Against the backdrop of the global printing industry’s active transformation towards environmental protection, water-based inks are gradually becoming the mainstream in the market due to their advantages such as low volatile organic compounds (VOCs) emissions and high safety.

As an emerging force in global economic growth, the Southeast Asian region has witnessed a rapid development of the printing industry, and the water-based ink market also presents a unique development trend.

I. Current Situation of the Southeast Asian Printing Industry

In recent years, the printing industry in Southeast Asia has been developing vigorously. The printing industry in the Asia-Pacific region as a whole remains prosperous, especially in the field of packaging printing.

Countries in Southeast Asia such as India, Indonesia, Malaysia, Vietnam, and Thailand have shown outstanding growth. Relevant data shows that the annual ink sales in the Asia-Pacific region exceed 8 billion US dollars. Since the end of 2023, the ink market in the Asia-Pacific region has been gradually recovering.

For example, the markets of DIC Corporation in China, India, Indonesia, and Thailand have significantly grown. The President of Siegwerk Asia stated that Southeast Asia is leading the growth in 2024, with the growth rates of Indonesia, the Philippines, Vietnam, and Thailand exceeding 20%, the growth rate of India exceeding 12%, and the sales growth rate in China exceeding 7%.

II. Market Size and Growth Trend of Water-based Inks

From a global perspective, the market size of water-based inks is showing a good growth trend. The global market size of water-based inks was 9.86 billion US dollars in 2023, and it is expected to grow to 10.44 billion US dollars in 2024, with a compound annual growth rate (CAGR) of 5.9%. By 2028, the market size is expected to grow to 12.79 billion US dollars, with a CAGR of 5.2%.

In the Southeast Asian region, with the economic development, the improvement of environmental awareness, and the promotion of policies and regulations, the market size of water-based inks is also showing a rapid growth trend. Although there is currently a lack of precise data on the market size of water-based inks in the Southeast Asian region, it can be inferred from the dominant position of the entire Asia-Pacific region and the growth trend of the printing industry in Southeast Asia that the market size of water-based inks in this region is expanding year by year.

III. Analysis of Driving Factors

(1) Promotion by Environmental Protection Policies and Regulations

The restrictions on VOC emissions are becoming increasingly strict globally, and this trend also affects the Southeast Asian region. For example, some countries have started to formulate regulations related to VOCs and food safety. The entire region is actively implementing the Extended Producer Responsibility (EPR) for plastic waste, and countries such as Bangladesh, Vietnam, and Indonesia have introduced regulations restricting the use of toluene, especially in the food packaging field. The introduction of these policies and regulations forces printing enterprises to reduce the use of traditional solvent-based inks and switch to environmentally friendly water-based inks.

(2) Growth of Market Demand

1. Strong Demand in the Packaging Industry: The Southeast Asian region has a large population, rapid economic development, and an expanding consumer market. As the main application field of the printing industry, the packaging industry has a continuous growing demand for water-based inks. With the improvement of people’s requirements for the aesthetics and environmental protection of product packaging, the application of water-based inks in packaging printing is becoming more and more widespread.
2. Huge Potential in Emerging Markets: Some emerging economies in the Southeast Asian region, such as Vietnam and Indonesia, have witnessed rapid development of the manufacturing industry and attracted a large amount of foreign investment. The printing industry in these countries has also seen an increase in the demand for water-based inks during the process of undertaking industrial transfer. At the same time, with the rise of the e-commerce industry in Southeast Asia, the demand for product packaging has increased significantly, further promoting the development of the water-based ink market.

(2) Technological Progress and Innovation

1. Performance Improvement: Through continuous research and development investment, significant progress has been made in the performance of water-based inks. After adding waterborne polyurethane resin to some water-based inks, the water resistance has been significantly improved. The water-based inks of Zhongzhixing can pass the retort test (121°C, 30 minutes), which is suitable for special fields such as frozen food packaging.
2. Adaptation to Digital Printing: With the popularization of digital printing methods such as inkjet printing technology in Southeast Asia, the demand for water-based inks has also increased accordingly. Water-based inks can be well adapted to digital printing equipment to achieve personalized and customized printing needs. For example, some water-based inks have properties such as a narrow particle size distribution, good viscosity stability, and compatibility with salt substances, meeting the requirements of digital inkjet printing.

IV. Analysis of the Competitive Landscape

Currently, the water-based ink market in Southeast Asia is highly competitive, with both internationally renowned ink enterprises and local enterprises participating.

