Organic pigments Market

The organic pigments market is projected to grow from USD 4.4 billion in 2024 to USD 6.0 billion by 2029, at a CAGR of 6.5%. The global organic pigments market was down by around 16.7% from 2022 due to the weak demand in the Western Market. The Western market was challenged by the rise in inflation, volatility in commodity prices, and disruption in the supply chain, resulting in recessionary trends and thereby hampering the demand for organic pigments.

However, It is expected to witness moderate growth during the forecast period, owing to the increasing demand for paints & coatings, printing inks, and plastics applications. Most of the demand is for high-performance pigments (HPPs). The major applications of organic pigments are printing inks, paints & coatings, plastics and other applications.

Attractive Opportunities in Organic Pigments Market Trends

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Organic Pigments Market Dynamics

Driver: High demand for enhanced aesthetics in various applications areas

The growing competition in the printing ink sector is pushing companies to offer better shades and vivid colors to printed text. The demand for different printing finishes has risen due to the increasing competition among brands and their need to place their product distinctly. Organic pigments in the form of color concentrates and masterbatches provide a variety of color shades, and customized colors can also be manufactured according to customer requirements. Continuous innovations in the organic pigments market are expected to be driven by the increasing need for enhanced aesthetics in printing inks for better marketing.

Restraint: Higher cost of organic pigments

Organic pigments are more expensive than inorganic pigments, which is a major restraint for the market. Usually, pigments constitute upwards of 50% of the total cost of the final products. These are limited to paints, inks, and coatings applications. The market is witnessing a normal growth rate; however, the size is smaller than that of the inorganic pigments. Inorganic pigment producers experience economies of scale in their production processes, while organic pigments are produced in small quantities. Hence, the production cost for organic pigments is higher, increasing the final product's price.

Opportunity: Growing demand for color filters

The color filter is a major liquid crystal display component, directly determining the picture quality. The increasing demand for notebooks/PCs, mobiles, and televisions drives the market quickly. The color filters used in these display devices employ colored pigments (organic), UV-curable carrier resins, photoinitiators, organic solvents, and dispersants. Organic pigments are used in these filters for specific primary color (RGB), spectral hue, vividness, and durability. This has drastically reduced the power consumption of display devices, thereby helping grow organic pigments in the display market. The following table analyses the growth in demand for electronics that use LCD/LED displays. This increase in demand for LCD/LEDs is expected to boost the demand for organic pigments in the color filter application.

Challenge: Increasing environmental regulations and lower supply

Asia Pacific is the major hub of raw materials and intermediaries for organic pigments. China and India are the major producers due to the lower raw materials and labor costs. Pigment quality is determined by the manufacturing process and raw materials' quality. With the increasing restrictions in China, India, and other countries worldwide, many producers are forced to refine their products and optimize their manufacturing processes to reduce pollution. These pigments are mainly used in the food, cosmetics, and coating & paints industries. As these end users continuously demand changes in chemistry as per changing regulations, the smaller players lack the competitive edge. Only players with exceptional R&D teams and financial means can survive in the market. The prominent and exceptional players immediately imply the required changes and cope with the recent trends and requirements in the market.

Ecosystem: Organic Pigments Market

Based on the source, natural source segment is estimated to be the fastest-growing source during the forecast period in terms of value.

Natural pigments use materials occurring naturally in the environment. These pigments were mostly extracted from various parts of plants to provide different shades. Flowers were the most used parts, along with peels, pulps, and seeds. Natural pigments also used animal by-products, such as blood and microbial products, as raw materials. Nowadays, bio-based chemical compounds such as ethanol are used to manufacture pigments. These pigments are very sensitive and require special care in preserving and storing.

Based on the type, High-performance pigments (HPPs) segment is estimated to be the fastest-growing type during the forecast period, in terms of value.

HPPs have excellent lightfastness and heat stability; they are resistant to various chemicals, which makes them suitable for applications requiring high performance. Different types of organic HPPs are benzimidazolones, quinacridone, perylene, dioxazine violet, isoindolinones and isoindolines, disazo condensations, phthalocyanines, and diketo-pyrrolo-pyrroles. Due to their superior properties, HPPs are widely accepted in the printing ink, coatings, and paints industries.

Based on application, the paints & coatings application segment is anticipated to register the highest CAGR in organic pigments market.

The paints & coatings application is expected to be the fastest-growing segment of the market during the forecast period. Organic pigments are preferred for these applications as they offer a higher gloss and color finish. They are mostly non-toxic and compatible for use in contact with food items, further expanding their application range. Organic pigments are used in various coating applications owing to their high-performance characteristics, which impart qualities such as good weather fastness, good light fastness, low migration, and solvent & bleeding fastness to the end products. Organic pigments are widely used in decorative coatings, marine coatings, automotive coatings, and industrial coatings.

Europe to be the second-largest market for Organic Pigments during the forecast period, in terms of value.

Europe is the second-largest organic pigments market globally. The major industries in the region include automotive, building & construction, and packaging. These industries consume plastics in large volumes, which is increasing the consumption of organic pigments. The demand for organic pigments is high in the paints & coatings application in the building & construction and automotive industries. Germany is the key organic pigments market in Europe, which has a high growth potential due to the increasing use of these pigments in the automotive industry for paints & coatings applications.

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Key Market Players

The organic Pigments market is dominated by a few globally established players, DIC Corporation (Japan), Heubach GmbH (Germany), Dainichiseika Color & Chemicals Mfg. Co., Ltd. (Japan), Lily Group Co. Ltd. (China), Sunlour Pigment Co., Ltd. (China), Anshan Hifichem Co., Ltd. (China), and Meghmani Organics Ltd. (India), among others, are the main producers in the global organic pigments market.

These companies are attempting to establish themselves in the organic pigments market by employing a range of inorganic and organic approaches. A thorough competitive analysis of these major organic pigments market participants is included in the research, along with information on their company profiles, most recent advancements, and important market strategies.

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Scope of the Report

The study categorizes the organic pigments market based on Type, Source, Application, and Region.

By Source of organic pigments:

• Synthetic
• Natural

By Type:

• Azo Pigments
• Phthalocyanine Pigments
• HPPs
• Other Types

By Application:

• Printing inks
• Paints & coatings
• Plastics
• Other Applications

By Region:

• North America
• Europe
• Asia Pacific
• Middle East & Africa
• South America

Recent Developments

• In December 2022, Sudarshan Chemical Industries Limited introduced two pigments under their organic pigments portfolio. These products have applications in plastics and coating applications.
• In July 2022, DIC Corporation announced a second-phase agreement with Debut Biotechnology, Inc. to create natural red pigments for nutrition, food, and cosmetic applications.
• In January 2022, Heubach completed the acquisition of Clariant’s global pigment business. This acquisition allows the company to expand and improve its pigments business and more future growth opportunities.

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