Prospects for China's Ink Market in the Next Several Years

At present, the Asia-Pacific region has become an important center for ink manufacturing in the world. It is estimated that the total ink market in Southeast Asia and Australia is close to 130,000 tons and the amount exceeds 500 million US dollars. However, it should be pointed out that the development of the ink industry in various countries in the Asia Pacific region is very different. Half of the world’s top 10 ink companies are headquartered in Japan, and China, India, and Vietnam are among the most rapidly developing countries. The printing industry in other countries has only just begun.

With China becoming the fastest growing economy in the Asia-Pacific region, the world's major ink manufacturers have made major investment activities in China, such as: Toyo Ink, Sakata Inx, DIC, Flint Ink, and Tung Wah Ink.

As the world’s fourth largest ink producer, China’s ink production accounts for about 6% of the world’s total. At present, China has a total annual production capacity of printing ink of about 250,000 tons, the output is second only to the United States, Japan and Germany. The total amount of China's ink market is RMB 5 billion per year. Statistics show that in 2003 China's ink continued to maintain its high-speed growth momentum, and annual production increased by 14.5% year-on-year.

Experts predict that this year will be another rapid development of the ink industry after last year. It is understood that cooperation with more than 50 countries and regions in Eastern Europe, the United States, and Southeast Asia and Chinese ink manufacturers is gradually increasing. There are currently more than 300 ink production companies in China. Experts predict that the demand for ink in the Chinese domestic market will increase at an annual rate of 9%.

According to industry insiders, the Chinese economy will continue to grow at a rate of 7%-7.5% per annum in the coming years, while the growth rate of China's printing industry will exceed the growth rate of GDP.

The annual growth rate of the publishing industry will reach 8%-10%, and the annual growth rate of the packaging industry will reach 12%. The driving force for China’s economic growth is mainly China’s accession to the WTO, urbanization of the rural population, competition and development of the media industry, Prepare for the 2008 Olympic Games.

The rapid development of the ink industry has two main reasons, both internal and external. First, with the development of China's economic and cultural undertakings, the printing and publishing industry has developed rapidly. The development of cultural undertakings has a direct impact on the sharp increase in demand for ink in China. At the same time, ink exports have also become the main reason for the increase in ink production.

Experts predict that within the next 3-5 years, the demand for lithographic offset printing inks, screen printing inks, flexographic ink special inks and other products in the domestic market will show an upward trend. The following is an overview of the domestic market demand for various ink products.

â—† Lithographic ink: In the future, the market demand will increase steadily, but the rate will not be too high. It will increase at a rate of 5%-6%, accounting for 40%-45%, of which the speed of web offset printing inks will increase. It will be faster.
â—† Letterpress ink: The total proportion will drop, but the proportion of flexographic ink will continue to rise, which is also consistent with the development trend of the United States, Japan and other developed countries.
â—† Gravure ink: The general situation is in a stable state, but the printing inks and printings in plastic inks are in an upward trend. This is different from the international trend, because it involves environmental recycling and other issues.
â—† Mesh version ink: The market sales tend to increase, mainly due to the increase in the use of metal, glass and plastic screen inks. Moreover, the screen printing equipment has already broken the backward condition of the original manual printers. In some regions, foreign advanced screen printing equipment has been introduced to increase the amount of screen ink.
â—† Dedicated and special inks: The general trend is that the usage is increasing day by day. For example, printing inks, anti-counterfeiting inks, pearlescent inks, signage inks, fluorescent inks, and phosphorescent inks are all increasing in usage as the market demand increases.

With China's accession to the WTO and people's increasing awareness of environmental protection, advanced alcohol-soluble and water-soluble inks and other environmentally friendly inks will show rapid growth.

The printing industry must consolidate and develop the existing offset printing production capacity, improve gravure printing, screen printing, inkjet printing, and curve surface printing capabilities, develop flexo printing, and improve post-press processing technology. We must vigorously develop high-end packaging products, increase the added value of products and meet the needs of the domestic market and exports.

The future ink development goal is to meet the needs of multi-color, high-speed, fast-drying, non-pollution and low consumption, improve the quality of thermosetting rotary inks, flexographic inks, and other products, improve the adaptability to modern printing processes and product stability. Sex, actively develops a variety of water-based inks, waterless offset inks, food packaging inks, and lightfast inks that are still in short supply and gaps in the country.

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