Dyes and Pigments Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

Key Highlights

• Over the medium term, growing demand from Asia-Pacific's paints and coatings industry and increasing demand from the textile industry are the major driving factors augmenting the growth of the market studied.
• On the flip side, environmental concerns regarding using dyes and pigments are anticipated to restrain the target industry growth over the forecast period.
• Nevertheless, the growing demand for reliable commercial products, like 3D printing material, will likely create lucrative growth opportunities for the market soon.
• The Asia-Pacific emerged as the largest market for dyes and pigments. It is expected to witness the highest CAGR during the forecast period. The dominance of the Asia-Pacific is attributed to the high demand for dyes and pigments in China, India, and other Asian countries.

Dyes and Pigments Market Trends

Increasing Demand from the Paints and Coatings

• Paints and coatings account for the largest share of the market and are estimated to be the most significant and fastest-growing end-user industry.
• Architectural and decorative coatings account for the enormous consumption of pigments in their production. Thus, rising construction and infrastructure activities across the globe are the primary driver for the dye and pigment market.
• According to the US Census Bureau, United States spending on private construction grew in 2021, which was USD 1,245.40 billion, and in 2020 it was USD 1,107.90 billion.
• Various paints and coatings industry expansions will augment the pigment markets in the coming years. For reference, in October 2022, Asian Paints announced plans to invest USD 258 million to set up a new plant to produce paints and coatings resins, vinyl acetate-ethylene emulsion (VAE), and vinyl acetate monomer (VAM) in the country.
• Furthermore, in the automotive sector, paints and coatings are used in the interior and exterior parts of the vehicle, as they impart protection and appeal to vehicles. They are used in metallic parts and plastic vehicle components of automobiles.
• According to the Organisation Internationale des Constructeurs d'Automobiles (OICA), in 2021, around 80.15 million vehicles were produced worldwide, witnessing a growth rate of 3% compared to ~77.71 million vehicles in 2020, hence driving the market studied in the forecast period.
• All the factors above are expected to drive the global market during the forecast period.

Asia-Pacific Region to Dominate the Market

• The growth of the textile industry in China and India is rapidly increasing with the availability of a cheap labor force, thus augmenting the dyes and pigments demand. In the global textile market, China holds the largest share of about 40%, followed by India with over 5% share.
• The textile industry of China grew steadily during the first nine months of 2021, with collective profits worth CNY 171.1 billion (approximately USD 26.80 billion), a 31.7% increase year-on-year (YoY), according to the Ministry of Industry and Information Technology (MIIT).
• According to the IBEF, in India, textiles and apparel exports, including handicrafts, totaled USD 44.4 billion in 2022, a 41% increase YoY, and the exports of readymade garments, including cotton accessories, stood at USD 6.19 billion in the same year.
• In September 2021, Axalta announced that it broke ground to construct a state-of-the-art coatings facility in Jilin City, Jilin Province, North China which is scheduled to open in 2023. This 46,000 sq m new plant will produce mobility coatings to support growing customer demand in China for light vehicles, commercial vehicles, and automotive plastic components.
• Furthermore, according to the National Bureau of Statistics of China, about 7.95 million metric tons of plastic products were produced in December 2021, compared with 7.32 million metric tons in November 2021.
• According to the Plastics Export Promotion Council (PLEXCONCIL), India’s plastics export increased by 55% to USD 3,417 million (cumulative value) from April to June 2021 as compared to USD 2,211 million in April-June 2020, thus augmenting the market.
• Hence, with the increasing demand from various end-user industries, like the paints and coatings, textiles, and plastics industries, the demand for dyes and pigments is expected to increase rapidly over the forecast period.

Dyes and Pigments Market Competitor Analysis

Additional benefits of purchasing the report:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support