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    Features

    The Metallic and Special Effect Pigment Market

    Navigating the coronavirus pandemic will be a challenge for pigment producers.

    The Metallic  and Special Effect Pigment Market
    Parfumflacons packaging/courtesy basf colors & effects
    The Metallic  and Special Effect Pigment Market
    Beer bottle labels/courtesy basf color & effects
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    Anthony Locicero, Associatie Editor07.27.20
    The global special effect pigments market is expected to hit $969.2 million by 2022, according to MarketsandMarkets. Global Market Insights, Inc. expects the metallic pigments market to be worth more than $2.3 billion by 2024.

    Navigating the coronavirus pandemic will be key to reaching these figures.

    As Joanne Mitchell, global product manager, metallic effects, Sun Chemical Performance Pigments, noted, “the pandemic has created a high level of uncertainty in the world.
    “This global crisis has impacted people in all regions of the world with each country at a different stage of recovery. It has caused temporary shutdowns in the major pigment producing markets like China and India,” Mitchell said.

    “Early on when the pandemic was first breaking out, there was some initial supply tightness around certain solvents that are also used in sanitizing products,” said Neil Hersh, head of marketing and technical services at ECKART America Corporation. “Supply chains appear to be coping with the increased demand and have implemented sales allocations where necessary.”

    “We are seeing rising costs and some delays in transport,” said Steve Clark, director inks & graphic arts North America, Business Unit Effect Pigments at Schlenk. “In terms of raw materials, we see a strong price increase in solvents which are used in medical applications, such as isopropanol. Some of the UV raw materials run into a shortage due to production stops in China.

    “There is obviously significant uncertainty around the global economy due to COVID-19. This makes business planning very challenging,” Clark concluded.

    CQV, as a manufacturing company, hasn’t experienced any raw material shortages nor major cost issues, according to Paul Nowak, director, marketing & sales Americas.

    “We strategically source from numerous locations around the globe,” he said. “In general, we have not experienced any issues exporting our materials. However, some ocean freight shipments have been taking a little longer to arrive at port but nothing significant. In many cases, we can use air freight and here we have experienced a few added surcharges.”

    “Chinese raw material supply chains were taxed in the early part of the year. Then India became a problem, and still is,” said Darren Bianchi, Brilliant Group CEO and founder.

    “Cost increases are largely due to freight increases and greater reliance on air freight due to supply chain issues. Despite these cost increases, we’re shouldering them to help our customers during the pandemic.”

    BASF Colors & Effects has seen growth during this time, according to Jana Heiler, manager, global communications and branding, BASF Colors & Effects.

    “Sales in packaging, especially grocery, including our Metasheen is strong and we foresee this continuing as long as social distancing persists,” Heiler said.

    Overall interest for metallic pigments in graphic arts continues to be steady, according to Hersh.

    “We are seeing momentum for printed metallics as a replacement for metalized substrates and foil used on packaging,” he said. “Environmental issues and sustainability initiatives are driving this interest, starting with brand owners and moving throughout the printer supply chain.”

    “The packaging market is important and the benefits of using metallics tend to be a quality look and eye-catching appeal,” Heiler said.

    “We’re seeing the continuation of a longer-term trend that special effects, like the ‘pop’ of fluorescent color, are critical design objectives for brands, and therefore, graphic arts projects,” Bianchi added. “Brand managers recognize that a visual draw is important for a product to stand out on crowded store shelves, or even in thumbnail images on e-commerce sites.”

    Decorative metallic effects provided by Schlenk are currently in high demand in graphic arts, according to Clark.

    “Metallic colors are typically used to promote luxury or technical performance of an item, whether this is in commercial printing on a magazine cover or packaging for consumer products. The reflective properties of metallic pigments are also used on labels to quickly catch the eye of a passing shopper,” Clark said.

    “Metallic printing inks in label printing have seen significant growth for Schlenk over the last several years,” Clark added. “This is especially true for Schlenk’s energy curable products. There is also a strong trend to substitute metalized substrates with printed metallic inks due to efficiency and environmental benefits.”

    According to Nowak, there has always been a steady desire for special effects in graphic arts.

    “They are one of the best ways to draw attention to an item on which they are printed,” he said. “Effect pigments allow for a unique opportunity to really be creative. They allow for novel designs to play an important role in the overall message that a brand may be trying to convey (e.g. purity, cleanliness, freshness, luxury).”

    Metallic pigments are a growth area for Sun Chemical in the graphic arts segment, especially in the packaging market, Mitchell said.  “We are investing in global infrastructure and research and development to bring high-value products to the graphic arts market,” she added.

    Mitchell also observed more metallic pigments being used to enhance packaging.

    “Brand owners continue to push for new and exciting ways for their packaging to pop off the shelf,” she said. “One way to grab the attention of consumers in the store is to provide packaging that utilizes metallic inks.”

    BASF Colors & Effects is one of only a few players in the vacuum metalized pigment market, which is considered a niche within the aluminum effect pigments market, according to Heiler.

    “The overall usage of metallic pigments in printing appears to be growing. Our Metasheen VMPs allow formulators in printing and packaging, industrial coatings and interior automotive and 3C to create premium product appeal,” Heiler said.

    Nowak said there is great interest in special effects by the CBD and cannabis industries.

    “There has literally been an explosion of new products, brands and novel package developments in which companies not only desire, but require, a means to separate themselves from the pack,” Nowak said. “CQV alone has over 750 different products composed of various colors, particle sizes, levels of sparkle and luster.

    “Another major consideration of effect pigments in this industry is to provide an overt, and in some cases covert, level of product and brand security.

    “Additional areas in the packaging sector seeing increased use of effect pigments are packages in which the main design is about sustainability, recyclability and reuse,” he continued. “Label stock, or labels in particular printed with effect pigments and used on packages that use high amounts of post-consumer regrind (PCR), give ‘life’ to an otherwise mundane and not so interesting color.”

    Metallics have been making headway into digital printing. Digitally printed metallic effects are a growing area in both commercial and short-run packaging printing, according to Clark.

    Metallics will continue to remain an important product category, particularly for packaging and promotional printing, Hersh said.

    “There has been an increase in the use of metallics for digital printing, specifically for creating added features into designs,” Mitchell added. “Metallic inks create an eye-catching visual and are known to add a sense of value to a printed piece. These effects are being used in printing of all kinds, such as book covers and posters to stickers and business cards.” 
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