Asia Pacific ink market analysis
for printing ink manufacturers, the Asia Pacific region dominated by China and India has great development opportunities
the printing ink market in the Asia Pacific region has experienced another very strong year, and is bound to continue to expand. According to the estimation of ink world, the sales of printing ink in this region has exceeded $4billion, equivalent to the total volume of Europe and North America. Moreover, according to the current development rate, the Asia Pacific region will become the world's largest ink production base in the next five years. The substantial growth of ink production is mainly attributed to the rapid expansion of the printing market in China, India, Vietnam, Indonesia and other countries in the region. Of course, Japan and Australia are also very important markets
behind the development of the market, attention should be paid to the M & a trend in the ink industry in early 2005. Under the leadership of CVC private equity, Flint ink and aHUS printing technology merged into Flint Group, which had a great impact on the Asia Pacific market. At the same time, Flint Group also continues its progress in China. Siegwerk ink's acquisition of the SICPA packaging ink Department has improved its market position in China, India and Australia
the biggest impact on the market is Huber group's acquisition of micro ink company, which is the most important ink manufacturer in India
with these changes, the ink industry in the Asia Pacific region will be very active in the next few years
overall performance last year
ink manufacturers in the Asia Pacific region are generally satisfied with the market development in 2005, although the increase in raw material prices has somewhat discounted this optimism
henry Leong, President of Flint Group Asia, said, "the growth rate of the printing market in Asia in 2005 was about 6%. For the entire ink industry, last year was very difficult, mainly because of the sharp rise in the price of raw materials. Due to the overcapacity of printing ink relative to the printing brush market, it became extremely difficult to raise the product price."Leong also mentioned that China's economic growth rate reached 10-12% last year. At the same time, with the significant increase of foreign investment, Vietnam is rapidly growing into a market worthy of expectation Hisato Tanemura, marketing director of DIC ink in Southeast Asia, Oceania and South Asia, said, "with the rapid economic growth of China and India in 2005 and the recovery of Japan's economy, the overall performance of printing ink sales in this region is basically good. However, the profits of sales have been greatly eroded by the soaring crude oil price."
tanemura mentioned that India and Pakistan had the highest growth rates, while China and Indonesia also had higher than average growth rates
tanemura also said that in recent years, the economies of China, India and Indonesia have continued to strengthen, while the Japanese economy has stagnated. In 2005, the Japanese economy achieved growth, and the recovery of the Japanese economy, especially the development of real estate, power and automation industries, led to the growth of the market demand for printing and inkToshiyuki Sawada, general manager of the global business department of Sakata ink, said, "Japan's economic strength is still strong. Under the current situation, the development of the printing ink industry continues to be flat. The reduction of sales prices and the rise in raw material costs caused by the price of crude oil have brought greater pressure to the ink company."
sawada added: "in the Japanese market, our overall sales increased by 2.6% over the previous year due to the growth in the sales of newspaper inks and gravure inks."
Sakata ink has increased its production capacity, including two new factories in China, an offset printing ink factory in India and a liquid ink factory in Ho Chi Minh City, Vietnam
sawada said, "In Asia, our gravure ink sales have increased. In addition, our offset printing ink has been put into production, which will also help the growth of sales. In China, our liquid ink has been put into production in Shanghai, offset printing ink is also put into production in the trade name, and has contributed to the growth of sales. At the same time, we have also strengthened our efforts in Indonesia, Malaysia, and Western Asia in the most widely used types of conventional plastic granulator equipment With regard to the sales force in Vietnam, we plan to start producing liquid ink in Vietnam at the end of this year. Due to the strengthening of gravure printing ink sales and the production of offset printing ink, our sales growth rate in the Indian market in the past year is the highest compared with that in other countries. "
the improvement of living standards in China and the relocation of production bases in other countries have greatly stimulated China's development and made it the core area of economic developmentLeong said, "China's GDP growth rate reached 8.5% in 2005 and is expected to be around 7-8% this year. The Chinese government is monitoring it very carefully to avoid overheating."
