The global Pigments Market is estimated to be valued at US$ 17.89 Bn in 2023 and is expected to exhibit a CAGR of 4.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Pigments are colorants that are insoluble in the medium they color. They are widely used as coloring agents in paints and coatings, plastics, printing inks, and other materials. Organic pigments have high tinting strength, lightfastness, and weather resistance compared to inorganic pigments. Important organic pigments include phthalocyanine blue and green, quinacridone, and pigment red 122. Inorganic pigments include iron oxides, chromium compounds, cadmiums, and sulfides/selenides of metals.
The paints and coatings industry is the largest end-use sector for pigments due to growing demand for decorative and protective coatings from industries such as construction, automotive, and packaging. Pigments provide hiding power, weather resistance, chemical resistance, and durability to coatings formulations.
Market Key Trends:
One of the key trends in the pigments market is the rising demand for eco-friendly pigments. Strict regulations regarding the use of heavy metal-based pigments are prompting manufacturers to develop sustainable pigment formulations. For instance, organic pigments derived from natural sources such as plants are gaining popularity as substitutes for hazardous inorganic pigments. Water-based pigments are also replacing the traditional solvent-based varieties due to their low VOC content.
Another trend is the growing R&D towards novel effects and performance characteristics. Pigment manufacturers are focusing on delivering unique properties such as interference, thermochromism, and luminescence. Special effect pigments with features like pearlescence and metallic luster are finding increasing use in cosmetics, plastics, and automotive coatings.
Threat of new entrants: The pigments industry requires high initial investments for production facilities and compliance with strict environmental regulations which limits threats of new entrants.
Bargaining power of buyers: Large buyers in industries such as construction, automotive have significant bargaining power due to the fragmented nature of pigments industry.
Bargaining power of suppliers: Key raw materials required in pigments such as titanium dioxide have few suppliers globally with production concentrated in few regions increasing their bargaining power.
Threat of new substitutes: No cost effective alternatives exist currently for pigments limiting threats from substitutes. Innovation continues to discover greener pigments with performance properties.
Competitive rivalry: The pigments industry is highly competitive with few large players and numerous smaller regional companies competing on quality, pricing and innovation.
The Global Pigments Market Demand is expected to witness high growth, exhibiting CAGR of 4.5% over the forecast period, due to increasing applications in paints & coatings industry. The paints & coatings segment currently accounts for over 50% share of global pigments demand driven by growth in construction activities globally.
Regional analysis of the pigments market suggests Asia Pacific will continue dominating global demand over the forecast period. China represents largest producer and consumer of pigments globally accounting for over 30% of volume demand. Rapid infrastructure development and growing manufacturing sector in China and India is driving growth of the regional market. Europe and North America are relatively mature markets while growth in Latin America and Middle East & Africa is expected to be higher than global average.
Key players operating in the pigments market are BASF SE, Clariant International Limited, DIC Corporation, Huntsman International LLC, Tronox, Inc, Rockwood Holdings, Inc., Lanxess AG, Atlanta AG, Ferro Corporation. And Merck. These players are focusing on capacity expansions, innovations and mergers & acquisitions to gain market share and leverage business opportunities in the high growth regions of Asia Pacific and Latin America.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it