Catherine Diamond, Associate Editor07.31.15
The metallic pigments market is growing at a steady pace and is expected to reach $1,286.7 million by 2023. Transparency Market Research (TMR), in a recently published report, said that the current market was valued at $736.2 million as recently as 2014. It is expected to expand at a compound annual growth rate of 6.4% through 2023.
According to the report, titled Metallic Pigments Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2015 – 2023, rise in demand for automotive coatings coupled with growth in printing inks and plastics industries in Asia-Pacific are the primary market drivers. Aluminum was the largest product segment, accounting for a major share of the global metallic pigments market in 2014. Aluminum pigments are used in paints and coatings, printing inks and plastics, and offers a shiny, silvery effect to the substrate.
In addition to being used to provide glossy and shiny effects to products, metallic pigments are popular because they have the ability to enhance the visual effects of products. They also offer corrosion resistance, opacity, and ductility. Researchers from Transparency Market Research said that increase in demand for metallic paints as compared to solid paints has been the key to growth of the metallic pigments market in the past few years. Metallic paints are gaining higher market share with regard to solid paints in developed and developing countries. Furthermore, technological breakthroughs are expected to propel the metallic pigments market in the near future. Volatility in prices of raw materials and higher prices of precious metals are expected to hamper market growth in the near future, researchers said.
The report found that copper accounted for more than 15% of the global metallic pigments market share in 2014. Along with zinc, copper is used to provide gold and bronze effects to products. Copper and zinc pigments are used in personal care, paints and coatings and printing inks industries. Stainless steel and chromium are also among the major product segments of the global metallic pigments market.
In terms of demand, paints and coatings have been dominating the metallic pigments market over the past few years, the report states. Printing inks accounted for the second-largest share of the metallic pigments market in 2014. These pigments are used in digital, gravure, flexography and offset inks. Personal care is estimated to be the fastest growing end-user of metallic pigments in the near future, according to TMR. Plastics and building materials are likely to exhibit stable demand for metallic pigments during the forecast period.
The Asia-Pacific region has been the epicenter of the metallic pigments market in recent years, holding more than 30% share of the global demand for metallic pigments in 2014. This trend is estimated to continue during the forecast period, according to the report. Rise in demand for paints and coatings, printing inks and plastics have been key factors driving the metallic pigments market in Asia-Pacific. North America and Europe are projected to exhibit decline in the demand for metallic pigments due to stringent environmental regulations in the regions. Latin America and Middle East & Africa are likely to be the emerging markets for metallic pigments through 2023.
Change and Expectations
Along with growth in the Asia Pacific region, the metallic pigments market as a whole is expected to demonstrate change across the globe, particularly as it relates to new, multinational regulations.
Steve Clark, director BU Inks & Graphic Arts, North America for Schlenk Metallic Pigments, said that some of the major changes in this industry in recent years stem from new health and safety regulations.
“Schlenk has worked closely with our customer base, the printing ink manufacturers, to develop metallic pigments and inks that address issues such as REACH,” Clark said. “Schlenk is highly focused on new and innovative technologies as well as being able to continue to deliver high quality products.”
Clark said that the company saw positive growth in the graphic arts industry for both metallic pigments and inks in 2014. Demand in general for printed metallic effects in 2014 was comparable to 2013 levels.
Thomas Schaller, president of Schlenk Metallic Pigments, added, “2014 has seen a continuing trend to use high valued vacuum metallized and silver dollar aluminum pigments for foil replacement effects. Products such as Schlenk’s Decomet vacuum metallized products, as well as our Flexolux and Litholux VMP inks offer outstanding solutions for high-end metallic effects. Demand for energy curable metallic products has grown significantly and this trend is expected to continue in 2015.”
Aaron Hollman, global product manager – Effect Pigments, Sun Chemical Performance Pigments, agrees that regulations have been the biggest driver of change over the last five years.
“Some of these examples include REACH and the Swiss Ordinance in Europe, tightening environmental and VOC controls in China, and growing concerns globally over pigment migration in packaging inks.