because GDP is very strong, and economic prosperity will inevitably bring the development of the printing market, which also led to the growth of printing ink sales. Toyo ink specifically mentioned that since 1999, China's printing market has maintained an annual growth rate of more than 10% stimulated by packaging and Book exports. In order to meet the needs of the market, the ink industry has also developed. Sawada estimated that the ink consumption reached 300000 tons in 2005, and will continue to grow
China's ink industry includes multinational and local manufacturers, including large multinational ink companies, such as Toyo, DIC, Toka, Sakata and flint ink, as well as some small private factories
Tianjin Toyo ink company, the largest ink manufacturer in China, is a joint venture between Toyo ink group and Tianjin ink company. Its annual output of offset printing and newspaper ink has reached 12000 tons. Hangzhou HANGHUA Ink Co., Ltd. ranks second. It is a joint venture of Toka ink, Hangzhou chemical holding group and Bank of China Zhejiang branch. Its strengths are liquid, offset and UV ink. Taiyuan Gaoshi ink and Shanghai DIC ink are one of the largest ink manufacturers in China, both of which belong to DIC Group. Shanghai Peony printing ink is the largest local ink manufacturer in China
insiders in the ink industry have seen huge development space in China
leong said, "it is expected that the growth rate of China's printing ink market this year will be about 10%, and the packaging ink will bear the brunt, which is expected to reach a growth rate of 12-14%
tanemura said, "with the rapid growth of China's overall economy in 2005, the development of sheet fed and packaging inks, especially liquid and UV offset inks, has continued." He also added that packaging inks, especially ordinary offset printing, UV offset printing and gravure printing, performed quite well
however, there are also some factors that will affect the development of the industry. Leong and Tanemura both expressed concern about the decline in real estate advertising. Tanemura mentioned that due to the tightening of monetary policy, especially for the real estate industry, local newspapers have reduced the number of advertising pages, which has also affected the sales of newspaper ink
leong said, "the newspaper printing market has been affected by the reduction of advertising revenue for the first time in many years. Many newspapers provide advertisements with pictures for real estate transactions. Now the government has adopted a new asset tax policy to restrict the active real estate market, thereby reducing speculation. Moreover, the new restrictive policy on loans has also increased the difficulty of loan application."
India still maintains economic growth. With a population of more than 1.1 billion and the gradual improvement of living and cultural standards, there is a huge demand for packaging and printing media. According to the estimation of "ink world", the annual growth rate of ink sales in India has reached double digits since 2000, ensuring that the accuracy of the attack center has exceeded 330million US dollars
the performance of India's domestic printing and printing ink market in 2005 was excellent. Tanemura noted that the entire industry has witnessed double-digit growth rates in the sheet fed, newspaper and liquid ink markets
micro ink is the most important ink manufacturer in India. It is reported that its sales volume in 2005 was about US $240million, slightly higher than half of the total domestic market. The rapid development of micro ink threatens the position of Koch ink, which belongs to dic/Sun Chemical Group and is the largest ink manufacturer in India. At the same time, Sakata ink and Flint Group, as international ink manufacturers, also occupy a place in the market
damian Johnson, President of Flint Group India/Pacific region, said, "India is a gem emerging and maintaining a growth rate of more than 8%. The newspaper market is constantly flooded with fresh blood; domestic and export market demand is growing. Due to cultural changes, the transformation from semi batch packaging to retail packaging has made the growth rate of the packaging market exceed 15%. Different from other regions in Asia, the growth of India's ink market is entirely caused by domestic demand, not supported by exports. Every day Are facing new risks, and multinational companies are increasing investment, rather than industry integration like suppliers. "
johnson added, "in India, the growth rate of the packaging market is the highest, more than 15%, followed by newspaper ink, more than 10%. The demand of the domestic market, the strong investment in the packaging industry and the expansion of the demand for cultural goods and consumer goods are all positive factors to achieve the growth of the oil and ink market. The development of the sheet fed paper and publishing and printing market will be consistent with the pace of economic development."
Sakata ink (India) company noticed this market opportunity and began to put into production newspaper and business offset printing inks last year
sawada said, "India's GDP grew in fiscal year 2005, and because its component proportion reached 8%, based on the sustained growth economic environment, we expect the printing ink industry to maintain growth at a faster rate."
Australia and New Zealand
the dominant ink market in Australia and New Zealand is multinational ink manufacturers, accounting for about 90% of its market, among which Flint Group and Koch ink rank at the forefront. Flint Group is the largest ink company in Australia and New Zealand. Johnson made a comprehensive report on the market in this region in 2005
johnson said, "the characteristic of 2005 is that the performance of the two countries is different. Both countries are experiencing great competitive pressure and are facing changing raw material costs. Due to the one-way transfer from Australia and Asia, the printing market in New Zealand continues to shrink. We also see the significant integration of the printing and packaging industry. It seems that New Zealand is feeling the pressure of globalization faster than other countries."
johnson continued, "the performance of Australia is different, and the publishing and printing and newspaper markets tend to grow. Due to many factors such as overseas competition, hurricanes and floods, the integration of printing manufacturers, and the fading of optimism about economic growth in recent years, the packaging and printing market shows signs of slowing down. The increase in the prices of raw materials and crude oil has caused cost pressure."
tanemura mentioned that due to the rise of the Australian dollar in 2005