The Pearlescent Pigment Market is estimated to be valued at US$ 3.98 Bn in 2023 and is expected to exhibit a CAGR of 4.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Pearlescent pigments are effect pigments with distinct optical properties that produce bright, iridescent color changes when viewed from different angles. They are produced through several coating processes that result in pigments with asymmetric, non-spherical shapes. These specialized pigments find major applications in automotive and transportation coatings.
Market key trends:
Pearlescent pigments are gaining significant traction in the automotive industry owing to their exclusive luster and ability to enhance the gloss and sparkle effects in automotive coatings. Auto manufacturers are increasingly incorporating pearlescent pigments to impart luxurious, high-end appeal to their vehicles. Growth in premium and luxury vehicles that emphasize on aesthetic designs is fueling the demand for premium effect pigments like pearlescent pigments. Further, pearlescent pigments allow for new color designs inspired by luxury goods and fashion trends, thus driving innovation in automotive colors. The development of environment-friendly, low-VOC pearlescent pigments is also propelling their adoption in automotive coatings. Rising automobile production across regions like Asia Pacific and Latin America is expected to boost the consumption of pearlescent pigments over the forecast period.
Porter’s Analysis
Threat of new entrants: The threat of new entrants into the pearlescent pigment market is low as it requires high initial capital investment and R&D to develop new pearlescent pigments.
Bargaining power of buyers: The bargaining power of buyers is moderate as pearlescent pigments have uses across various end-use industries leading to buyer options.
Bargaining power of suppliers: The bargaining power of suppliers is low due to availability of raw materials from different global suppliers and switching costs being low for buyers.
Threat of new substitutes: The threat of new substitutes is moderate as pearlescent pigments have limited substitutes and are often irreplaceable in certain formulations and applications.
Competitive rivalry: High due to presence of global players operating across regions.
SWOT Analysis
Strength: Unique optical effect pigments providing visual metallic sparkle and texture. Wide end-use applications across industries.
Weakness: High manufacturing and R&D costs. Raw material price fluctuations.
Opportunity: Growing demand from coatings, plastics, cosmetics industries. Potential in developing economies. New product development.
Threats: Stringent environment regulations. Threat from other special effect pigments.
Key Takeaways
The global pearlescent pigment market is expected to witness high growth, exhibiting CAGR of 4.7% over the forecast period, due to increasing demand from coatings industry. The coatings segment accounts for over 35% of global demand for pearlescent pigments led by growth in automotive and construction industries.
Regionally, Asia Pacific dominates the global pearlescent pigment market and is expected to maintain its lead over the forecast period. This can be attributed to growth in end-use industries in China, India, and other developing economies in the region. The North America and Europe markets are expected to grow at steady pace.
Key players operating in the pearlescent pigment market are BASF SE, Sudarshan Chemical Industries Ltd., Merck KGaA, DIC Corporation, ALTANA AG, Fujian Kuncai Material Technology Co., Ltd., CRISTAL, Shanghai Zhuerna High-Tech Powder Material Co., Ltd., Oxen Special Chemicals Co., Ltd., Huaian Concord Industrial Product Co., Ltd., Spectra Colours Ltd., LANSCO COLORS, Aal Chem, Zhejiang Ruicheng Effect Pigment Co., Ltd, Sinpearl Pearlescent Pigment Co., Ltd., and Kolorjet Chemicals Pvt. Ltd.
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