Estimated at $160 billion, China’s printing industry is big business, as is its ink industry. Ink World estimates annual sales of ink in China at more than $1.5 billion. While offset and gravure remain the leading processes, flexo and digital printing are growing. 
 
The World Bank reported that China’s gross domestic product (GDP) was $11.20 trillion in 2016, a slight increase from $11.06 trillion is 2015. Still, China’s GDP is approximately 18% of the global GDP. Part of the growth comes from its population, which at 1.38 billion is approximately 20% of the world’s population. 
 
Not surprisingly, ink industry executives are optimistic about further growth in the country, and are making investments into production facilities.
 
“We regard China as an important market, since it consists of 1.3 billion people with vast land,” said Yuichi Kataura, International Operations Division GM for Sakata INX. “We place an importance on the offset market because of the population and the volume potential is large. To secure safety in food packaging, we forecast there will be growing demands in the flexible packaging field. We will respond to tightening environmental regulations and expand sales by launching environmentally friendly ink into the market.”
        
“DIC thinks China is and will be the most important market in the Asia/Pacific region,” a DIC spokesperson said. “We are confident that we will continue to strengthen our presence in the Chinese market with our innovative technology and products.”
        
“While China is expected to continue its gradual economic slowdown in 2017, the growth prospect for China is expected to remain strong with a GDP growth forecast of 6 to 7%,”Katsuya Saso, manager, Packaging Materials Department, Global Business Division for Toyo Ink Co., Ltd.,  noted. “The printing industry is expected to expand in line with forecasts, with the green and package printing fields offering the greatest growth potential.
 
“Taking advantage of our technology center in Shanghai, the Toyo Ink Group will press forward with the development and sales of liquid inks customized for the needs of this vast and varied market,” Saso added. “In addition, in keeping with the demand for eco-friendly products, we will continue to create and introduce new products to our rapidly growing eco-friendly product portfolio, such as systems for water-based gravure and flexo, and UV. Overall, our long-term outlook for China remains positive.”
 
Capital investments are helping ink manufacturers meet increased demand for inks and technical services.Toyo Ink is opening a new water-based ink plant in China. Opened in October 2016, Siegwerk’s INKube is the company’s new Packaging Ink Solution Center in Shanghai and will be home to more than 220 employees. It is located in the Xin Zhuang Industrial Zone, just south west of Shanghai’s central business district. INX’s Kataura said Sakata INX will be opening two new plants. 
 
“We have plans to open a larger facility for metal decorating ink in Guangzhou, and will build a new offset ink plant in Maoming,” Kataura reported.
 
“We will centralize our production to the regional mother plant to make our production more efficient,” a DIC spokesperson said. “DIC keeps its eyes on the Chinese market for business opportunities by acquisition, and is ready to take an action when any target is found.”
 
Digital Printing in China
Growth in the digital printing market in China has yet to take off compared to other regions, primarily due to costs and volume.
        
“Digital printers are not widely seen in the Chinese market, compared to those in developed countries,” Kataura noted. “Printing costs are high and there is not much of an advantage for digital printing because of printing volume. However, the number of digital printers is increasing.”
        
“Because of cost and market reasons, digital printing in China is not yet so successful,” the DIC spokesperson observed. “In China, the personalized printing market is not large, and because of the book registration policy, personal book printing is not easy. As for the digital printing for flexible packaging, the use of digital printing is limited because the costs of printing materials are still too high.”
        
“Digital printing continues to penetrate the flexible packaging market with more and more presses from overseas manufacturers being adopted by printers across the nation,” Saso said. “The real challenge, however, is print management due to digital’s slow press speed, which is sufficient for short to medium runs. Digital is still a big market for signage and displays, housing materials and textiles.”