Yogi Malik, India Correspondent01.16.19
Thailand is one of the most exciting ink markets in South East Asia due to the rising per capita consumption of ink consuming products. Despite recent political and economic turmoil, Thailand continues to be one of the most promising global markets for the ink industry.
What’s more, Thailand’s rising income is generating optimism about the future among its people and is increasing consumer demand for a variety of products, which will further drive the demand for inks in the country.
Overview of Thailand’s Ink Market
Thailand’s ink industry has recently grown at a rate of more than 10% a year due to increasing local and regional demand. Key markets driving this demand include food packaging such as standing pouches, cosmetics, beauty and personal care, and high-end liquors.
Newspaper ink constitutes approximately 13% of the total domestic printing ink market, while offset ink used for magazines, leaflets and other printed materials constitutes around 30%. As print media has seen some decline in recent years, the offset ink market is gradually contracting. On the other hand, flexo ink and gravure ink used for paper containers, corrugated boxes, packaging film and other packaging accounts for approximately 50% of the total market and is growing steadily.
Gravure ink is one of the largest and the fastest growing sub-segments in Thailand’s ink industry. A growing number of multinationals have transferred gravure production to their facilities in the country and expanded existing production capacities of goods for export to countries primarily in South East Asia like Laos, Cambodia and Myanmar. Not only has regional demand for snack food and instant noodles been on the rise, but recently the demand for boil or retort food, both for domestic consumption and export, also has expanded.
Thailand’s UV offset ink market is also growing fast as brands have turned to UV offset for the printing of premium whiskey boxes and the packaging of toothpaste, cosmetics and other consumer goods. UV offset inks offer a wider range of applications than conventional inks due to many advantages that its physical properties achieve, such as rapid cure and higher levels of gloss.
Buoyed by the Thai government’s “Kitchen of the World” policy to transform the country into a major hub for food processing and exports, Thailand has become home to many printers, converters and brand owners who have invested heavily in manufacturing facilities in Thailand. At the same time, the printing industry is comprised by a large number of ink makers, making it a very tight and highly competitive market.
Packaging inks (flexo ink for printing on packaging, such as corrugated boxes and paper containers; gravure ink for printing on packaging film for food, cosmetics and toiletries, daily goods, and other products; and metal-deco ink for printing on metal, such as beverage cans) are expected to register steady demand in coming years on the back of steady demand of packaged goods. There is a gradual shift to environmentally friendly and high-function, high-value-added ink in this category, though environmentally friendliness and high functionality in the Thai industry has not developed to the same extent as some of the developed markets. There is still considerable room for the market for environmentally friendly and high-function, high-value-added ink to grow.
Much like the global ink industry, Thailand’s ink industry has been also hit by higher raw material prices mainly due to production and environmental restrictions on key materials, especially in China, where there has been a number of escalations in the prices of oil, solvents, distillates and pigments.
Major Ink Producers in Thailand
Thailand’s ink industry is dominated by foreign companies. Japanese companies hold a major share of the total market. In last few years, some smaller domestic companies have started to give established names in the ink industry a run for their money.
Major Japanese ink companies – Toyo Group, Sakata INX Group, T&K Toka – have manufacturing facilities in the country. Other leading international ink producers, including hubergroup, have joint ventures and representative offices in the country. Here are a few of the industry leaders:
• Toyo Ink Thailand
Established in 1971 in Bangkok as a wholly owned subsidiary of the Toyo Ink Group of Japan, Toyo Ink Thailand started as a manufacturer of offset sheetfed inks. Over the years, the company gradually expanded its product portfolio to include metal deco inks, gravure inks, flexo inks and UV inks. Today, Toyo Ink Thailand’s core business is centered around the manufacturing of gravure inks at roughly 7,000 tons per year, UV inks at 350 tons per year, and flexo inks at 140 tons per year. The company operates two production facilities at the Bangchan and Wellgrow industrial estates,
Speaking to Ink World, Nancy Ikehara of Toyo Ink said, “Toyo Ink Thailand holds more than a 30% market share of the Thai printing ink market. Our aim is to be the strongest and leading brand in the country and in this rapidly growing region. For our continued success and survival in such a business environment, it is critical that we quickly adapt to changes in market and customer needs. For over a century, the Toyo Ink Group has been able to leverage our world-class technologies in delivering the product innovations and reliable technical support that our customers have come to expect from us.”
