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Flexographic Ink Market - Global Forecast to 2020

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1 EXECUTIVE SUMMARY

Flexographic ink comes into existence in late 1800s. Since then, major development has been made in the

quality of flexographic ink for various applications such as printing plates, printing press and printing inks.

Major developments, such as sleeve and adapter technology, contributed more in improving print quality

and reduce setting time, labor and costs. Flexographic ink in initial stage based on solvent-based chemistry

but it also included an additional broad range of water-based and UV-curable inks in current market, which

helps in enhancing printing performance and packaging quality of flexographic ink.

Currently flexography is the highest-growing printing process among all the processes. It provides the

advantages of printing ink on a variety of different substrates such as Plastic, film, foil, paper and board, by

using wide categories of inks, and printing with higher speeds, while maintaining an appealing quality.

Most end-users such as printers and print buyers have observed a high growth and technological

advancement in different applications of flexographic printing.

Flexographic inks are largely used in corrugated cardboards, flexible packaging, folding cartons, and tags &

labels. The global flexographic ink market is witnessing growth owing to the growing demand from the

flexible packaging and growth of tags & labels market in the Asia-Pacific region. Water-based flexographic

ink has the largest market share among different types of technologies used for the production of

flexographic ink.

The global flexographic ink market was valued at $XX million in 2014 and is projected to reach $XX million

by 2020, at a CAGR of XX% between 2015 and 2020. Environmental regulations to reduce VOCs and

shifting market from print to digital media are the main restraints faced by the flexographic ink market.

FIGURE 1 FLEXOGRAPHIC INK MARKET SNAPSHOT (2015 VS. 2020): TAGS & LABELS AND

FLEXIBLE PACKAGING MARKET TO GROW AT A HIGHER PACE IN THE NEXT FIVE

YEARS

Source: MarketsandMarkets Analysis

2015 2020CAGR%

Folding Cartons

Tags & Labels

Volume (KT)

Corrugated Cardboard

Flexible Packaging

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FIGURE 2 EUROPE HAS THE LARGEST SHARE IN GLOBAL FLEXOGRAPHIC INK MARKET SIZE ,

BY REGION, 2015

Source: Press Releases, Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis

Asia-Pacific (comprising China, India, Japan, and others) accounted for the largest share of XX% of the

global printing ink market in 2014. Growing demand for the flexographic printing inks in the packaging

industry for corrugated cardboard, flexible packaging, folding cartons, labels and tags, and metal cans are

driving the growth of the flexographic ink market in Asia-Pacific. The RoW region is projected to register the

second highest growth rate of XX% after Asia-Pacific during the forecast period.

The flexographic ink market is competitive with a large number of small players, especially in China. The

flexographic ink market is dominated by various players, depending on their core competencies. The key

players in this market are DIC Group (Japan), Flint Group (Luxembourg), Sakata INX (Japan), Toyo Ink SC

Holdings (Japan), T&K Toka (Japan), Siegwerk (Germany), and other medium and small sized regional

players.

XX%

XX%

REST OF THE WORLD

XX%

XX%

EUROPE

ASIA-PACIFIC

XX%

XX%

XX%

XX%

NORTH AMERICA

Market Share %

CAGR %

5



FIGURE 3 FLEXOGRAPHIC MARKET SNAPSHOT (2015 VS. 2020): MARKET FOR UV CURABLE

TO GROW RAPIDLY IN THE NEXT FIVE YEARS

Note: *E-Estimated, P-Projected

Source: MarketsandMarkets Analysis

Europe is estimated to account for the largest share of XX% of the global flexographic ink market, in terms

of volume in 2015. Huge demand from flexible packaging and tags & labels applications is driving the

growth of the flexographic ink market. The U.S., China, Japan, France, the U.K., and Germany are the

leading consumers of the flexographic ink market.

Particulars 2015 -E 2020 -P

Value ($Million) XX XX

Volume (Kilotons) XX XX

Regional Share (%Volume)

Asia-Pacific: XX%

Europe: XX%

North America: XX%

RoW: XX%

Asia-Pacific: XX%

Europe: XX%

North America: XX%

RoW: XX%

Technology Share (%Volume)

Water-Based: XX%

Solvent-Based: XX%

UV Curable: XX%

Water-Based: XX%

Solvent-Based: XX%

UV curable: XX%

Industry Status in 2014 The industry is consolidated with top ten players.

