Global Colorants Market Expected to Reach $86.9 Billion by 2030

According to a new report published by Allied Market Research titled, “Colorants Market by Type and End-use Industry: Global Opportunity Analysis and Industry Forecast, 2021–2030”, The colorants market was valued at $31.2 billion in 2020, and is projected to reach $86.9 billion by 2030, growing at a CAGR of 5.8% from 2021 to 2030.

Colorants are chemicals that give a substance its color. Colorants can be of 2 types, including dyes and pigment. Mineral colorants contain distinct chemical compositions, physical features, and chemical behavior. Organic colorant are either produced naturally or synthesized by using carbon, hydrogen, oxygen, nitrogen, and Sulphur along with other minor components.

Pigment is a substance that alters the color of light that is transmitted or reflected as a result of wavelength-selective absorption. a pigment should have high tinting strength compared to the materials it colors. The majority of pigments used in the production of paints, plastics, and other products are dry colorants that are crushed into a fine powder. This powder is then mixed with a binder, which is colorless and neutral ingredient that holds the pigment in place and provides the necessary adhesion to paints. Fabric, food, paint, inks, and other items are commonly colored with pigments. The distinction between a pigment and a dye is significant. A pigment is insoluble in its binder, whereas a dye is primarily soluble in its binder.
The surge in demand from various end-use industries like textile, packaging, and automobiles drives the demand for colorants. Textile colorants impart color to a textile material through chemical binding or physical entrapment within or around the textile material, usually with a high degree of permanence. The textile material can take many different forms, including fiber, yarn, fabric, and garments. Textile colorants are available as powders, granules, solutions, or dispersions in both solid and liquid forms. Precursors are applied to textile materials in some cases to create the colorant in spot within the textile. These factors drive the demand for colorants market in textile industry.

However, fluctuating raw material prices hinders the colorants market, while increase in demand for colorants from the developing countries, such as Brazil, China, India, and South Africa is projected to provide lucrative opportunity for the colorants market.

 
On the basis of type, the pigment segment is estimated to witness the highest CAGR during the forecast period. Rise in pigment demand along with growth in investment in advanced technologies used for the production of colorants are major factors contributing toward significant product demand in paints and coatings sector.

On the basis of end-use industry, the automotive segment dominated the colorants market. In addition, rapid development of the automotive sector and the increase in vehicle production in major regions drive the demand for colorants in automobile industry. The textile sector emerged as the leading application for colorants market and is projected to grow at fastest CAGR of over 5.8% during the forecast period, owing to the increase in consumer spending on clothing and garments. Moreover, growth in demand for eco-friendly products is enhancing the use of dyes in the textile industry and this has led to an increase in the overall sales of coloring agents.

On the basis of region, Asia-Pacific dominated the colorants market share in 2020, and is anticipated to maintain its dominance during the forecast period. North America held the second largest market share in 2020. Surge in building & construction activities and growth in demand for the colorants in the automotive industry drives the growth of colorants market. The colorants market share is analyzed for all significant countries and region.

The key players profiled in the colorants market include BASF SE, Sun Chemical Corporation, Clariant AG, Polyone Corporation, E. I. Du Pont De Nemours and Company, Lanxess, Huntsman Corporation, Dystar, DIC Corporation, and Cabot Corporation.

The other key players in the value chain of the colorants market include Sudarshan Chemical Industries Limited, The DOW Chemical Company, The Chemours Company, Flint Group, and Archroma

COVID-19 Impact on the Colorants Market

• The Covid-19 pandemic impacted the colorants industry through the supply chain disruption. Colorants manufacturers had to develop an effective supply chain in response plan to mitigate risk and prepare for any interruptions that was caused owing to the pandemic. 
• Manufacturing facilities such as car manufacturing plants were shut down in 2020, owing to the closure of non-essential industries. According to the International Organization of Motor Vehicle Manufacturers, worldwide car production dropped by 16% in 2020. Toyota Motor Corporation's global car production in 2020 declined by 12.6%, owing to the impact of the COVID-19 pandemic. As a result, demand for colorants decreased dramatically, lowering the market revenue for colorants in 2020.

KEY FINDINGS OF THE STUDY

• The colorants market size is provided in terms of $million and kilotons.
• By type, the pigment segment emerged as the global leader by acquiring around 52.3% market share in 2020 in terms of revenue.
• On the basis of end-use industry, the packaging segment garnered highest market share i.e., 35.8%, registering 5.9% market share in 2020 in terms of revenue.
• Region wise, Asia-Pacific is the major consumer of colorants among other regions. It accounted for around 54.1% of the global market share in terms of revenue in 2020 as a result of rapid growth in the consumer base such as packaging, paper and printing.