LONDON – With urbanization at an unprecedented pace and construction activities reaching their peak, especially in developing economies across the globe, the global pigment is market is showing a steady growth outlook. A newly published market study by Fairfield Market Research suggests a stable 4.6% compound annual growth rate (CAGR) for pigment sales between 2021 and 2025. The report predicts the value of the global pigments market will reach around $40 billion by the end of 2025.
Demand for building and construction materials has increased over the past decade, due in part to governments supporting infrastructure development. The study reports that the increasing preference to use pigments for their functional attributes to safeguard paints from corrosion and extreme weather conditions is leading to increased pigment sales. Additionally, pigments provide aesthetics to painted surfaces, which is another factor that driving consumption in modern construction and architectural projects. Sales of specialty pigments are also picking up in the building and interior sectors. The study also highlights soaring sales of high-performance pigments in the automotive and plastic industries.
Rising demand for commercial products such as 3D printing material and the booming digital printing industry are expected to provide a boost to market growth, according to the report. The shift in the printing industry towards environmentally responsible manufacturing practices and eco-friendly printing materials is fueling sales of organic pigments globally. The study found that printing inks currently account for nearly half of the market valuation of organic pigments. As the trend towards low- or zero-VOC compounds continues to expand, especially in paints and coatings and other allied chemical materials, organic pigments manufacturers will enjoy increasing demand in the future.
According to the report, inorganic pigments also continue to witness steady sales, titanium dioxide (TiO2) and carbon black being the most sought-after products. The former holds over 65% of the value share in overall pigment sales, according to research. The report also suggests that a rising preference for packaged food consumption is benefiting pigment manufacturers in various ways. Another element in the economy that will likely drive pigment sales in the future is the thriving ecommerce industry. Packaging companies are generating substantial demand for pigments, thereby accelerating the growth of the pigments market.
The study found that Asia-Pacific, one of the top manufacturers and consumers of pigments, is poised for an impressive 5.9% CAGR during the forecast period. While the region continues to deliver high production output, demand is particularly driven by the growing preference for decorative coatings. On the other side, markets in North America and Europe have been witnessing a production downturn over the recent past, resulting in plant closures and restructuring.
Companies in the pigment industry are currently under pressure to move manufacturing bases and reduce their reliance on China, according to Fairfield Market Research. Strategic expansions and collaborations remain preferred moves of key companies in global pigment market. However, high energy costs, the volatility of raw material prices, and instability of supply remain major impediments to rapid market growth. Strict regulatory measures set by environmental and regulatory bodies are also playing out as a significant stumbling block. This, however, presents new opportunities for pigment manufacturers to explore organic, sustainable pigment production.
Supply chain disruptions and raw material issues due to the COVID-19 pandemic have compelled importers from around the globe to reduce their dependency on China. In addition to engaging in R&D initiatives for sustainable pigment production, companies are also investing in efforts to shift production bases to fast-developing Asian economies other than China.
For more information about this report, visit https://www.fairfieldmarketresearch.com/report/global-pigment-market/.