Anthony Locicero, Associate Editor07.31.18
Metallic pigments play a key role in many industries, from automotive coatings to printing inks. When it comes to inks, metallics can help brand owners catch the attention of consumers.
The global metallic pigments market is growing. It accounted for $885.63 million in 2017 – up from $773.5 million in 2014, according to Grand View Research – and is expected to reach $1.86 billion by 2026, growing at a CAGR of 8.6% during the forecast period, per ResearchandMarkets.com.
The market will rise to $1.2 billion by 2022, according to Grand View Research. Between 2017-2021, Technavio projected a 7.44% CAGR growth.
An increase in demand from automotive coatings, a growing demand from printing inks and the packaging industry will lead to more growth, according to ResearchandMarkets.com.
According to Grand View Research, development of innovative metal oxides with unique substrate layering and new flake technology has opened up lucrative avenues for growth.
“Metallic effects for the graphic arts industry continues to meet our expectations: Healthy in some segments, such as packaging, while remaining more challenged in commercial and publication segments,” said Neil Hersh, ECKART’s head of marketing and technical services.
“We continue to see a strong interest in metallic inks and they are being used on a much broader variety of packaging than in the past,” added Brad Fogg, commercial industry manager, Printing & Specialties for BASF. “Brand owners really see the value in drawing attention to their products through the use of metallic inks; they draw better shelf appeal, which the market appreciates more and more.”
It was an area of growth for Sun Chemical, according to Aaron Hollman, its global director of performance pigments.
Some companies utilize metallic pigments to enhance their packaging. Fogg noted there’s continued interest.
“Throughout the value chain, we see even our customers’ customers looking to pigment suppliers for enhanced packaging designs,” he said. “And, it’s not just with the high-end products anymore; lower value product brand owners still need shelf appeal and want to stand out.”
“Brand owners continue to push for new and exciting ways for their packaging to pop off the shelf,” Hollman said. “One way to grab the attention of consumers in the store is to provide packaging that utilizes metallic inks.”
“Whether it is labels, flexible film, pouches or folding cartons, consumer packaging companies continue to utilize metallic effects to enhance their packaging,” Hersh added. “Sometimes the metallic effect becomes a very prominent part of the design with a long life cycle, while other times the metallic effect is used to highlight an area as a promotional part of the design with a shorter life cycle.”
Strict regulations about heavy and toxic metals and the higher price of metallic pigments are hindering the growth of the market, according to ResearchandMarkets.com. Regulations are being enacted by the Swiss Ordinance and REACH, per Grand View Research, and there are tightening VOC and environmental legislation in China.
“Much like other pigment industries, the importance of global regulations continues to grow. For printing inks, new legislation is introduced regularly,” Hollman said. “Controls can differ greatly across the globe. These changes can influence regional pigment selection, binder chemistry and formulation flexibility. The challenge is keeping up with changing local regulations, designing products that meet new criteria and delivering performance.”
Hence a boost in the use of low migration inks. Low migration refers to the materials in a packaging structure whose chemicals will not move from the packaging into the product. It’s a market forecasted to be worth $2.72 billion by 2022 – it was $1.68 billion in 2016 – according to MarketsandMarkets.
“The ‘Voice of the Customer’ is an important part of the criteria for product design and suitability,” Hersh said. “For low migration, this involves raw material selection, good manufacturing and QC protocols, as well as verification testing based on the end-use application.”
Fogg, however, said that BASF doesn’t see as many issues with metallic inks and the need for low migration inks “since there is typically a film or foil layer between the ink and the package.
“Metallic inks are also more prevalent on secondary and tertiary packaging so migration concerns continue to be a low area of concern,” he added.
The cost – increases have been “unprecedented” for the past few quarters, Hollman said – and availability of raw materials has had a major effect on the market, as well as the industry.
“We are experiencing a very volatile environment with respect to raw material availability, suitability and costs,” Hersh said.
Other influences, per Hersh, include regulatory concerns, global capacity dynamics and subsequent rising cost pressures.
“These increases have impacted all levels of the pigment supply chain, from basic chemicals to specialty raw materials,” Hollman added.
“The major driver of these cost increases is a general lack of raw material availability due to the stronger enforcement of environmental and safety regulations globally,” Hollman said. “This is especially affecting supply from key markets in Asia.”
Despite this, Hersh said ECKART is encouraged with how the market has shaped up so far in 2018. “[We] continue to see this as being an important feature for brand owner designs with consumer packaging.”
Supply chain challenges – regulatory suitability, availability and raw material costs – will still be present, per Hersh.
