There hasn’t been much in the way of good news over the past several months and unfortunately, the inkjet ink market has not been immune to the global economic climate. Like many other industries, the market has seen a slowdown over the last year.

Ink manufacturers have seen an impact on their business, but some have already started to see the proverbial light at the end of the tunnel.

According to Terry Amerine, market manager, wide-format graphics, Fujifilm Sericol USA, Inc., while the overall economic conditions have slowed growth, there is still a growing market overall. “The substitution of traditional analog printing in favor of inkjet continues and the economic environment may be increasing this due to lower overall run lengths and even tighter turn times,” said Amerine.

Scott Schinlever, vice president/general manager, EFI Ink Business, concurs. “EFI’s ink business fell off in Q4 of 2008, and started to recover in early 2009, and has been steadily increasing. While the economic challenges are resulting in reduced print volumes for all technologies, the underlying digital transition is offsetting much of this in the wide-/grand-format space.”

But according to Hewlett Packard’s senior technical specialist, Printing Technology Platforms, Dr. Ross Allen, shop owners are looking products that will help them maintain their bottom line. “In the last 12 months, the wide-format inkjet ink market has seen a growing demand for ink technologies that provide high levels of image quality, productivity and durability while allowing customers to reduce the impact of their printing on the environment.”

Cost, of course, is also a huge factor, especially now. “Digital inkjet inks are our core business and we have experienced a good amount of business for the first five months of 2009. In tough economic times, people are forced to look hard at their costs and evaluate ways to reduce their expenditures to keep them performing well. Since INX Digital has a number of aftermarket brands, people are more open to considering a quality replacement product that will save them 30 to 50 percent compared to their current consumables. This kind of savings is proving to be very crucial to many businesses,” said Brad Kisner, president, INX Digital International.

Richard Bowles, vice president and general manager, Nazdar concurs. “Digital printers are increasingly concerned about reducing production costs.”

Deep Impact

While the global economy has probably had the most direct-and all encompassing-impact on the market as a whole, there are other trends that have also made their mark.

One of the biggest drivers has been the push for more environmentally-friendly options, when it comes to ink choices. “We believe the interest level and new regulations coming into effect for environmentally conscious solutions as being a key driver,” said Mark Sawchak, textile product manager, Converd.

“As the world strives to become more ‘green’, the assumption is that businesses will face increasingly demanding environmental regulations, which PSPs should consider as they construct their operations,” said Allen.

“The increase in resolution quality and speed are two of the biggest factors with the introduction of new technologies in the wide format market. UV curable has become a standard option available for good quality wide format printers. With the many advantages UV curable inks have to offer, smaller shops are able to compete when job requirements call for a ‘green’ solution. UV doesn’t require a laminate or coating to maintain outdoor durability compared to a water-based process,” said Kisner.

Additionally, the adoption of UV technology has helped to grow the UV side of the business.
“UV ink continues to grow. Faster curing, more flexible and durable inks are being asked for,” said Jennifer Greenquist, business development manager for inks, 3M.

“The continued adoption of mid-range to high-end UV digital inkjet flatbed printers, as well as the growth of UV roll-to-roll printers have made an impact on the market. Both trends are driving appreciably more volume, and have significant potential for continued growth into the future,” said Schinlever.

Technological Developments Help to Fuel Growth

But what technological developments will help continue the growth experts have alluded to? There are varied answers covering everything from the advances in inkjet equipment to printhead developments and ink delivery systems. But unfortunately, right now much of the growth will be curtailed due to the current economic conditions and the credit crunch.
“Higher speed UV printers (both flatbed and roll-to-roll) are driving higher print volumes, especially as digital is used for more mid-to-long run lengths vs. just short-run as in the past,”said Schinlever. “In addition, higher print quality in the grand-format space allows print providers to address more high-quality application spaces—many of which were reserved for low-speed wide-format printing or photo technology in the past. Both of these developments drive higher ink usage.”

INX Digital’s Kisner agrees. “The higher speed devices are grabbing people’s attention. That’s normal and was bound to happen. The same is true for products that are environmentally friendly. There was an initial push and I expect more companies will make it a greater priority in the next year. Our consumables sales have done very well and I see continued market share growth in this area for INX Digital.”

