Following 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. The market for pigments and dyes responds to coloring needs of a wide range of end-use industries, ranging from paints and coatings to construction. New, high quality, high performance, and innovative pigments offer potential opportunities to pigment manufacturers. Increasing globalization, restructuring, and internationalization has been a key trend shaping the pigments industry over the past several years. A key result is the transfer of production bases to cost-effective Asian markets. Additionally, with manufacturers in a rush to provide value-added services to customers, basic services are taking a back seat, and are increasingly supplemented by higher standards of product functionalities and related services. 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 pigment consumption.
Focus on research and development activities, developing new product applications, streamlining manufacturing operations, and reworking marketing/distribution strategies are some of the key strategies adopted to increase producer profitability. The entry of Asian suppliers is expected to further intensify competition. Relatively, low-priced organic pigments and dyes imports from India, Korea and China are likely to augment price pressure and restrain growth. Fairly expensive operating costs, high import duties, and freight charges are enhancing the price pressure on global manufacturers. In order to meet competition from Asian countries, companies need to move away from price-based competitive markets and enter into new segments. Another distinct trend is the move towards consolidation in the market, as players reorient strategies and realign their businesses to better reflect the changing competitive dynamics, and remain viable and competitive in the maturing market. Apart from strengthening market position, mergers and acquisitions have become an effective tool for companies to expand their product offerings, and gain entrance into niche applications, which would otherwise be an unviable option.
Asia-Pacific represents the largest regional market for pigments and dyes worldwide, as stated by the new market research report on Pigments and Dyes. Europe trails behind Asia-Pacific, while the US constitutes the next largest market. Growth in the market would be led by Asia-Pacific, in volume as well as value terms, which is projected to be the fastest growing regional market during the analysis period. China would continue to be the single largest and fastest growing market. India is expected to be the second largest market in terms of demand for organic pigments and dyes, a market that is also registering sizeable growth. In addition, growth is also expected to emanate from other emerging markets, such as Africa, Eastern Europe, and the Middle East. Meanwhile, growth in demand in matured markets such as North America, Western Europe, and Japan is likely to remain sluggish. Although textile industry remains the leading consumer of organic pigments and dyes, other markets, including plastics, paints and coatings, as well as printing inks are expected to display faster growth.
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 position 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 would, however, 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 markets such as 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. The trend towards unique printing output is expected to provide a boost to the market due to greater acceptance of aluminum pigments. Demand for light and soft metallics, including blue, green, and beige is growing, while the market for silver continues to progress at a robust rate. Heavy metals, such as cadmium, chromium, iron oxide, are progressively being regulated or their content lowered. Companies are also offering unique synthetic dyes and are stronger, more concentrated versions of existing dyes. However, rising prices for fuel and raw materials are key concerns impacting metallic pigments industry.
The global pigments and dyes industry was characterized by a series of consolidations in recent years. Market players, in order to capture market share, revitalize assets, expand sales network, and enhance technology, resorted to consolidations. Major players profiled in the report include ALTANA AG, BASF SE, Clariant International Limited, DIC Corporation, E.I. du Pont de Nemours and Company, Huntsman International LLC, Kemira Oyj, Kronos Worldwide Inc., Lanxess AG, and Tronox, Inc. Mounting concerns over environmental factors, and implementation of strict regulations across the world are likely to result in market consolidation in the coming years.
The research report titled “Pigments and Dyes: A Global Strategic Business Report” announced 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 2007 through 2015, 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 seven-year (2000-2006) historic analysis is provided for additional perspective.