• Toka (Thailand) Company
Established in 2016, Toka (Thailand) Company is a new entrant in Thailand’s ink industry. Founded in 1947, the parent company T&K Toka is a leading printing ink manufacturer in the world, especially in the UV printing ink segment. Listed in the Tokyo Stock Exchange, the company is one of the leading international suppliers of printing inks for offset and UV applications in the commercial and packaging markets.
• Eason Paint Company
A subsidiary of INX International Ink Company and indirectly of Sakata INX, Eason Limited is making inks for INX International, based in the US. It is making INXCure TP, an ink specially formulated for use on three- and two-piece cans. The company’s plant is located near Bangkok.
Eason sold a total 1,590 tons of ink in 2017, an increase of 7.5% over the sales figures of 2016. The domestic market accounted for 1,344 tons, while exports constituted 246 tons. The company produces and sells inks under Sakata INX while packaging coatings are sold under its own brand; such collaboration has enabled the company to expand beyond the local market.
• Asia Ink Company Limited
Established in 2001 at Ladprao, Asia Ink Company initially produced solvent-based ink, which was very successful and broadly well-known in the Thai printing ink industry. In 2002, the company expanded its product lines to include water-based as well as oil-based inks. Since 2005, the company has moved its location and expanded its production capacity in order to correspond to the growing printing ink market. The company is now located at Salaya-Bangpasi, Puttamonthon, in the province of Nakorn Pathom.
• Thongkulthai Co., Ltd
Established in 1985 as Hi-ink Co., Ltd, Thongkulthai Co., Ltd is a manufacturer of gravure and flexography inks to provide quality products to growing printing markets in Thailand. In 1991, the company changed its name from Hi-ink Co., Ltd. to the current Thongkulthai Co., Ltd.
What’s more, Thailand’s rising income is generating optimism about the future among its people and is increasing consumer demand for a variety of products, which will further drive the demand for inks in the country.
Overview of Thailand’s Ink Market
Thailand’s ink industry has recently grown at a rate of more than 10% a year due to increasing local and regional demand. Key markets driving this demand include food packaging such as standing pouches, cosmetics, beauty and personal care, and high-end liquors.
Newspaper ink constitutes approximately 13% of the total domestic printing ink market, while offset ink used for magazines, leaflets and other printed materials constitutes around 30%. As print media has seen some decline in recent years, the offset ink market is gradually contracting. On the other hand, flexo ink and gravure ink used for paper containers, corrugated boxes, packaging film and other packaging accounts for approximately 50% of the total market and is growing steadily.
Gravure ink is one of the largest and the fastest growing sub-segments in Thailand’s ink industry. A growing number of multinationals have transferred gravure production to their facilities in the country and expanded existing production capacities of goods for export to countries primarily in South East Asia like Laos, Cambodia and Myanmar. Not only has regional demand for snack food and instant noodles been on the rise, but recently the demand for boil or retort food, both for domestic consumption and export, also has expanded.
Thailand’s UV offset ink market is also growing fast as brands have turned to UV offset for the printing of premium whiskey boxes and the packaging of toothpaste, cosmetics and other consumer goods. UV offset inks offer a wider range of applications than conventional inks due to many advantages that its physical properties achieve, such as rapid cure and higher levels of gloss.
Buoyed by the Thai government’s “Kitchen of the World” policy to transform the country into a major hub for food processing and exports, Thailand has become home to many printers, converters and brand owners who have invested heavily in manufacturing facilities in Thailand. At the same time, the printing industry is comprised by a large number of ink makers, making it a very tight and highly competitive market.
