIC, Toyo, sikebay and several other ink companies with a certain market share, such as hostmann Steinberg printing ink company, Sakata ink, t k Toka in Japan, micro ink in India, inctec and flint. Sikebay has transferred its rotation business to flint, which provides a good opportunity for the latter to easily obtain several major businesses originally owned by sikebay. The rotation heat curing ink is basically controlled by Toyo ink, Flint specializes in thermosetting and cold setting inks, while Goldberg specializes in cold setting inks. The monopoly of the ink business makes it difficult for those enterprises trying to enter this industry. Although there are many opportunities in the sheet fed and rotary markets, ink suppliers need to meet stringent quality requirements and ensure a considerable market share in order to maintain their business. "
radja said: "Last year, we also saw changes in the sales channel. Hostmann Steinberg moved from CPI to ferag. Ferag invested heavily in building a basic network to support the ink business, including hiring a large number of employees transferred from Toyo. CPI finally found a replacement for hostmann Steinberg. Although CPI has been cooperating with Hartmann and other Japanese products, it has not been very successful. Most sheet fed inks are imported directly by dealers or ink companies."Radja said, "the trend is to increase the degree of automation. Color matching and prepress color matching have become standard operations. Several fully automatic computer 10/12 color sheet printers have been installed, and many cover devices have also been installed. In the rotary offset market, some thermosetting and cold curing ink printers have been installed before and after the drupa exhibition."
economic growth and the improvement of living standards have driven the printing demand in the Asia Pacific region
tanemura pointed out that the continuous improvement of living standards in Asian countries, especially China and India, which are populous countries, has led to significant growth in the printing industry. He said: "the increase in exports mainly from China has also driven the demand for printing ink."Radja believes that there are three factors driving the growth of the printing ink Market: strong demand for packaging, growth of printing media, and GDP and economic growth
the population of China and India is 130million and 110million respectively. With the rise of literacy rate, the business volume of print media increases. Radja said, "the literacy rate has shown surprising growth, although there is still a long way to go. 5. According to the use of punishment, there are mainly general-purpose machines (universal machines) and special machines. Due to the absolute large population, more and more people will use print media, and the number of readers and the business volume of print media are growing rapidly."Radja pointed out that there are 5600, 15000 weekly newspapers and 20000 periodicals in India, involving 21 languages, with a total circulation of 142million. "There are almost 325 languages used in India, including 18 official languages and 1600 dialects."
mr. radja said, "GDP growth has created favorable conditions for the printing industry and printing ink industry under the growth of the packaging industry. The fast moving consumer goods industry (FCMG) has increased advertising spending, and the demand to expand population coverage has increased newspaper pages."
for ink manufacturers, there are opportunities in the packaging and publishing industry, especially in China. Recent data show that China's printing industry has maintained an annual growth rate of 10% since 1999. In 2005, the packaging industry is expected to reach $100billion in sales, with a sustained rapid growth of 10%. Reading materials increased, and 2.5 million tons of paper were needed in 2005. The requirement for schools to replace color printing textbooks will drive the demand for inkLeong said, "in China, the growth of the printing ink industry is driven by the development of packaging and publishing. China's accession to the WTO has continued to increase its foreign trade exports, which has a positive impact on the packaging industry. The growth of the publishing industry is mainly attributed to the improvement of the general literacy rate of the population and the urbanization of the rural population. The growth rate of China's packaging industry last year was 11% to 12%
tanemura said, "China's economy continued to grow in 2004, and the printing and printing ink market expanded by about 11%. However, due to the rise in crude oil prices and intensified competition, the profits of the printing ink industry decreased significantly in the second half of last year."Sawada pointed out that China is the fourth largest printing ink manufacturer, behind the United States, Japan and Germany. Sawada said, "the production of printing inks, especially rotary inks including newspaper inks, has increased greatly. Gravure inks, such as flexible packaging inks, are also on the rise." Packaging printing and flexible packaging, including corrugated board, increased the most
the printing industry in the Asia Pacific region continues to develop, which is full of great opportunities for ink manufacturers
environmental protection constraints
although not as strict as European and American countries, the Asia Pacific region is also beginning to face increasingly urgent environmental protection constraints
tanemura said, "environmental protection regulations for factory emissions have become increasingly stringent in this region, but the standards and VOC Control of printing ink are not so strict, with the exception of Japan and Australia. Global companies such as Nestle and P & g require their printers to comply with their standards, so the demand for benzene free and butanone free inks for packaging and tobacco printing is increasing."Sawada also said, "in the printing industry, they require environment-friendly inks, such as benzene free and butanone free gravure inks,"
Leong said: "Asia, especially China, has paid more and more attention to environmental issues in the past few years because of the 2008 Beijing Olympic Games. We expect this trend to continue, and more and more customers ask us about environmental friendly inks for use in the publishing, printing and packaging market."