PIGMENTS MARKET ANALYSIS

Pigments Market Size and Trends

The pigments market is estimated to be valued at USD 4.40 Bn in 2024 and is expected to reach USD 6.79 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 6.4% from 2024 to 2031.

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The demand for pigments is expected to grow steadily during the forecast period. Pigments find wide applications in paints & coatings, printing inks, plastics, construction materials and others. Rise in construction and automotive industries in emerging economies of Asia Pacific and Middle East & Africa are expected to drive the demand for pigments. Growing demand for high performance pigments from industries like paints & coatings and plastics is also expected to support the market growth. However, stringent environmental regulations regarding VOC emissions during pigment production may hinder the market growth to some extent over the forecast period.

Increasing Usage of Pigments in Paints and Coatings Industry

The paints and coatings industry has been one of the largest end users of pigments globally. Pigments are important components that are used in paints, coatings, plastics, inks, and other applications primarily to add color, opacity, and protective properties. The paints and coatings industry consumes a variety of pigments including titanium dioxide, carbon black, iron oxides, chrome pigments and others. This industry has been growing steadily over the past few decades driven by the robust growth in the construction industry as well as the manufacturing industry. As the construction activities rise with increasing investments in infrastructure projects, commercial buildings and residential properties, it leads to higher demand for paints and coatings. Pigments help determine the key properties of paints including viscosity, fineness of grind, opacity, color development and tinting strength. Hence, as the paints industry expands, it contributes to the increasing consumption of pigments globally. Moreover, manufacturers are continuously focusing on developing new pigments and enhancers to widen the color palettes for paints and introduce paints with better performance characteristics like self-cleaning, anti-microbial, etc. This stimulates the need for specialized pigments. With the construction industry gaining momentum coupled with ongoing initiatives for infrastructure development, residential projects, and smart city missions, the demand for paints and coatings is expected to grow significantly. This rising uptake of paints and coatings would drive the pigments market upwards in the coming years.

Market Concentration and Competitive Landscape

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Surging Demand from Plastics Industry

The plastics industry has emerged as one of the major end-use sectors globally driving the growth of the pigments market. Plastic materials have extensively replaced traditional materials in myriad applications due to their advantageous properties such as low cost, lightweight, durability, resistance to moisture and chemicals. Pigments play a pivotal role in plastic formulations by adding visual appeal and mechanical properties. They help impart color to clear plastic resins and compounds, provide UV stability, reduce gloss, enhance opacity, and also act as reinforcements in some cases. The plastic products industry has been witnessing tremendous expansion fueled by the burgeoning demand from consumer goods, automotive, packaging, construction, and other industries. Rise in the single-use plastic production as well as growing consumption of specialty plastics have augmented the consumption of pigments.

Key Takeaways of Analyst:

The pigments market is expected to grow steadily driven by the increasing demand from the paints and coatings industry globally. The growth in the construction and automotive industries will remain key drivers as paints and coatings find widespread use in these end-use sectors.

Asia Pacific is anticipated to continue dominating the pigments market owing to the rapid industrialization and urbanization in countries like China and India. As disposable incomes rise in the region, the demand for products requiring pigments will also increase.

Stringent environmental regulations around the use of certain pigments restrain the market growth. This has led to increased R&D efforts by manufacturers to develop bio-based and naturally-sourced pigments. Water-based pigments are also gathering steam due to their low VOC content. Rising export focus of manufacturers in China and India is likely to open promising growth avenues for players in the pigments market.

Market Challenges: Stringent environmental regulations

Stringent environmental regulations implemented across many countries are posing a major challenge for the growth of the global pigments market. Many types of pigments used in industries like paints, coatings, plastics contain heavy metals and other toxic chemicals that can harm the environment if not handled or disposed of properly. Regulations enforced by environmental agencies now have much lower tolerance limits for the use of hazardous substances in pigments. For example, the European Union has banned pigments containing lead, mercury and certain azo compounds. Similarly, regulatory authorities in the United States have imposed limits on the concentration of toxic chemicals like cadmium, chromium and arsenic in industrial pigments. Complying with these new norms requires pigment manufacturers to invest heavily in R&D to develop safer, eco-friendly alternatives. This has increased production costs.

Market Opportunities: Innovations to develop eco-friendly pigments

Developing eco-friendly pigments provides a huge opportunity for growth in the global pigments market. With increasing awareness about environmental protection, consumers and industries alike are looking for more sustainable alternatives. Pigments produced from organic and natural sources can fulfill this demand while reducing toxicity.  Many companies are innovating in this area. For example, Titan Crayons has developed pigments made from fruit and vegetable wastes that would otherwise go to landfills. These eco pigments are biodegradable and produce fewer greenhouse gases during manufacturing compared to conventional petroleum-based pigments. Another start-up Air Ink uses carbon dioxide from air to create colorful inks and pigments. These innovations offer dual benefits of supporting a circular Bioeconomy while providing high performance pigments for paints, plastics, and more.