Packaging inks (flexo ink for printing on packaging, such as corrugated boxes and paper containers; gravure ink for printing on packaging film for food, cosmetics and toiletries, daily goods, and other products; and metal-deco ink for printing on metal, such as beverage cans) are expected to register steady demand in coming years on the back of steady demand of packaged goods. There is a gradual shift to environmentally friendly and high-function, high-value-added ink in this category, though environmentally friendliness and high functionality in the Thai industry has not developed to the same extent as some of the developed markets. There is still considerable room for the market for environmentally friendly and high-function, high-value-added ink to grow.
Much like the global ink industry, Thailand’s ink industry has been also hit by higher raw material prices mainly due to production and environmental restrictions on key materials, especially in China, where there has been a number of escalations in the prices of oil, solvents, distillates and pigments.
Major Ink Producers in Thailand
Thailand’s ink industry is dominated by foreign companies. Japanese companies hold a major share of the total market. In last few years, some smaller domestic companies have started to give established names in the ink industry a run for their money.
Major Japanese ink companies – Toyo Group, Sakata INX Group, T&K Toka – have manufacturing facilities in the country. Other leading international ink producers, including hubergroup, have joint ventures and representative offices in the country. Here are a few of the industry leaders:
• Toyo Ink Thailand
Established in 1971 in Bangkok as a wholly owned subsidiary of the Toyo Ink Group of Japan, Toyo Ink Thailand started as a manufacturer of offset sheetfed inks. Over the years, the company gradually expanded its product portfolio to include metal deco inks, gravure inks, flexo inks and UV inks. Today, Toyo Ink Thailand’s core business is centered around the manufacturing of gravure inks at roughly 7,000 tons per year, UV inks at 350 tons per year, and flexo inks at 140 tons per year. The company operates two production facilities at the Bangchan and Wellgrow industrial estates,
Speaking to Ink World, Nancy Ikehara of Toyo Ink said, “Toyo Ink Thailand holds more than a 30% market share of the Thai printing ink market. Our aim is to be the strongest and leading brand in the country and in this rapidly growing region. For our continued success and survival in such a business environment, it is critical that we quickly adapt to changes in market and customer needs. For over a century, the Toyo Ink Group has been able to leverage our world-class technologies in delivering the product innovations and reliable technical support that our customers have come to expect from us.”
• Toka (Thailand) Company
Established in 2016, Toka (Thailand) Company is a new entrant in Thailand’s ink industry. Founded in 1947, the parent company T&K Toka is a leading printing ink manufacturer in the world, especially in the UV printing ink segment. Listed in the Tokyo Stock Exchange, the company is one of the leading international suppliers of printing inks for offset and UV applications in the commercial and packaging markets.
• Eason Paint Company
A subsidiary of INX International Ink Company and indirectly of Sakata INX, Eason Limited is making inks for INX International, based in the US. It is making INXCure TP, an ink specially formulated for use on three- and two-piece cans. The company’s plant is located near Bangkok.
Eason sold a total 1,590 tons of ink in 2017, an increase of 7.5% over the sales figures of 2016. The domestic market accounted for 1,344 tons, while exports constituted 246 tons. The company produces and sells inks under Sakata INX while packaging coatings are sold under its own brand; such collaboration has enabled the company to expand beyond the local market.
• Asia Ink Company Limited
Established in 2001 at Ladprao, Asia Ink Company initially produced solvent-based ink, which was very successful and broadly well-known in the Thai printing ink industry. In 2002, the company expanded its product lines to include water-based as well as oil-based inks. Since 2005, the company has moved its location and expanded its production capacity in order to correspond to the growing printing ink market. The company is now located at Salaya-Bangpasi, Puttamonthon, in the province of Nakorn Pathom.
• Thongkulthai Co., Ltd
Established in 1985 as Hi-ink Co., Ltd, Thongkulthai Co., Ltd is a manufacturer of gravure and flexography inks to provide quality products to growing printing markets in Thailand. In 1991, the company changed its name from Hi-ink Co., Ltd. to the current Thongkulthai Co., Ltd.
