Synthetic Dyes And Pigments Market Definition
The synthetic dyes and pigments market consists of the sales of synthetic dyes and pigments by entities (organizations, sole traders or partnerships) that manufacture synthetic organic and inorganic dyes and pigments, such as lakes and toners (except electrostatic and photographic).
Synthetic Dyes And Pigments Market Size
The global market for synthetic dyes and pigments reached a value of nearly $52.0 billion in 2018, having increased at a compound annual growth rate (CAGR) of 1.4% since 2014.
Growth in the historic period resulted from rising demand in emerging markets and technological advances. Going forward, increased demand from the packaging industry, rising demand for high performance pigments and economic growth will drive the synthetic dyes and pigments market growth. Factors that negatively affected growth in the historic period were changing regulations, increasing awareness of safety issues and decreased demand from the paper publishing industry. Factors that could hinder the growth of this market in the future are instability in raw material costs, expected increases in interest rates, reduction in free trade and growing competition from natural dyes and pigments.
Synthetic Dyes And Pigments Market Drivers
The Key drivers of the synthetic dyes and pigments market include:
Low Interest Rate Environment
During the historic period, interest rates in most developed countries were very low. This created a flow of cheap money for investment, in both developed and developing economies. It also encouraged borrowing and discouraged saving in advanced markets, leading to an increase in consumer spending. The synthetic dyes and pigments market benefited from the flow of cheap money during this period. Chemicals companies, including synthetic dyes and pigments companies borrowed money for process improvements which helped the companies to consolidate and produce better products at lower prices to boost the overall market. For instance, in 2016, nearly 1,200 deals that were valued approximately at $380 billion were announced; these included deals by Bayer-Monsanto and Dow-DuPont.
Synthetic Dyes And Pigments Market Restraints
The key restraints on the synthetic dyes and pigments market include:
Regulatory Challenges
Many of the products in the synthetic dyes and pigments market are potentially hazardous during the manufacturing stages. This is mainly because the manufacturing processes involve high temperatures and high-pressure reactions, which can be dangerous unless controlled carefully. In addition, some of these manufactured dyes have an adverse impact on both living organisms and the environment. Due to this, regulations in the synthetic dyes and pigments market– in assessing and managing the risks involved in the manufacturing, transporting and disposing of chemicals – increased in the historic period. Synthetic dyes and pigments manufacturers have to be compliant with complex regulations that govern labeling, handling, manufacturing, and shipping and storage of the product. These regulations increased the compliance costs for the manufacturers, restraining the synthetic dyes and pigments market.
Synthetic Dyes And Pigments Market Trends
Major trends influencing the synthetic dyes and pigments market include:
Eco-Friendly Dyes - Many textiles companies are starting to opt for eco-friendly dyes for producing textiles and fabrics. These companies do are not use harmful dyes as they cause extensive damage to the environment and are known to cause skin allergies and respiratory diseases. Due to the positive environmental characteristics and low toxicity of eco-friendly dyes, many companies are moving toward eco-friendly organic dyes, though they are priced higher than inorganic dyes
Rising Investment In R&D - Synthetic dyes and pigments manufacturers are increasingly investing in R&D activities and technological innovation to develop products with enhanced physical and chemical properties. Synthetic dye manufacturers are investing in smart dyeing processes and intelligent effects such as dyes which do not fade and have a better temperature resistance. Companies such as Huntsman Textiles and Clariant International are increasingly investing in R&D for synthetic dyes and pigments. For instance, Huntsman Textiles Effects has around 700 patents for synthetic dyes and the company consistently invests 5% of its turnover in R&D.
Opportunities And Recommendations In The Synthetic Dyes And Pigments Market
Opportunities – The top opportunities in the global synthetic dyes and pigments market will arise in the disperse dyes segment which will gain $0.85 billion of global annual sales by 2022. The synthetic dyes and pigments market will gain the most in annual $ sales in China at $4.89 billion. To take advantage of opportunities such as these, synthetic dyes and pigments manufacturers should consider strategies such as setting up manufacturing plants in Asia, developing eco-friendly dyes that are cost-effective, investing in R&D to develop products with enhanced properties to meet the consumer demand and be at par with other major players, broadening product portfolios by adding innovative products to meet the demand from various industries, expanding business operations to meet customer demand through sustainable investments.
Recommendations – To take advantage of the opportunities, The Business Research Company recommends the synthetic dyes and pigments companies to focus on high performance pigments, increase investments in research & development, expand in emerging markets, focus on establishing plants in low-cost countries, focus on expanding through collaborations, leverage social media to maximize reach and focus on eco-friendly dyes.
Synthetic Dyes And Pigments Market Segmentation
The Synthetic Dyes And Pigments market is segmented by type of product, by end user industry and by geography.
By Product Type-
The synthetic dyes and pigments market is segmented by product type into
a) Pigments
b) Dyes
Growth has accelerated significantly in both segments of the synthetic dyes and pigments market and these faster rates of growth will continue to 2022.
Sub-Segmentation
By Product Type-
The synthetic dyes market is further segmented by product type into
- a) Acid Dyes
- b) Disperse Dyes
- c) Reactive Dyes
- d) Direct Dyes
- e) Basic Dyes
- f) VAT Dyes
- g) Other Dyes
The disperse dyes market will be the fastest-growing segment going forward at a CAGR of 6.0%.
The pigments market is further segmented by product type into
- a) Inorganic Pigments
- b) Organic Pigments
Inorganic pigment accounted for the largest share of the pigments market in 2018 at 64.8%.
By End User Industry -
The synthetic dyes market is segmented by end user industry into
- a) Textiles
- b) Food And Beverages
- c) Paper
- d) Inks
- e) Leather
- f) Others
Growth has accelerated significantly in all end-user segments of the global synthetic dyes and pigments market and these faster rates of growth will continue to 2022.
The pigments market is segmented by end user industry into
- a) Paints And Coatings
- b) Plastics
- c) Printing Inks
- d) Textiles
- e) Cosmetics And Personal Care
- f) Others
Growth has accelerated significantly in all end-user segments of the global synthetic dyes and pigments market and these faster rates of growth will continue to 2022.
By Geography - The synthetic dyes and pigments market is segmented into
- o North America
- o Western Europe
- UK
- Germany
- France
- Spain
- Italy
- o Asia Pacific
- China
- Japan
- India
- Australia
- o Eastern Europe
- o South America
- o Middle East
- o Africa
Asia-Pacific is the largest market for synthetic dyes and pigments companies, accounting for 41.9% of the global market. It is followed by Western Europe, North America, South America, the Middle East, and then the other regions. Going forward, Africa and Asia-Pacific will be the fastest growing regions in this market
Synthetic Dyes And Pigments Competitive Landscape
Major Competitors are:
- • BASF SE
- • The Chemours Company
- • Venator Materials PLC
- • Kronos Worldwide, Inc.
- • Tronox Limited