“Global standards are becoming more stringent and our customers are looking for sustainable raw materials,” Hollman said. “Our customers can rest assured that we are supplying premium metallic effects that meet the highest global regulatory standards. In addition, we view this trend towards sustainability as an opportunity for innovation. That is why Sun Chemical Performance Pigments continues to invest so strongly in research and development.”
Hollman added that metallic effects were certainly a growth area for Sun Chemical in 2014.
“As announced in June, Sun Chemical has made a number of strategic investments that will further strengthen our position. We are confident that this trend will continue and are investing in global infrastructure and research and development to bring high value products to market.”
Neil Hersh, head of marketing and technical services for Eckart America Corporation, said that over the last few years, the industry has continued to respond to changes ultimately driven by consumer demands.
“There is close attention being paid to manufacturing more robust, cost beneficial and environmentally friendly products to align with the expectations of our customers, metallics included,” Hersh said. “The market for metallics remains healthy, and we anticipate growth in 2015, specifically in flexible packaging and direct mail printing. We are also starting to see increases in demand for metallics in digital printing as this newer technology is seeking to diversify from traditional 4-color process.”
According to Al Pizzuti, BASF’s market segment manager - Digital and Commercial Printing, the metallic pigment industry has continued to establish itself in premium packaging and label type applications, but remains relatively niche for the printing market. BASF’s core metallic pigment Metasheen, a vacuum metallized pigment, continues to grow with the industry, he said.
“We have seen growth with the industry in 2014 and expect this to continue moving forward into 2015,” Pizzuti said. “The key will be to partner with our customers to identify new application areas for our Metasheen product line as well as our remaining effect pigment products in the premium packaging market spaces.”
Emerging Trends, New Technologies
Clark, of Schlenk, said that major trends in the metallic pigment market have been progressing for a few years now. The replacement of metallized substrates with comparable effect metallic inks continues to grow. New curing technologies such as LED and H-UV have demanded the development of suitable metallic effect inks.
“New curing technology such as LED and H-UV have demanded the development of suitable metallic effect inks,” Clark said. “Food packaging requirements for low migration metallic inks is also a major trend, which we can address with our Flexocare UV inks.”
“Over the past few years, the label and packaging segments have presented much more of a growth opportunity, while the publication and commercial segments have been stagnant due to the increasing use of electronic media,” said Hersh of Eckart. “Also, regulatory requirements continue to play an increasing role, where global guidelines of Nestle, Swiss Ordinance and REACH are now influencing demand in the U.S.”
Hersh stated that besides the focus on regulatory compliant products, new developing technologies like LED printing inks continues to generate a buzz. “Although still a small part of the industry, it is expected to grow as some of the early adopters integrate it into their printing processes. Another focus point specific to metallics in the market is an interest in high brilliant clean metallic colors based on non-leafing aluminum pigment technology, which Eckart has incorporated in formulations for all printing applications.”
Sun Chemical’s Hollman said that one trend of note is that press speeds used for flexographic printing continue to increase.
“Higher press speeds are generally accompanied by a decrease in anilox volumes. To achieve equal color strength with finer aniloxes requires stronger inks. For this reason, we developed Benda-Lutz 6282 IP. This ultra-fine aluminum pigment has flake dimensions ideal for high-speed printing and provides the required boost in strength,” Hollman said. “Another emerging area that we are excited about is metallized foil or paperboard replacement. Benda-Lutz SPLENDAL is our range of vacuum metallized pigments ideally suited for this application. These pigments provide market leading mirror and chrome-like effects and can be used in a variety of ink chemistries.”
Beth C. Earnst, BASF’s manager, marketing communications for Dispersions & Pigments, North America, said that BASF continues to see brand owners pushing to differentiate their products on the shelf with premium packaging.
“This is where our Metasheen line has been successful by offering our customer’s customers an ability to do just that with its unique mirror and liquid metal effects,” Earnst said. “We have found that our customers have several different needs depending on their application and that is why we continue to offer the 4-series of our Metasheen product line in a variety of solvent grades for solvent based printing as well as a passivated versions for water-based printing. This has allowed us to customize solutions for our customers.”
