HIGH PERFORMANCE PIGMENT MARKET ANALYSIS

The Global High performance market was valued at US$ 6.24 Bn in 2022, and is expected to exhibit a CAGR of 4.9%, in terms of revenue, over the forecast period (2023-2030), to reach US$ 9.13 Bn by 2030. High performance pigments (HPPs) are both inorganic and organic pigments with high insolubility, color strength, heat stability, solvent fastness, light fastness properties, and low migration. Organic pigments are derivated from natural sources which contain carbon chains and carbon rings, and inorganic pigments are precipitated metallic salts. HPPs are used in a wide variety of outdoor applications such as signage, advertising, and decals. Moreover, these pigments are also used in indoor applications such as floor and wall coverings, in printing inks that are utilized for specialty packaging such as retort packaging, metal decorating inks, security inks, electro photographic toners, and in color filters that are utilized  in liquid crystal displays.

Global High performance pigments market- Impact of Coronavirus (Covid-19) Pandemic

The market for high performance pigments was negatively impacted by the recent coronavirus outbreak. The strict lockdowns that were implemented in in the wake of the coronavirus outbreak have hinder the foodservice industry globally. This has led to a decline in the sales of packaged beverages, both alcoholic and non-alcoholic. This may have prevented the high performance organic pigments market from growing because pigments are used to print inks for food and beverage packaging materials. Limited transportation, travel bans, and the halt to manufacturing have all had an effect on the growth of the high performance pigments market.

Global High performance pigments market- Growth Drivers

• Increasing demand for HPPs from automotive and industrial coatings

Increasing demand for HPPs in automotive and industrial coatings, plastics, and cosmetic industries is the major factor that is expected to drive the global high performance pigment market growth. Furthermore, high demand for HPPs, owing to its wide variety of application range, excellent performance, and relatively low environmental impact is also expected to drive the market growth. Various research and development activities for development of new HPPs technologies such as nano-pigment technology is also propelling growth of the global market. For instance, According to India Brand Equity Foundation, a trust established by the Department of Commerce, Ministry of Commerce and Industry, Government of India, the Indian automotive market is expected to expand at a CAGR of 32.6% during 2014–2022. 

• Increasing demand from industries

Due to a supportive regulatory environment, important industries like polymers, textiles, cosmetics, and pharmaceuticals are expanding. These industries may see an increase in the demand for concentrated pigments that can withstand high temperatures. For instance, Graphene is known for its highly conductive qualities, you don't fully appreciate their potential impact until you see them in use. For instance, using graphene pigments in paint in a commercial setting can reduce the need for heating and cooling in office spaces because graphene absorbs heat before dispersing it over its entire surface.

Global High performance pigments market- Restraints

• High Costs of HPPs

High costs of HPPs is expected to hamper growth of global market. High cost of HPPs is due to its properties such as excellent heat stability and high color strength. Such price disparity is expected to create various challenges for the market participants over the forecast period. Also, fluctuation in raw material prices is also expected to hamper the market growth. For instance, these pigments superior properties and higher production costs account for the difference in prices. The high performance pigments market is anticipated to suffer from this price difference during the forecast period, particularly in developing regions like Asia Pacific, Central & South America, and the Middle East & Africa.

Figure 1. Global High performance pigments market, By Product type, 2022

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Based on the product type, the global high performance pigment market is segmented into organic and inorganic. Out of which, inorganic segment held a dominant position in the market in 2022, owing to high stability, durability, and opacity of inorganic HPPs. Bismuth vanadate pigments are environment-friendly, and have good gloss and hiding power, and are used in the production of orange, brilliant yellow, green, and red colors. Cadmium pigments are used in thermosetting and thermoplastic powder coatings, owing to heat resistance and high performance of these pigments.

Organic segment is also expected to witness high growth, owing to increasing demand for environment-friendly products in various industries such as coatings. Organic HPPs such as perylenes, perinones, quinacridones, and diketo pyrrolo pyrroles provides red to orange shades, and has enhanced solvent fastness and light fastness, heat stability, and average migration properties.

Global High performance pigments market- Regional Insights

Asia Pacific is the largest growing region in the global HPPs market, owing to rapid growing automotive, cosmetics, and other industries especially in emerging countries such as India, China, and South Korea. The cosmetics end-use industry in the region is growing at a rapid pace, and thus, creates a conducive growth environment for the global high performance pigments market. For instance, according to the International Trade Association, the cosmetics market was valued in, the South Korea market for cosmetics reached a value of more than US$ 15.72 billion in 2021. The South Korea cosmetics market is expected to reach US$ 21.57 billion by forecast period

Figure 2. Global High performance pigments market, By Region, 2022

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North America is the second largest market, owing to rising demand for HPPs in coatings, plastic, and other industries. For instance, Canada Revenue in the Cosmetics market amounts to US$ 8.15bn in 2023. The market is expected to grow significantly for the forecast period.

Europe is a lucrative market for HHPs, owing to rising demand for HPPs for application in cosmetics, automobiles, and plastic industries. For instance, Germany reported 36,900 new car passengers in February 2022 and got 76,500 new car passengers in February 2023, with a 4.5% increase. And also expected significant growth for the forecast period (2023-2030).

Global High performance pigment market- Recent Developments

• In April 2019, Clariant Corporation had introduced the first bio-based variant of Pigment-Red 254, which would mainly be used for automobile coatings
• In November 2020, LANXESS AG, a specialty chemicals company, expanded its capacity for black synthetic iron oxide pigments at its Krefeld-Uerdingen site by more than 5,000 metric tons per year. This expansion is expected to increase LANXESS AGs footprint in the Europe Market.
• In June 2021, DIC Corporation acquired BASF’s global pigments business, known as BASF Colors & Effects (BCE). This will help to combine the technological capabilities of both companies to continue to provide new value to the market and to be the leading company in the pigment business. There will be over 30 pigment production facilities worldwide between DIC and BCE, which will enhance the company’s pigment portfolio with broader product categories related to High Performance Pigments Market including inorganic, organic and others.
• In June 2021, The Heubach Group, partnered with SK Capital Partners, to acquire Clariant’s Pigments business. This will increase the organic pigments product portfolio for the company which is operate on 13 global production sites.

Global High performance pigments market-Key Players

Major players operating in the global high performance pigments market are BASF SE, Clariant AG, Huntsman Corporation, Lanxess AG, Solvay SA, Heubach GmbH, Sun Chemical Corporation, Ferro Corporation, Merck KGaA, and Synthesia A.S.

Definition: High-Performance Pigments are organic and inorganic pigments with excellent effectiveness that include superior ease of dispersion, and high coloring strength. Organic pigments are derivated from natural sources which contain carbon chains and carbon rings, and inorganic pigments are precipitated metallic salts.