CAGR (2015–2020) Value: XX%; Volume: XX%

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2 PREMIUM INSIGHTS

2.1 ATTRACTIVE OPPORTUNITIES IN FLEXOGRAPHIC INK MARKET

FIGURE 4 FLEXOGRAPHIC INK MARKET TO GROW AT A MODERATE CAGR BETWEEN

2015 & 2020

Source: Press Releases, Investor Presentations, National Association of Printing Ink Manufacturers (NAPIM) International Paint and

Printing Ink Council (IPPIC), Canadian Printing Ink Manufacturers' Association (CPIMA), Ink World, Expert Interviews, and

MarketsandMarkets Analysis

ATTRACTIVE MARKET OPPORTUNITY

• Global flexographic ink market is

estimated to be $XX million in 2015 and

projected to grow at a CAGR of XX%

between 2015 and 2020 to reach $XX

million in 2020.

• The market growth is attributed to the

increasing demand from flexible packaging

and tags & labels industries.

• Emerging economies such as India, China,

and Brazil offer opportunities to global

flexographic ink market.

• New product development & launch and

agreement & collaborations are expected

to offer lucrative opportunities to the

market players in the next five years.2015 2020

XX%CAGR

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2.2 LIFE CYCLE ANALYSIS, BY REGION

The flexographic ink market in this report is divided into four main regions, namely, North America, Europe,

Asia-Pacific, and RoW (includes Brazil and Russia). Brazil and Russia are driving the flexographic ink

market in the RoW region, and are estimated to register a CAGR of XX%, by volume between 2015 and

2020.

FIGURE 5 ROW MARKET TO SOON ENTER AN EXPONENTIAL GROWTH PHASE

Source: Press Releases, Investor Presentations, National Association of Printing Ink Manufacturers (NAPIM), International Paint and



Europe commands the largest share of the total flexographic ink market in terms of volume and value

followed by North America, while the Asia-Pacific and RoW markets are in a growth phase in the

flexographic ink market life cycle. The European and North America flexographic ink market is estimated to

witness a slower growth rate as compared to Asia-Pacific and RoW region due to the Eurozone debt crisis

and the subsequent decline in the economy in recent years. The Asia-Pacific flexographic ink market is in a

growth phase. This growth is attributed to the booming packaging industry in China and India and

increasing demand for flexographic inks due to the growing purchasing power parity. The RoW region is

also in a growth phase as the flexible packaging and folding cartons application are growing at a high rate

due to recent and scheduled global events such as FIFA World Cup 2014 and Summer Olympics 2016.

Such events lead to huge spending in packaging of different articles and consumer goods, driving the

flexographic ink market.

GR

OW

TH

(V

OL

UM

E)

TIMEINTRODUCTION GROWTH MATURITY DECLINE

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3 INDUSTRY TRENDS

3.1 COST ANALYSIS

In inks market, more than half of the raw materials are obtained from crude oil or petroleum derivatives,

therefore the costs are extremely sensitive to the fluctuations in price of crude oil. Crude oil is one of the

key raw materials used for producing flexographic ink. Thus, fluctuations in crude oil price directly affect

the day-to-day operations of the ink manufacturers.

Flexographic ink manufacturers have to take certifications and approvals from regulatory bodies to meet

the client requirements and government regulations. If a manufacturer sells additive in bulk quantities, it

needs to have a level of safety and health certification. This also adds up to the cost of the additive,

thereby increasing the cost of the inks.

The need to comply with this legislation for making environment friendly ink so that it not harm customers

by various institutions and government raises the total production cost by at least XX% to XX%. These cost

increases can be fully prevented by the application of water based inks as approvals are not costly due to

low toxicity content of these inks. The final cost for the flexographic ink depends on the price of additives,

resin, pigments, and other external factors. The external factors were identified as:

Ink and associated cost: Cost of ink and additives, energy consumption in dryers, removal and

treatment of waste

Environment and safety: Waste gas incineration, reduction, and control of fugitive solvent

emissions, waste water treatment, storage, application of best available techniques, prevention

of explosive atmospheres

Other cost: Anilox rollers, image carriers, tests, and other indirect costs

Management time: Introduction of water-based inks, quantification, and reporting of fugitive

emissions, drafting a reduction plan, annual solvent balances, complex environmental permit,

explosion protection document, compliance with Occupational Exposure Limits

POINT-OF-CARE DIAGNOSTICS MARKET

[(Products – Glucose Monitoring & Infectious Diseases Testing Kits,

Cardiac & Tumor Markers), (End Users – Self & Professional

Monitoring), (Over –the- Counter & Prescription Based)]

– Global Forecast to 2018]

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FIGURE 6 PRICING TREND (2000-2030): VOLATILITY IN THE PRICE OF ADDITIVE USED IN

THE FLEXOGRAPHIC INK INDUSTRY

Note: The pricing trend analysis is estimated based on the changing manufacturer prices over the past few years.

