David Savastano, Editor03.13.24
Packaging inks have been among the strongest growth areas in recent years. New technologies that ease concerns over recycling and food migration have been bright spots, and in general, packaging continues to grow worldwide.
It is a huge market. Estimates from analysts at MarketsandMarkets placed packaging ink sales at $19 billion in 2022, growing at a 7% CAGR through 2028. Mordor Intelligence has the market at $18 billion in 2024; Grand View Research had packaging inks at $20 billion in 2020.
Doug Aldred, chief commercial officer for Flint Group, noted that while Flint Group saw moderate growth across most packaging markets, the markets remained challenging throughout 2023. He attributed that to a slowdown across global economies, intensive supply chain de-stocking, and continued raw material and transport cost fluctuations.
“Additionally, consumer concerns about the sustainability of packaging remain a focus,” added Aldred. “However, the essential value of packaging, coupled with an increased offering of sustainable packaging solutions, helps to offset some concern about the ability to recycle and the industry’s ability to boost the circular economy.”
Aldred noted that packaging formats have features and benefits depending on the criteria required by the brand owner or the consumer.
“For example, folding carton performs well for frozen foods and pharmaceuticals,” Aldred said. “Flexible packaging is highly adaptable and provides significant benefits to protect against food waste. Corrugated remains strong due to e-commerce and is picking up volume from other sectors (glass, rigid, plastic) due to recyclability. Sustainability demands, functionality, and regulation are critical drivers in stakeholders’ decisions about packaging formats.”
Akihiko Koya, manager, Marketing Division, Global Business Department at Toyo Ink Co., Ltd., said that for the artience group (then Toyo Ink Group) in FY2023, packaging inks and materials for food packaging were strong in Japan, India and Turkey.
“Earnings recovered, mainly reflecting cost cutting in production and the revision of selling prices in response to rising raw material prices,” Koya noted. “Moreover, sales of functional coatings for paper containers and packaging made progress in each region.
“In flexible packaging, recycling and circularity of flexible plastics are the areas that show strong growth potential,” Koya said. “In addition, there is strong demand for new food packaging coating solutions as governments around the world move to reduce or ban the use of single-use plastics. This has sparked innovations in functional coatings for paper containers and board.”
Jim Felsberg, director of packaging inks, North America, Sun Chemical, said that demand for nearly all packaging markets and ink technologies declined in 2023.
“Along with corrugated, flexible packaging and folding carton, labels for rigid packaging is also among the most active markets,” added Felsberg. “There continue to be small shifts toward digital printing across all markets, which contribute to a steady increase year over year.”
Water-, Solvent and
There is discussion on the sustainability merits of using solvent-based, water-based and UV-based formulations. Koya reported that artience has been receiving more requests to test water-based products like Toyo Ink’s AQUA LIONA general-purpose lamination inks by flexographic printers.
“In this term, we expect to see more printers, particularly those in Asia, make the transition from solvent- to water-based technology, due to its environmental, economic and safety advantages,” added Koya.
“While there were no significant changes to ink technologies in 2023, the increasing focus on sustainability targets and their associated timelines may drive industry shifts in the near future,” said Buddy Graves, solvent product manager, Sun Chemical.
Aldred said that Flint Group is seeing a migration from rigid materials to more sustainable fiber-based substrates due to the perceived circularity performance of recycled fiber.
“Flexible packaging markets remain resilient due to high product to packaging ratios, its lighter weight format, package functionality, and shelf-appealing design. This translates into growth opportunities for this packaging format,” Aldred added. “Within the UV segment, we continue to see resilient performance for UV flexo and UV LED, especially in the label market.”
Flint Group’s Aldred said that many drivers have contributed to the evolution of packaging – from glass and wood to paper and film.
“Shifts in the packaging market can be attributed to sustainability, functionality of packaging, food waste reduction and regulatory compliance, and branding,” added Aldred. “As an example, ten years ago, consumers purchased a rigid can of pet food. Today, this same food is sold in an easy-to-open-and-close recyclable film pouch with branding (lighter colors with more white space) that may appeal to consumers keen to purchase environmentally friendly packaged products.”
