In its third edition of the latest study, Ceresana forecasts global revenues generated with pigments to increase to US$34.2 billion in 2020. Pigments are mainly used in the production of paints and varnishes as well as the coloring of plastics and construction materials. Other applications include the manufacturing of printing inks and paper. The most important indicator for the development of the pigment industry is the construction sector, as total demand for construction material, paints, varnishes, and plastics largely depends on the development of this branch.
Growth Motors China and India
Asia-Pacific accounts for almost half of global consumption of pigments already and is expected to increase its share of the market even further. This region will continue to be the growth motor of the pigments industry, as China and India in particular are substantially increasing demand for pigments. Eastern Europe, the Middle East and South America will see demand rise by more than 3% p.a. each as well and thus contribute to the positive development of the pigment industry. The rather saturated markets in Western Europe and North America will slowly return onto a growth path after they suffered losses in the past couple of years.
Regional Differences in Demand for Individual Products
The presence of pigment-processing industries is subjected to regional differences; the demand for individual types of pigments depends on the requirements of the industry in question. Hence, demand for specific types of pigments may vary widely among the regions. Titanium dioxide is dominating the pigment market, given its widespread use in paints, varnishes, and the processing of plastics. North America consumes a disproportionately large amount of organic pigments; in Asia-Pacific, on the other hand, iron oxides are accounting for a comparatively large share of regional consumption. The largest growth potential in Asia-Pacific is expected for carbon black pigments.
Dominance of Paints and Varnishes
Paints and varnishes are the by far most important sales market for pigments worldwide. More than 43% of global demand originates in this segment. "Processing plastics accounts for 27% of total demand for pigments. This segment will develop at the second highest growth rates in the future", explains Oliver Kutsch, CEO of Ceresana. Only the segment printing inks will grow at higher rates, thanks to an increase of demand for printed packaging. Ceresana expects the least dynamic development for the segment paper, as the completely revised 3rd edition explains.