Global Plastic Pigments Market - 2023-2030

Global Plastic Pigments Market - 2023-2030

Market Overview

The global plastic pigments market reached US$ XX million in 2022 and is projected to record significant growth by reaching up to US$ XX million by 2030, growing at a CAGR of XX% during the forecast period (2023-2030).

Pigments are segmented into two segments: organic and inorganic pigments. Organic pigments are made up of some natural sources and inorganic pigments, also known as synthetic pigments, are made from coal tars and other petrochemicals. Based on the type of polymeric resin that needs to be colored, the type of colorant is selected. It is preferable to use pigments with polyolefins. In the plastics industry, color selection is one of the most crucial factors. The pigments are used as coloring agents in the plastics industry. Pigments, insoluble organic or inorganic particles, are added to the polymer base to give the plastic a particular color.

Pigments are materials used to impart various colors to products by using their ability to change the color of reflected or transmitted light as a result of wavelength-selective absorption. Inorganic pigments are metallic oxides or synthetics. Inorganic pigments are obtained from mixed metal oxides and are produced by a high-temperature calcination process. The market is segmented into type (inorganic and organic pigments) and end-user (packaging, consumer goods, automotive, building & construction and healthcare).

Market Dynamics

Due to their low cost and lightweight, plastics are becoming increasingly popular, which has increased the demand for pigments in the plastics industry. The demand for plastic pigments is anticipated to increase along with the demand for high-performance pigments. The demand for plastic pigments is further boosted by the growth of plastic pigments across manufacturing sectors, including building and construction, consumer goods packaging, automotive and consumer goods and pigments provide countless styling options in end-use applications. The increase in packaging aesthetics is further fueling the demand for plastic pigments. White pigments are primarily used in paint formulations, but other pigments, like titanium dioxide and zinc oxide, are used more in other products, like medications and other consumer goods. Technological advancements in pigments and the advantages of using organic pigments, including their excellent light and migration fastness, good weather resistance and higher resistance to various chemicals, are the factors supporting the growth of organic pigments, which in turn will boost the global plastic pigments market.

Another significant consumer of plastic pigments is the automotive industry. Since plastics are imperative to the exterior and interior design of many modern automobiles, color is a crucial component of product design in the automotive sector. As a result, the demand from car manufacturers for plastic pigments is constantly rising.

Growing construction activities and rising e-commerce sales on various online platforms across the globe generate decent demand for plastic pigment and create a lucrative incremental opportunity for plastic pigment manufacturers in the market over the forecast period.

Higher consumption of plastics in the packaging industry to drive the global plastic pigments market

The demand for plastic pigments has increased significantly owing to the extensive use of plastic packaging. In today's scenario, the world produces more than 400 million tonnes of plastics annually. The growing production of plastic is generating a huge demand for plastic pigments depending upon the requirement of the end-use applications. Packaging is the most common thing these days, where every consumer and industrial product requires packaging, whether it's flexible or rigid packaging. Pigments offer durability and superior opacity in plastic manufacturing. In terms of volume, plastic is the most used material in various end-use applications, which further fuels the global plastic pigments market demand. Owing to the higher demand for flexible packaging, especially in food & beverage, electronics and other consumer products, plastic pigments will grow more and more in the coming future.

However, packaging applicability by their lightweight and durability are the factors that propel the demand for plastic pigments in the global plastic industry market. The rise in aesthetic packaging is another factor driving the plastic pigment market.

Stringent plastic and its recycling-related regulations restrain the growth of the plastic pigments market

It is anticipated that strict government regulations relating to plastic and environmental regulations will restrain the growth of the global plastic pigment market. Furthermore, the rules and regulations related to plastic recycling will harm the plastic pigment market globally during the projected period. To create an environmentally friendly product, manufacturers are placing a lot of emphasis on developing manufacturing technologies.

COVID-19 Impact Analysis

COVID-19 has impacted the pigments market due to decreased productivity and reduced demand. Lockdown restrictions led to a labor shortage, raw materials and production facilities closure. Countries like India, where labor is the primary driving force behind every industry, experienced a total shutdown. During the pandemic, several industries were affected the most, such as construction and automotive and all their activities were on halt due to the shutdown and the demand for pigment struggled. The COVID-19 outbreak has also harmed transportation and logistics businesses and has stopped China's shipments. The delay has increased the cost of raw materials and potentially harmed the dyes and pigments industry in various nations globally.

As a result, the production freeze and supply chain disruptions harmed the global pigments market and eventually affected the plastic pigments market. The global shutdown impacts many end-use industries in the global plastic pigment market. To make up for losses incurred during the pandemic, manufacturers resumed operations at full capacity after the global shutdown was eased.

Segment Analysis

The global plastic pigments market is segmented based on type, end-user and region.

