New Market Opportunities to Ease Economic Pressure on U.S. Ink Ingredients Industry.

PALO ALTO, Calif. -- Economic pressure is forcing several manufacturers in the United States to get packaging and printing done in more cost-effective countries such as China and India. This bid to bring down production costs has significantly affected U.S.-based ink ingredient manufacturers and

Ingredient manufacturers need to move from the regional level to the global arena to counter this challenge. Participants forming global alliances and joint ventures can succeed in this market. They also need to identify new market opportunities in order to expand their customer base.

New analysis from Frost & Sullivan (http://www.chemicals.frost.com), U.S. Ink Ingredients Market Study, reveals that revenue in this market totaled $2.27 billion in 2003 and projects to reach $3.03 billion by 2010.

If you are interested in a virtual brochure, which provides manufacturers, end-users and other industry participants an overview of the latest analysis of the U.S. Ink Ingredients Market Study -- then send an email to Melina Gonzalez -- Corporate Communications at melina.gonzalez@frost.com with the following information: your full name, company name, title, telephone number, fax number and email. Upon receipt of the above information, an overview will be sent to you via e-mail.

"With conventional printing inks having been available for several decades, the market is mature and the demand is steady, though not decreasing," says Frost & Sullivan Research Analyst Amulya Damisetti. "The scope for growth now lies in new applications such as digital or non-impact printing, and specifically, in inkjet printing," she adds.

Digital printing has been highly successful because of its improved efficiency and ability to produce quality prints with quicker processes. Consequently, demand for ingredients of inks used in this technology is high.

Besides this, other areas promising growth potential are the color-changing thermo-chromic and photo-chromic inks that are gaining popularity in certain niche applications such as the food packaging industry.

"The escalating prices of raw materials also impact ink manufacturers and they have been shielding customers from it by absorbing the margins themselves," observes Damisetti.

However, several ink manufacturers find this to be a major challenge and await a respite by early 2005 as ingredient suppliers, in an attempt to stabilize the market, are preparing to announce price increments for their products despite increasing raw material costs. They also hope to indirectly benefit from the recovering U.S. economy that is likely to improve the spending power of consumers.

Another means to overcome the price-related challenge involves identifying the right balance between supply and demand and the ability to satisfy customers. By offering innovative, quality products at optimum prices, participants can achieve customer satisfaction and increase their market presence in the current competitive environment.

"Though the general improvement of the U.S. economy is the only real solution for the challenges faced by this industry, ink ingredient manufacturers can help themselves by identifying alternative, cost-effective products. They can also align themselves with the manufacturing of vital products such as newspapers and medicine packaging," concludes Damisetti.

The U.S. Ink Ingredients Market Study, a part of the Specialty Chemicals subscription, analyzes conventional and digital ink technologies and offers growth forecasts for various ink systems such as aqueous-, solvent-, oil-, and radiation cure-based ink ingredients. It also provides an in-depth analysis of colorants, vehicles, and additives used under each system and strategies to develop and maintain market share and address challenges. Executive Summaries and interviews are available to the press.

Frost & Sullivan, a global growth consulting company founded in 1961, partners with clients to create value through innovative growth strategies. The foundation of this partnership approach is our Growth Partnership Services platform, whereby we provide industry research, marketing strategies, consulting and training to our clients to help grow their business. A key benefit that Frost & Sullivan brings to its clients is a global perspective on a broad range of industries, markets, technologies, econometrics, and demographics. With a client list that includes Global 1000 companies, emerging companies, as well as the investment community, Frost & Sullivan has evolved into one of the premier growth consulting companies in the world. For more information please visit www.frost.com

U.S. Ink Ingredients Market Study

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Keywords in this release: ink ingredients, digital printing, non-impact printing, digital printing, thermo-chromic ink, photo-chromic ink, aqueous-based ink ingredients, solvent-based ink ingredients, oil-based ink ingredients, radiation cure-based ink ingredients, colorants, vehicles, additives, research, information, market, trends, technology, service, forecast