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Insights by Pigment Type: Growing demand for environment-friendly pigments

In terms of pigment type, organic is expected to contribute 55.2% share of the market in 2024. The organic segment currently dominates the global pigments market in terms of pigment type. Organic pigments have emerged as the pigment of choice, driven primarily by the increasing demand for environment-friendly and non-toxic pigments across various end-use industries. Unlike inorganic pigments, organic pigments do not contain heavy metals and are considered safer options with minimal impact on human health and the environment. Stringent regulations globally are also favoring increased adoption of organic pigments. Many countries and regions have either imposed restrictions or complete bans on pigments containing heavy metals like cadmium, chromium, lead, and mercury owing to their toxicity. This is significantly boosting the demand for organic pigments from the paints and coatings industry. Their non-toxic nature makes organic pigments compliant for various applications involving food packaging and consumer products. Additionally, technological advancements have enabled organic pigment manufacturers to synthesize novel shades, improving the color palette available to end-use sectors. The growing health-conscious consumer behavior is another pivotal factor driving the organic pigments segment. This trend is prominently observed in industries like paints and coatings, plastics and printing inks which utilize pigments on a large scale. Such evolving preferences are compelling manufacturers to incorporate organic pigments into their product portfolios in order to gain a competitive edge in the market.

Insights by Application: Growing construction activities are augmenting the paints & coatings segment

The global paints & coatings segment is expected to hold 36.7% share in the global pigments market in 2024, in terms of applications. Rapid urbanization and rising construction spending worldwide have augmented the demand for paints and coatings containing pigments. Structural growth projects including residential and commercial buildings, roads, bridges, and infrastructure development are influencing the paint consumption. Pigments are integral to paints and coatings as they impart critical properties like color, gloss, opacity, and durability. The construction industry relies heavily on a wide variety of paints for both interior and exterior applications such as wall finishes, roof coatings, floor coatings, etc. Developing regions in Asia Pacific, Latin America, Eastern Europe, and Africa present lucrative opportunities, driven by robust economic growth, population expansion and improving standards of living. Government initiatives promoting affordable housing and Smart City missions in these regions are boosting residential and civic construction activities. This, in turn, is driving pigments consumption across developing markets through increased paints demand. High-performance pigments are also witnessing growing adoption in the architectural coatings sector for applications requiring weather resistance, light fastness and UV stability. Maintenance painting of buildings further supplements the recurring demand for architectural paints and coatings augmented with pigments.

Regional Insights

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North America has established itself as the dominant region in the global pigments market. The region is expected to account for 36.8% of the market share in 2024. The region is home to several multinational pigment manufacturing companies that have been operating in the market for decades. These companies have huge production capacities and strong distribution networks across the globe. With the presence of many end-use industries such as paints & coatings, plastics, construction materials, North America accounts for the largest consumption of pigments. Additionally, the region is an innovation hub and companies regularly invest in R&D to develop new and advanced pigment technologies. This helps them maintain market leadership.

However, in recent years, Asia Pacific has emerged as the fastest growing regional market for pigments. Countries such as China, India, and other Southeast Asian nations are witnessing increased industrialization and rapid urbanization. This has greatly boosted the demand for infrastructure development and various commodities in the construction sector like cement, steel, etc. that require pigments during manufacturing. The paints & coatings industry is also expanding in Asia Pacific due to the growing automobile manufacturing and shipbuilding industries. In addition, many global pigment makers have established manufacturing bases in the regions to take advantage of low costs and cater to the rising local demand. This has increased the accessibility and availability of pigments for end-use industries. With the growing economies and changing consumer lifestyles, Asia Pacific is projected to surpass other regions in terms of pigments consumption over the coming years.

Market Report Scope

Pigments Industry News

• In 2023, Heubach launched Ultramarine Blue pigments
• In 2023, Sun Chemical Launches Two New eXpand Stir-in Pigment Preparations for the Coatings Market
• In 2023, U.S. Silica Launches New High-White Pigment
• In 2022, Heubach Group and SK Capital Partners acquired Clariant's Global Colorants Business, forming a global pigment technology leader under the Heubach brand

*Definition: The pigments market includes the manufacturing and distribution of various pigments that are added to raw materials like paints, plastics, inks, and other coatings to add color or other optical properties. The major product types in this market are inorganic pigments such as iron oxide, titanium dioxide, and carbon black as well as organic pigments including phthalocyanine blue, quinacridone red, and azo pigments.

Market Segmentation

•  Pigment Type Insights (Revenue, USD Bn, 2019 - 2031)
  • Organic
  • Inorganic
•  Application Insights (Revenue, USD Bn, 2019 - 2031)
  • Paints & Coatings
  • Printing Inks
  • Plastics
  • Construction Materials
  • Others
• Regional Insights (Revenue, USD Bn, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC Countries
    • Israel
    • Rest of Middle East & Africa
• Key Players Insights
  • BASF SE
  • Clariant International Limited
  • DIC Corporation
  • Huntsman International LLC
  • Tronox, Inc
  • Rockwood Holdings, Inc.
  • Lanxess AG
  • Atlanta AG
  • Ferro Corporation
  • Merck
  • Pidilite Industries Ltd.
  • Toyocolor Co. Ltd.
  • Sensient Technologies Corporation
  • Trust Chem Co. Ltd.
  • Vipul Organics Ltd.
  • Qualitron Chemicals
  • Colors India
  • Navpad Pigments
  • Pure Chemicals
  • Sparkem