The global pigments market is expected to continue growing through at least 2018, according to multiple market analyses and reports. The global pigments market will generate $34.2 billion through 2020, according to Ceresana, an international market research and consultancy firm. Organic as well as inorganic pigments are expected to see significant growth, as they are intrinsically linked to the growth of the construction industry. While global textile production accounted for more than half of the world’s dye and pigment demand in 2014, paint and coatings applications are the fastest rising segment thanks to North American and Asian construction activity. Demand is also driven by the manufacturing of printing inks and papers. 

Ceresana’s report, Market Study: Pigments, 3rd Edition, found that Asia-Pacific accounts for almost half of global consumption of pigments already and is expected to increase its share of the market even further. The rapidly growing middle class in both China and India are responsible for increased demand in the region.

“This region will continue to be the growth motor of the pigments industry, as China and India in particular are substantially increasing demand for pigments. Eastern Europe, the Middle East and South America will see demand rise by more than 3% p.a. each as well and thus contribute to the positive development of the pigment industry,” the report states. “The rather saturated markets in Western Europe and North America will slowly return onto a growth path after they suffered losses in the past couple of years.”

Researchers at Ceresana found that there are significant regional differences in demand for individual products. Demand for individual types of pigments depends on the requirements of the industry, the regional demands, and governmental regulations. Titanium dioxide (TiO2), researchers said, is dominating the pigment market, given its widespread use in paints, varnishes, and the processing of plastics.

“North America consumes a disproportionately large amount of organic pigments; in Asia-Pacific, on the other hand, iron oxides are accounting for a comparatively large share of regional consumption. The largest growth potential in Asia-Pacific is expected for carbon black pigments,” the report states.

The sale of pigments is largely fueled by the paints and varnishes market sector. Ceresana found that more than 43% of total global demand has its roots in this segment.

“The processing of plastics reports the second largest market volume,” researchers found, “and accounts for 27% of pigment demand. Plastics will develop at the second highest growth rates in the future; only the segment printing inks will develop more dynamically, due to the growing market for printed packaging.”