segments plus additional effects like color trend and replacement of lead chromates mainly in emerging markets,” said
Jens Reininger, head of strategic marketing, Clariant Plastics
& Coatings.
Reininger continued, “Consumption of pigments in automo-
tive OEM and industrial coatings strongly correlates to regional
GDP growth rates. In decorative coatings, we expect an above-
average pigments volume growth in emerging regions like China
and India with currently still low consumption of paints in rela-
tion to the number of occupants, and respectively in comparison
to traditional markets in Europe and North America. As dis-
cussed, replacement of lead chromates has an additional posi-
tive effect on organic pigments volume growth in these regions.
In Europe we expect a low volume growth of paint and pigment
consumption. A more or less constant value of the pigment mar-
ket is the result of decreasing price developments besides overall
volume increase.”
Emerging markets continue to offer the best opportunity
for growth in the pigment market. “As in previous years we see
the opportunity for growth in Asia and Eastern Europe,” said
Poemer. “In previous years, Latin America has also provided
opportunities but with the current economic situation in Brazil,
the largest market in Latin America, the opportunities have been
significantly reduced. There is a specific trend to high perform-
ing pigment solutions spreading from the mature markets also
in the areas of Asia and Africa.”
Over the past decade, the pigments market has continued
to become more competitive and challenging. “Our customers
demand that we act quickly to respond to their needs,” Gentile
noted. “And at the same time, we know we need to be bring-
ing innovative products to the market and anticipating future
trends. All of this requires close collaboration with our custom-
ers to ensure we’re making the right decisions together. We’ve
also observed a growing demand for individual design, espe-
cially in automotive coatings. There is a strong need for differ-
entiation and the right effect pigments can help our customers
be successful in this area.”
Environmental issues are of paramount importance to
pigment suppliers to the coatings the industry. “Compliance
issues remain the major challenge for the whole chemical in-
dustry, including pigments,” said Hoover. “New tougher envi-
ronmental standards in China have effected global commodity
pricing on many items and will put pressure on prices in 2017.
To compensate for raising raw material costs many companies
are bringing processes, that have traditionally been outsourced,
back in-house.”
One of the major influences for the pigments market is
REACH legislation. “This legislation will obviously impact the
situation in Europe but will also have an impact around the
world due to the global market,” said Poemer. “The upcoming
last step of REACH will be a challenge for smaller suppliers
who may not have the necessary resources to provide compliant
materials. We are starting to see some shortages in raw mate-
rials and subsequently some increased pricing. The increasing
raw material prices will also have an influence on pigment pric-
ing and after nearly years of price reduction the trend will most
likely go up.”
Union Colours has made sustainability a top priority. “We
keep investing in the sustainability of our manufacturing, envi-
ronmentally and for cost, we keep developing pigments which
meet the regulatory requirements and we make sure that we
will have a broad portfolio available to our customers also af-
ter May 2018 when the final stage of REACH comes into ef-
fect,” said Olilver Pfefferkorn, sales director at Union Colours.
“REACH does not only effect Europe. Last but not least we are
building a new production facility in South Africa which will be
focusing on clean pigments for various applications.”
As with other industries, globalization trends are impacting
pigments producers. “The leading paint and coating manufac-
turers have become increasingly international in their activities
ever since the onset of market globalization,” said Spiegelhauer.
“Consequently, pigment suppliers are now expected to grow
worldwide along with them, and to make pigments of consistent
quality available everywhere in the world. Lanxess benefits from
a demand shift towards high-end and environmentally friendly
products accessible globally in the same quality.”
According to Sun Chemical’s Venturini, opportunities for
growth are available in all markets, including the mature
markets of Europe and the U.S. “Pockets of regional growth
opportunities can be found in areas driven by unique local
market requirements.”
“Regionally we have seen strong growth in real estate invest-
ment and building construction in North America and Asia,”
Venturini continued. “This trend has been driving both volume
and innovation at Sun Chemical. We are especially seeing strong
demand for our durable, stain resistant Benda-Lutz MAXAL EC
aluminium flake for use in powder architectural coatings.
For decorative liquid and powder coatings, designers are
seeking multilayer effects similar to those developed for the
automotive industry. In 2016, Sun introduced SunMICA Deep
Black Pearlescent pigment, which is well suited for powder
coatings applications to create deep, rich and reflective charcoal effects. Technology innovations in both effect and high
