The global organic pigments market is projected to have a moderate-paced CAGR of 4.5% during the forecast period. The current valuation of the market is US$ 5862 Million in 2022. The market value of the organic pigments market is anticipated to reach a high of US$ 9824.9 Million by the year 2032. A historical CAGR of 5.3% has been recorded by the experts of Future Market Insights for the concerned market.
Organic pigments are referred to as synthetically-made carbon compounds. Natural pigments are extracted through animals and flowers, whereas synthetic organic pigments are extracted through petroleum compounds. They come in a range of deep colors, including rose, deep red carmine, and crimson. They are usually stronger, brighter, and more transparent than inorganic pigments, although not as light-resistant. They hold the potential to be partially soluble in several thermoplastics.
The surging demand for organic pigments in recent years can be attributed to the growing consumer preference for environment-friendly products. Further, the product is witnessing heightened demand from niche applications, such as the production of packaging and advertising leaflets and catalogs, which is expected to result in the strategic growth of the organic pigments market over the forecast period.
Prominent Drivers in the Organic Pigments Market:
FMI has analyzed that a large number of elements are likely to drive the growth of the organic pigments market in the upcoming years and unravel a positive dimension to the concerned market. They are as follows:
Organic pigments are environment-friendly and are extensively used in various verticals, such as cosmetics, food, and beverages, among other industries. They find application in the plastics sector, where they are used in masterbatches to impart colors to plastics. This, along with the growing shift towards eco-friendly products, is expected to spur market growth over the forecast period.
Robust urbanization and a rise in infrastructure expenditure are anticipated to propel the market growth over the forecast period.
Further, organic pigments are witnessing heightened scope in the automotive sector with increasing government initiatives like ‘Make in India’ and rising investments in electric vehicles (EV).
These substances are widely used in printing inks application owing to regulations and acts, including the Code of Federal Regulations (CFR), FFDCA, and Generally Recognized as Safe (GRAS). Even though the printing ink industry has been witnessing a constant decline in newspaper and periodical application segments due to digitalization, the demand for the same has been strongly growing in the packaging application segment.
Factors Restraining the Expansion of the Organic Pigments Market:
Besides the factors bolstering the growth of the organic pigment market, the expert analysts at FMI have also identified some elements that are likely to hinder the pace of advancement in the long run. They are as follows:
Surging restrictions on raw materials of organic pigments are a market deterrent. Primary chemicals used in the manufacturing of organic pigments, such as toluene, benzene, naphthalene, xylene, and ethylene, are facing significant restrictions and regulations on industrial usage owing to their ill effects on human health.
Further, the growing dependence on the Asia Pacific to offer a global supply of the raw materials used in the manufacturing of organic pigments may also stall the market growth over the forecast period.
Competitive Landscape:
The key players proliferating in the forum are focusing on introducing new products and enhancing their product offerings to better cater to the changing needs of the end-user industries while retaining their competitiveness globally.
There is keen attention paid by the market players to the maintenance of the quality of products and innovation. They are also trying to diversify its range of manufacturing, indulging in mergers and acquisitions, and adopting organic growth strategies for a strong foothold in the global market.
Recent Developments:
In June 2021, DIC Corporation and Sun Chemical finalized the acquisition of BASF’s global pigments business, popular as BASF Colors & Effects (BCE). This acquisition will help enlarge Sun Chemical’s pigment range, including those of cosmetics, electronic displays, inks, coatings, plastics, and specialty applications, by offering an even broader range of versatile solutions.
In April 2022, Heubach Group announced the launch of its latest product range and advanced solutions at the American Coatings Show in Indianapolis. The company will present its next-generation inorganic, organic, and anti-corrosive pigments, dyes, pigment dispersions, and specialty materials at ACS 2022.
These insights are based on a report on Organic Pigments market by Future Market Insights