Fogg said that the strong interest in metallic pigments will continue as more and more printers learn how to use them. He also noted there’s a broader acceptance of metallic pigments than there had been.
The global metallic pigments market is growing. It accounted for $885.63 million in 2017 – up from $773.5 million in 2014, according to Grand View Research – and is expected to reach $1.86 billion by 2026, growing at a CAGR of 8.6% during the forecast period, per ResearchandMarkets.com.
The market will rise to $1.2 billion by 2022, according to Grand View Research. Between 2017-2021, Technavio projected a 7.44% CAGR growth.
An increase in demand from automotive coatings, a growing demand from printing inks and the packaging industry will lead to more growth, according to ResearchandMarkets.com.
According to Grand View Research, development of innovative metal oxides with unique substrate layering and new flake technology has opened up lucrative avenues for growth.
“Metallic effects for the graphic arts industry continues to meet our expectations: Healthy in some segments, such as packaging, while remaining more challenged in commercial and publication segments,” said Neil Hersh, ECKART’s head of marketing and technical services.
“We continue to see a strong interest in metallic inks and they are being used on a much broader variety of packaging than in the past,” added Brad Fogg, commercial industry manager, Printing & Specialties for BASF. “Brand owners really see the value in drawing attention to their products through the use of metallic inks; they draw better shelf appeal, which the market appreciates more and more.”
It was an area of growth for Sun Chemical, according to Aaron Hollman, its global director of performance pigments.
Some companies utilize metallic pigments to enhance their packaging. Fogg noted there’s continued interest.
“Throughout the value chain, we see even our customers’ customers looking to pigment suppliers for enhanced packaging designs,” he said. “And, it’s not just with the high-end products anymore; lower value product brand owners still need shelf appeal and want to stand out.”
“Brand owners continue to push for new and exciting ways for their packaging to pop off the shelf,” Hollman said. “One way to grab the attention of consumers in the store is to provide packaging that utilizes metallic inks.”
“Whether it is labels, flexible film, pouches or folding cartons, consumer packaging companies continue to utilize metallic effects to enhance their packaging,” Hersh added. “Sometimes the metallic effect becomes a very prominent part of the design with a long life cycle, while other times the metallic effect is used to highlight an area as a promotional part of the design with a shorter life cycle.”
Strict regulations about heavy and toxic metals and the higher price of metallic pigments are hindering the growth of the market, according to ResearchandMarkets.com. Regulations are being enacted by the Swiss Ordinance and REACH, per Grand View Research, and there are tightening VOC and environmental legislation in China.
“Much like other pigment industries, the importance of global regulations continues to grow. For printing inks, new legislation is introduced regularly,” Hollman said. “Controls can differ greatly across the globe. These changes can influence regional pigment selection, binder chemistry and formulation flexibility. The challenge is keeping up with changing local regulations, designing products that meet new criteria and delivering performance.”
Hence a boost in the use of low migration inks. Low migration refers to the materials in a packaging structure whose chemicals will not move from the packaging into the product. It’s a market forecasted to be worth $2.72 billion by 2022 – it was $1.68 billion in 2016 – according to MarketsandMarkets.
“The ‘Voice of the Customer’ is an important part of the criteria for product design and suitability,” Hersh said. “For low migration, this involves raw material selection, good manufacturing and QC protocols, as well as verification testing based on the end-use application.”
Fogg, however, said that BASF doesn’t see as many issues with metallic inks and the need for low migration inks “since there is typically a film or foil layer between the ink and the package.
“Metallic inks are also more prevalent on secondary and tertiary packaging so migration concerns continue to be a low area of concern,” he added.
The cost – increases have been “unprecedented” for the past few quarters, Hollman said – and availability of raw materials has had a major effect on the market, as well as the industry.
“We are experiencing a very volatile environment with respect to raw material availability, suitability and costs,” Hersh said.
Other influences, per Hersh, include regulatory concerns, global capacity dynamics and subsequent rising cost pressures.
“These increases have impacted all levels of the pigment supply chain, from basic chemicals to specialty raw materials,” Hollman added.
“The major driver of these cost increases is a general lack of raw material availability due to the stronger enforcement of environmental and safety regulations globally,” Hollman said. “This is especially affecting supply from key markets in Asia.”
Despite this, Hersh said ECKART is encouraged with how the market has shaped up so far in 2018. “[We] continue to see this as being an important feature for brand owner designs with consumer packaging.”
Supply chain challenges – regulatory suitability, availability and raw material costs – will still be present, per Hersh.
Fogg said that the strong interest in metallic pigments will continue as more and more printers learn how to use them. He also noted there’s a broader acceptance of metallic pigments than there had been.
