The packaging market is a huge business. According to Smithers, a leading market research firm, it is a trillion-dollar business: “Over the five years to 2028, the global packaging market is forecast to grow from $1.17 trillion to $1.42 trillion,” Smithers reports.

For ink manufacturers, packaging is an expanding market. Dr. Nicolas Wiedmann, Siegwerk’s CEO, said that overall, the demand for packaging inks and coatings continued to grow in 2024 compared to the previous year.

“The development of new packaging inks and coatings, particularly for flexible packaging, paper-based packaging, and labels, was primarily driven by ever-evolving environmental and safety standards, as well as ever-stricter regulatory requirements,” Dr. Wiedmann noted.

Dr. Wiedmann observed that sustainability is an important driver for Siegwerk.

“From inks and coatings that improve the efficiency and quality of plastic recycling to printing solutions that enable changes in substrates or support material reduction for less complex packaging structures, sustainable solutions have become increasingly prevalent over the past year,” Dr. Wiedmann said. “Although costs in the value chain, such as raw materials, energy, and wages, remained high throughout the year, we were still able to achieve profitable growth in all regions and are optimistic that this upward trend will also continue in 2025.”

Doug Aldred, chief commercial officer and CEO and president of Packaging Inks North America for Flint Group, reported that packaging continues to be a global growth market, with variations across different sectors and regions. In addition, sustainability remains a key driver of packaging and label design, staying top of mind for consumers.

“However, the fundamental role of packaging remains unchanged – it is essential for protecting food, beverages, and other critical goods from waste, from the moment they are packaged through transit, retail shelves, and into consumers’ homes,” Aldred added. “This vital function, combined with the industry’s significant progress in sustainability, reinforces packaging as a stable and resilient market.”

Hideki Ohba, GM, Marketing Department, International Division, Toyo Ink Co., Ltd., observed that the packaging industry remained resilient and adaptive throughout 2024, despite economic pressures, raw material volatility, and shifting consumer trends.

“Demand for food-safe, sustainable, and regulatory-compliant packaging solutions continued to grow, especially in flexible packaging,” said Ohba.

“From an ink market perspective, we saw sustained interest for water-based, low-VOC, and UV LED inks, driven by stricter global environmental regulations and brand owners’ sustainability commitments. Additionally, the push toward mono-material packaging influenced the development of new ink and coating technologies,” Ohba added.

Paul Edwards, VP of the Digital division at INX International Ink Co., considered the packaging market from the digital printing perspective.

“Looking at the digital packaging ink market. I would say it was a progressive and exciting year,” said Edwards. “It is clearly the early days of the analog to digital transformation in packaging. However, there is no doubt people can see the opportunity taking shape and growing. Brands have become aware of the technology and are showing interest in its ability to provide differentiation through product advertising. It should be noted the technology is developing to address many of the applications within the packaging field.”

Consolidation in the Packaging Industry

As a trillion-dollar market, packaging printing is constantly consolidating, as many of the large converters are merging or being taken over by larger printers. In 2024, the Smurfit Kappa-Westrock combination was completed; the company’s net sales reached approximately $7.5 billion in 4Q 2024 alone, or approximately $33 billion for the full year. The International Paper and DS Smith merger, completed early in 2025, has combined sales of $28 billion.

There is one major merger currently underway. If completed, Amcor and Berry Global will have combined revenues of $13 billion.

Ohba said that the consolidation of major packaging converters is reshaping the industry by creating larger, globally integrated supply chains, adding that this trend presents both challenges and opportunities.

“For instance, standardization of materials and inks across multiple regions has become a priority for multinational packaging groups,” Ohba pointed out. “We see a stronger focus on cost efficiency and supply chain resilience has led to increased demand for value-added services, such as regulatory compliance support and technical consultation. Sustainability commitments from large converters are accelerating the adoption of low-VOC and recyclable ink technologies.”

Aldred said that the consolidation among converters ultimately strengthens market power, streamlines supply chains, and pressures smaller players. “In packaging inks, fewer but larger customers demand customized, sustainable solutions and stricter compliance,” added Aldred. “This drives competition, innovation, and the need for strategic partnerships.

“Consolidation also fosters global synergies and the adoption of best practices across markets, enabling companies to operate more efficiently and collaboratively,” Aldred noted. “These synergies can help navigate the challenges that may occur in a complex global environment that is shifting from a historically globalized model to a more multi-domestic approach.”

Dr. Wiedmann said that the ongoing consolidation in the converter market, driven by relentless cost pressure, is driving increased standardization.
“Since we are strategically positioned between major suppliers in the chemical industry and large converters as customers, these dynamics require us to maintain exceptional competitiveness,” Dr. Wiedmann said. “To address this, we as an ink and coating supplier are committed to scalable platforms and products.

“Here, our focus is primarily on innovations in the areas of flexo inks, NC-free inks, and water-based platforms such as our UniNature ink system, as well as the further expansion of our Circular Economy Coatings (CEC) unit as an additional platform for the targeted development of circular functional coatings,” Siegwerk’s CEO added. “In addition, the increasing global reach of converters requires that ink suppliers also have a global presence to ensure consistent R&D, quality, and supply chain management.

