Pigments provide color to the printed products around us, whether colored, black or white, colorants are a key part of the ink process and there is a considerable market for them: According to Nikhil Pampatwar, Head of Research and Intelligence at Validated Market Research (VMR), the global organic pigments market is valued at $2.42 billion in 2021 and he expects it to grow at a CAGR of 5.3% to reach $3.85 billion during the forecast period 2022-2030.
In addition, Pampatwar sees the global inorganic pigments market size at $22.01 billion in 2021 and expects a compound annual growth rate of 5.38% to reach $35.28 billion during the 2022-2030 forecast period, he reported that the global specialty pigments market size in 2021 is $22.91 billion, and the market size is $35.28 billion. It will grow at a compound annual growth rate of 5.8% to reach $35.13 billion during the forecast period 2022-2030.
VMR's Pampatwar report said that the pigments industry, especially the organic pigments industry, has expanded significantly with the advancement of inks and will grow at a high rate, "however, the size of the organic, inorganic and specialty pigments market varies according to the different applications and consumer preferences of the class pigments." Pampatwar adds, "Most of the organic pigments used in inks are azo pigments (azo, monoazo, hydroxybenzimidazole, azo condensation), precipitate pigments (alkaline and acidic precipitate) and phthalocyanine pigments, which come in a variety of common shades, including blue and green pigments. Pigments make up 50 percent of the ingredients needed to make inks, and it's critical to utilize best-in-class pigments to create rich, bright and reliable inks for long-term use, as these inks can change the appearance of anything.
Consolidation has always been a key factor in the pigments industry, which has seen two huge mergers in recent years, with DIC and Sun Chemical acquiring BASF Pigments and Heubach acquiring Clariant Pigments division.
"Acquisitions and consolidation among small and major pigment players have been a feature of the past few years," said Suzana Rupcic, Head of Sun Chemical's global Division Managed inks, Color Materials. "The pigments market has experienced many of the same challenges as other industries over the past few years since the global outbreak of COVID-19, including unforeseen changes in demand, supply chain disruptions, and rising inflation rates since the beginning of the year."
Rupcic noted that after a slow recovery from the pandemic, the pigments market continues to operate under cost pressure, which is impacting the entire printing value chain. "Nevertheless, overall stability in raw material supply can be observed despite recent challenges," Rupcic added, "as with other industries, upcoming inflation and recession will determine growth rates in 2023 and beyond, and overall, we expect the global pigments market to grow at least as fast as GDP."
As for the growth market, packaging is still a bright spot in the ink industry. "The packaging market continues to be an area of continuous growth for Heubach and remains an area of focus for the future of our company," said Mike Rester, Manager of the Heubach Group Printing Market Division.
Rupcic said: "The market needs more sustainable products, especially in the packaging printing sector, and consumer awareness of sustainability has increased and led ink manufacturers to meet these requirements. "Ink manufacturers are increasingly focusing on more sustainable packaging inks, as well as low-odor and migration-free inks that meet regulatory requirements, and we are also seeing increased interest in pigments for digital inkjet printing."
Fujifilm Ink Solutions Group provides inkjet inks to original equipment manufacturers and pigment dispersions to other ink formulators, and Rachel Li, marketing manager of Fujifilm Ink Solutions Group, observes that the growth of the new inkjet market is driving the demand for water-based inkjet pigment dispersions.
"Inkjet is particularly suited to the current volatile market situation and the changing needs of printing production: Cost-effective short run, waste reduction to reduce costs, centralization to localized print production to reduce logistics risks and shorten delivery times, JIT (just in time) manufacturing, personalization of goods through mass customization, sustainable production through waste and energy reduction, and supply chain efficiency, "Li said.
"Ink chemistry is one of the contributing factors to making inkjet suitable for new applications, and pigment dispersion technology is a key core ingredient in ink formulations," Lee added, "We believe the demand for inkjet will continue to increase, and Fujifilm is committed to providing technology to drive this growth."
In terms of specialty pigments, Brilliant Color President Darren Bianchi reports that demand for fluorescent pigments has been steady, adding that there is a strong trend toward brighter, bolder colors in packaging, and fluorescent colors are the best choice.
"There were still some supply chain issues in the first half of the year, but our policy of holding inventory has allowed us to meet customer demand," Bianchi added. "We have successfully navigated the volatility in the fluorescent pigment market, and it remains to be seen whether the relaxation of China's strict 'zero COVID' policy will lead to the re-emergence of raw material supply chain issues."
