HOW GLOBAL
PIGMENTS MARKET IS POSITIONED?
Global
Pigments market is at a mature stage. The global pigment market grew from
USD ~ billion in 2012 to USD ~ billion in 2017. The largest end user segment for
pigments is the paints and the coatings industry. Following the paints and
coatings industry, the largest consumers of pigments are the plastic, printing
ink and the construction industry. The rapidly growing middle class along with
the strong and steady growth of the industrial sector in China and India have
made the APAC region the growth engine of the global pigment market. The
pigment market in Europe and US is mature, however, pockets of regional growth
opportunities can be found driven by local requirement. Strict
implementation of environmental regulations has affected the global commodity
pricing of many products.
It has
also softened the export of pigments from China as well as domestic consumption
in China. The REACH regulations have had a negative impact on consumption of
pigments in Europe as well as global market as it is a big hurdle for the smaller suppliers who do not
have the necessary resource to provide compliance material. Big players in the
ecosystem have invested in developing newer products with environmental,
manufacturing and cost sustainability in order to broaden their product
portfolio.Industrial and architectural pigments have witnessed more or less
similar growth patterns. However, the differentiation in demand for colors and
properties from different end product manufacturers has widened the spectrum of
the pigment industry globally.
GLOBAL
PIGMENT MARKET SEGMENTATION
By Type of Pigments
China
was the largest consumer for inorganic pigments followed by US, India other
European, Asian and CIS countries.Titanium Dioxide (TiO2) alone dominated the
entire pigments market due to its wide usage in paints, plastics, papers, inks,
medicines, toothpaste, skimmed milk, sunscreens, cement, tiles and other
applications. The organic pigments market performance is parallel to the
development of the various coatings market segments plus additional effects
like color trend and replacement of lead chromates mainly in emerging markets.
. Organic pigments have been gaining importance over the globe owing to its
safe usage, irrespective of the price component and have become the preferred
choice for both organized as well as unorganized segment over the globe
By Type of Market Structure
The
Organized players have well established production plants spread across the
globe to provide deliveries as per the production schedule of the client while
maintaining a consistent quality.While the unorganized manufacturers usually
have a limited number ofproducts, which are customized to cater the demand of
only a few industries or the local market requirement.
By Type of End User Application
Applications
such as architectural and refinishing, aerospace, automobile, furniture,
decorative, industrial maintenance, marine and traffic markings are the major
sectors that have boosted the demand for paints & coatings globally.
Pigments are generally chosen over dyes for the coloration of plastics majorly
due to their superior fastness properties. Printing ink is the third largest
industry that drives the demand for pigments across the globe. The overall consumption volume
as well as value of construction pigments has increased in the past two years.
Other industries that have application of pigments mainly include food &
beverages, cosmetics, textiles, paper and rubber industry.
China Pigment Market Size: Pigments
industry in China was driven by technological developments and growth of major
end users segments. The market grew with a CAGR of ~% during 2012-2017. In
2017, the Chinese pigment market was valued around USD ~ billion.
China Pigment Market Future
Projections: The
pigment market is expected to increase at a CAGR of ~% during 2017-2022. The
market is expected to reach around USD ~ billion by 2022. As people's living
standards improve, domestic demand for automobiles will grow further.
Therefore, the next few years the pigment industry sales will continue to
maintain steady growth.
China Pigment Market Segmentation:
By Type
of Pigment (Inorganic & Organic): As of 2017, China is the world's
largest producer and consumer of titanium dioxide. There are numerous small and
medium-sized manufacturing companies, and the industrial concentration is not
high, which limits the further development of China's titanium dioxide industry.
The world's organic pigment industry has shifted to Asia, and China has become
the world's largest producer and exporter of organic pigments influenced by
various factors such as the intensified market competition and a huge domestic
market
Competitive Landscape
BASF SE,
Tronox Inc., Huntsman Corporation, Clariant Corporation, Meghmani Organics,
Sudarshan Chemicals and DIC Corporation are major market players in pigments
industry. Mergers & acquisitions is a very common strategy in colorant
market. Majority of the
leading Chinese manufacturers produce inorganic pigments owing to its
widespread application in coatings, plastic & ink industry which are the
largest end user of pigments in China. Major parameters for competition among
pigment manufacturers are; product
portfolio and quality, no. of
end-users served, pricing, manufacturing process and technology.
Trade Scenario In Global Pigments Market
The pigment market is highly
competitive. Reasonable prices have become the key point when downstream
customers purchase pigments. In recent two years, the export prices were low
while the volume was large. In August 2016, the export of pigment from China
dropped as a result a surge in prices in the global market was witnessed.
For HS codes 3201, 3202, 3203, 3205,
3206, 3207, 3208, 3209, 3210, 3211 & 3212 Germany USA and China have been
the leading export countries. They were followed by Japan, Netherlands,
Belgium, UK, Italy, France and Spain respectively. However, in case of pigments
China has been the largest exporter of pigments. Other major pigment exporting
countries are India, US, Germany, UK and Brazil.
Future Outlook And Projections In Global Pigment Market
The
global pigment market is expected to grow from USD ~ billion in 2018 to USD ~
billion in 2022. Paints and the coatings industry is likely to remain the
dominant application industry followed by plastic, printing ink and the construction
industry. Use of inorganic pigments in a range of industries is expected to be
gradually replaced by organic pigments that are environment friendly and less
toxic to humans as well. Industrial and architectural pigments are likely to
witnessed more or less similar growth patterns. Although the market is largely mature in developed
countries in North America and Europe, regional/ localised growth will propel
the market forward in these countries. Implementation of strict
environmental policies will lead to concentration of the market and development
of newer products.
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