Pigments Market, by Pigments Type (Organic (Azo, Phthalocyanine, Quinacridone, Others), Inorganic (Titanium Dioxide, Iron Oxide, Carbon Black, Others), Specialty (Metallic, Fluorescent, Luminescent, Thermochromic, Others)), by Application (Paints & Coatings (Industrial, Automotive), Plastics, Construction Materials, Others) - Global Industry Insights, Trends, and Forecast (2017 - 2025)

Created On: Sep-2018
Report ID: IR279
Format: PDF
Pages : 220

Pigments Market: Introduction

Pigments are insoluble compounds that are used by various end-use industries, due to their color imparting properties. Pigments utilize the process of transmission or reflection to emit a number of colors by observing the light of selective wavelength. A range of natural and synthetic pigments are used across different industries.

Market Dynamics

The global pigments market is anticipated to rise significantly over the forecast period, owing to increase in product demand from paints and coatings industry, polymer, packaging, construction, automotive and others, owing to their properties which include opacity, high tinting strength, heat stability, staining, acid-base resistance, and dispersion. Noteworthy growth in the production of automobiles, coupled with a significant escalation in construction activities across major countries like U.S., China, India and in some parts of Western Europe will generate the demand for pigments to be utilized for paints & coatings applications, which will ultimately drive the growth of global pigments market. For instance, according to Institute of Civil Engineers (ICE), global construction market is expected to reach US$ 8.0 trillion by 2030, and the growth of construction industry is anticipated to be the faster in the U.S. Rise in number of market players, coupled with increased interest of key companies in investing in Asia Pacific region, due to the availability of low-cost labor, favorable regulations, and sufficient manufacturing land will further boost the growth of global pigments market.

The global pigments market was valued at nearly US$ 33.2 billion in 2017 and is anticipated to grow at a CAGR of over 4.0% during 2018 – 2025. Governmental regulations on toxic and harmful chemicals present in pigments will act as a significant restraint to the growth of global pigments market. Colorant like Lead chromate, Molybdate sulfate, and Lead sulfochromate are toxic in nature and their repeated exposure may cause respiratory disorders, kidney damage, vision issues and other critical health issues. High production cost of pigments, due to increase in cost of raw materials can also hinder the growth of global pigments market. Carbon-based chemicals obtained from petroleum derivatives like ethylene and naphthalene are used in the production of pigments, and due to the rise in petroleum products’ prices are further expected to prohibit the growth of global pigments market.

Figure 1. Global Pigments Market, by Pigments Type, 2017

Pigments Market

Inorganic pigments had the major revenue share of the global pigments market in 2017

Inorganic pigments accounted for the highest revenue share in the global pigments market in 2017, and the segment is expected to dominate the market over the forecast period, due to its high commercial demand. The demand for these pigments will be majorly from various industries is due to their pearlescent effects, fluorescent effect, iridescent effect, and metallic effect, and anti-corrosive properties that are required across most of the end-use industries.

Inorganic pigments are further segmented into Titanium dioxide, Iron oxide, Carbon black, and others. Of these, Titanium dioxide, which is bright white pigment, is expected to be the fastest growing segment, owing to its less toxic nature, coupled with excellent thermal stability, non-migratory and high light fastness properties, which makes it a good fit for applications in paints and coatings for automotive parts, production of white paper and plastic packaging materials, cosmetics, and others. Iron oxide is also expected to witness a faster growth, over the forecast period, due to its higher durability and lesser toxicity.

Pigments Market1

The rise in demand for sustainable pigments is expected to drive the growth of the organic pigments market during the forecast period.  Azo, Quinacridone, Phthalocyanine, and others are some of the commercial organic pigments extracted from compounds such as aniline, succinic acid, and others. Organic pigments are mainly preferred due to their bright and string color. According to Insights and Reports, Azo compounds are expected to hold a major revenue share in the global organic pigments market and are expected to grow at a CAGR of 4.4% during the forecast period. The demand for specialty pigments, especially metallic pigments is expected to rise over the forecast period due to an escalation in their demand from Original Equipment Manufacturers (OEMs), to enhance the aesthetic looks in automobiles along with protecting them with rigid metallic coatings.

Figure 2. Global Pigments Market, by Application, 2017

Pigments Market2

Global Pigments Market for paints & coatings had the major revenue share in 2017

Global pigments market for paints & coatings held the highest share in 2017 and generated revenue of around US$ 18.2 billion in 2017. This is majorly due to increased product demand from automotive and other industries such as construction, packaging, and others. The demand for paint and coatings in anticipated to grow at a CAGR of 4.5% over the forecast period. Anti-corrosive and weather-resistant properties of colorants make them a good choice for Original Equipment Manufacturers (OEMs) to use them for coating of various automotive components. Rising demand for plastics is anticipated to drive the global pigments market, as pigments are highly compatible with plastics and are used in the manufacturing of PVC pipes, vinyl sidings, etc.

Figure 4. Global Pigments Market, By Region

Pigments Market3

Europe pigments market led the global market in 2017

Europe pigments market is anticipated to dominate the global market during the forecast period owing to the significant recovery in the region’s construction market over the previous years, coupled with increase in automotive production by key players in this region. Germany is expected to grow at a CAGR of 4.2% over the forecast period in terms of volume, owing to the expansion in automotive industry along with increasing demand for advanced automobiles which hold weather-resistant properties.

North America pigments market is anticipated to grow over the forecast period, owing to increased demand for colorants and pigments in construction, automotive and plastics and packaging industry. The rise of construction industry in North America can be estimated with the fact, that has reached US$ 1,162 billion in 2016 from US$ 1,112.4 billion in 2015 (as per U.S Census Bureau’s report).

The rising investments in construction, textiles and automotive sectors in various Asian countries such as China and India are expected to escalate the demand for pigments in the Asia Pacific region. According to the Indian Brand Equity Foundation (IBEF), government of India is planning to invest around US$ 1 trillion in the development of construction and infrastructure sectors during the 12TH Five-year program. Moreover, the increasing manufacturing facilities of various automobiles, and electrical and electronic products will further enhance the demand for pigments, which will act as an additional driver for the Asia Pacific pigments market over the projected period.

Competitive Landscape

Key players operating in the global pigments market include BASF AG, Clariant AG, DIC Corporation, Pidilite Industries Limited, Merck Group, Tronox Inc., CPS Color AG, Lonsen and Huntsman International LLC among several others.

Several key players in the global pigments market follow various strategic moves in order to sustain the increasing product demand. Some of the key strategic moves by some companies are given below:

  1. In April 2018, Dominion Colour Corporation (DCC) and LANSCO Colours announced their merger to strengthen their product portfolio and to expand their global presence
  2. In November 2017, LANXESS, a specialty chemicals producer based in Europe successfully launched new generation of iron oxide red pigments manufactured by Ningbo process. This method was used in order to manufacture colorant through sustainable method and to meet stringent environmental standards
  3. In September 2017, Cabot Corporation, a leading U.S.-based specialty chemicals producer, announced the opening of its new Asia Technology Center in Shanghai, China, with the aim to step up Cabot’s application development abilities, along with delivering innovative solution to customers across Asia Pacific
  4. In April 2017, BASF and Landa Labs announced their strategic partnership in Nuremberg, Germany. In this partnership, BASF aimed to simplify the production of automotive coatings through Landa’s nano-pigment technology, due to their huge demand

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