"Effects pigments reflect the printing industry and the overall economy, where we have experienced fluctuating demand, increased regulatory and environmental pressures, supply chain issues, labor challenges and rising costs," said Neil Hersh, director of marketing and technical services at Eckart America Corporation. "The supply of effect pigments is fairly stable, while cost pressures persist.
Carlos Hernandez, marketing manager of Coatings and printing systems for the Americas at Orion Engineered Carbons, reports that the demand for carbon black has steadily increased over the past few years for almost all specialty and rubber applications. "In general, we're seeing organic growth in liquid packaging," Hernandez said. "We also see interesting potential in the inkjet market, where we are a leader in delivering specific performance and outstanding performance in gaseous black." We sell our FANIPEX grades and other products specifically for this market to help ink manufacturers comply with required industry regulations.
Phillip Myles of Colorscapes said the pigment industry has seen many supply disruptions over the past few years. "The COVID period has changed the consumption dynamics," Myers continued. "The container shortage has led to a sharp increase in shipping costs, followed by a sharp increase in the cost of chemicals in Asia, including higher oil prices, all of which have increased pigment prices. Now, in the second half of 2022, we're seeing a big correction, weak demand, good availability, so suddenly there's a big drop in transportation and chemical costs from Asia. With weak demand for pigments expected to continue until 2023, soft pricing is here to stay.
Liberty Specialty Chemicals Inc. Sales manager Tim Polgar says the pigment market has done quite well over the past few years. "We have experienced good overall growth in both the water-based and solvent-based ink markets," Polgar noted. "Supply and prices have proved stable in the first half of 2020. The second half of 2020 proved to be a challenge due to higher prices for base intermediates, raw materials, packaging and freight.
"2021 is a huge challenge, with COVID-19 impacting all businesses globally," Polgar added. "Customers are worried about getting enough pigments to meet their plant and customer requirements, prices are rising, container costs and shipping costs are a nightmare." So, what did the customer do? They placed orders beyond normal levels just to make sure they had enough paint so they could meet customer requests. As a result, this has been a strong year for sales. 2022 proved to be a year of slight uptick in business as customers had to consume a lot of inventory due to overbuying in 2021. We see some price stabilization in 2023, but once again we see signs of future price increases.
Pravin Chaudhary, Pidilite, said: "As COVID restrictions began to diminish and the pigments market took off, the industry achieved very good growth in FY22. "Unfortunately, the momentum could not be carried over into this year. Factors such as geopolitical disruptions, high inflation and tighter monetary policy by many governments have affected consumer sentiment. Pigments catering to the fields of paints, inks and plastics are seeing a high wind in all industries. While we think the short term looks challenging, the long term remains optimistic. Last year's consolidation heralded a relatively new player offering viable alternatives to global customers.
Raw material availability
As for the raw materials of pigments, Pampatwar reported that the raw materials market has been unpredictable in recent years.
"Several basic substances are becoming harder to find due to insufficient supply and rising prices," Pampatwar added. "Due to shifting raw material sourcing trends and China's growing influence on the printing industry supply chain, ink manufacturers and the petrochemical and grease chemical industries are experiencing price instability.
He added: "Many unforeseen events in the market have further restricted supply and exacerbated an already volatile situation." "As prices rise and supplies become scarce, printing inks and coatings manufacturers are increasingly affected by intense competition for materials and resources. However, in 2022, the trend is improving.
Pigment suppliers also report that raw materials continue to be a problem. Rester said that over the past few years, the industry has experienced unprecedented shortages and multiple delays in obtaining many of the key raw materials needed to produce pigments.
"While the overall global supply picture has improved in 2022, certain challenges remain and we will continue to find ways to meet customer demand," Rester added. "Energy costs in Europe continue to be very volatile and are an ongoing issue going into 2023.
"Some specialty grades are in tight supply, but at Orion Engineered Carbons, we have been improving our supply profile and responding well to the market through capital expenditures," Hernandez said.
"In the past few years, chemical procurement and supply chains have been extremely challenging due to capacity constraints and logistics delays," Li noted. "This has led to availability issues and strong price increases. Some of the key products affected are pigments, solvents, photoinitiators and resins. While the situation is reported to be leveling off, we do see some improvement in supply in Asia Pacific, but the overall picture remains fragile. However, the European supply chain remains very tight and challenging due to the situation in Ukraine, while being subject to ongoing inflationary pressures.
