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    Market Research

    Environmental Issues Continue to be 'Hot Button' for Pigment Suppliers, According to Smithers Rapra

    ...

    Related CONTENT
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    • Global Market for Rigid Packaging Adhesives Forecast to Grow by 4.3% (CAGR) to $18.2B by 2021
    • Optical Coatings Global Market Seeing Solid Growth, Reports BCC Research
    06.22.16
    The value of the high-performance pigments market is estimated as $4.75 billion in 2016, rising to $5.49 billion in 2021, at a CAGR of 2.9%, according to the latest exclusive market research from Smithers Rapra.

    The Future of High-Performance Pigments to 2021 analyzes the principal market sectors for high-performance pigments (HPPs) and specialty pigments (SPs). These include:

    •           Coatings – architectural, automotive and legislative pressures industrial;
    •           Plastics;
    •           Inks – especially for packaging;
    •           Cosmetics;
    •           Textiles;
    •           Electronics.

    Despite the strong move of pigment production to Asia, especially India and China, HPP production is still largely in the control of European, US and Japanese companies.

    Several technical advances in the end-user markets will spur the demand for new and improved types of HPP across the next five years. There is an increase in demand for more specialized and unique end-use pigments. Small and niche players are also focusing on increased usage of specialized pigments, such as thermochromic pigments and daylight fluorescent pigments. Current and future developments in nano-pigment technology, currently feeding the high end of the market (special effect pigments) can be expected to have an impact on uses of high-performance pigments.

    Report author Trevor Sayer says: “Environmental issues will continue to be a hot-button issue for pigment suppliers. Without question the biggest challenge to the global pigment market will be stricter environmental regulation, especially related to water and industrial waste treatment.

    “Company consolidation is another major trend. It is being driven by tighter regulatory and customer requirements, coupled with the highly competitive nature of the global pigment market.”

    The global consumption of HPPs and SPs is estimated at 178,844 tons for 2016, a figure expected to climb to 206,921 tons by the end of 2021 at a compound annual growth rate (CAGR) of 3.0%. The largest end-use sector is coatings. This will account for 111,584 tons by 2021 – 54% of the total market by volume – and have a global value of just under $3 billion.

    An area of growing interest in the coatings field is in heat control coatings using near-infrared (NIR)-reflecting pigments. These are an emerging class of HPPs that have dual functionality – in this case imparting color, as well as IR-reflective properties. Use of these pigments allows the production of heat reflecting coatings with a variety of colors.

    Although the market for HPPs and SPs is forecast to grow at a steady rate through to 2021, suppliers are more cautious about adding manufacturing capacity due to the uncertainty and instability the financial crisis caused as they continue to closely manage their inventory. This leaves customers vulnerable to potential stock outs in the event of supply problems or a spike in demand. This is a trend that will continue.
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