Azo pigments market trends are touted to be impelled by the rising demand for color pigments across different applications and end-user industries including textile, construction and buildings, paints and coatings, and others.
Growing urbanization, expanding population, and high disposable incomes of people across the developing and developed nations are making way for the development of new buildings and residential structures, stimulating the demand for paints and coatings. The dynamic push in need for paints and coatings is further foreseen to stimulate the market for azo pigments over 2022-2028.
Azo pigments are the most important class of synthetic dye pigments, accounting for nearly 50% of the global annual production. These compounds offer high intensity and bright colors. Moreover, they have fair to good fastness attributes. Moreover, azo pigments are the largest group of artificial food pigments, including 70% of the organic dyes produced in the globe.
Factors like high production costs associated with azo pigments and the presence of economical alternatives of color pigments are likely to impede the overall azo pigments market growth over the forecast period. Nonetheless, strategic initiatives by solution providers in the space would offer lucrative growth opportunities for market expansion in the coming years.
Based on the product, red azo organic pigments segment is touted to gain massive returns in the overall market throughout the analysis time frame. This can be credited to the innumerable product applications and advantages. In addition, red pigments boast good solvent resistance and high stability. Notably, the pigment is approved by the FDA in the United States for use in food, drugs, and cosmetics. Various companies are now seeking to expand their offerings in the red pigments space to gain a competitive edge in the overall market. To illustrate, in 2020, Fuji Pigment announced accelerating the red azo organic pigment and color inks sales outside the Japanese subcontinent.
Azo pigments market is speculated to accrue significant momentum across the end-user industries involving plastic applications. Owing to the compound’s exceptional stability to the temperature and chemical consistency, azo pigments are generally used for the coloration of technical plastics like PVC, polyolefins, and copolymers of styrene. Mounting uses of PVC in diverse applications like construction, electronics, and automotive interiors and coatings, would present a major escalation to the demand for azo pigments in the near future.
Geographically, North America azo pigments market, led by the United States, is projected to account for remunerative growth through 2028. This can be ascribed to the high consciousness among consumers towards environmental protection and eco-friendly products. Furthermore, stringent regulations imposed by the federal government and different environment protection bodies are as well prompting the use of organic pigments in the nation, fueling the azo pigments market progression.
Some of the prominent players functioning in the industry are BASF SE, Crown Color Technology Co, Clariant International (Clariant AG), LANXESS, Sun Chemical (Sun Chemical Group CoÖPeratief Ua), Tah Kong Chemical Industrial Corp, Ferro Corporation, and others.
These vendors are seeking to develop new products in the space undertaking initiatives like mergers and acquisitions and partnerships to solidify their position in the marketplace.
The chemical industry was one of the adversely affected sectors during the COVID-19 pandemic outbreak, mainly due to disruptions in the supply chain and raw material transportation. This has eventually had a dramatic impact on the overall azo pigments market. Moreover, halt in different construction activities, paints and coating production, and decline in automobile sales also stood out as major market restraining factors during the coronavirus phase.