The European Printing Ink Association (EuPIA) warns of increasing costs and growing supply chain problems for the European printing ink industry, with direct implications for packaging applications, in light of developments in the Middle East.
The industry is particularly observing disruptions to central transport routes as well as rising energy and raw material prices, which are impacting the production of printing inks for packaging.
Even now, diversions in shipping traffic, such as due to the Suez Canal blockage and increased use of the route around the Cape of Good Hope, are leading to extended transport times for chemical raw materials of around 10 to 14 days. At the same time, freight costs and insurance premiums are rising significantly, while air freight is also becoming more expensive and less reliable due to restricted airspace.
Rising raw material prices are impacting the packaging print industry
A key cost driver is the high price of oil. According to EuPIA, Brent crude prices exceeding US$100 per barrel are driving up the prices of petrochemical precursors such as solvents, binders, resins, and additives. These substances are essential for printing inks, which are particularly used in the packaging industry.
The energy-intensive production sector is also coming under pressure, as rising gas and electricity costs are making manufacturing more expensive. For packaging manufacturers, this potentially means higher material costs along the entire value chain.
Industry focuses on resilience and alternative materials
EuPIA emphasises that the industry is increasingly focusing on more resilient supply chains and more sustainable raw materials to counter current challenges. At the same time, the situation remains dynamic, as geopolitical developments continue to have a direct impact on availability and prices.
The printing inks industry is closely intertwined with the packaging sector, as almost all printed packaging – from foodstuffs to consumer goods – relies on stable material flows. Consequently, persistent disruptions could also affect the availability and cost of packaging in Europe in the medium term.
Source: EuPIA