Sawchak continues, addressing the environmental-aspect. “The development of ink systems such as our Nano inks from Yuhan-Kimberly and eco-friendly paper-based substrates are helping to address the need in the market for solutions that enable printers to provide customers with advertising medium that address their requirements for having a low impact on the environment.”
Steve Urmano, marketing director, Mimaki USA, also credits LEDs as the potential source of growth. “Certainly low energy curing using LEDs have shown a lot of promise while unit sales are just ramping up.”

Future Predictions

Opinions are mixed about the future growth. A lot depends upon the predicted economic turnaround and when that does begin to occur.

“Given the world economic situation and the crisis that hit the financial world, the wide-format market remains vulnerable to the availability of good finance options, especially to smaller print operations. Many of these printers have had a difficult time getting loans to purchase equipment that is typically in the $30,000 to $120,000 range. Printers must keep costs low in times like this but run the risk of sacrificing quality,” said Kisner.

“We see single digit growth in 2009 and early 2010. We expect to see a return to double-digit growth in the latter part of 2010 and 2011—if the experts are right about the recovery of the economy,” said Amerine.

EFI’s Schinlever’s foresees strong growth, “especially starting in the 2nd half as key new technology introductions start shipping in volume.”

“We see the greatest growth opportunity for wide-format inks in products that have the ability to increase productivity while reducing the impact of printing on the environment. UV-curable inks are an example of a technology that will continue to see growth, since they produce dry, ready-to-use prints, print on a wide variety of substrates, and emit low levels of VOCs. UV-curable inks accelerate overall efficiency and productivity and allow PSPs to deliver high-quality applications with the quick turnaround time their customers demand,” said Allen.

Randy Anderson, program manager for software, media and color, Mutoh points to specific applications, such as vehicle wraps and textile printing, as growth areas moving forward.
Hiro Futsukaichi, director of marketing, Mutoh, continues along the same thought. “Sign graphics will still grow once the economy comes back. Eco-solvent ink will replace water base inks as people began to recognize the advantage of outdoor durability and low running cost. Meanwhile, ink for textile market would have greatest growth opportunity in terms of growth rate,” said Futsukaichi.

But the economy as a whole will be the biggest factor facing the market going forward-that and the availability of credit. “The toughest issue facing everyone is the depressed demand for printed products due to the current economic downturn. We are seeing signs that the next year could represent an upturn in demand,” said Nazdar’s Bowles.

“The biggest issues facing the wide-/grand-format digital inkjet ink market will be the general economy and condition of credit markets, especially in terms of financing being available for print providers to invest in new digital technology,” said Schinlever.

“The greatest issue facing the market is the ability to deliver the versatility that PSPs need to meet their customers’ demands. PSPs are looking for ink technologies that address a broad range of applications, and manufacturers such as HP strive to meet current demands and to be leaders in developing markets through their R&D investments. With inkjet, there is no one-size-fits-all technology. Each ink offers its own value propositions to meet the needs of different customers, production environments, and applications,” said Allen.?

Eco-Friendly Inks

What types of inks are considered eco-friendly? How do manufacturers make that evaluation? What third-party certifications do they use?

Dr. Ross Allen, senior technical specialist, Printing Technology Platforms, HP
HP defines ‘eco-friendly inks’ as inks that help accomplish a significant reduction in the environmental footprint of the overall printing system. The issue is actually larger than simply ink formulation. The overall improvement could take many forms, such as enabling a reduction in the energy requirements of printing; improving the health and safety profile in the operating environment; significantly reducing external emissions that may contribute to greenhouse gas or smog formation; or enhancing recyclability of consumables. For example, the level of improvement can be gauged by comparing a printer platform with an improved environmental footprint to previous generations of printers, or by comparison to competing technologies in terms of what is required to meet OSHA requirements on occupational exposure to VOCs, the amounts of ozone and HAPs released during print production, and the handling and disposal requirements for ink. Another important factor to consider is the extent to which consumables (e.g., printheads, ink cartridges, and some media) are recyclable and if the manufacturer offers a convenient take-back program. HP Latex Inks comply with the industry-leading Nordic Swan criteria, version 4.2.

Terry Amerine, market manager – wide-format graphics, Fujifilm Sericol USA, Inc.
It depends on the definition of eco-friendly. We focus on renewable resources, so we look for materials that can be renewed. We also look for “waste-stream” products that helps lower the overall impact of the product on the environment.

