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Breaking NewsIndustry News

World Demand for Dyes and Organic Pigments to Reach $10.6 Billion in 2008

March 1, 2005
CLEVELAND - Worldwide demand for organic colorants (dyes and organic pigments) is forecast to expand 4.9 percent annually from a relatively weak 2003 base to $10.6 billion in 2008. The industry will continue to experience divergent demand trends on a number of fronts, i.e., developing nations will continue to record outsized growth compared to industrialized regions such as Western Europe, North America and Japan; demand for organic pigments will continue to outpace gains in dyes; and demand in the dominant textiles industry will continue to trail advances in other markets. Pricing pressures will also remain an issue, although some slight easing is expected. These and other trends are presented in World Dyes & Organic Pigments, a new study from The Freedonia Group, Inc., a Cleveland-based industrial market research firm.

Geographically, the Asia/Pacific region is expected to supplant North America as the largest market for organic colorants. While North America will still offer growth opportunities, demand in the Asia/Pacific region will continue to expand at rates well above the world average. This is due to the rapid industrialization and growth in overall economic activity throughout the region, but particularly in China, and to a lesser extent, India. Other developing regions (Latin America, Eastern Europe and the Africa/Mideast region) will also record above-average growth. The wholesale move of the world's fiber and textile complex from industrialized nations to lower-cost developing nations is largely responsible for this trend, although demand in non-textile markets is growing rapidly in developing regions as well.

Consumption of organic pigments will continue to offer significantly more growth potential than dyes. While dyes are largely dependent upon the fibers and textiles industry, demand for organic pigments is more evenly distributed among a wide range of market segments, including plastics, paints and coatings, and printing inks. Organic pigments benefit from the accelerating replacement of inorganic pigments in a number of applications due to environmental concerns. Neither of these factors is expected to abate soon, providing a base for continued strong organic pigment growth.

World Dyes & Organic Pigments (published 12/2004, 303 pages) is available for $5,100 from The Freedonia Group, Inc., 767 Beta Drive, Cleveland, OH 44143-2326. For further details, contact Corinne Gangloff by phone (440/684.9600) or fax (440/646. 0484), or e-mail pr@freedoniagroup. com. Information may also be obtained through www.freedoniagroup.com.

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