Global high performance organic pigments market is slated to gain commendable traction over 2021-2027. This is given the increasing application scope of high performance pigments in end-use industries, including automotive, due to excellent properties like resistance to humidity, heat, and extreme weather conditions. Furthermore, the rising consumer concerns regarding the source of ingredients used in cosmetics and the shifting preference towards organic products for makeup pigments will also proliferate industry outlook in the years ahead. Organic pigments refer to colored materials made of organic compounds or ingredients with pigment properties. This type of pigment is gaining widespread usage in the coloring of rubber products, paints, inks, and plastic products, among others. High performance pigments are known for excellence in performance, high value-added economics, and persistence in several applications.
Mounting sales of decorative paints, alongside the strong demand for automobiles, especially in emerging countries, will foster the high performance organic pigments market trends over 2021-2027. Since color is a key to product design in the automotive industry, the favorable business landscape of the sector will augment the deployment of high performance organic color pigments for both interior and exterior applications. Moreover, the urgent need for alternatives of pigments based on toxic and harmful pollutants will further push the product demand over the projected timeframe. However, high costs associated with the synthesis of organic pigments may hinder the industry outlook in the years ahead.
Considering application, the coatings segment will account for a major share in the high performance organic pigments industry by 2027. The segmental growth is driven by the considerable recovery of auto sales from the COVID-19-induced complications in the United States. Such a factor is anticipated to bolster high performance organic pigment production to fulfill supply consistency and quality requirements for automotive refinishing applications. Likewise, the increasing exports of textile products from the U.S. will also fuel the requirement of organic pigments for textile coatings.
Regionally, the Latin America high performance organic pigments market will depict a strong growth rate through 2027, driven by the surging demand for PVC from building and construction sectors in Mexico. This factor is augmenting industry growth, given the use of high performance pigments in the production of plastics that will be exposed to elements, like PVC pipes, to withstand high levels of heat. In addition, the strong demand for packaged goods in countries like Mexico will also drive regional market size, as pigments are being used in printing inks for packaging applications.
Prominent players in the high performance organic pigments industry include Shanghai Chaining Chemicals Company, Qingdao Sanhuan Colorchem Company, Atul Ltd. (Lalbhai Group), Ferro Corporation, Sudarshan Chemical, Solvay SA, Synthesia, a.s. (AGrofert), Lanxess AG, BASF SE, Clariant AG, Sun Chemical, and Heubach GmbH, among others. Strategic mergers and acquisitions are among the key initiatives being taken by these firms to boost their footprint in the competitive market. For instance, in June 2021, DIC Corporation acquired BASF Colors & Effects, a prominent manufacturer of high performance pigments, among others, to serve customers globally.
Imposition of strict lockdowns in the wake of the coronavirus pandemic has negatively impacted the foodservice channel worldwide. This factor has resulted in a decline in sales of packaged beverages, including alcoholic and non-alcoholic drinks. Situations such as these may have posed a hindrance to the high performance organic pigments industry growth, given the deployment of pigments for printing inks of food and beverage packaging materials. However, the industry may witness recovery over the forthcoming years, owing to the steady increase in construction activities. As per the Federal Reserve Economic Data, over 1.67 million privately-owned housing units had started construction in December 2020, which could boost the product demand for coating concrete and building materials.