According to the report, titled Metallic Pigments Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2015 – 2023, rise in demand for automotive coatings coupled with growth in printing inks and plastics industries in Asia-Pacific are the primary market drivers. Aluminum was the largest product segment, accounting for a major share of the global metallic pigments market in 2014. Aluminum pigments are used in paints and coatings, printing inks and plastics, and offers a shiny, silvery effect to the substrate.
In addition to being used to provide glossy and shiny effects to products, metallic pigments are popular because they have the ability to enhance the visual effects of products. They also offer corrosion resistance, opacity, and ductility. Researchers from Transparency Market Research said that increase in demand for metallic paints as compared to solid paints has been the key to growth of the metallic pigments market in the past few years. Metallic paints are gaining higher market share with regard to solid paints in developed and developing countries. Furthermore, technological breakthroughs are expected to propel the metallic pigments market in the near future. Volatility in prices of raw materials and higher prices of precious metals are expected to hamper market growth in the near future, researchers said.
The report found that copper accounted for more than 15% of the global metallic pigments market share in 2014. Along with zinc, copper is used to provide gold and bronze effects to products. Copper and zinc pigments are used in personal care, paints and coatings and printing inks industries. Stainless steel and chromium are also among the major product segments of the global metallic pigments market.
In terms of demand, paints and coatings have been dominating the metallic pigments market over the past few years, the report states. Printing inks accounted for the second-largest share of the metallic pigments market in 2014. These pigments are used in digital, gravure, flexography and offset inks. Personal care is estimated to be the fastest growing end-user of metallic pigments in the near future, according to TMR. Plastics and building materials are likely to exhibit stable demand for metallic pigments during the forecast period.
The Asia-Pacific region has been the epicenter of the metallic pigments market in recent years, holding more than 30% share of the global demand for metallic pigments in 2014. This trend is estimated to continue during the forecast period, according to the report. Rise in demand for paints and coatings, printing inks and plastics have been key factors driving the metallic pigments market in Asia-Pacific. North America and Europe are projected to exhibit decline in the demand for metallic pigments due to stringent environmental regulations in the regions. Latin America and Middle East & Africa are likely to be the emerging markets for metallic pigments through 2023.
Change and Expectations
Along with growth in the Asia Pacific region, the metallic pigments market as a whole is expected to demonstrate change across the globe, particularly as it relates to new, multinational regulations.
Steve Clark, director BU Inks & Graphic Arts, North America for Schlenk Metallic Pigments, said that some of the major changes in this industry in recent years stem from new health and safety regulations.
“Schlenk has worked closely with our customer base, the printing ink manufacturers, to develop metallic pigments and inks that address issues such as REACH,” Clark said. “Schlenk is highly focused on new and innovative technologies as well as being able to continue to deliver high quality products.”
Clark said that the company saw positive growth in the graphic arts industry for both metallic pigments and inks in 2014. Demand in general for printed metallic effects in 2014 was comparable to 2013 levels.
Thomas Schaller, president of Schlenk Metallic Pigments, added, “2014 has seen a continuing trend to use high valued vacuum metallized and silver dollar aluminum pigments for foil replacement effects. Products such as Schlenk’s Decomet vacuum metallized products, as well as our Flexolux and Litholux VMP inks offer outstanding solutions for high-end metallic effects. Demand for energy curable metallic products has grown significantly and this trend is expected to continue in 2015.”
Aaron Hollman, global product manager – Effect Pigments, Sun Chemical Performance Pigments, agrees that regulations have been the biggest driver of change over the last five years.
“Some of these examples include REACH and the Swiss Ordinance in Europe, tightening environmental and VOC controls in China, and growing concerns globally over pigment migration in packaging inks.
