High Performance
and Special Effect
Pigments Market
While the market is still not back to pre-recession levels, high performance and special
effect pigments are seeing growth in China and other high growth markets.
by Kerry Pianoforte,
Associate Editor
The market for high performance pigments (HPP) and special effect pigments has continued to rebound
from the recent economic downturn. HPP
and special effect pigment manufacturers
Coatings World interviewed reported
mostly modest growth in 2011.
“We saw the high performance and
special effect pigments rebound in 2010
from the worldwide crisis of 2009, but we
have not yet seen pre-recession levels,” said
Mehran Yazdani, vice president, market-
ing, performance pigments, Sun Chemical.
“We continue to see an upswing in the
high performance and special effect pig-
ments markets during the first and second
quarters of 2011.”
“The key challenge we face to maintain
this growth are the costs of raw materials,”
he added. “Due to the supply rationaliza-
tion that occurred during the downturn,
and the increased costs of environmental
and regulatory compliance, we have seen
significant cost increases of the raw materi-
als that we use to manufacture our pig-
ments. Despite this hurdle, we expect
further growth in 2011 and beyond.”
JDSU reported that effect pigments
grew in the last 12 months as a result of
improved sales to automotive coatings sup-
pliers. “JDSU offers a comprehensive range
of professional color services, including
manufacturing of ChromaFlair, light inter-
ference pigment and SpectraFlair, light dif-
fractive pigment, to create sophisticated
and unique color options for consumers,”
said John Book, product line manager, cus-
tom color solutions, JDSU.
Making inroads into new
markets
Traditionally used for automotive coatings,
HPP and special effect pigments are also
making headway into new market segments.
According to Book, automotive applications in emerging markets still hold the highest potential for growth in the coming years
followed by cosmetic ingredients. “In addition to new effect pigment, JDSU is investing infrared reflective coatings for heat
management and passivated pigments for
waterborne coatings,” he added.
“HPP and effect pigments offer high-quality, durable and unique color options
for consumers and brands. Although there
is an added cost for these solutions, they
are suitable for use on durable and long
lasting items that not as price sensitive.”
“For high performance pigments, the
automotive market has the greatest po-
tential and it is anticipated to be strong
for the next two to three years,” said
Martens. “The industrial market will in all
likelihood remain relatively flat and the
building industry will continue to strug-
gle. We have also seen indications in cer-
tain niche markets where customers are
looking for more durable products in the
architectural coatings area.”
“From the market segment viewpoint,
we expect continued growth in automo-
tive, architecture, fiber, nylon, graphic
arts, specialties and niche markets,” said
Yazdani. “The automotive market has
seen an increase in demand for unique
color and effects. This trend continues to
help fuel the continued growth in high
performance and effect pigments.”
China drives growth
China continues to drive growth in the HP
and special effects pigments market. This
can be attributed to a number of factors
including the expanding auto market and
the rapidly increasing middle class.
According to Rick Campbell, president,
Trust Chem USA, the markets for high performance and special effect pigments have
shown slow growth worldwide. “However,
growth continues at a steady pace in
China,” he said. “In the past few years,
there is an obvious increase in the use of
high performance pigments in China. This
