The market for special effect pigments is expected to grow at a CAGR of about 4% globally during the forecast period. Increasing applications in cosmetics, paints and coatings, and growing demand due to its wide range of applications drive market growth. On the flip side, stringent environmental regulations are expected to hinder the growth of the market.
- Special effect pigments market is expected to grow during the forecast period owing to the increasing application in paints and coatings.
- Asia-Pacific region dominated the market across the globe with the largest consumption from countries such as China, India, and Japan.
Key Market Trends
Increasing Application in Paints and Coatings
- Special effect pigments provide unusual optical effects for various applications, amongst which paints and coatings lead in the application. They are used to enhance appearance, brightness, and obtain metallic effects, such as gold, silver, chrome, and others.
- The increasing buildings and construction sector is attributing to the growing application of special effect pigments in paints and coatings.
- In addition to the paints and coatings optimized for the construction industry, processors also add these special effect pigments to enhance the properties of paints and improve its appearance.
- It is estimated that in the United Kingdom around 27,000 - 50,000 new homes are to be built by 2022 which in turn increases the scope for this market
- Growing demand for paints and coatings from the industrial segment for protection is also increasing the application of special effect pigments.
- Hence, owing to the growing application of paints and coatings in buildings and construction, industrial sector, especially in Asia-Pacific and North American countries, the demand for special effect pigments is expected to increase over the forecast period.
Asia-Pacific Region to Dominate the Market
- Asia-Pacific region is expected to dominate the market for special effect pigments during the forecast period. Due to the high demand from countries like China, India, and Japan, the market for special effect pigments has increased.
- The largest producers of special effect pigments are located in the Asia-Pacific region. Some of the leading companies in the production of special effect pigments are BASF Colors & Effects GmbH, Merck KGaA, Silberline Manufacturing Co., Inc, Sun Chemical, and Shepherd Color.
- In 2018, the Indian government announced an investment worth USD 31,650 billion for the construction of 100 cities, under the smart cities plan. 100 smart cities and 500 cities are likely to invite investments worth INR 2 trillion (~USD 28.18 billion) over the coming five years.
- The Chinese government has rolled out massive construction plans, including making provisions for the movement of 250 million people to its new megacities over the next ten years, creating a major scope for construction activity, thereby increasing the market for special effect pigments over the coming years.
- Apart from paints and coatings, these special effect pigments have diversified applications in cosmetics, printing inks, plastics, and others
- The aforementioned factors, coupled with government support, are contributing to the increasing demand for special effect pigments during the forecast period.
The global special effect pigments market is fragmented, with players accounting for a marginal share of the market. Few companies include iSuo Chem, Silberline Manufacturing Co., Inc, BASF Colors & Effects GmbH, Sun Chemical, and Merck KGaA.
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