“Global standards are becoming more stringent and our customers are looking for sustainable raw materials,” Hollman said. “Our customers can rest assured that we are supplying premium metallic effects that meet the highest global regulatory standards. In addition, we view this trend towards sustainability as an opportunity for innovation. That is why Sun Chemical Performance Pigments continues to invest so strongly in research and development.”
Hollman added that metallic effects were certainly a growth area for Sun Chemical in 2014.
“As announced in June, Sun Chemical has made a number of strategic investments that will further strengthen our position. We are confident that this trend will continue and are investing in global infrastructure and research and development to bring high value products to market.”
Neil Hersh, head of marketing and technical services for Eckart America Corporation, said that over the last few years, the industry has continued to respond to changes ultimately driven by consumer demands.
“There is close attention being paid to manufacturing more robust, cost beneficial and environmentally friendly products to align with the expectations of our customers, metallics included,” Hersh said. “The market for metallics remains healthy, and we anticipate growth in 2015, specifically in flexible packaging and direct mail printing. We are also starting to see increases in demand for metallics in digital printing as this newer technology is seeking to diversify from traditional 4-color process.”
According to Al Pizzuti, BASF’s market segment manager - Digital and Commercial Printing, the metallic pigment industry has continued to establish itself in premium packaging and label type applications, but remains relatively niche for the printing market. BASF’s core metallic pigment Metasheen, a vacuum metallized pigment, continues to grow with the industry, he said.
“We have seen growth with the industry in 2014 and expect this to continue moving forward into 2015,” Pizzuti said. “The key will be to partner with our customers to identify new application areas for our Metasheen product line as well as our remaining effect pigment products in the premium packaging market spaces.”
Emerging Trends, New Technologies
Clark, of Schlenk, said that major trends in the metallic pigment market have been progressing for a few years now. The replacement of metallized substrates with comparable effect metallic inks continues to grow. New curing technologies such as LED and H-UV have demanded the development of suitable metallic effect inks.
“New curing technology such as LED and H-UV have demanded the development of suitable metallic effect inks,” Clark said. “Food packaging requirements for low migration metallic inks is also a major trend, which we can address with our Flexocare UV inks.”
“Over the past few years, the label and packaging segments have presented much more of a growth opportunity, while the publication and commercial segments have been stagnant due to the increasing use of electronic media,” said Hersh of Eckart. “Also, regulatory requirements continue to play an increasing role, where global guidelines of Nestle, Swiss Ordinance and REACH are now influencing demand in the U.S.”
Hersh stated that besides the focus on regulatory compliant products, new developing technologies like LED printing inks continues to generate a buzz. “Although still a small part of the industry, it is expected to grow as some of the early adopters integrate it into their printing processes. Another focus point specific to metallics in the market is an interest in high brilliant clean metallic colors based on non-leafing aluminum pigment technology, which Eckart has incorporated in formulations for all printing applications.”
Sun Chemical’s Hollman said that one trend of note is that press speeds used for flexographic printing continue to increase.
“Higher press speeds are generally accompanied by a decrease in anilox volumes. To achieve equal color strength with finer aniloxes requires stronger inks. For this reason, we developed Benda-Lutz 6282 IP. This ultra-fine aluminum pigment has flake dimensions ideal for high-speed printing and provides the required boost in strength,” Hollman said. “Another emerging area that we are excited about is metallized foil or paperboard replacement. Benda-Lutz SPLENDAL is our range of vacuum metallized pigments ideally suited for this application. These pigments provide market leading mirror and chrome-like effects and can be used in a variety of ink chemistries.”
Beth C. Earnst, BASF’s manager, marketing communications for Dispersions & Pigments, North America, said that BASF continues to see brand owners pushing to differentiate their products on the shelf with premium packaging.
“This is where our Metasheen line has been successful by offering our customer’s customers an ability to do just that with its unique mirror and liquid metal effects,” Earnst said. “We have found that our customers have several different needs depending on their application and that is why we continue to offer the 4-series of our Metasheen product line in a variety of solvent grades for solvent based printing as well as a passivated versions for water-based printing. This has allowed us to customize solutions for our customers.”