The demand for pigment has increased over the years due to its wide range of use in several industries, including paint, textile, construction, and plastics. Undoubtedly, the paints and coating industry is the largest consumer of pigment because it is a major constituent. The pigment is what offers the desired color in paint and coatings.
Notably, pigments also protect the paint against corrosion and extreme weather that exposed surfaces may suffer.
And due to the rapid growth of infrastructure and urbanization, building construction and plastic production will increase, leading to increased demand for pigment.
But what are the figures involved?
Pigment Market Expected to Surpass $51 Billion By 2028
The global market for pigment and dye is expected to grow strongly, reaching $51.7 million by 2028. Growing infrastructure will drive this growth, as has been mentioned. Printing inks, paints, coatings, plastics, textiles, and others will rise in demand due to rapid growth in population and economic development.
The pigment market size stood at $22 billion in 2020 and $39.09 billion in 2021 and has touched $40.71 billion in 2022. Obviously, it is in an upward move.
The covid-19 pandemic negatively affected pigment production in 2020 as demand for cars suffered a sharp decline. With paints and coatings also experiencing less use during that period, the impact is not surprising. However, we can see that demand has significantly bounced back.
The paint and coating industry will lead the way in this expected growth up till 2029, being the sector with the largest use case of pigment. Building materials is one of the key factors promoting this high demand. Furthermore, advancement in the painting industry also facilitates growth because demand for higher quality pigment and colors for ink is on the rise.
But which parts of the world are driving this growth? The Asia Pacific region!
The Asia Pacific will likely be the leading force driving the growth of the pigment market due to thriving economies like China and India. These two countries are the highest pigment producers, and manufacturers have been migrating to this part of the world over the last few years.
What This Means for Industries Manufacturing Pigment Components
Many components come together to form any pigment. Growth in demand for pigment demand will lead to a rise in pigment production. This growth will consequently reflect in other industries manufacturing pigment ingredients, for example, iron oxide.
Iron oxide is reddish and is therefore particularly used in producing the pigment for red paint. Since pigment production is one of several iron oxide applications, a rise in pigment manufacturing will see a consequent rise in iron oxide demand. In short, the industry is already poised for growth due to an increase in construction in the coming years.
Organic ingredients used for manufacturing bio pigments will also get more expensive as demand grows.
Key Market Trends That Mark the Pigment Industry
Below, we have highlighted the key market trends regarding the pigment industry.
- Pigments are majorly used in paints and coating production. The pigment is engineered, enabling it to stand exposure on the coated surface on which it’s applied.
- Architectural and decorative coatings make for the greatest demand for pigments in the construction industry. Therefore, increasing construction activities in the Asia Pacific are the major drivers accelerating the pigment market growth.
- Demographics in China will likely continue to encourage the construction of residential apartments. This is expected as locals continue to move from rural to urban areas.
- India is still developing, and the construction industry is one of the booming ones in the country. The government is working hard to ensure excellent infrastructure throughout the country. Undoubtedly, this will push pigment demand in that part of the world.
- In the automobile industry, car interior and exterior require paint and coating, protecting the vehicle and enhancing aesthetics.
- Automotive manufacturing has declined in the last few years, partly due to the pandemic and the rising awareness of environmental pollution due to petrol and diesel-based vehicles. However, electric vehicles are expected to become the new normal in the coming years, driving car production up again.
- All of the above will play vital roles in driving the pigment industry growth throughout the forecast period.
- Some key players in the pigment have also acquired resources to expand their product portfolio. For instance, Sun Chemical DIC Corporation bought BASF’s global pigments company in 2021. This acquisition will allow Sun Chemical to extend its reach into the paints, coatings inks, electronic displays, and cosmetic sectors.
The Bottom Line
The pandemic severely affected many sectors, of which the pigment industry is one. But it’s good to know that these industries are picking up quickly. Economies will be bolstered, and the standard of living will increase, even as these industries experience advancement both in effort and revenue.