(I) Layout of International Enterprises

International ink giants such as DIC, Flint Group, and Siegwerk occupy an important position in the Southeast Asian market. DIC has built a new factory in India specifically for the production of environmentally friendly toluene-free liquid inks. Its Saykha factory in India covers an area of 92,500 square meters and can produce more than 10,000 metric tons of toluene-free/ketone-free liquid inks in a two-shift system, with plans for further expansion.

Siegwerk has achieved remarkable growth in the Southeast Asian region, with sales in this region increasing by nearly 15% compared to the same period last year in 2024. These international enterprises, relying on advanced technology, high-quality products, and perfect services, have an advantage in the high-end market.

(II) Development of Local Enterprises

Local ink enterprises in Southeast Asia are also growing and expanding continuously. They usually have a better understanding of local market demands and customer preferences and can provide more cost-effective products and localized services. Some local enterprises enhance their product quality and competitiveness by cooperating with international enterprises and introducing advanced technologies.

V. Challenges and Limitations

(I) Cost Issues

1. Raw Material Costs: The raw material costs of water-based inks are relatively high. Some high-performance water-based resins, additives, etc. are dependent on imports, and the prices are subject to large fluctuations. The price of some waterborne polyurethane resins is 30%-50% higher than that of traditional solvent-based resins. This makes the production cost of water-based inks remain high, affecting their promotion in price-sensitive markets.
2. Equipment Transformation Costs: When switching from traditional solvent-based inks to water-based inks, printing enterprises need to carry out certain transformations on the equipment, such as adjusting the drying system and replacing the ink path components. The equipment transformation costs are usually between 70,000 and 150,000 US dollars per unit, which is a large expense for some small printing enterprises and limits the rapid popularization of water-based inks.

(II) Performance Limitations

Although the performance of water-based inks is constantly improving, there are still gaps compared with solvent-based inks in some aspects. In high-temperature and high-humidity environments, the water resistance, wear resistance, and gloss of water-based ink printed products may be affected.

In some high-speed printing scenarios with extremely high requirements for the drying speed of inks, the drying speed of water-based inks still cannot fully meet the demand, resulting in a decrease in production efficiency.

(III) Insufficient Awareness and Market Cultivation

In some areas of Southeast Asia, some printing enterprises do not have a deep enough understanding of water-based inks and are worried about the printing effects and stability of water-based inks. Some enterprises are accustomed to using traditional solvent-based inks and have a resistant attitude towards changing the ink type.

The promotion and publicity of water-based inks in the market are not sufficient, and the awareness and recognition of water-based ink printed products by consumers need to be improved, which restricts the development of the water-based ink market to a certain extent.

VI. Future Development Prospects

(1) Sustained Market Growth

It is expected that the water-based ink market in Southeast Asia will continue to maintain a growth trend in the next few years. With the continuous strengthening of environmental protection policies, the continuous expansion of market demand, and further technological innovation, the penetration rate of water-based inks in the printing industry will continue to increase.

It is expected that by 2030, the market size of water-based inks in Southeast Asia is expected to double on the existing basis, with an annual compound growth rate remaining at around 8%-10%.

(2) Led by Technological Innovation

Enterprises will increase their investment in research and development to further improve the performance of water-based inks. The research and development focus will be on improving the drying speed, water resistance, wear resistance of water-based inks, and their compatibility with different substrates.

By developing new water-based resins, additives, and formulations, water-based inks can better meet various printing needs. The development of digital printing technology will drive water-based inks towards high precision and high resolution to meet the needs of the personalized and customized printing market.

(3) Sustainable Development Becoming the Mainstream

With the increasing global attention to sustainable development, the water-based ink market in Southeast Asia will also develop in a more environmentally friendly and sustainable direction. Enterprises will pay more attention to the sustainability of raw materials and use renewable resources such as bio-based materials to produce water-based inks.

For example, the flexographic water-based inks of Zhongzhixing in China have a VOC content as low as 1%, greatly reducing VOCs emissions. The production process of water-based inks will pay more attention to energy conservation and emission reduction to reduce the impact on the environment.

(4) Optimization of the Competitive Landscape

International enterprises and local enterprises will continuously enhance their own strength in the competition, and the market competitive landscape will be further optimized. International enterprises, relying on their technological and brand advantages, will continue to dominate the high-end market and strengthen cooperation with local enterprises through technology transfer, joint venture construction, and other means.

Local enterprises will consolidate their position in the low and middle-end markets by improving product quality, strengthening brand building, and expanding market channels, and gradually move towards the high-end market. Market integration and mergers and acquisitions activities may increase, and enterprises will improve their market competitiveness by integrating resources.