Randy Anderson, program manager for software, media and color, Mutoh
Eco inks that use glycol ethers for the solvent are more eco- friendly than the full solvent and mild solvent ink that use more hazardous solvents like cyclohexanones. True eco inks like the Mubio Ink are based on ethyl lactate from Corn and represent Mutoh’s ‘Green’ Solution to the marketplace. This ink set is the ONLY ink recognized by the EPA Design for the Environment Program HIRO: No harmful VOC's. No ventilation required. Providing employees a good working environment

Brad Kisner, president, INX Digital International Co.
Eco-friendly can be interpreted many different ways but I can say that INX Digital has a variety of offerings that are true in nature. This is due to the R & D commitment we have made for years to develop more user-friendly products while keeping the world ‘greener’. Our Megaink BioMG inks have a percentage of renewable resources compared to other solvent inks on the market, and the entire line of our Triangle brand UV curable inks are VOC free. BioINX have a minimum level of renewable resources in their formulation and we will continue to find ways to increase these levels.”

Mark Sawchak, textile product manager, Converd
Nanocolorant (water based pigment) and Reactive inks. The Nanocolorant inks are much more eco-friendly than Reactive inks because this technology doesn’t require pre-coating on fabric and post wet process such as steaming and washing. Two different evaluations were made. One was testing the fabric printed by reactive and nanocolorant based on Oko-Tex 100 (European regulation). This is an outside testing organization that measures the emittance of heavy metals, and other harmful chemicals in the printing process. These tests showed the inks did not emit any chemicals/by products that were of concern. Also a similar test was conducted by the FITI Testing and Research Institute in Korea (www.fiti.re.kr). They use the same text protocols as specified by the AATCC. Another test is the total LCA (Life Cycle Analysis for reactive inks only). This test was done internally using the consulting vendor. Again this test was done to compare digital printing with traditional screen printing and the results showed digital printing with these inks to be in a different league in terms of pollution output, etc compared to screen printing.

Scott Schinlever, vice president/general manager EFI Ink Business
UV inks emit minimal VOCs, so are more eco-friendly then solvent yet still able to print on the wide variety of media that the grand-format market requires.

Steve Urmano, marketing director, Mimaki USA
I consider water based inks as eco-friendly. However, many say that fully cured UV inks are eco friendly. Others say that non-ozone producing curing systems like LED are green. We don’t use any 3rd party certification for the products however the company is an ISO 14000 rated company.

Eco-Friendly Inks

Which inks have eco-friendly attributes—whether it relates to total LCA, emissions, eco-manufacturing, etc.?

Dr. Ross Allen, senior technical specialist, Printing Technology Platforms, HP
HP offers several ink solutions with environmental benefits. HP Latex Inks do not produce ozone emissions during printing and contain no hazardous air pollutants (HAPs). They do not require hazard warning labels and are also non-flammable and non-combustible under USDOT or international transportation regulations, and no special ventilation required to meet US OSHA requirements on occupational exposure to VOCs. They are pigmented, water-based inks designed for commercial and industrial printing applications. Odorless prints produced with HP Latex Inks emit extremely low levels of VOCs, allowing placement in Point-of-Purchase areas where odor is a concern such as food stores, restaurants, fitness centers, or medical facilities. HP UV curable inks also have environmental benefits and emit very low levels of volatile organic compounds. Some substrates used in outdoor and indoor display applications with HP Latex Inks and HP UV-curable inks may have an inherent odor.
Additionally, HP specialty solvent ink, such as HP Scitex TJ110 Specialty Solvent Ink developed specifically for the HP Scitex TJ8350 Printer series (a pigmented, solvent-based zero-HAPs ink) offers almost all of the benefits of standard solvent ink, while providing an option that is designed with the environment in mind. For large format design and technical printing, HP offers water-based inks such as HP Vivera Inks, which can be used indoors without special ventilation.

Terry Amerine, market manager, wide-format graphics, Fujifilm Sericol USA, Inc.
All UV inks are considered “green” in terms of VOC’s and odor.

Jennifer Greenquist, business development manager for inks, 3M
3M Piezo Inkjet UV Inks can eliminate VOC emissions associated with solvent inks.

Hiro Futsukaichi, director of marketing, Mutoh
MUBIO Ink is 80 percent vegetable derived ink. No harmful VOC’s. It relates to LCA.

