With the continuous improvement of the level of social development, the technology of dyestuff production is also constantly improving, and the global dyestuff industry as a whole is showing an upward trend. According to the industry research report released by Beijing Yanjing Bizhi Information Consulting, the global dyestuff industry market size in 2021 will reach It is expected to exceed 275 billion yuan by 2025, and the market growth potential is huge.
Furthermore, Pampatwar sees the global inorganic pigments market size at USD 22.01 billion in 2021 and is expected to grow at a CAGR of 5.38% to USD 35.28 billion during the forecast period 2022-2030, he reports that the global specialty pigments market size in 2021 will be USD 229.1 billion, growing at a CAGR of 5.8% to reach USD 35.13 billion during the forecast period 2022-2030.
VMR’s Pampatwar reports that the pigment industry, especially organic pigments, has expanded significantly with advances in inks and will grow at a high rate, “however the size of the market for organic, inorganic and specialty pigments varies according to the different applications and consumers of such pigments Preferences vary,” Pampatwar adds, “Most of the organic pigments used in inks are azo pigments (azo, monoazo, hydroxybenzimidazole, azo condensation), precipitated pigments (basic and acidic precipitates) and phthalocyanine pigments, which are available in a variety of common shades, including blue and green pigments. Pigments account for 50% of the total ingredients needed to make inks, utilizing first-class pigments to create rich, bright and reliable Inks are vital for long-term use as these inks can change the look of anything.
Consolidation has been a key factor in the pigments industry, with two huge mergers in the industry in recent years, with DIC Corporation and Sun Chemical acquiring BASF Pigments and Heubach acquiring Clariant’s pigments division.
“Acquisitions and consolidation between small and major pigment players have characterized the past few years,” said Suzana Rupcic, head of Sun Chemical’s global segment managing inks, color materials. “Since the global outbreak of COVID, the pigments market has experienced many of the same challenges as other industries over the past few years, including unforeseen demand shifts, supply chain disruptions and rising inflation since this year.”
After a slow recovery from the pandemic, the pigments market continues to operate under cost pressures, which affects the entire printing value chain, Rupcic noted. “Nevertheless, despite recent challenges, a general stability in the supply of raw materials can be observed,” Rupcic added. Saying that, we expect the global pigments market to grow at least at the rate of GDP.
As for growth markets, packaging remains a bright spot for the ink industry. “The packaging market continues to be an area of continued growth for Heubach and remains an area of focus for the future of our company,” said Mike Rester, segment manager of the printing market at Heubach Group.
Rupcic said: “The market demands more sustainable products, especially in the packaging printing area, and consumer awareness of sustainability has increased and has led ink manufacturers to meet these requirements.” Ink manufacturers are increasingly focusing on more sustainable Packaging inks for packaging, as well as inks that comply with regulatory requirements for low odor and migration-free substances, we are also seeing increased interest in pigments for digital inkjet printing.
The Fujifilm Ink Solutions Group supplies inkjet inks to OEMs and pigment dispersions to other ink formulators, observed Rachel Li, Marketing Manager, Fujifilm Ink Solutions Group. Ink Pigment Dispersion Requirements.
“Inkjet is particularly well-suited to the current volatile market situation and the changing needs of print production: cost-effective short runs, reduced waste to reduce costs, centralization to localized print production to reduce logistical risks and shorten lead times, JIT ( Just in time) manufacturing, personalization of goods through mass customization, sustainable production through waste and energy reduction, and supply chain efficiency,” Li said.
“Ink chemistry is one of the enabling factors that make inkjet suitable for new applications, and pigment dispersion technology is a key core component of ink formulation,” Lee added, “We believe that the demand for inkjet will continue to increase, and Fujifilm is committed to providing technology to drive this growth.
In specialty pigments, Darren Bianchi, president of Brilliant Color, reported that demand for fluorescent pigments has been steady, adding that there is a strong trend for brighter, more striking colors in packaging, with fluorescent colors being the best bet.
“There are still some supply chain issues in the first half of the year, but our policy of holding inventories allows us to meet customer demand,” Bianchi added. “We have successfully navigated the volatility in the fluorescent pigment market, and it remains to be seen whether the relaxation of China’s strict ‘zero COVID’ policy will lead to a resurgence of raw material supply chain issues.
