The market is seeing “strong growth”, particularly in packaging, even “as economic growth slows”.
Ink World Magazine shared the report, in which it noted that China “continues to enjoy strong economic growth”, with gross domestic product (GDP) reaching $10.87 trillion (€10.4 trillion) in 2015, a growth of 6.9 percent on 2014. The country’s “sizable printing industry” is said to be worth an estimated $160 billion (€153 billion), with the ink industry “also large”, with sales of over $1.5 billion (€1.4 billion).
Both offset and gravure inks “are the mainstay of the ink industry” there, with flexographic and digital inks “on the rise”, and the “growth of interest in inkjet printing” has seen the country’s market feature a “mix of domestic and multinational” companies. These include China-based Bauhinia Variegata Ink & Chemicals,the “13th largest ink manufacturer in the world” with sales of $200 million (€191 million) in 2015 from “gravure, offset, screen and UV inks”.
The company itself noted that “the continued decline in the printing and ink industries in China is a result of the sluggish market demand”, while another major company is Xinxiang Wende Xiangchuan Printing Ink Co., Ltd., which is thought to make $100 million (€95.6 million) a year in sales, as well as Letong Chemical Products Co., Ltd., with sales of $70 million (€66 million).
International companies based in China include Toyo Ink and DIC Corporation, Flint Group, Siegwerk, Sakata INX and hubergroup, with the last year having “brought growth to ink manufacturers […] although that expansion was slower than in recent years”. Toyo’s Global Business Division Manager, Tadashi Nakano, stated that “despite an economic slowdown, China’s printing market has proven to be highly resilient to both external and internal pressures, driven by packaging”.
He added: “The market expanded at a level higher than its GDP, buoyed by a robust packaging sector. A burgeoning middle class continues to boost consumer demand for functional flexible packaging that supports changes in consumer lifestyle and diet. The flexible plastic packaging segment continues to be the fastest growing sector, driving demand for materials and technology that support this growth.
“Despite a slowdown in growth in recent years, China, the world’s second largest printing market, presents further growth opportunities as the infrastructure and consumer markets in this region continue to expand.”