Demands for higher performance, fewer solvents, brighter finishes and the other musts of a booming 21st-century world will make pigments and dyes a 9.9 million ton, $26.53 billion global market by 2017, a new report predicts.
Paint, coatings, construction and other end-use industries are pushing the pigment industry to “propel ahead at a steady rate,” reports Pigments and Dyes: A Global Strategic Business Report, from market research firm Global Industry Analysts Inc.
|India is the No. 2 market for pigments worldwide, boosted by government tax and excise breaks.|
“With robust demand in key markets of paints and coatings, plastics, paper and printing inks, the pigments market is forecast to register steady growth in the coming years,” the report says.
Change has reshaped the pigments industry, GIA reports.
“The industry is witnessing a fundamental shift in the form of greater preference for high performance metal-based inorganic pigments, and away from solvent-based raw materials,” the report says. In addition, end-user industries are demanding brighter aesthetics and higher pigment concentration.
Growth in the dyes industry depends largely on the health of its main end user, textiles, which accounts for about 70 percent of total demand, GIA says.
After struggling in 2008 and 2009 amid the global economic downturn, the market for pigments and dyes looks bright, according to the report. The market began to recover in 2009 and showed a small margin of growth in 2010.
Even better days are coming, with “significant growth in terms of volume as well as value in the coming years,” GIA reports.
“Surge in the coming years would be fueled by growth in the paints, inks, coatings, and construction industries.”
The push will come from several directions: more demand for high-quality, functional pigments, higher prices; overall growth in consumption; and retooling of conventional products to meet new requirements and incorporate new technologies.
Asia-Pacific represents the largest and the fastest-growing regional market for pigments and dyes worldwide, as Western manufacturing continues to migrate to the low-cost East. China will remain the largest, and fastest-growing, national market.
India will remain No. 2 in demand for organic pigments and dyes. The Indian dyestuff industry has been boosted in recent years by government tax and excise concessions and by the shutdown of several U.S. and European operations.
Europe trails Asia-Pacific in the regional markets, while the U.S. is ranked fourth.
Inorganic Pigments (those that use a natural or synthetic metal oxide, sulfide or other salt as a coloring agent) make up the industry’s largest segment in volume and value terms. Organic Pigments (which use colorants derived from coal tar or its derivatives) represent the fastest-growing segment, although their relatively higher price may limit growth.
Metallic pigments are expected to grow on the back of the recovering auto industry. Demand for eco-friendly products will also continue, to the benefit of waterborne technology and for powder coatings.
Consolidation has shrunk the pigments and dyes industry, and that trend is expected to continue. Current players include ALTANA AG, BASF SE, Cathay Pigments Inc., Clariant International Limited, Sun Chemical Corp., DuPont and Huntsman.