Despite rampant price hikes in the last two years across most raw materials sectors, ink manufacturers avoided transferring the price rise to customers by absorbing the margins themselves. This bid to retain market share, regardless of increasing energy and manufacturing costs, has placed a great deal of strain on most manufacturers, and is proving to be a major challenge for the industry. Moreover, the U.S. economy, on a downswing, discouraged consumer spending reducing demand for ink due to a decline in package printing, consequently causing a dip in the demand for ink ingredients. The resulting overcapacity for ingredients is suppressing prices. The competition from offshore manufacturers also forces local producers to cut prices to stay afloat but participants anticipate some respite by early 2005.

This Frost & Sullivan research service analyzes conventional and digital ink technologies in the U.S. region and contains growth forecasts for various ink systems such as aqueous-, solvent-, oil-, and radiation cure-based with in-depth analysis of colorants, vehicles, and additives for each category. It also includes comprehensive strategies to aid market penetration and to address each challenge.

Demand for Quality Ink Sustains Growth in the U.S. Ink Ingredients Market

"Ink ingredients manufacturers in the highly competitive United States market, offer several products that work in specific applications, and quality is a key concern while purchasing them," says the analyst. With the commoditization of certain basic colorants and other ingredients used for conventional printing, there is a greater emphasis on the quality of product. Ink ingredients from Far Eastern countries, are available at lower prices, especially, on aqueous-based colorants. However, the quality of inks using some of these materials is considered sub-standard and demand persists for indigenous products.

Striking a Balance between Supply-Demand Critical for Market Success

"Meager consumer spending during the economic decline witnessed in 2001 and 2002 has gradually picked up and the print industry anticipates increase in demand across the board," notes the analyst. A recovering U.S. economy bodes well for the industry, and to leverage this opportunity, ink ingredients manufacturers, apart from satisfying customer needs, have to identify the right balance between supply and demand.

Retaining a minimum inventory and reducing overhead costs will assist most ingredients manufacturers�f to strike this critical balance. Since this might lead to an inability to meet sudden demands for large consignments, maintaining close working relationships with other smaller manufacturers, who may be able to supply materials at short notice, can help tide over the crisis.

Frost & Sullivan Growth Partnership Service

Based on extensive and in-depth research, real-world consulting work, and new theories tested in hundreds of companies across many industries, Frost & Sullivan has evolved its Growth Partnership Services (GPS) program that provides established and emerging firms with powerful growth visions. Moving beyond token mission statements, GPS provides an actionable vision to growth consulting partners by illustrating how key intelligence and strategic research based on defined goals can guide day-to-day behavior and overall company direction. The foundation of Frost & Sullivan's GPS includes:

Assisting companies to reach their full potential in the core business
Providing growth strategies to help companies expand into related businesses
Preemptively redefining the core business during market turbulence
Applying the Frost & Sullivan framework to identify and address common mistakes resulting from misaligned corporate strategies
Recommending growth management strategies through continuous partnership

To maximize the potential for growth within a firm�fs internal and external environment, Frost & Sullivan consultants can facilitate the creation of strategic programs that deliver improved market success. Frost & Sullivan�fs strengths lie in combining strategic understanding with market expertise and applying these with absolute commitment to its clients�f growth.

1 EXECUTIVE SUMMARY

Market Overview
- Introduction
- Competitive Analysis
Major Research Findings
- Opportunities and Forecast
- Market Segment Analysis
- Strategic Conclusions
- Glossary of Terms
- List of Abbreviations

2 TOTAL U.S. INK INGREDIENTS MARKET

Market Overview
- Introduction
- Basics on Ingredients
- Challenges Facing the Ink Ingredients Market
- Market Engineering Measurement Analysis
- Market Engineering Unit and Revenue Forecasts
Trend Analysis
- Pricing Trends
- Market and Technological Trends
Competitive Analysis
- Competitive Structure
- Competitive Market Share Analysis
Market Engineering Strategies
- Introduction
- Strategic Recommendations
Frost & Sullivan Awards
- Competitive Strategy Leadership Award
- Growth Strategy Leadership Award
- Product Line Strategy Leadership Award

