Pigments Market

Pigments Industry Snapshot

A recent study by Fact.MR on the pigments market sheds light on product pricing, associated business risks, in-detail study of technological aspects, techno-economic product feasibility, and other aspects. According to this market study, demand is anticipated to increase at a CAGR of 5.4% over the period of 2021 to 2031, up from 12 Mn tons in 2021.

Demand is attributed to improved adoption rate of pigments for different applications, including paints & coating, printing inks, construction material, etc. Fact.MR evaluates the market and believes the business is set surpass a net valuation of around US$ 45 Bn by end of 2031.

Pigments Industry Report Scope

Attribute	Details
Market size value in 2020	USD 34 Billion
Market forecast value in 2031	USD 45 Billion
Global Growth Rate (2021-2031)	CAGR 5.4%
North America Market Size in 2020	USD 7.3 Billion
Latin America Market Size in 2020	USD 1.3 Billion
Europe Market Size in 2020	USD 8.2 Billion
East Asia Market Size in 2020	USD 12.4 Billion
South Asia & Oceania Market Size in 2020	USD 3.8 Billion
Middle East and Africa Market Size in 2020	USD 1.1 Billion
Forecast Period	2021-2031
Historical Data Available for	2016-2020
Market Analysis	Value in US$ Bn, Volume in KT
Key Regions Covered	North America Latin America Europe East Asia South Asia Oceania Middle East Africa
Key Countries Covered	U.S. Canada Mexico Brazil Mexico Argentina Germany Italy France U.K Nordic Spain Japan China India Malaysia Thailand Australia GCC Countries South Africa Turkey
Key Market Segments Covered	By Product Type By Application Region
Key Companies Profiled	Chemours TRONOX Holding PLC Venator Lomon Billions Group KRONOS Worldwide Inc. LANXESS DIC Corporation Altana AG Heubach GmbH Ferro Corporation Cathay Industries Group
Pricing	Available upon Request

Historical Demand Analysis of Pigments Vs Future Market Projections

Over the past decade, there has been marginal growth in the global pigments industry. This growth is attributed to increased adoption of pigments in different end-use industries, ranging from paints and coatings to construction. Being a partially fragmented business, the market remained rich during the historic timeframe owing to its increased usage.

The global market witnessed a CAGR of 4.2% during the historic period of 2016-2020. Soaring chemicals and paints & coating industry remained a major bedrock for the growth of the pigments business globally. Players in the business maintained a balance between their product offerings and R&D to penetrate the business.

Although, in 2020, with other businesses’ around the globe, the pigments space also witnessed a steep downfall in its annual valuation. This is attributed to reduced supply chain capabilities owing to stringent lockdown measures. Product pricing, raw material sourcing, and procurement risks were seen floating during 2020. Thus, the market deteriorated at a net Y-O-Y of 1.9%.

The business has now made a rapid recovery owing to strong demand coming from construction, paints & coating, and printing inks industries. Emerging economies such as India, Malaysia, Thailand, and the Philippines are showcasing prominent investments in construction projects that demand pigments in their construction material.

Moreover, recovery can also be attributed to ease of supply chain capabilities after 2020, which has reduced raw material sourcing and procurement risks. Even key raw material suppliers have plenty feedstock available with them to aid manufacturers’ needs. This has helped the market recover from the demand and supply gap due to COVID-19, and it is set to expand at 5.4% CAGR through 2031.

Why Does the Paints & Coatings Industry Dominate the Market for Pigments?

Globally, rapid urbanization and housing projects has fueled the demand for paints and coatings. This growth has triggered the adoption of pigments simultaneously.

The demand curve for pigments in paints and coating applications and printing inks has been continuously rising owing to increased versatility and chemical composition prospered by manufacturers. For instance, prominent players in the market offers wide pool of pigments based on specific requirement asked by end use industries. Similarly, based on requirement of color and composition manufacturers provide organic and inorganic pigments for paints and coatings industry.

Moreover, people seek a glossy wall finish, which is effectively improved with the addition of pigments in paints. These pigments reduce the cause of weathering and act as efficient binders to retain the glossy and colorful look of walls, which lasts longer.

What are the Current Roadblocks Limiting the Growth of Pigment Suppliers?

Although the business is gradually reaching its heights, still some significant factors dwelling its growth trajectory to the negative side. The primary constraints impeding pigment expansion globally are rising energy costs and raw material prices. Price factor remained a key tension for pigment suppliers for sales of pigments in various end use industries.

Increased raw material prices and high supplier margin have determine the overall price of the final product. Furthermore, environmental and regulatory agencies have been scrutinizing the pigment industry for harmful contaminants in recent years. These laws may lead to the establishment of tiny non-compliant producers throughout Asia Pacific.