“Effect pigments are a reflection of the printing industry and the broader economy as we experience fluctuations in demand, increased regulatory and environmental pressures, supply chain issues, labor challenges and rising costs,” said Neil Hersh, director of marketing and technical services at Eckart America Corporation. “The supply of effect pigments is fairly stable, while cost pressures persist.
Carlos Hernandez, Orion Engineered Carbons Americas marketing manager for coatings and printing systems, reports that demand for carbon black has grown steadily over the past few years in almost all specialty and rubber applications. “Overall, we’re seeing organic growth in liquid packaging,” Hernandez said. “We also see interesting potential in the inkjet market, where we are the leader, offering specific properties and excellent performance in gas black. We sell our FANIPEX grades and other products specifically for this market to help ink manufacturers Comply with required industry regulations.
According to Phillip Myles of Colorscapes, the pigment industry has seen a number of supply disruptions over the past few years. “The COVID period has changed the consumption dynamics,” Myers continued. “Shortage of containers leading to a sharp increase in shipping costs, followed by a sharp increase in chemical costs in Asia, including higher oil prices, all of which have boosted pigment prices. Now, in the second half of 2022, we see a sharp correction with weak demand and good availability, As a result, transport and chemical costs from Asia have suddenly fallen sharply. As weak demand for pigments is expected to continue until 2023, soft pricing will continue.
The pigment market has done pretty well over the past few years, said Tim Polgar, sales manager for Liberty Specialty Chemicals Inc. “We’ve experienced good overall growth in both the water-based and solvent-based ink markets,” Polgar noted. “Supply and prices in the first half of 2020 proved to be stable. The second half of 2020 proved to be a challenge due to higher prices for basic intermediates, raw materials, packaging and freight.
“2021 is a huge challenge with COVID impacting all businesses globally,” Polgar added. “Customers are worried about getting enough pigments to meet their mills and their customers, prices keep going up, container costs and shipping costs are a nightmare. So, what do customers do? They place orders above normal just to make sure They have enough pigments so that they can meet customer requests. So this year is a strong year for sales. 2022 is proving to be a slightly up year for business as customers had to deplete in 2021 due to overbuying Lots of inventory. We think prices will stabilize somewhat in 2023, but again we see signs of higher prices going forward.
Pravin Chaudhary of Pidilite said: “As the COVID restrictions started to ease and the pigments market took off, the industry had very good growth in FY22. “Unfortunately, this momentum could not be carried over into this year. Factors such as geopolitical disruptions, high inflation and tightening monetary policy by many governments weighed on consumer sentiment. Pigments catering to the paints, inks and plastics segment saw high winds across all industries. While we think the short-term looks challenging, the long-term remains positive. Last year’s consolidation heralds the relatively new player offering a viable alternative to global customers.
Opportunities for the industry
(1) Continuous transfer of the world’s organic pigment industry
Due to strict environmental protection requirements and high investment and operating costs, organic pigment manufacturing companies in developed countries in Europe and the United States continue to transfer production capacity to Asia, establish joint ventures in China, India and other countries, or conduct various forms of cooperation with local manufacturing companies . At the same time, with the intensification of competition in the international organic pigment market, especially the traditional azo pigment market, the transfer of the world’s organic pigment industry will continue in the future. In this context, my country’s organic pigment manufacturing enterprises are facing huge opportunities for development:
On the one hand, my country is the world’s most important production base and consumer market for fine chemical products, and the transfer of international manufacturing capabilities will help my country continue to strengthen its position as the largest producer of organic pigments.
On the other hand, through joint ventures and cooperation with global organic pigment manufacturers, outstanding domestic enterprises can quickly improve their technical level and management capabilities, and are expected to take advantage of localization advantages to occupy a leading position in joint ventures and cooperation, which is conducive to further implementation of internationalization strategy to continuously improve core competitiveness.
(2) National industrial policy support
Organic pigments are widely used in various fields such as inks, coatings and plastics, and are closely related to people’s lives. In recent years, with the rapid development of my country’s ink, paint and plastic industries, the status of the organic pigment industry in the national economy has been continuously improved.
