Market Trends of Ink Additives Industry
This section covers the major market trends shaping the Ink Additives Market according to our research experts:
Increasing Demand from the Packaging Industry
- Ink additives are used in the formulation of inks to improve characteristics and ease of printing, which are widely used in the packaging industry. The demand for ink additives is expected to grow rapidly during the forecast period.
- The print on the packaging attracts the customers and drives the sales of the products. Ink additives impart gloss, transparency, uniform color, contrast, and aesthetics. The packaging industry is majorly fueled by the growing e-commerce and food packaging industry, which occupies the majority of the share in the packaging industry.
- Europe is home for the second-largest packaging industry after China, and it accounted for a global share of about 20% in 2019. The European packaging industry was valued at over EUR 200 billion in 2019, and it is expected to grow during the forecast period, owing to the use of bio-based plastics in packaging and corrugated boxes in the e-commerce industry.
- In food packaging, ink additives are used for the printing of foils, flexible films, tissues, and wrapping papers. In flexible packaging, they are used for printing on paper and plastic bags. Moreover, in corrugated packaging, these additives make colors look vibrant and prevent rub-off. The use of corrugated boxes in e-commerce, along with the growing use of flexible and food packaging, is expected to drive the market.
- The increasing demand for ink additives for printing in the packaging industry is expected to drive the market during the forecast period.
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The Asia-Pacific Region to Dominate the Market
- The Asia-Pacific region is expected to dominate the market for ink additives during the forecast period, as a result of the increasing demand from the packaging industry in countries, like India and China.
- India's packaging industry is the fifth-largest in the world, and it is growing at about 22-25% per year, as per the Plastics Industry Association of India. Costs of packaging and processes food can be 40% lower than Europe, due to highly skilled labor and cheap labor costs. The growing population and increasing demand for packaging are expected to drive the market. The growing demand for food packaging, processed food, and food delivery partners in the countries is likely to boost the market for ink additives.
- The growing demand for e-commerce in China and India is expected to drive the market for ink additives during the forecast period. China's e-commerce market is dominated by Alibaba, with a market share of around 59%. The company's annual revenue in FY 2019 grew by 51% year-on-year, and the growing e-commerce industry, which relies on packaging, is expected to drive the market during the forecast period.
- The Indian e-commerce industry is expected to reach USD 120 billion by 2020. The increasing penetration of the Internet and the change in government policies allowing 100% foreign direct investments in the e-commerce sector are expected to boost the market.
- The aforementioned factors, coupled with government support, are contributing to the increasing demand for ink additives in the Asia-Pacific region during the forecast period.
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