3 TOTAL U.S. CONVENTIONAL INK INGREDIENTS MARKET

Strategic Analysis of Total U.S. Conventional Ink Ingredients Market
- Market Overview and Definition
- Basics on Conventional Printing Processes
- Market Engineering Research and Measurement Analysis
- Market Drivers
- Market Restraints
- Market Engineering Unit and Revenue Forecasts
- Demand Analysis
- Market and Technology Trends
- Pricing Trends
- Competitive Structure
Strategic Analysis of U.S. Aqueous-based Ink Ingredients Market
- Market Overview and Definition
- Market Engineering Research and Measurement Analysis
- Market Drivers and Restraints
- Market Engineering Revenue Forecast
- Pricing Trends
- Analysis by Colorants
- Analysis by Vehicles
- Analysis by Additives
Strategic Analysis of U.S. Solvent-based Ink Ingredients Market
- Market Overview and Definition
- Market Engineering Research and Measurement Analysis
- Market Drivers and Restraints
- Market Engineering Revenue Forecast
- Pricing Trends
- Analysis by Colorants
- Analysis by Vehicles
- Analysis by Additives
Strategic Analysis of U.S. Oil-based Ink Ingredients Market
- Market Overview and Definition
- Market Engineering Research and Measurement Analysis
- Market Drivers and Restraints
- Market Engineering Revenue Forecasts
- Pricing Trends
- Analysis by Colorants
- Analysis by Vehicles
- Analysis by Additives
Strategic Analysis of U.S. Radiation Cure-based Ink Ingredients Market
- Market Overview and Definition
- Market Engineering Research and Measurement Analysis
- Market Drivers and Restraints
- Market Engineering Revenue Forecast
- Pricing Trends
- Analysis by Colorants
- Analysis by Vehicles
- Analysis by Additives

4 TOTAL U.S. DIGITAL INK INGREDIENTS MARKET

Strategic Analysis of Total U.S. Digital Ink Ingredients Market
- Market Overview and Definition
- Basics on Inkjet Printing Processes
- Market Engineering Research and Measurement Analysis
- Market Drivers
- Market Restraints
- Market Engineering Unit and Revenue Forecasts
- Demand Analysis
- Market and Technology Trends
- Pricing Trends
- Competitive Structure
Strategic Analysis of U.S. Aqueous-based Ink Ingredients Market
- Market Overview and Definition
- Market Engineering Research and Measurement Analysis
- Market Drivers and Restraints
- Market Engineering Revenue Forecast
- Pricing Trends
- Analysis by Colorants
- Analysis by Vehicles
- Analysis by Additives
Strategic Analysis of U.S. Solvent-based Ink Ingredients Market
- Market Overview and Definition
- Market Engineering Research and Measurement Analysis
- Market Drivers and Restraints
- Market Engineering Revenue Forecast
- Pricing Trends
- Analysis by Colorants
- Analysis by Vehicles
- Analysis by Additives
Strategic Analysis of U.S. Oil-based Ink Ingredients Market
- Market Overview and Definition
- Market Drivers and Restraints
- Pricing Trends
- Analysis by Ingredients
Strategic Analysis of the U.S. Ultraviolet (UV) Cure-based Ink Ingredients Market
- Market Overview and Definition
- Market Engineering Research and Measurement Analysis
- Market Drivers and Restraints
- Market Engineering Revenue Forecast
- Pricing Trends
- Analysis by Colorants
- Analysis by Vehicles
- Analysis by Additives

5 APPENDIX

Decision Support Database Tables
- Digital Printing Manufacturing
- Newsprint Production
- Printing Ink Manufacturing
- U.S. Resin Production
- U.S. Real Gross Domestic Product (GDP)