Pigments Market Expected to Reach $45.4 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Pigments Market," The pigments market was valued at $27.2 billion in 2022, and is estimated to reach $45.4 billion by 2032, growing at a CAGR of 5.3% from 2023 to 2032. 

Pigments are substances that impart color to materials through selective absorption and reflection of light. They are finely ground particles or powders that are insoluble in the medium in which they are used. Pigments are typically used to add color, opacity, and visual effects to various materials, including paints, coatings, plastics, inks, textiles, cosmetics, and construction materials. They come in a wide range of colors and can be derived from natural sources or produced synthetically. Pigments can be organic or inorganic compounds, and their properties determine their suitability for specific applications, such as lightfastness, heat resistance, chemical stability, and compatibility with different mediums. 

The demand for paints and coatings is closely linked to the construction industry. As urbanization and infrastructure development continue to expand globally, there is a significant need for paints and coatings for buildings, bridges, roads, and other infrastructure projects where pigments are widely used to provide colors in paints. Thus, the increasing demand for paints and coatings may lead the pigments market to witness a significant growth.

Furthermore, various industries require specialized coatings to protect their equipment, machinery, and infrastructure. Industries such as oil and gas, manufacturing, marine, aerospace, and power generation rely on protective coatings to prevent corrosion, extend the lifespan of assets, and maintain operational efficiency wherein pigments are widely used for color stability purposes. This factor may further augment the growth of the pigments market during the forecast period. 

Moreover, the increasing demand for plastics among several end use sectors have led the plastic producers to increase their manufacturing capacity where pigments are used for coloring purposes. This factor may act as one of the key drivers responsible for the growth of the pigments market for plastics application. Furthermore, pigments offer a wide range of color options, allowing plastic manufacturers to customize the appearance of plastic products. With increasing consumer demand for personalized and aesthetically appealing products, the use of pigments enables manufacturers to create vibrant and attractive colors that meet specific design preferences and current trends. This is expected to fuel the growth of the pigments market.

However, the prices of raw materials used in pigment production, such as petrochemical derivatives and mineral ores, can be volatile. Fluctuations in raw material prices can affect the cost of pigment production, leading to price instability and potentially impacting market growth.

On the contrary, advancements in pigment technology offer opportunities for product innovation and differentiation. For instance, the development of high-performance pigments with improved color strength, weather resistance, heat stability, and compatibility with various mediums may create remunerative opportunities for the pigments market. Furthermore, innovations in functional pigments, such as those with antimicrobial, self-cleaning, or energy-saving properties, can create new applications and value-added solutions for the pigments market in the coming future.

The pigments market is segmented on the basis of product type, application, and region. By product type, the market is segregated into organic pigments, inorganic pigments, and specialty pigments. The inorganic pigment segment dominated the global market, in terms of revenue in 2022. Rapid urbanization and infrastructure development projects, particularly in emerging economies, drive the demand for inorganic pigments. The construction sector utilizes pigments in various applications, including paints, concrete, tiles, and coatings for buildings and infrastructure projects. This may act as one of the key drivers responsible for the growth of the pigments market for inorganic pigments type.

Furthermore, rising disposable income levels and changing lifestyles have led to increased consumer spending on products like automobiles, consumer electronics, and home furnishings where inorganic pigments are used to provide attractive and vibrant colors. This factor may further augment the growth of the inorganic pigments market during the forecast period.   

By application, the market is divided into paints and coatings, plastics, printing inks, construction materials, and others. The paints and coatings application segment dominated the global market, in terms of revenue in 2022 with 51.8% share in the global market. The demand for paints and coatings is closely linked to the construction industry. As urbanization and infrastructure development continue to expand globally, there is a significant need for paints and coatings for buildings, bridges, roads, and other infrastructure projects where pigments are widely used to provide colors in paints. Thus, the increasing demand for paints and coatings may lead the pigments market to witness a significant growth.

Additionally, various industries require specialized coatings to protect their equipment, machinery, and infrastructure. Industries such as oil and gas, manufacturing, marine, aerospace, and power generation rely on protective coatings to prevent corrosion, extend the lifespan of assets, and maintain operational efficiency wherein pigments are widely used for color stability purposes. This factor may further augment the growth of the pigments market for paints and coatings application during the forecast period.

Region wise, the pigments market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The Asia-Pacific pigments market size is projected to grow at the highest CAGR during the forecast period, and accounted for a major market share in 2022. Countries in the Asia-Pacific region, particularly China, India, and Southeast Asian nations, have been experiencing rapid industrialization. This industrial growth has led to increased production in sectors such as automotive, construction, packaging, textiles, and consumer goods, all of which require pigments for coloration and aesthetics. This factor may act as one of the key drivers responsible for the growth of the pigments market in the Asia-Pacific region.

In addition, the packaging industry in the Asia-Pacific region is experiencing robust growth. This is driven by changing lifestyles, increased consumption, and the growth of e-commerce. Pigments are extensively used in packaging materials to provide vibrant colors, brand differentiation, and visual appeal. The rising demand for packaged food, beverages, personal care products, and pharmaceuticals further fuels the demand for pigments market.

Key players operating in the global pigments market include KRONOS Worldwide, Inc., DIC CORPORATION, The Chemours Company, LANXESS, Venator Materials PLC, CLARIANT, BASF SE, Tronox Holdings Plc, Gharda Chemicals Limited, and Ferro Corporation.

COVID-19 analysis

The novel coronavirus was an incomparable global pandemic that has spread to over 180 countries and caused huge losses to lives and the economy around the globe. The pigments market had been negatively impacted due to the COVID-19 pandemic owing to the market’s dependence on building & construction, automotive & transportation, industrial, plastic manufacturing, and other sectors. According to a report published by Society of Indian Automobile Manufacturers (SIAM), sale of passenger vehicles, commercial vehicles, and two‐wheeler vehicles had declined by 51%, 88% and 40%, respectively in March 2020.

Also, the pandemic led to disruptions in global supply chains, including those in the pigments industry. Restrictions on transportation, temporary closures of manufacturing facilities, and limitations on international trade created challenges in sourcing raw materials and delivering finished pigments. This resulted in delays in production and distribution, affecting the supply of pigments. In addition, the pandemic caused a decline in demand for certain products and industries, which had a direct impact on the demand for pigments. Sectors such as automotive, construction, and industrial manufacturing experienced slowdowns, leading to reduced demand for pigments used in coatings, plastics, and construction materials. 

However, the pandemic prompted increased research and development efforts in the pigments industry. Manufacturers focused on developing innovative pigments with enhanced properties, such as improved durability, weather resistance, and UV stability, to meet the evolving needs of customers in a post-pandemic world. This may enhance the growth of the pigments market during the forecast period.

Key findings of the study

• By product type, the inorganic pigments segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 5.2% from 2023 to 2032.
• By application, the paints and coatings segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 5.5% from 2023 to 2032.
• By region, Asia-Pacific garnered the highest share of around 50% in 2022, in terms of revenue, growing at a CAGR of 5.6%.