Source: Press Releases, Investor Presentations, Secondary Literature, Expert Interviews, and MarketsandMarkets Analysis

Increase in the price of additives, solvents, and resins due to increasing raw materials prices or value

addition during the processing of additive is ultimately added in the total cost of the flexographic inks.

However, additives generally add around XX% to XX% to the total cost of inks due to their lower volume

consumption in the final product, whereas, resins add XX% approximately and solvents add XX%-XX% to the

total cost. Therefore, volatility in the price of additives is expected to have a moderate impact in the price

of the inks in the coming years.

High

Low

Vo

lati

lity

in

Ad

dit

ive

Pri

ce

s

2000-2010 2010-2020 2020-2030

10



4 FLEXOGRAPHIC INK MARKET ANALYSIS, BY REGION

4.1 ROW

The RoW includes Russia, Brazil, and others (includes the Middle East, Latin America-excluding Brazil, and

Africa). Other countries have a very small market share, and hence are not included in our market analysis.

TABLE 1 ROW: FLEXOGRAPHIC INK MARKET SIZE, BY COUNTRY, 2013–2020 (KT)

Country 2013 2014 2015 2020 CAGR%

(2015–2020)

Brazil XX XX XX XX XX

Russia XX XX XX XX XX

Others XX XX XX XX XX

Total XX XX XX XX XX




TABLE 2 ROW: FLEXOGRAPHIC INK MARKET SIZE, BY COUNTRY, 2013–2020 ($MILLION)

Country 2013 2014 2015 2020 CAGR%

(2015–2020)

Brazil XX XX XX XX XX

Russia XX XX XX XX XX






Major international printer brands are planning to establish their base in the Latin America. Latin America

has a growing printing ink industry and the ink market was estimated to be $XX billion in 2013, which are

attracting the printing ink manufacturers to invest in the region. This has also led to the growth of the

domestic and multinational ink manufacturers by some merger and acquisition activities in the printing ink

market. The major flexographic Ink companies operating in theses region are SICPA and Nazdar, the

growth has primarily come from product sales instead of acquisitions. In terms of ink suppliers, the

concentration process is on-going, thereby reinforcing the presence of international suppliers, such as

BASF and Flint Ink. BASF has also been active, acquiring Tintas Graficas in Chile, Tintas Graficas Vencedor

in Peru, and distribution and production licensee agreement with local ink manufacturer Neograf in

Argentina.

Countries such as Columbia and Chile have witnessed growth particularly in the packaging market.

Flexographic process is increasing in popularity, particularly in the labelling market. Flexography is

witnessing the biggest growth, partly due to the substitution of some rotogravure applications.

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TABLE 3 ROW: FLEXOGRAPHIC INK MARKET SIZE, BY RESIN TYPE, 2013–2020 (KT)

Resin Type 2013 2014 2015 2020 CAGR%

(2015–2020)

Acrylic XX XX XX XX XX

Nitrocellulose XX XX XX XX XX

Polyamides XX XX XX XX XX

Polyurethane XX XX XX XX XX




Printing Ink Council (IPPIC), Ink World, Expert Interviews, and MarketsandMarkets Analysis

TABLE 4 ROW: FLEXOGRAPHIC INK MARKET SIZE, BY RESIN TYPE, 2013–2020 ($MILLION)

Resin Type 2013 2014 2015 2020 CAGR%

(2015–2020)

Acrylic XX XX XX XX XX

Nitrocellulose XX XX XX XX XX

Polyamides XX XX XX XX XX

Polyurethane XX XX XX XX XX





According to industry experts, the dynamic development of the flexible packaging application in the RoW

region is rapidly growing, due to the demand for consumer goods that is significantly rising at a rate of XX%

per annum.

TABLE 5 ROW: FLEXOGRAPHIC INK MARKET SIZE, BY TECHNOLOGY, 2013–2020 (KT)

Technology 2013 2014 2015 2020 CAGR%

(2015–2020)

Solvent XX XX XX XX XX

Water XX XX XX XX XX

UV XX XX XX XX XX




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TABLE 6 ROW: FLEXOGRAPHIC INK MARKET SIZE, BY TECHNOLOGY, 2013–2020 ($MILLION)

Technology 2013 2014 2015 2020 CAGR%

(2015–2020)

Solvent XX XX XX XX XX

Water XX XX XX XX XX

UV XX XX XX XX XX




The market for the flexible packaging application in Brazil and Russia contributed XX% and XX%,

respectively, out of the total flexible packaging demand in 2011, whereas countries, such as Vietnam and

Indonesia have collaboratively contributed about XX% of the global flexible packaging demand in the same

year.

