The market for the eco-friendly inks is expected to grow at a CAGR of more than 4% globally during the forecast period. One of the major factors driving the market for eco-friendly ink is the growing concern related to volatile organic compound (VOC) emission, and toxic metals found in a variety of ink printing solutions have been prompting the industry to shift to eco-friendly alternatives. However, currently, the performance of eco-friendly inks market is affected by the lockdown being practiced across numerous countries due to COVID-19 pandemic outbreak.
- Label & packaging stands to be the fastest growing segment, among applications of eco-friendly inks.
- The regulations restricting the use of VOC emitting inks have been creating opportunities in the market studied.
- Asia-Pacific region is likely to dominate the market, owing to growing manufacturing sector in the region, which further generates demand for packaging materials.
Key Market Trends
Growth in Demand from Packaging Industry
- Conventional inks are produced from petroleum-based raw materials, which are known to release toxic chemicals during production processes, such as deinking and drying.
- Packaging of any product requires printing of basic product information, such as product & brand name, content used in the production of a product, price, etc.
- Therefore, inks are extensively used in packaging industry, for providing product information as well as making a product attractive for consumers.
- The increase in the ageing population has been driving demand for convenient packaging. Additionally, growth of the e-commerce business, the growing online food delivery market, and the packaging of products in different sizes and quantities are some of the market conditions boosting the demand for flexible packaging globally.
- Hence, such trends in the packaging industry have been creating derived demand for inks. However, currently, COVID-19 lockdown situations havebeen affecting the performance of the packaging industry. The eco-friendly inks market is projected to witness strong growth with recovery in packaging industry in near future.
Asia-Pacific Region to Witness Fastest Growth
- The Asia-Pacific region is expected to be the fastest growing market over the forecast period, with China dominating the market in the region.
- Factors such as the rising disposable income, increasing consumer expenditure, and growing population have been driving the demand for FMCG goods, which in turn, have been driving the packaging requirements in Asia-Pacific.
- Furthermore, the growth in the production of beauty and personal care products in countries, like Japan, India, China, and ASEAN countries, has been further driving the packaging demand in the region.
- China stands to be the second-largest market for beauty products in the world, after the United States. Considering the growth prospects for the cosmetics industry in China, international cosmetic brands entered the market, which led to intense competition in the domestic cosmetic industry. Such intensified competition and growing cosmetic production in the country have been further driving the packaging demand.
- Moreover, countries, such as China, India, South Korea, etc., are witnessing steady growth in manufacturing sector, and increasing exports to North American and European countries have been increasing the consumption of packaging materials.
- However, for exporting goods in these regions, it is important for the Asia-Pacific countries to abide to the regulations related to VOC emissions. Hence, this has been boosting the use of eco-friendly technologies for packaging in the region.
- However, the ongoing economic slowdown due to the COVID-19 pandemic outbreak, has led to a decline in trade and production volumes in major manufacturing countries such as China, India, and Japan. The increasing focus on enivronmental awareness and steps towards recovery in the industrial sector are expected to augment the demand for eco-friendly inks in near future.
The global eco-friendly inks market is a partially consolidated market in nature, with few players dominating a considerable share of the market. Some of the major companies are Sun Chemical, Toyo Ink LLC, INX International Ink Co., Hubergroup, and Solar Inks Ltd. (Omya AG), amongst others.
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