Felsberg observed that while available types of packaging have not changed significantly over the last decade, where and how various types of packaging are used has shifted, due to certain market drivers such as e-commerce and convenience – or single-serve – packaging. For example, Felsberg noted that these industry trends have prompted the growth of shrink sleeves and in-mold labels.
“To meet sustainability initiatives, the packaging market is poised for some potentially major changes in the coming years, likely moving from plastic to paper packaging and increasing the use of eco-friendly inks,” added Felsberg. “The purpose of packaging products is also shifting from a purely functional model for product protection during transit and distribution to contributing to marketing efforts, which means applied graphics and demand for inks and coatings is growing.”
One change is that ink manufacturers are being asked by their printer customers to meet with brand owners to discuss sustainability and regulatory issues.
“We work very closely with brand owners to understand their needs and optimize a solution for them in terms of barrier performance, sustainability and regulatory compliance,” said Toyo Ink’s Koya. “In this way, brand owners are the key drivers in the promotion of sustainability and food safety standards. Generally speaking, the EU is the forefront of packaging regulatory development, with its policies producing a trickle effect through Asia and other regions of the world.”
Felsberg pointed out that the sustainability and regulatory sectors are the most active areas of Sun Chemical’s business and innovation focus.
“Sustainability is the major driver of today’s market, and Sun Chemical is dedicated to supporting brand owners and converters in their efforts to ensure packaging is reusable, recyclable or compostable,” he added.
Aldred said that Flint Group’s teams worldwide work daily with customers on topics related to sustainability and regulatory and has staff who focus locally and globally on these two essential topics.
“Customers are focused on reducing their Scope 3 emissions, which relates to the recyclability of packaging,” said Aldred. “Therefore, the development of products such as Flint Group’s Evolution range of primers and varnishes is critical.”
Koya said that brand owners with a strong focus on their ESG claims related to their products continue to prioritize sustainable solutions as part of their way to achieve carbon neutrality and their long-term sustainability targets.
“To help them meet these goals, Toyo Ink has responded to requests for innovative functional coatings for paper and flexible film packaging structures,” Koya said. “These coatings work to replace or reduce film layers in multilayer structures, while expanding the possibilities of single-layer paper structures.
“Toyo Ink’s functional coatings portfolio offers added functionality such as oil resistance, water resistance, heat resistance, UV protection, and barrier properties,” added Koya. “New to the barrier coatings lineup are heat sealants and OP varnishes that can replace or reduce film layers in both paper or flexible packaging structures, while keeping paper or plastic film in the recycling streams. These coatings can also replace aluminum or metalized foil as barrier layers in flexible packaging structures.”
Aldred said that Flint Group’s Evolution range of products, designed to de-ink (primers) or secure inks (varnishes) to label substrates during the recycling process, is gaining worldwide exposure.
“These products are designed to support a smooth recycling stream and boost the circular economy,” said Aldred. “For paper & board printers, Flint Group offers water-based inks and coatings which are bio-based. Our Universal Bases enable flexible packaging printers to simplify ink management and deliver quality, consistency and cost savings. These multi-functional nitrocellulose-free concentrates enable converters to blend polyurethane (PU) and nitrocellulose (NC) inks from the same range of concentrates without inventory duplication. Our recently launched Novasens P670 PRIME for sheetfed packaging enables printers to print longer and faster on changing board grades with improved sheet release, consistent ink transfer, and high-strength colors and vibrancy.”
“Sustainable solutions continue to advance, particularly for flexible packaging and labels, through notable products like inks and coatings that support improved plastics recycling efficiency and quality, as well as ink solutions that support or enable changes in substrates for sustainability objectives, such as the elimination of polyfluoroalkyl substances (PFAS) for grease resistant paper packaging,” said Jeremy Teachman, product manager – paper packaging and corrugated, Sun Chemical.
