U S Ink Ingredients Market Study Cost Competitive

U. S. Ink Ingredients Market Study Cost Competitive Environment Challenges Ink Ingredient Manufacturers “Innovation, with improved product offering, is the key to increasing market presence in the current competitive environment. ” Chemicals, Materials & Foods Group © Copyright 2004 Frost & Sullivan. All Rights Reserved.

Key Features Frost & Sullivan provides: • Detailed insights into recent developments and trends • Drivers, restraints, challenges, and strategic recommendations • Analyst insights on ‘hot topics’ and emerging applications in the ink ingredient market • Market sizing and competitive analysis • Market forecasts and opportunity analysis • Quarterly assessments • End user analysis within each report © Copyright 2004 Frost & Sullivan. All Rights Reserved.

What We Offer • Coverage: The Unites States • Proven methodology encompassing extensive primary and secondary data and research • Focused information and analysis for business planning and strategic decision-making • Credible data and analysis highlighting industry dynamics • Critical insights into related industries covering the entire gamut of participants © Copyright 2004 Frost & Sullivan. All Rights Reserved.

Who Will Benefit? Current Market Participants • Find out how you compare to the competition • Assess current and future drivers and restraints • Determine and exploit new market share opportunities • Track the emerging participants in this market New Entrants • Analyze challenges associated with the industry • Calculate time scales for strategy implementation • Position yourself to capitalize on the market’s unmet needs Investment Community • Analyze long-term strategies • Determine which participants will outperform the competition • Assess attractiveness of investing in the ink ingredient industry © Copyright 2004 Frost & Sullivan. All Rights Reserved.

Market Segmentation Analysis by Printing Technologies • Conventional Printing • Digital Printing Analysis by Printing Ink Ingredients • Aqueous-based • Solvent-based • Oil-based • Radiation cure-based (UV & EB) © Copyright 2004 Frost & Sullivan. All Rights Reserved.

Industry Challenges • Offshore developments hinder market growth • Cost related pressures affect ingredients market • Identification of new market opportunities presents challenges • Variations in economy impacting the ink ingredients market • Distance in relationship between printer OEM and ingredient manufacturer • Mature nature of market impacts growth • Decline in demand for print • Lack of strong presence for metallic pigments © Copyright 2004 Frost & Sullivan. All Rights Reserved.

Major Market Drivers • Quality drives demand for ink ingredients • Commercialization of chemicals present in printing inks drives market for ink ingredient suppliers • Demand for shorter runs drives digital technologies • New application areas drive demand for digital ink ingredients © Copyright 2004 Frost & Sullivan. All Rights Reserved.

Major Market Restraints • Rising raw material costs affect demand for ingredients • Time constraints negatively impact ability to cater to customer needs • Lack of innovations in printer/ printheads hampers growth of ingredients • Shift to cheaper manufacturing bases hinders growth © Copyright 2004 Frost & Sullivan. All Rights Reserved.

Key Market Participants • • • Akzo Nobel Resins Apollo Colors Arizona Chemical Co. Avecia Ltd. BASF Corp. Bayer Chemicals Cabot Carroll Scientific Ciba Specialty Chemicals Clariant • • • Columbian Chemicals Co. Eastman Resins, Inc. ECKART America L. P. Elementis Specialties, Inc. FLINT INK NORTH AMERICA Heucotech Ltd. Sartomer Company, Inc. Sensient Technologies Corp. . Wolstenholme International, Inc. © Copyright 2004 Frost & Sullivan. All Rights Reserved.

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