China is a major supplier of intermediates and final goods to the pigment industry, and also poses notable challenges to overall supply chain capabilities of the market. The Chinese government has recently implemented tough actions against polluters, resulting in significant price increase in organic pigments, thus reducing their sales. Key challenge witnessed in the pigment industry nowadays is achieving supply stability for intermediates and finished products.

Country-wise Analysis

Why is China Considered the Epicentre of Pigment Production & Consumption?

China, being the largest manufacturer and consumer of pigments, effectively maintains a supply chain network to deliver high-end solutions to end-use industries. Over the couple of decades, net production output of pigments globally has emerged maximum from China, making it major producer.

In addition, manufacturers are experiencing elevated growth in decorative coatings owing to high disposable income offered by the emerging economy. This growth pattern shall help manufacturers’ overall business growth by complying with government and environmental regulations, especially in the production of VOCs.

Further, China houses the arena for an economical labour force, helping manufacturers reduce their overall cost of production. High production output and process optimization have helped China fetch elevated production output to aid the paints & coating, printing inks, and construction sectors.

How is Demand for Pigments shaping Up in Established and Evolving Markets?

India: India has also emerged as a prominent consumer of pigments, owing to widely scattered end-use industries. In addition, Fact.MR anticipates that the India market will grow manifold over the coming tenure and register incremental dollar opportunity 1.8X by 2031 compared to the historic timeframe.

Demand will elevate the overall pigments business and contribute to various end-use sectors, including paints & coating, printing inks, and construction.

ASEAN: ASEAN is believed to be the next potential hotspot for pigment adoption, expanding at a strong CAGR of around 8%. Rising intensive competition from Asia-based producers has forced manufacturers in the ASEAN market to improve and research better pigment offerings suiting many end uses.

The ASEAN region is already favoured with a list of construction projects estimated during the assessment years. Also, countries such as the Philippines, Thailand, and Indonesia remain key growth enablers allowing the market to gain 150 BPS by 2031.

Category-wise Analysis

Why is Demand for Organic and Eco-friendly Colour Shades Elevating Pigment Sales?

Pigments are primarily used in the production of paints and coatings in order to achieve desired level of colour and surface finish. In addition, these pigments are also enabling paint and coating users to safeguard surfaces against corrosion and extreme weather conditions, thus creating a dollar opportunity of US$ 256 Mn for themselves.

Growing housing projects and increasing infrastructure activity frequency globally has opened new doors for paints & coatings, plastics and building materials to grow. Furthermore, this demand for pigments is anticipated to rise significantly over the assessment period with notable shift towards sustainable and eco-friendly products in mature markets such as North America and Europe.

Also consumers sentiments and their preference has helped to shape the pigments business globally. Today, consumer prefer bright, vibrant and eco-friendly colour shades which has forced players to develop and innovate new chemistries for pigment to reflect desired changes. This indeed offered large-scale integration of chemistry and chemical composition to improve overall versatility of the product, allowing the business to gain 159 BPS.

Furthermore, over the last couple of years, the market witnessed upward trend in its global consumption. Also, feasibility of complex and specialty pigments for different building products application has provide the business traction during the assessment period. Also, intervention of nanoparticles and nanotechnology is also expected to boot overall pigment performance and help the market gain 121 BPS.

Considering, the aforementioned factors, the market is set register an incremental dollar opportunity of US$ 8.9 Mn by 2021-end.

How is the Printing Inks Industry Moulding Demand for Pigments?

Most printing ink companies use pigments for their colour efficacy. Pigments used in printing ink applications can be extracted naturally or considered as synthetic. Further, these pigments have showcased huge adoption rates in printing inks, which has boosted overall pigment demand by 2.3X in 2021.

Pigments, which are used in different printing inks, are colorants that are insoluble in water and other important solvents. For instance, copper phthalocyanine blue is the new primary blue colorant that is used in the packaging industry, and is insoluble in water and other organic solvents. These insoluble pigments leave behind an astonishing appearance that stays longer on the printed surface.

Competitive landscape

Companies are launching new products to align their offerings with changing consumer behaviours and sentiments, new government legislations, and environmental policies.

• In 2019, Venator launched its pigment product line for boosting solar reflectance and ultra-low moisture applications to be used in the plastics industry.
• Croda recently introduced an effect pigment for meeting all consumer preferences in the personal care industry.

Pigments Market Key Segments

• By Product Type

  • Inorganic Pigments
    • Titanium Dioxide
    • Iron Oxide
    • Carbon Black
    • Chromium Compounds
    • Others
  • Organic Pigments
    • Azo
    • Phthalocyanine
    • Quinacridone
    • Others
  • Specialty Pigments
    • Classic Organic
    • Metallic
    • High performance organic
    • Light Interference
    • Complex Inorganic
    • Fluorescent
    • Luminescent/phosphorescent
    • Thermochromic
    • Others

•  By Application

  • Paints & Coatings
  • Printing Inks
  • Plastics
    • Commodity
    • Engineered
  • Construction Materials
  • Others