It is a huge market. Estimates from analysts at MarketsandMarkets placed packaging ink sales at $19 billion in 2022, growing at a 7% CAGR through 2028. Mordor Intelligence has the market at $18 billion in 2024; Grand View Research had packaging inks at $20 billion in 2020.
Doug Aldred, chief commercial officer for Flint Group, noted that while Flint Group saw moderate growth across most packaging markets, the markets remained challenging throughout 2023. He attributed that to a slowdown across global economies, intensive supply chain de-stocking, and continued raw material and transport cost fluctuations.
“Additionally, consumer concerns about the sustainability of packaging remain a focus,” added Aldred. “However, the essential value of packaging, coupled with an increased offering of sustainable packaging solutions, helps to offset some concern about the ability to recycle and the industry’s ability to boost the circular economy.”
Aldred noted that packaging formats have features and benefits depending on the criteria required by the brand owner or the consumer.
“For example, folding carton performs well for frozen foods and pharmaceuticals,” Aldred said. “Flexible packaging is highly adaptable and provides significant benefits to protect against food waste. Corrugated remains strong due to e-commerce and is picking up volume from other sectors (glass, rigid, plastic) due to recyclability. Sustainability demands, functionality, and regulation are critical drivers in stakeholders’ decisions about packaging formats.”
Akihiko Koya, manager, Marketing Division, Global Business Department at Toyo Ink Co., Ltd., said that for the artience group (then Toyo Ink Group) in FY2023, packaging inks and materials for food packaging were strong in Japan, India and Turkey.
“Earnings recovered, mainly reflecting cost cutting in production and the revision of selling prices in response to rising raw material prices,” Koya noted. “Moreover, sales of functional coatings for paper containers and packaging made progress in each region.
“In flexible packaging, recycling and circularity of flexible plastics are the areas that show strong growth potential,” Koya said. “In addition, there is strong demand for new food packaging coating solutions as governments around the world move to reduce or ban the use of single-use plastics. This has sparked innovations in functional coatings for paper containers and board.”
Jim Felsberg, director of packaging inks, North America, Sun Chemical, said that demand for nearly all packaging markets and ink technologies declined in 2023.
“Along with corrugated, flexible packaging and folding carton, labels for rigid packaging is also among the most active markets,” added Felsberg. “There continue to be small shifts toward digital printing across all markets, which contribute to a steady increase year over year.”
Water-, Solvent and
UV-Based Inks for Packaging
There is discussion on the sustainability merits of using solvent-based, water-based and UV-based formulations. Koya reported that artience has been receiving more requests to test water-based products like Toyo Ink’s AQUA LIONA general-purpose lamination inks by flexographic printers.“In this term, we expect to see more printers, particularly those in Asia, make the transition from solvent- to water-based technology, due to its environmental, economic and safety advantages,” added Koya.
“While there were no significant changes to ink technologies in 2023, the increasing focus on sustainability targets and their associated timelines may drive industry shifts in the near future,” said Buddy Graves, solvent product manager, Sun Chemical.
Aldred said that Flint Group is seeing a migration from rigid materials to more sustainable fiber-based substrates due to the perceived circularity performance of recycled fiber.
“Flexible packaging markets remain resilient due to high product to packaging ratios, its lighter weight format, package functionality, and shelf-appealing design. This translates into growth opportunities for this packaging format,” Aldred added. “Within the UV segment, we continue to see resilient performance for UV flexo and UV LED, especially in the label market.”
The Changing Nature of Packaging
It’s interesting how packaging has evolved over the years. Growing up, I can remember when pretzels and potato chips came in boxes or cans. Now there is talk that folding cartons may make further inroads again.Flint Group’s Aldred said that many drivers have contributed to the evolution of packaging – from glass and wood to paper and film.
“Shifts in the packaging market can be attributed to sustainability, functionality of packaging, food waste reduction and regulatory compliance, and branding,” added Aldred. “As an example, ten years ago, consumers purchased a rigid can of pet food. Today, this same food is sold in an easy-to-open-and-close recyclable film pouch with branding (lighter colors with more white space) that may appeal to consumers keen to purchase environmentally friendly packaged products.”