The packaging industry is continuously growing in these countries due to the changing size of packaging

and increasing usage of Internet which is increasing the demand from e-retailing. This is driving the

flexographic ink market in the RoW region.

TABLE 7 ROW: FLEXOGRAPHIC INK MARKET SIZE, APPLICATION, 2013–2020 (KT)

Application 2013 2014 2015 2020 CAGR%

(2015–2020)

Corrugated Cardboard XX XX XX XX XX

Flexible Packaging XX XX XX XX XX

Tags and Labels XX XX XX XX XX

Folding Cartons XX XX XX XX XX




TABLE 8 ROW: FLEXOGRAPHIC INK MARKET SIZE, BY APPLICATION, 2013–2020 ($MILLION)

Application 2013 2014 2015 2020 CAGR%

(2015–2020)

Tags and Labels XX XX XX XX XX

Flexible Packaging XX XX XX XX XX

Corrugated Cardboard XX XX XX XX XX

Folding Cartons XX XX XX XX XX




13



The Brazilian flexible packaging market is the powerhouse of the Central and South American market, and

accounted for XX% of its total consumption and production in 2006. It is growing by XX% per annum from

2006.

This increase is due to the growing benefits from flexography such as short run printing, excellent finish,

and rising demand of flexography from flexible packaging segment for printing.

4.1.1 RUSSIA

The Russian economy is a mixed economy with abundance of natural resources, such as oil, natural gas,

and precious metals, which make up for a major share of the total Russia's exports. In 2012, oil & gas

sector accounted for about XX% of the GDP, XX% of federal budget, and over XX% of total exports.

According to IMF, Russia’s GDP growth in 2014 was estimated at XX%, and is expected to increase to XX%

by 2019, with increasing purchasing parity and decline in unemployment. Rising GDP is one of the

indicators for increased demand of products which is expected to increase the demand for ink for printing

thereby increasing the demand in the flexographic ink market.

TABLE 9 RUSSIA: FLEXOGRAPHIC INK MARKET SIZE, 2013–2020 (KT & MILLION)

Particulars 2013 2014 2015 2020 CAGR%

(2015–2020)

Volume (KT) XX XX XX XX XX

Value ($Million) XX XX XX XX XX




The Russian market of printing ink is considered as the largest market in comparison with other regions

that fall under the RoW category. Russia and Ukraine, the largest printing ink markets in Eastern Europe in

terms of sales, which are currently in a dicey situation owing to a backdrop of a political crisis involving the

two countries, the sales volumes for printing ink in the SOHO market, have reduced. In a way, the decrease

in sales may be attributed to the overall global trend in the monochrome printing in Central and Eastern

Europe. Still, the growing political and economic crisis remains the main causes of significant decrease in

the market share of the print industry in these two countries.

Industry experts believe that the reduced economic activity between Russia and certain European

countries may have a negative impact on the growth of the local economy; the current political situation is

also expected to have a direct influence on the printing ink market during the forecasted period.

4.1.2 BRAZIL

Brazil is considered as the seventh largest economy by nominal GDP, and also the seventh largest

purchasing power parity. The economy of Brazil is characterized by an inward-oriented economy. With an

average annual of over XX%, Brazil is expected to become one of the fastest-growing economies in the

world. Increasing activities such as the Olympics scheduled in 2016 and economic growth is expected to

result in increased demand in the flexographic ink market.

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TABLE 10 BRAZIL: FLEXOGRAPHIC INK MARKET SIZE, 2013–2020 (KT & MILLION)


(2015–2020)






Brazil contributed XX% in terms of volume of the total RoW flexographic ink market in 2014. The Brazil

flexographic ink market in terms of value was estimated at $XX million in 2015, which is projected to reach

$XX million by 2020, at a CAGR of XX% between 2015 and 2020.

4.1.3 OTHERS

The others include the Middle East, Latin America (excluding Brazil), and Africa that account for a

considerable share of the flexographic ink market.

TABLE 11 OTHERS: FLEXOGRAPHIC INK MARKET SIZE, 2013–2020 (KT & MILLION)


(2015–2020)






The other countries of the RoW region contributed XX% of the total RoW flexographic ink market in terms of

volume in 2014. The others market segment in RoW region was estimated at $XX million in 2015 in terms

of value, which is projected to reach $XX million by 2020, at a CAGR of XX% between 2015 and 2020.

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