The current market and latest commercial developments for both ink types are profiled in the new Smithers market report – The Future of Water-based vs. Solvent Printing to 2027 where exclusive data from this report shows that the total consumption of water-based inks is 493,000 tonnes in 2022, with a value of $5.10 billion. Growth in demand will see this market expand at a steady compound annual growth rate (CAGR) of 3.1% to reach 576,000 tonnes in 2027. In contrast, solvent-based ink use will rise from 1.02 million tonnes in 2022, worth $8.09 billion, to 1.13 million tonnes in 2027, representative of a significantly slower CAGR of 2.1%, by volume, for the forecast period.
This is indicative of greater enthusiasm in multiple markets to invest in alternative ink types, and the price premium aqueous ink sets can command. Both of these chemistries will compete against each other, and with alternative ink systems – oil-based, radiation curing, liquid and dry toner (electrophotography) – also quantified.
Water-based printing is still largely confined to a few sectors of the market – packaging, labels, commercial print, and publications – and even within this there are distinct nuances due to an array of technology and market factors, according to the report which also notes that: “Aqueous inks are used at appreciable volumes in three print processes – gravure, flexo and inkjet. These are also the dominant platforms for solvent-based inks, along with screen printing which makes some use of these. The past three years have ushered in profound changes in the print market, and this is making packaging and labels increasingly central to print Original Equipment Manufacturers (OEMs’) strategies for the future”.
Several recent new press models for the packaging segment are based around aqueous inkjet or flexo systems. These will become increasingly important over the next five years, as converters seek to transition towards more paper packaging substrates. There will be scope for wider use over solvent ink systems, but concerns over release of Volatile Organic Compounds (VOCs) mean that water-based systems will be preferred as and when drying technology allows for these to run at an acceptable print speed. Water-based inkjet is especially attractive in food packaging given residual fears over the safety of radiation curing systems and the presence of unreacted ink components in particular.
For aqueous inkjet, Smithers forecasts double-digit growth in all packaging types, as new presses are installed and print buying moves towards a print-on-demand model. Similar factors will see water-based print becoming increasingly important in book printing, making this the most lucrative market for aqueous inkjet inks over the next five years. For flexo there will be a gradual, but unspectacular, transition across most major packaging types – folding cartons, corrugated, and flexible substrates – supported by resurgent commercial printing demand. Solvent-based printing will still remain common in flexo, mainly for longer run flexible packaging not used with food or other sensitive goods. This will also be the situation for gravure, although publication work remains an important, though diminishing, application for this process. Simultaneously, solvent inks will see some additional use on inkjet presses for packaging, but the largest application will remain in advertising work.
The Future of Water-based vs Solvent Printing to 2027 – snippets from Smithers study:
The value of the water-based ink market is expected to grow at a CAGR of 5.6% for 2022–27, overshadowing solvent inks at 1.3%. This report covers solvent-, water-, oil-based and radiation curing technologies. It reviews the principal ink technologies and how they are used in key market segments.
Table of Contents Key Facts and Figures:
- The value of the water-based ink market is expected to grow at a CAGR of 5.6% for 2022–27, overshadowing solvent inks at 1.3%
- By volume, solvent-based printing will witness a growth rate of 1.9% from 2022–27, while water-based can expect a growth rate of 3.1% for the same period
- The total market for inks of all technologies is forecast to reach $32.9 billion in 2027, representing a 1.8% CAGR.
Growth over the review period has been affected by the combined effects of the COVID-19 pandemic and the conflict in Ukraine. Increasing energy costs and raw material shortages have resulted in mandatory price increases for many inks across most technologies and market segments, which has had the effect of increasing the overall value of the inks market. This effect is most acute in the middle years of the review period and the impact on ink pricing is forecast to reduce in the five years to 2027, during which more normal competitive pressures will resume and some degree of price erosion will occur.
Exclusive content
- The technology driving the industry and its subsequent impact on solvent- and water-based inks and printing.
- In-depth analysis of the competitive landscape and various print processes.
- Exploration into the different end-uses and how the market for each is expected to change over the next five years.
- The reasons for transition from solvent-based to water-based inks where this is taking place, and the reasons why this will be limited in some markets and printing technologies.
What will you discover?
- The report covers solvent, water, oil-based and radiation curing technologies.
- The principal ink technologies are reviewed and the reason for their use in key market segments is detailed.
- There is a particular focus on any transition from solvent-based to water-based printing technology where this is feasible and desirable, and the report highlights the reasons for selection of a particular ink technology together with key benefits and limitations of each technology reviewed.
Who should buy this report?
- Ink manufacturers,
- Raw materials manufacturers,
- Equipment suppliers,
- Packaging converters,
- Industry analysts and researchers.
The Smithers methodology
This report is based on extensive primary and secondary research. Primary research consisted of targeted interviews with ink suppliers, print service providers and experts drawn from key markets. This was supported by secondary research in the form of extensive literature analysis of published data, official government statistics, domestic and international trade organisation data, company websites, industry reports, trade press articles, presentations, and attendance at trade events.
Summarily, the new Smithers market data study – The Future of Water-based vs. Solvent Printing to 2027 (priced at $US6,750) includes in-depth analysis of the competing advantages of the latest aqueous and solvent ink chemistries and how these markets will evolve across the next five years. Data is quantified (by volume and by value), segmented by ink type/base, end-use application, and regional geographic market; and presented in over 250 data tables and figures.