“Looking ahead, several trends will shape the market in the future,” Dr. Wiedmann concluded. “The integration of digital technologies and the increasing emphasis on sustainability are expected to drive demand for advanced, eco-friendly ink and coating solutions. Furthermore, the rise of smart factories and industrial automation is likely to increase the need for high-performance, versatile inks and coatings.”

Trends in Packaging

With the growing interest in recycling and sustainability, there have been slight shifts toward water-based inks and paper-based packaging among consumer brands.
Flint Group’s Aldred said that the packaging market is continuously evolving, driven by sustainability, improved functionality, food waste reduction, regulatory compliance, and the increasing influence of branding.

“Over the decades, packaging and label formats have undergone significant transformation, and this evolution continues,” Aldred continued. “Materials have shifted not only from plastic to paper but also from glass to plastic. Similarly, labeling has advanced from traditional glue-applied labels to full wrap-around and shrink labels, offering greater efficiency and design flexibility.

“However, packaging decisions go beyond a simple choice of paper versus plastic or plastic versus glass,” Aldred added. “The true priority is ensuring product protection, minimizing food waste, maintaining product security, and using materials that comply with regulations while supporting recyclability.”

Edwards said that there is no doubt that from a digital perspective, we are seeing interest in the use of paper-based products.

“As digital enters new markets, it is often the case where we see the convergence of digital and other trends in packaging align,” Edwards reported.

“Customers and brands would like to take advantage of digital print, especially when new packaging technologies emerge and grow. A move from plastic to paper is indeed a trend. It aligns with the implementation of digital print, lower volumes, and where new applications are a sweet spot for digital,” added Edwards.

Ohba said that the shift toward fiber-based packaging is growing.

“Regulatory pressures in Europe, Japan, and North America are driving brands to explore paper-based alternatives to plastic packaging,” Ohba observed. “However, one of the biggest challenges remains functional performance. Many brands are looking for barrier coatings and high-durability printing solutions to ensure that paper-based packaging can match plastic in areas like moisture resistance, grease resistance, and shelf life. At Toyo Ink, we are actively developing water-based and recyclable ink systems that work seamlessly with paper-based substrates while maintaining high-quality print performance.”

“We see that brands are sensible in their choice of packaging materials,” Dr. Wiedmann said. “For many of them, paper has its place in their material portfolio but always with the need for optimal performance when used. This is particularly the case when evaluating multi-material packaging solutions, looking for a paper-based alternative option.

“Apart from product protection, we are also seeing increased demand for paper that enables a higher shelf impact, particularly with higher gloss levels, but which is still fully circular,” Dr. Wiedmann added. “Here, brands need to consider several aspects when sourcing solutions that are a commercial fit.

“However, in a constantly evolving packaging and packaging waste regulation landscape, it is not so easy to choose the right technology for future-proof investments in materials and formats,” Dr. Wiedmann reported. “Adaptation to sales channels, digitization, consumer acceptance and the uncertain geopolitical environment, which could have a significant impact on costs, play an important role here. For this reason, switching materials is not as easy as one might wish.”

Sustainability and Regulatory Concerns

Not surprisingly, regulatory issues and sustainability are major topics for brand owners and printers. Ink manufacturers are responding to these concerns.

“New sustainable materials, which include paper-based products with functional coatings and rigid offerings based on fibrous materials, are growing in popularity with brand owners,” added Edwards. “And in many cases, digital print offers an effective way to provide the printing process.”

Aldred noted that sustainability and regulatory compliance remain top priorities for packaging and label printers, as well as brand owners. However, to achieve true sustainability, businesses must not only assess their own environmental impact but also consider the footprint of their suppliers.

“As regulations affecting the packaging and label industries continue to evolve, it is more critical than ever to collaborate with suppliers who proactively address current requirements and prepare for future compliance, ensuring long-term sustainability and regulatory alignment,” added Aldred.

Ohba said that sustainability and regulatory compliance are at the center of every major packaging innovation today.

“Governments are implementing stricter packaging regulations, such as EU Packaging and Packaging Waste Regulation (PPWR), Extended Producer Responsibility (EPR) laws in North America, and Japan’s Plastic Resource Circulation Act,” he said. “Overall regulatory requirements are driving increased demand for low-migration inks for food and pharmaceutical packaging as well as PVC-free, NC-free, solvent-free, and water-based inks.”

Dr. Wiedmann said that in today’s rapidly evolving market, sustainability and regulatory concerns are of critical importance to brand owners and printers alike, noting that the drive towards environmentally friendly practices and compliance with strict regulations continue to reshape the industry.

“As a result, it is becoming increasingly important to navigate the complex regulatory landscape,” Dr. Wiedmann added. “In Europe, for example, initiatives such as the German Printing Ink Ordinance, the European Green Deal and the Packaging and Packaging Waste Regulation are setting new standards for the industry. Complying with these regulations ensures product safety and market access but also requires systematic processes and continuous adaptation to new legal requirements.”