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    Breaking News

    Global Pigment Dispersion Market to Register 3.9% CAGR Between 2020-27: GVR

    The global pigment dispersion market was valued at $26.2 billion in 2019.

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    Grand View Research11.04.20

    The global pigment dispersion market was valued at $26.2 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 3.9% from 2020 to 2027. 

     

    Growth in the packaging industry is expected to drive product demand over the forecast period. Polyethylene Terephthalate (PET), Polypropylene (PP), and Polystyrene (PS) are the most preferred polymers in the single-service food packaging segment. 

     

    Factors, such as increasing use of plastic and paper & paperboard materials and the use of various colorants to make attractive packaging are expected to drive the product demand. 

     

    Organic pigments are an alternative to some of the toxic inorganic pigments. However, organic products are more expensive and some products that exhibit superior properties are limited.

     

    This may hinder market growth to some extent. Manufacturers are investing in research & development activities to replace metals in the production of red and yellow synthetic pigments to produce eco-friendly synthetic pigments. 

     

    Titanium dioxide is the most widely used inorganic pigment on account of its non-toxic content, chemical stability, and versatile properties for use in plastic and paper & paperboard food packaging.

     

    Zinc oxide is a synthetically-produced pigment and is considered to have less toxic effects on humans. At present, titanium dioxide, iron oxide, and zinc oxide account for the maximum share of the overall pigments demand from plastic and paper & paperboard food packaging applications.

     

    The inorganic product segment led the market and accounted for more than 57% share of the global revenue in 2019. Inorganic pigment dispersion is derived from inorganic compounds, such as chromates, sulfates, and metal oxides, using various chemical formulations. Inorganic pigment dispersion is used in various applications including plastics, paints & coatings, printing inks, and others.

     

    It is generally lighter than organic pigment dispersion; however, in applications demanding higher durability, inorganic products are preferred. Unlike inorganic products, organic products may fade away when continuously exposed to sunlight.

     

    Also, inorganic pigment dispersion is more economical than organic pigment dispersion and offers easier dispersion properties on various substrates owing to its smaller particle size as compared with organic pigment dispersion. Titanium dioxide and iron oxide are among the popular types of inorganic pigment dispersion.
     

    Organic pigments are composed of carbon chains and carbon rings and are transparent owing to their large particle size. The common types of organic products include azo, phthalocyanine, lake, and quinacridone pigments. The color strength of organic pigments is very much higher than inorganic products; however, the high prices and poor dispersion capabilities are restraining the growth of the organic product segment. Organic pigments find application in printing inks, paints & coatings, rubber, and plastics.
     

    The coatings application segment led the market and accounted for more than 39% share of the global revenue in 2019. The growing building & construction industry on account of infrastructure development in many economies, such as the U.S., China, India, and Saudi Arabia, is expected to drive the product demand over the forecast period. With the growing demand for green building construction, organic pigments used in coatings are also anticipated to witness a considerable increase in demand.
     

    Pigment dispersion has widely substituted dyes in printing ink applications as the former provides better coloring to the printing ink, thereby offering the intended result to printing ink manufacturers. Inks that are made from dyes are composed of a colorant that is completely dissolved in a carrier fluid, whereas pigment dispersion-based printing inks consist of fine solid particles that get suspended in the carrier liquid. Pigment dispersion-based printing inks employ both organic and inorganic pigment dispersions; however, the percentage use of the latter is comparatively higher owing to its low price and better dispersion capabilities.
     

    Increasing consumption of plastic in various end-use industries including construction, automotive, medical devices, and electrical & electronics sectors is expected to drive the demand for pigment dispersion over the forecast period. Plastics are being used in construction applications in floorings, high-performance safety windows, insulation materials, storage tanks, roofing, pipes, domes/skylights, cables, and doors. Moderate scope for growth is presented by such an evolving market.

     

    Pigment dispersion is used in plastics mostly with polyolefins for plastic food packaging and several non-food packaging. In packaging, pigment dispersion helps in enhancing the branding by improving the visual design, which often attracts the consumers. 

     

    Epoxy and polyurethane formulations are used in various floorings that require pigment dispersion to offer decorative and functional colors. Pigment dispersion is also used in rubber applications for coloring rubber sheets, tire sidewalls, and surgery equipment in the medical industry.

     

    The Asia Pacific dominated the market and accounted for more than 37% share of the global revenue in 2019. The high share was attributed to the easy availability of raw materials and low-cost labor, which attracted manufacturers from various industries to set up their production facilities in the region. 

     

    In South Korea, the coatings application segment is expected to account for the maximum share over the forecast period. Growing infrastructure activities and increased spending from the government in public infrastructure development are anticipated to drive the market in the country.

     

    Also, macroeconomic factors, such as low unemployment rate and high disposable income, in South Korea are stipulated to propel the demand for pigment dispersions in packaging applications for various end-use industries, such as food & beverage and consumer goods. 

     

    Germany held the maximum share in the European market, in terms of volume and revenue. Growing industrial facilities and supportive macroeconomic situations in several European countries are factors expected to boost the growth of the market in the region. 

     

    Furthermore, the growing trend of green technology, due to strict environmental regulations, is anticipated to favor the growth of organic pigment dispersion in the region.

     

    The product demand in the U.S. is majorly driven by the increasing number of Quick-Serve Restaurants (QSRs), which use pigment dispersion in food packaging and printing ink applications. 

     

    The U.S. government has strict regulations for the type of pigment dispersions to be used in food packaging as many inorganic pigments become toxic after coming in contact with food products.

     

    For instance, according to the FDA, materials that are permissible for use as food colorants are allowed to be used as coloring agents for food packaging and printing inks. 

     

    However, pigments containing polynuclear aromatic hydrocarbons and benzopyrene exceeding 0.5 parts per million and 5.0 parts per million, respectively, are prohibited for application in food packaging.

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