The “Industrial Structure Adjustment Guidance Catalog (2019 Version)” (revised in 2019) promulgated by the National Development and Reform Commission will “organic pigments with high color fastness, functionality, low aromatic amines, no heavy metals, easy to disperse, and original coloring” “, “Clean production of dyes, organic pigments and their intermediates, development and application of intrinsically safe new technologies” are included in the encouraged investment projects, pointing out the direction of industrial structure adjustment, optimization and upgrading for the domestic organic pigment industry. According to the “Administrative Measures for the Identification of High-tech Enterprises” and “High-tech Fields Supported by the State” issued by the Ministry of Science and Technology, the Ministry of Finance, and the State Administration of Taxation, “new safe and environmentally friendly pigments and dyes” are included in the high-tech fields supported by the state. After the promulgation of the policy, new safe and environmentally friendly pigments and dyes have received policy support, which is conducive to promoting the development of pigment production and product categories in a safe and environmentally friendly direction.
(3) Growth Trend of Environmentally Friendly Organic Pigments
The increasingly stringent standards for the use of colorants by the governments of various countries will further restrict the use of dyes and pigments of toxic and harmful substances, thereby providing a broader space for the development of organic pigments. As early as 1994, the second batch of consumer product regulations promulgated by the German government clarified that 20 pigments synthesized from prohibited aromatic amines were prohibited pigments; on September 11, 2002, the European Commission issued Directive No. 61 in 2002, Prohibit the use of azo pigments that will decompose under reducing conditions to produce 22 carcinogenic aromatic amines; on January 6, 2003, the European Commission further stipulated that the use and sale of chromium-containing azo pigments in the EU’s textile, clothing and leather products markets . The REACH regulations, which were formally implemented in 2007, replaced more than 40 previous EU directives and regulations on chemicals. One of the focuses of its regulation is dyes, organic pigments, additives, intermediates and their downstream products, such as toys, Textiles etc.
Relevant departments in our country have successively promulgated regulations and industry standards to restrict the use of products containing toxic and harmful substances. On January 1, 2002, the General Administration of Quality Supervision, Inspection and Quarantine promulgated and implemented the “Limits of Hazardous Substances in Interior Decoration Materials”; in 2010, the General Administration of Quality Supervision, Inspection and Quarantine and the National Standardization Management Committee promulgated and implemented the “Limits of Hazardous Substances in Toy Coatings” ; On June 1, 2010, the General Administration of Quality Supervision, Inspection and Quarantine promulgated and implemented the “Limits of Hazardous Substances in Automobile Coatings”; in October 2016, the National Health and Family Planning Commission issued GB9685-2016 “National Food Safety Standard Food Contact Materials and Products Standards for the use of additives, etc. These regulations or industry standards clearly limit the content of harmful substances such as lead and hexavalent chromium. Although my country’s restrictions on the use of chromium-containing pigments are still looser than developed countries, with the development of the economy, my country’s relevant standards are bound to be further revised and converge to developed countries. Therefore, the market replaced by environmentally friendly organic pigments will become more and more extensive.
Raw material availability
As for raw materials for pigments, Pampatwar reports that the market for raw materials has been unpredictable in recent years.
“Several basic substances are becoming harder to find due to insufficient supply and rising prices,” Pampatwar added. “Ink manufacturers, as well as the petrochemical and oleochemical industries, are experiencing price instability due to shifting trends in raw material sourcing and China’s growing influence on the printing industry’s supply chain.
“Many unforeseen events in the market have further constrained supply and exacerbated an already precarious situation,” he added. “As prices rise and supplies become scarce, manufacturers of printing inks and coatings are increasingly affected by material and the impact of fierce competition for resources. In 2022, however, the trend is improving.
Pigment suppliers also report that raw materials remain an issue. Over the past few years, the industry has experienced unprecedented shortages and multiple delays in obtaining many of the key raw materials needed to produce pigments, Rester said.
“While the overall global supply situation has improved in 2022, certain challenges remain and we will continue to seek to meet our customers’ needs,” Rester added. “Energy costs in Europe continue to be very volatile and are an ongoing issue going into 2023.
“Some specialty grades are in tight supply, but at Orion Engineered Carbons, we have been improving our supply situation through capital expenditures and responding well to the market,” Hernandez said.
“Chemical sourcing and supply chains have been extremely challenging in the past few years due to capacity constraints and logistical delays,” Li noted. “This has led to availability issues and strong price increases. Some of the key products affected are pigments, solvents, photoinitiators and resins. While the situation is reported to be leveling off, we do see an improvement in supply in Asia Pacific, But the overall situation remains fragile.However, European supply chains remain very tight and extremely challenging due to the situation in Ukraine, while being under persistent inflationary pressures.
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Post time: May-17-2023