Felsberg observed that while available types of packaging have not changed significantly over the last decade, where and how various types of packaging are used has shifted, due to certain market drivers such as e-commerce and convenience – or single-serve – packaging. For example, Felsberg noted that these industry trends have prompted the growth of shrink sleeves and in-mold labels.
“To meet sustainability initiatives, the packaging market is poised for some potentially major changes in the coming years, likely moving from plastic to paper packaging and increasing the use of eco-friendly inks,” added Felsberg. “The purpose of packaging products is also shifting from a purely functional model for product protection during transit and distribution to contributing to marketing efforts, which means applied graphics and demand for inks and coatings is growing.”
One change is that ink manufacturers are being asked by their printer customers to meet with brand owners to discuss sustainability and regulatory issues.
“We work very closely with brand owners to understand their needs and optimize a solution for them in terms of barrier performance, sustainability and regulatory compliance,” said Toyo Ink’s Koya. “In this way, brand owners are the key drivers in the promotion of sustainability and food safety standards. Generally speaking, the EU is the forefront of packaging regulatory development, with its policies producing a trickle effect through Asia and other regions of the world.”
Felsberg pointed out that the sustainability and regulatory sectors are the most active areas of Sun Chemical’s business and innovation focus.
“Sustainability is the major driver of today’s market, and Sun Chemical is dedicated to supporting brand owners and converters in their efforts to ensure packaging is reusable, recyclable or compostable,” he added.
Aldred said that Flint Group’s teams worldwide work daily with customers on topics related to sustainability and regulatory and has staff who focus locally and globally on these two essential topics.
“Customers are focused on reducing their Scope 3 emissions, which relates to the recyclability of packaging,” said Aldred. “Therefore, the development of products such as Flint Group’s Evolution range of primers and varnishes is critical.”
Recent Advances in Packaging
As sustainability continues to grow in importance, ink manufacturers are developing new systems that advance recycling and compostability.Koya said that brand owners with a strong focus on their ESG claims related to their products continue to prioritize sustainable solutions as part of their way to achieve carbon neutrality and their long-term sustainability targets.
“To help them meet these goals, Toyo Ink has responded to requests for innovative functional coatings for paper and flexible film packaging structures,” Koya said. “These coatings work to replace or reduce film layers in multilayer structures, while expanding the possibilities of single-layer paper structures.
“Toyo Ink’s functional coatings portfolio offers added functionality such as oil resistance, water resistance, heat resistance, UV protection, and barrier properties,” added Koya. “New to the barrier coatings lineup are heat sealants and OP varnishes that can replace or reduce film layers in both paper or flexible packaging structures, while keeping paper or plastic film in the recycling streams. These coatings can also replace aluminum or metalized foil as barrier layers in flexible packaging structures.”
Aldred said that Flint Group’s Evolution range of products, designed to de-ink (primers) or secure inks (varnishes) to label substrates during the recycling process, is gaining worldwide exposure.
“These products are designed to support a smooth recycling stream and boost the circular economy,” said Aldred. “For paper & board printers, Flint Group offers water-based inks and coatings which are bio-based. Our Universal Bases enable flexible packaging printers to simplify ink management and deliver quality, consistency and cost savings. These multi-functional nitrocellulose-free concentrates enable converters to blend polyurethane (PU) and nitrocellulose (NC) inks from the same range of concentrates without inventory duplication. Our recently launched Novasens P670 PRIME for sheetfed packaging enables printers to print longer and faster on changing board grades with improved sheet release, consistent ink transfer, and high-strength colors and vibrancy.”
“Sustainable solutions continue to advance, particularly for flexible packaging and labels, through notable products like inks and coatings that support improved plastics recycling efficiency and quality, as well as ink solutions that support or enable changes in substrates for sustainability objectives, such as the elimination of polyfluoroalkyl substances (PFAS) for grease resistant paper packaging,” said Jeremy Teachman, product manager – paper packaging and corrugated, Sun Chemical.