SAN JOSE, CA – Market research firm Global Industry Analysts Inc. (GIA) has released a comprehensive global report on the pigments and dyes markets. The global market for pigments and dyes is forecast to reach 9.9 million tons and $26.53 billion by the year 2017, driven by the growth in key end-use industries. Additionally, demand in the market would stem from stringent and increasingly rigorous quality, performance and environmental standards. Increasing consumer preference for environment-friendly products, which in turn would drive the consumption of higher performance dyes and organic pigments, is expected to provide stimulus to the pigments and dyes market.
The market for pigments and dyes responds to the coloring needs of a wide range of end-use industries, ranging from coatings to construction. With robust demand in key markets of coatings, plastics, paper and printing inks, the pigments market is forecast to register steady growth in the coming years. 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 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 would 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. The 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 United States and Europe, following the enforcement of strict pollution-control regulations. Europe trails behind Asia-Pacific, while the United States constitutes the next-largest market.
Segment-wise, the inorganic pigments market represents the largest segment in volume and value terms. The organic pigments market 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 higher prices 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, which will spur the growth of waterborne technology, 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 the 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 Corp., Sun Chemical Corp., Dainichiseika Color & Chemicals Mfg. Co. Ltd., E.I. du Pont de Nemours and Co., Ferro Corp., Heubach GmbH ,Huntsman International LLC, Ishihara Corp., Kemira Oyj, Kronos Worldwide Inc., Lanxess AG, Merck KGAA, Silberline Manufacturing Co. Inc., The Shepherd Color Co., Toyo Ink SC Holdings Co. Ltd., and Tronox Inc., among others.
The research report titled “Pigments and Dyes: A Global Strategic Business Report,” 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: United States, Canada, Japan, Europe, Asia-Pacific, Latin America, and Rest of World.
For additional information, visit http://www.strategyr.com/MCP-2119.asp.