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Markets & companies, Coatings market

Printing Inks: revenues decrease due to declining downstream markets

Tuesday, 22 May 2012

An IBISWorld Report attributes the declining demand for news ink to the readers’ migration to the internet, e-readers and tablets.

In the years to come, the Ink Manufacturing industry will continue to face challenges posed by digital media.

Source: benamalice - Fotolia.com

In the years to come, the Ink Manufacturing industry will continue to face challenges posed by digital media.

Source: benamalice - Fotolia.com

IBISWorld estimates that ink industry revenue declined at an average annualized rate of 4.3% to $4.4 billion in the five years to 2012. Revenue is expected to decline a further 3.1% in 2012 as people continue to limit their spending on consumer goods and increasingly opt for digital media over print. In 2012, IBISWorld estimates that profit will represent only 0.4% of industry revenue, down from 4.2% in 2007. Declining profit has caused many operators to reduce production capacity and cut costs where possible. Consequently, the number of industry offices and plants declined 2.6% annually on average over the five years to 2012. The reduction in production capacity has also caused the number of employees to decline at an annualized rate of 2.2%.

In the years to come, the Ink Manufacturing industry will continue to face challenges posed by digital media. The rising popularity of new technologies, such as tablet computers and e-readers, will allow consumers more convenient and cost-effective ways to access information without print publications. In response to broader negative trends, operators will invest in research and development of new products to help fight falling demand. Digital ink technology is expected to benefit from this investment as print runs become smaller. Digital imaging enables printers to produce smaller print runs economically and offer customized printing. As a result, digital-specific inks will gain market share over the next several years, likely at the expense of the traditional lithographic inks that are used in longer print runs.

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