Brad Kisner, president, INX Digital International Co.
Quite a few of our inks are eco-friendly. It ranges from Megaink’s BioMG and EcoMG products to the entire line of Triangle branded UV curable inks.

Mark Sawchak, textile product manager, Converd
Reactive and nanocolorant inks have eco-friendly attributes. It relates to total LCA. We compared digital printing process with conventional printing process. Also these inks are water-based. When compared to solvent, eco-solvent, or UV digital inks there is no odor and no ozone emissions. Also, there is no solvent waste stream.

Scott Schinlever, vice president/general manager EFI Ink Business
Our UV inks with minimal VOCs are eco-friendly. We also have a Bio solvent ink, where most of our focus has been on working with our OEM customer Mutoh to develop a Bio-ink for their hybrid flatbed printer.

Sales Trends

How significantly did ink sales dip Oct 08 - Feb 09 compared to 07 and 08 sales?

Dr. Ross Allen, senior technical specialist, Printing Technology Platforms, HP

Ink sales are driven both by user consumption (print demand) and installed base of printers. While the overall macro-economic environment has affected severely the first one, we still see growth in some categories driven by a fast technology conversion. For example, solvent technology is clearly declining, both in terms of ink usage but also printer sales, while technologies like UV Curable or Latex are rapidly growing share both in terms of printed volume and printer sales. Another consequence of the global crisis is a higher price erosion of the prints sold, that is driving a higher price pressure on the ink and the need to reduce total printing costs and ink efficiency.

Jennifer Greenquist, business development manager for inks, 3M
We continue to see strong growth in UV inks.

Scott Schinlever, vice president/general manager EFI Ink Business
We saw Q4’08 regress to 2007 levels, before starting to recover in early 2009.

Hiro Futsukaichi, director of marketing, Mutoh
For solvents—including Eco-Solvent—we’ve seen sales dip by 10 percent.

Steve Urmano, marketing director, Mimaki USA
Aqueous growth for us is in dye sub direct to print, perhaps 15 to 20 percent. Solvent is down 10 to 15 percent while UV is up 15 to 20 percent.

White Inks: What the pros and cons?

Pro

Supporters argue that white ink facilitates more design effects and allows PSPs to enter new markets by printing on non-traditional substrates. On colored media, white ink can produce a white spot color or a white substrate for subtractive color printing. White ink can be used to make opaque the backside of an image printed on transparent media.
—Dr. Ross Allen, senior technical specialist, Printing Technology Platforms, HP

It opens up new opportunity and streamlines the process.
—Terry Amerine, market manager, wide-format graphics, Fujifilm Sericol USA, Inc.

You can print white on colored or clear material.
—Randy Anderson, program manager for software, media
and color, Mutoh

Good for printing on rigid substrates and some graphics manufacturers use it to print on colored films.
—Jennifer Greenquist, business development manager
for inks, 3M

We have focused white ink capability in our flatbed printers to be usable to pre-coat, do post-coat or used as a spot color. Pre-coat lets you put a white layer down to then print over with process color—taking the white point impact of the substrate out of the equation. Post-cost lets you print a white layer after printing process color—like for a lightbox application where you put a diffuser layer on after reverse imaging the color image on the back of the clear substrate. Spot color adds a key element to high-end images, especially when done on clear media.
—Scott Schinlever, vice president/general manager EFI Ink Business

White inks are many cases an enabler and can determine if a machine is sold or not. In the case of membrane switch manufacturing, many users are using silk screening to flood coat a panel to overprint digitally.
—Steve Urmano, marketing director, Mimaki USA

Con

One disadvantage could be the higher cost of printing with white ink when large areas of the print must be covered.
—Dr. Ross Allen, senior technical specialist, Printing
Technology Platforms, HP

White ink settles quickly and clogs filters, heads, and lines.
—Randy Anderson, program manager for software, media
and color, Mutoh

Drawback are lack of opacity and need to do multiple hits (unless you are using Uvijet white) The printer must recirculate the ink as well to keep pigments mixed. Headlife is lower on white heads normally.
—Terry Amerine, market manager, wide-format graphics,
Fujifilm Sericol USA, Inc.

Requires a separate station on most printers.
— Jennifer Greenquist, business development manager for inks, 3M