Niches are popular among all businesses, but until recent years, industrial ink companies didn’t have to concern themselves about it as much as they do today. Now that packaging is one of the fastest growing sectors for ink producers across Europe, most ink makers and ink technology developers are becoming more active in the packaging sector.
High Margin Niches
Some of the packaging ink markets are focusing on higher margin niches because that’s where things are headed. High-volume applications are now more commoditized than in the past, which means ink producers must adapt and evolve with these changes.
This is an especially popular opportunity for small to medium-sized ink producers since it helps them gain ground for potential growth. This arena is now in a phase where specialty inks and high-margin niches are being formed, which is why ink producers are moving in this direction.
No ink company can continue to rely primarily on the standard packaging inks sectors because that’s not where the money is going to be. While the standard packaging market is still viable, the addition of high-margin markets is opening bigger and better opportunities for ink companies.
Factors that Affect Industrial Ink Markets
The stringent regulations of food safety, regarding harmful ink chemicals getting into the food through the packaging, is a major factor in the ink industry. Specialty, natural, and safe inks for food and food packaging is growing at an exponential rate in the value over volume aspect.
Visual appeal, low weight, reduced raw material usage, think ink film, and the environmental impact are other factors that affect the inks used in the packaging industry.
Specialty security inks provide protection against counterfeiting. This niche requires that the ink be mechanically readable and durable for optimal package traceability and tracking.
These are the factors that are driving the demand for higher priorities in the development of new inks. These are things that affect the ink industry, packaging companies, and packaging suppliers.
Packaging Print is a Fluid Market
The packaging print industry is a fluid sector (no pun intended), where consumers require frequent change. Essentially, innovation and development play a major role in the packaging and industrial inks landscape.
Technical support, customized inks, packaging standards, collaboration between markets, and partnerships are crucial to advancements in development and innovation across these industries. This is how specific requirements are met for the end-user and how revenue is boosted for ink companies.
Small and Medium Businesses Do Their Part
Small and medium-sized businesses are doing their part and are benefiting from their own innovations. Small technology companies are starting to establish their presence in the packaging market niches using their own technology developments.
Larger competitors are trying to target these companies in an effort to take over so they can expand their own technology portfolios and to enter new niches in the packaging and industrial inks markets.
With that fact in the mix, these small companies must be doing something right, but will they be overtaken by their larger competitors?
All these industrial inks and packaging companies, suppliers, developers, and manufacturers must work together to help during the expansion of the niches in the packaging print market. In the end, safety, compliance, readability, accountability, and quality are essential elements across these industries.
