The market for fillers and pigments is growing strongly, according to the market research companies Fact.MR and Transparency Market Research. The outlook for further development remains promising from the perspective of the pigment industry. By Chiara Foppa Pedretti, contributing author.
Despite the setback caused by the pandemic and the ongoing global challenges, the global market for fillers and pigments is growing strongly. The aesthetic and functional properties of these raw materials are equally important drivers in a scenario dominated by the increasingly diverse and specific requirements of both companies and end users. raw vermiculite
The total value of the fillers market in 2022 was around EUR 3 billion across all segments according to Rajib Barman – Associate Vice President of Transparency Market Research. He expects the market for fillers to recover to pre-Covid-19 levels soon, with a compound annual growth rate (CAGR) of at least 5 %, up to an estimated value of EUR 3.65 billion in 2027 and to over EUR 4 billion in 2030. This includes calcium carbonate, kaolin and talc in particular as the most important materials used.
The global market for pigments is even larger. The market research company IMARC estimates it at EUR 25.4 billion in 2022 and forecasts that it will increase to EUR 41.7 billion by 2028, with a growth rate of 8.4 % in the period 2023-2028. In the medium term (2022-2026), opportunities of almost EUR 5.7 billion are forecast here. according to the market research company Fact.MR. These include titanium dioxide, iron oxide and zinc oxide in particular as the most important inorganic pigments, but also various types of organic (e.g. carbon black) and specialty pigments.
In the production of pigments and fillers, the Asia-Pacific region (APAC) is the undisputed global leader in the production of pigments and fillers, primarily because it is home to a very large number of mineral extraction sites. According to Barman from Transparency Market Research, this region accounts for almost 61 %, while Europe accounts for 17.3 %, North America 10.3 % and the other regions 11.4 %.
“On the consumer side,” Barman adds, “the total market value in Asia-Pacific amounted to EUR 1.45 billion in 2022. The value is expected to increase to EUR 1.88 billion by 2027 (and around EUR 2 billion by 2030), with a growth rate of over 5.5 % – the highest on a global level. The growth rate forecast for North America over the next few years is slightly less than 5 %, for Europe slightly more than 5 % and for the rest of the world less than 5 %.”
As far as the market for pigments is concerned, Fact.MR forecasts that Europe will experience a growth of 4.8 % CAGR between 2022 and 2032 and an absolute opportunity of around EUR 3.88 billion. North America is the second largest market worldwide, with a growth rate of 3.2 % CAGR.
As colour pigments are an important component of paint and coating formulations, they account for more than 30 % of the volume share of raw materials, according to the market research company Fact.MR.
The architectural coatings market in particular is the most important target sector for the filler and pigment industry. Barman explains: “The architectural coatings segment accounts for around 44 % of the total filler market. The total market value was EUR 1.32 billion in 2022, and we expect it to increase to EUR 1.8 billion by 2027, with a growth rate of 5.2 %. Within this sector, the interior coatings segment is the one with the highest growth rate at 5.4 %, while the exterior coatings segment will grow slightly less strongly at 4.9 %.” Pigments will follow the same general trends in the architectural coatings sector, particularly due to the choices made by individual end users, who attach the same or even greater importance to aesthetic factors (e.g. products with special effects, metallic, fluorescent or pearlescent colours) than to functional properties (e.g. corrosion protection, UV resistance, weather resistance, etc.). The second important target sector is industrial coatings. According to Barman from Transparency Market Research, the total market value in 2022 was around EUR 793 million and the expected growth rate until 2027 is 4.8 %. In this area, functional and high-performance products will prove to be an important driving force. This applies, for example, to pigments and fillers intended for the automotive industry and the electromobility segment in particular.
Explained clearly and simply, without sacrificing scientific expertise or attention to detail, “Fillers for Paints” by Detlef Gysau enables the reader to speedily gain a comprehensive overview of the working mechanisms and possible application areas of the most common fillers. Now available in its 3rd edition, the book has been updated with the latest market data, information about new fillers and an outlook on future trends, such as sustainability and light weight fillers.
The main driving factor for the market for fillers and pigments will therefore be the ever-increasing demand from the architectural coatings and industrial coatings segments. There is also constant demand for these products in the aerospace, corrosion protection, maritime and packaging segments, which is expected to remain constant in the coming years.
Bernhard Ehrenreich, consultant and expert for pigments and additives, illustrates the future opportunities of this market as follows: “In the short term, pigments and colorants are very dependent on colour trends and the economic environment. In the medium term, sustainability and recyclability will play an important role; most major paint, printing ink and plastics manufacturers are working intensively in this area. Finally, in the long term, the functionality of paints will be of the utmost importance. For example, the autonomous driving systems segment will focus on the reflectivity of paints, while some outdoor applications will pay particular attention to the conductive properties of paints to generate energy on surfaces.”
The main obstacles expected for this market include the general economic and political situation, particularly in Europe and especially in Eastern Europe due to the ongoing Russian-Ukrainian war. In addition, as in many other sectors, strict regulations and monitoring measures could become a major challenge to growth over the next 7-8 years, especially in terms of sustainability and occupational health and safety, according to Barman. Consider, for example, the strict regulations in the EU mining industry: The European Parliamentary Research Service blog states: “The EU mining industry may be part of the solution to Europe’s raw material shortages, but the sustainability of mining is a key requirement if it is to be revitalized.” Mohsen Yousefi Fard, a consultant on paints and coatings, summarizes: “The industry is changing towards producing more sustainable products, and new pigments and fillers will replace many old ones very soon.”
Yousefi Fard concludes with an economic view: “The new generation of pigments and nanofillers will not only have a significant impact on properties, but also on prices and quantities used in paints and coatings, plastics, printing inks and cosmetic products. Reducing carbon emissions is now a major challenge for manufacturers and end users, so by using lower amounts of pigments and fillers in formulations, the amount of these materials in the transaction will decrease, but the price will increase.”
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