demand for organic colorants in textiles
and plastics, while strong growth in global construction activity will boost demand
in paints and coatings. Increases in value
demand will reflect the growing importance of expensive, higher value dyes and
pigments that meet increasingly stringent
performance standards and preferences
for more environmentally friendly products. Despite the healthy growth, even
faster advances will be limited by a moderation in global vehicle production and
slow growth in printing inks due to the
challenges facing the print media indus-try. These and other trends are presented in “World Dyes & Pigments,” a new
study from The Freedonia Group, Inc., a
Cleveland-based industry research firm.
Expansion of the middle class, par-
ticularly in the Asia/Pacific and Africa/
Mideast regions, will help drive an ac-
celeration in global consumer spending
that will benefit important dye and or-
ganic pigment markets such as textiles
and plastic products. Rising textile
production – the textile market ac-
counted for over half of world dye and
organic pigment demand in 2014 – will
be the primary contributor to increased
demand going forward, while growing
plastic output will expand demand for
organic pigments.
While China will remain the dominant
global consumer of dyes and organic pig-
ments, rapid growth will also be experi-
enced in smaller Asian markets such as
Bangladesh, India, and Vietnam as textile
and plastic producers continue to move
production to countries with the low-
est labor costs. Additionally, consumer
preferences for new, unusual textile col-
ors – that do not fade and yet are envi-
ronmentally friendly – will boost growth
in value demand as textile producers
increasingly turn to these newer, higher
value products.
The fastest growth in dye and organic
pigment demand will be in paints and
coatings applications, driven primarily
by strong advances in construction ex-
penditures in North America and con-
tinued growth in the Asia/Pacific region.
While the outlook for many organic colo-
rant applications remains healthy, more
moderate advances in printing inks, due
principally to the growing publication of
information in electronic form, will re-
strain overall dye and pigment demand.
Opportunities will exist, though, for dyes
and organic pigments that can be used in
digital inks.
GfK: Over IDR 60 Billion
Rupiahs Worth of Paint Sold
Each Month in Jakarta
Consumers in the capital city of the
world’s fourth most populous nation of
Indonesia spent over 125 billion rupiahs
on paint during the two months period of
November to December last year, going
by the retail sales data by GfK.
GfK commenced tracking of paint
products in Jakarta at the end of last year,
covering independent channels such as
DIY Stores and paint specialists.
Comprising emulsion, wood and metal
paints, the survey outcome indicated that
emulsion is the dominant segment contributing to 88 percent of the total paint
market spending. The remaining wood
and metal paint make up the remaining
nine and three percent respectively.
“The biggest and most lucrative
emulsion category naturally attracts the
greatest competition – both local and
international,” said Guntur Sanjoyo,
managing director for GfK in Indonesia.
“In Jakarta alone, we track the exis-
tence of 24 brands with over 80 dif-
ferent types of offerings vying for the
consumer dollar.”
GfK reports registered more than two-
thirds (68%) of total emulsion paint sales
coming from foreign brands—indicating
that consumers in the country still prefer
internationally recognized manufacturers.
Another interesting highlight is the
fact that nearly half, or 21 of the 45 emulsion paint variants cost over IDR 25.000
per liter – classifying them under the premium segment. This segment accounted
for the biggest value share of 63 percent.
Meanwhile, the medium range
(IDR 15.000 - 25.000/ltr) was occupied
by 17 models while the rest fell under the
low segment (
GfK’s retail audit of paints in
Indonesia currently covers Jakarta, and
will be expanding to track more cities in
the country.
Report on Global
Consumption of
Formulated Adhesives
According to a study by the consulting firm Kusumgar, Nerlfi & Growney,
global consumption of formulated adhesives was 10. 24 MM tons in 2014 worth
$29.4 billion. Volume has increased since
the 2009 recession and a five percent annual rate of growth is forecast through
2019. Growth in Europe and North
America is forecast at a mature two percent annual rate while the Asia-Pacific region, led by China, is forecast to expand
at an eight percent annual rate.
China represented two-thirds of the
formulated adhesive volume in the Asia-Pacific region in 2014 and 32 percemt
of the global share. Adhesive growth in
China is moderating, but a still robust
eight percent annual rate of increase is
forecast through 2019. Japan is the second largest consumer in Asia-Pacific with
eight percent of the volume with growth
forecast at only one percent/yr. India is
third in the region with six percent of the
volume, but will surpass Japan by 2019
owing to its forecast double digit rate of
growth. Brazil is the leading consumer of
adhesives in South and Central American
countries accounting for over 60 percent
of the region’s volume. A modest five percent annual rate of growth is forecast for
Brazil and the region.
Pressure sensitive products are the
largest end use for formulated adhesives
representing 27 percent of the volume
in 2014. Packaging is the second largest
adhesive end use with 22 percent of the
volume and a four percent yearly rate of
growth is forecast. Flexible packaging
was 15 percent of the packaging volume
and one-quarter of the value and is growing six percent/yr. Woodworking was an
outlet for 19 percent of the adhesive tons
and includes furniture, building products
and other applications. Construction
was the other larger volume adhesive end
use with 14 percent of the volume. The
top four formulated adhesive end uses
combined for 82 percentof the volume
in 2014 and 63 percent of the dollars.
Smaller, higher dollar value, end uses include aerospace, electronic, disposable
products and windmill blades. CW
