GIA says growth in end-use markets drives the pigments dyes industry

The market for pigments and dyes responds to the coloring needs of a wide range of end-use industries, ranging from paints and coatings to construction. 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, according to a new report titled, “Pigments and Dyes: A Global Strategic Business Report,” published by Global Industry Analysts Inc.

Aided by a choice for brighter aesthetics and higher pigment concentration, the pigments industry is expected to propel ahead at a steady rate. 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 dyes market, meanwhile, largely depends upon the fortunes of its principal end-user, Textiles, which account for about 70 percent of the total demand.

After a brief decline in volume and values, in 2008 and 2009, which was a result of the global economic downturn, the future for global pigments and dyes market appears to be bright. Global market for pigments and dyes began to show signs of recovery in 2009 and registered positive growth in 2010, albeit by a small margin. The market, however, is expected to post significant growth in terms of volume as well as value in the coming years. Surge in the coming years would be fueled by growth in the paints, inks, coatings, and construction industries. Growing demand for high quality value-added pigments is one of the key factors expected to result in a spurt in growth. Further, the market, although mature, would also receive a boost as companies increasingly feel the need to evolve and design their products in sync with changing requirements for new and emerging technologies. Higher rates of capacity utilization are expected to further drive prices upwards. Mounting energy costs would also considerably impact global pigments consumption.

Asia-Pacific represents the largest and the fastest growing regional market for pigments and dyes worldwide, as stated by the new market research report. A key trend witnessed in the recent past is the migration of manufacturing capacity from the West to low-cost countries in the Asia-Pacific region, driven mainly by stringent environmental compliance issues. China will continue to be the single largest and fastest growing market. Over the years, China has emerged as the leading global manufacturer, trader, as well as consumer of dyestuffs. Gradually maturing production technology and presence of strong downstream customer base within the country have been propelling demand for pigments in the country over the recent years.

India is expected to be the second largest market in terms of demand for organic pigments and dyes. Indian dyestuff industry witnessed significant growth in the past decade due to government concessions in the form of tax and excise concessions to small-sized establishments. In addition, the industry witnessed export opportunities, subsequent to the shutting-down of several facilities in the US and Europe, following the enforcement of strict pollution control regulations. Europe trails behind Asia-Pacific, while the US constitutes the next largest market.

Segment-wise, Inorganic Pigments represents the largest segment in volume and value terms. Organic Pigments represents the fastest growing segment in volume terms. Given the ability to meet exact end-user needs, high performance pigments, such as quinacridones, represent a highly potential market. Specialty pigments also represent a promising market due to their eco-friendly characteristics, besides their high performance. Nevertheless, traditional and classical products would continue to occupy leading positions in the organic pigments market; and low priced products would gain in volume terms for applications, such as printing inks, which require lower colorant standards. Growth in the organic pigments market, however, would be limited by their higher price as compared to inorganic products, and limited capability to provide opacity. China has emerged as a leader in the production of dyes. Dyes are widely used in China, South Korea, India, and Taiwan.

Metallic pigments are expected to register a strong wave of growth owing to the rise in popularity of colored varieties. Eco-friendly products constitute a key growth area for the manufacturers of metallic pigments. Customers are increasingly demanding products that are eco-friendly with small carbon footprints, as a result of which growth of waterborne technology is likely to persist, along with applications, such as powder coatings, that reduce waste and emissions. Demand for metallic effects that combine functionality, color, and travel, are also increasing. Brighter prospects lie ahead for metallic pigment producers, as automotive industry starts rebounding and market conditions stabilize.

The global pigments and dyes industry was characterized by a series of consolidations in the recent years. Market players, in order to capture market share, revitalize assets, expand sales network, and enhance technology, resorted to consolidations. Mounting concerns over environmental factors, and implementation of strict regulations across the world are likely to result in market consolidation in the coming years. Major players profiled in the report include Altana AG, BASF SE, Cathay Pigments Inc., Clariant International Limited, DIC Corporation, Sun Chemical Corporation, Dainichiseika Color & Chemicals Mfg. Co., Ltd., E.I. du Pont de Nemours and Company, Ferro Corp., Heubach GmbH, Huntsman International LLC, Ishihara Corporation, Kemira Oyj, Kronos Worldwide Inc., Lanxess AG, Merck KGAA, Silberline Manufacturing Co., Inc., The Shepherd Color Company, Toyo Ink SC Holdings Co., Ltd., Tronox Inc., among others.

The research report titled, “Pigments and Dyes: A Global Strategic Business Report,” published by Global Industry Analysts Inc., provides a comprehensive review of the pigments and dyes markets, impact of the global recession on the market, current market trends, key growth drivers, recent product introductions, recent industry activity, and profiles of major/niche global as well as regional market participants. The report provides annual sales estimates and projections for pigments and dyes market for the years 2009 through 2017, in both value as well as volume terms, for the following geographic markets: US, Canada, Japan, Europe, Asia-Pacific, Latin America, and Rest of World. Key product segments and sub-segments analyzed include – Inorganic Pigments (Titanium Dioxide, Iron Oxides and Others), Organic Pigments, and Dyes (Acid Dyes, Basic Dyes, Direct Dyes, Disperse Dyes, Fiber Reactive Dyes, Vat Dyes, Fluorescent Brighteners and Others). Also, a six-year (2003-2008) historic analysis is provided for additional perspective.