The market for zinc oxide pigments is expected to register a CAGR of over 3% during the forecast period. The primary factor driving the market studied is the increasing demand for paints and coating. On the flip side, unfavorable conditions arising due to the COVID-19 outbreak are hindering the growth of the market.
- The paints and coatings segment is expected to dominate the zinc oxide pigments market over the forecast period.
- The Asia-Pacific region represents the largest market, and it is also expected to be the fastest-growing market over the forecast period due to the increasing consumption from countries like China, India, and Japan.
Key Market Trends
Increasing Demand from Rubber
- The rubber industry is expected to be one of the largest markets for zinc oxide pigments.
- Zinc oxide pigments are widely used in the rubber industry due to its excellent properties, acting as activators for sulfur vulcanization to reduce the vulcanization time.
- Additionally, zinc oxide pigments also enhance the physical properties of rubber.
- The global tire production in 2019 was estimated to reach 255 million units, a 5% increase from 2018 (where it posted a growth of 6% from 2017). It is anticipated to witness a CAGR of 2-3% over the forecast period
- Therefore, the demand for zinc oxide pigments from the rubber industry is expected to grow during the forecast period.
Asia-Pacific to Dominate the Market
- Asia-Pacific region is expected to account for the largest market for zinc oxide pigments during the forecast period. The growing industries, such as rubber, paints and coatings, electronics, and chemicals, in countries, including China and India, are expected to boost the demand for the market studied in the region.
- According to the China Rubber Industry Association (CRIA), China's truck and bus tire production in 2019 decreased by more than 10% compared to 2018. This adverse situation is expected to reduce the growth of the overall rubber demand, which is further expected to affect the market studied in the country.
- China hosts a vast construction sector, and the developments in the infrastructure and residential sectors in the past two years have supported its growth at large. These growing construction activities are propelling the demand for paints and coatings, which further is expected to boost the demand for the market studied.
- China has been majorly driven by ample developments in the residential and commercial construction sectors, which are supported by the growing economy. In China, the housing authorities of Hong Kong launched several measures to push-start the construction of low-cost housing. The officials aim to provide 301,000 public housing units for the ten years till 2030.
- In India, the government has initiated projects, such as 100 smart cities and 'Housing for All by 2022', which are expected to drive the residential construction market through the forecast period immensely. Furthermore, the country which launched more than 1,800 housing projects in the country (of which more than 50% was of high-rise buildings) is expected to launch even a more significant number of projects by the end of 2020.
- Furthermore, countries such as Japan and South Korea are also contributing to the growth of the market studied. Japan and South Korea are significant hubs of wafer manufacturing across the world. The Ministry of Economy, Trade, and Industry (METI) identified advanced manufacturing as one of the fastest-growing electronics manufacturing sectors, the market for which is likely to reach a value of about USD 270 billion by 2020.
- This includes smart factory and IoT-related technologies. With an increase in the production of such industrial products, the application of the market studied in electronics is likely to increase in the coming years. This is expected to drive further the demand for zinc oxide pigments market over the forecast period.
The zinc oxide pigments market is partially consolidated. The major companies of the market studied include BASF SE, U.S. Zinc, PAN-CONTINENTAL CHEMICAL CO. LTD, Natural Pigments Inc., and Hakusui Tech, among others.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support