The ability to offer easy dispersing, better opacity and heat stability to hold up the market of inorganic pigments in the type segment

According to the Plastic Europe Association, the demand for plastic by end-uSEgments and packaging ranked at the top with more than 40% of global plastics, followed by 20.4% in the building & construction industry. Inorganic pigments are used in paint and coating as colorants. They are expected to capture most of the market share because of their salient properties such as easy disperse ability, better heat stability, better chemical and sunlight resistance and better opaque nature.

However, organic pigments have gained significant worldwide recognition due to their sustainability. The demand for these pigments has been fueled by rising public awareness to protect the environment and strict government regulations demanding the use of chemical-free products. Due to the toxic elements present in some pigments, such as lead and cadmium-based pigments, the regulatory authorities have established strict rules regarding the use of pigment in the food industry. Above mentioned factors predict that the organic pigments segment is projected to be the highest-growing type segment during the forecast period.

Geographical Analysis

The global plastic pigments market is segmented based on type, end-user and region.

The higher production of plastics in Asia-Pacific generates a consistent demand for plastic pigments in the region

Asia accounts for almost 51% of the total global plastic production and China produces 32% of the total global plastics. So, high production volume turns to higher consumption in Asia-Pacific countries such as China and India. Therefore, the larger production of plastic in this region generates higher demand for the pigments, further boosting market growth. Growing construction activity and higher consumption of consumer goods and its high use of plastic consumer goods projects this region to be the fastest-growing market during the forecasted period. The lower labor and low plastic production cost further bolster the demand for plastic pigments in Asia-Pacific and will continue to dominate the global plastic pigments market.

Major pigment and coatings producers have sustained significant investments in China, particularly in the automotive manufacturing industry, supporting medium-term growth. For instance, a new plant built by Axalta in Nanjing began producing primers, basecoats, clearcoats and resin intermediates at full capacity in 2020. In addition, Shanghai Chemical Industry Park includes a large-scale automotive coatings plant built by BASF SE Coatings. These developments in the Chinese market depict significant growth.

Additionally, China and India are the largest producers of the pigments, so due to rising advancements in the Indian and Chinese markets and the higher number of local players in the Asian countries will further increase the growth of the plastic pigments market.

Competitive Landscape

Key global manufacturers are focusing on expanding their production facilities in other geographies to meet the increasing need for end-use industries. Key major players operating in the plastic pigments market are BASF SE, Tronox, DIC, Cabot Corporation, LANXESS, Chemours, Huntsman, Heubach, Ferro and Clariant. Leading manufacturers are currently working on advancing existing product developments to get an advantage in the plastic pigment market. Mergers, acquisitions and partnerships are also part of their strategies to expand their geographical presence across all regions.

BASF SE

Overview: BASF SE is headquartered in Germany and was founded in 1965, the German multinational largest chemical manufacturer. It has provided customers with high-performance chemical solutions while employing about 11,000 persons. BASF SE's product offering includes six segments: chemicals, materials, surface technologies, industrial solutions, agricultural solutions and nutrition & care. It operates in the Americas, Europe, Asia-Pacific and MEA. BASF SE has its subsidiary in Ludwigshafen as BASF SE and one manufacturing facility in Sandefjord. BASF SE's product portfolio offers raw materials for the formulation of paints and coatings, printing and packaging goods, construction chemicals, adhesives, fiber bonding, plastics, paper and other products. BASF SE offers essential raw materials. BASF SE is the top provider of dispersions, pigments and additives to various sectors, including automotive, industrial, construction, furniture & flooring, packaging and architectural coatings.

Product Portfolio
• PureOptions low-VOC, universal colorants: PureOptions colorants are aqueous pigment dispersions that are APEO-free. For dependable, accurate and precise dispensing through automatic tinting machines, PureOptions colorants are formulated with optimized rheology. Customers can match deeper shades in bases that are whiter and more opaque. The product is widely used in architectural coating applications.

Its key benefits and features:

o Low VOC content

o Free of alkylphenol ethoxylate surfactants

o Recyclable plastic containers and packaged in re-sealable

o Formaldehyde-free

o Low odor

Key Development: On June 30, 2021, earlier in 2019, BASF SE and DIC signed an agreement to acquire BASF SE's 2,600+ employee global pigments business. Following the fulfillment of clearance requirements, BASF SE completed the purchase of the fine chemical company DIC of its global pigments business. The purchase price is €1.15 billion when paid in cash and without debt.

Why Purchase the Report?
• To visualize the global plastic pigments market segmentation based on type, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities in the global plastic pigments market by analyzing trends and co-development.
• Excel data sheet with numerous data points of plastic pigments market-level with two segments.
• PDF report consisting of cogently put together market analysis after exhaustive qualitative interviews and in-depth market study.
• Product mapping available as excel consisting of key products of all the major market players.

The global plastic pigments market report would provide approximately 53 tables, 48 figures and 215 pages.

Target Audience 2023
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies