Special Effect Pigments Market, Global, 2024 2030

Forecast Analysis

• The automotive industry accounts for a significant portion of the special effect pigments market. Factors such as steady automotive production growth, increasing EV penetration, and rising consumer preference for large vehicles, such as sports utility vehicles (SUVs) and multi-purpose vehicles (MPVs), boost demand.
• In addition to end-industry growth, pigment suppliers closely follow downstream industries' popular trends. For instance, the cosmetic industry is largely leaning into the natural and eco-friendly trend. Hence, substrates containing minimal impurities (such as synthetic mica) are gaining momentum.
• For instance, in August 2023, Eckart strengthened its SYNCRYSTAL portfolio by launching SYNCRYSTAL Soft Ivory, a new syn-mica-based special effect pigment that provides a natural look in cosmetic applications.
• Similarly, switching to ethical raw material sources amid the rising demand for sustainability and traceability across applications will significantly impact revenue growth.
• However, increasing costs, the stringent regulatory scenario, and the rising competition are some challenges pigment producers face, weighing down on short-term growth prospects.

Revenue Forecast Analysis by Region

North America

• The shift to sustainable materials is a prominent trend in North America’s developed countries. Hence, a shift from solvent-borne systems to water-borne systems can be expected in the coming years.
• Manufacturers are widening their product portfolios to include a variety of substrates to cater to the changing demands of downstream industries, particularly in pearlescent pigments where companies have balanced product portfolios based on natural and synthetic substrates.
• Owing to changing dynamics around raw material traceability, sustainability, and end-product characteristics, synthetic substrates are expected to witness a higher growth rate in the region.

Europe

•  With a strong focus on sustainability, European suppliers are broadening their product portfolios by introducing environmentally friendly pigments and future-proofing their business models against potential regulatory amendments.
• While enjoying global dominance in the metallic pigments segment with the presence of suppliers such as SCHLENK and Eckart, the region faces strong headwinds in the pearlescent pigments category due to the emergence of suppliers from Asia-Pacific. This is further escalated by increasing production costs in Europe in the form of rising energy prices, increasing labor costs, and geopolitical uncertainties.
• Hence, the region is expected to witness relatively sluggish growth during the forecast period.

Asia-Pacific

• Asia-Pacific dominates the demand for special effect pigments, mainly due to a well-established, strong downstream industry that makes a significant contribution to the high demand for special effect pigments.
• Several policies in countries such as China encourage domestic pigment production by placing them in high-priority categories, while India imposes anti-dumping duties. These policies will be beneficial for the regional supply and demand.
• With a gradual recovery in automotive production and a growing preference for metallic effects for plastic packaging, as well as the region’s emerging cosmetics industry, demand for special effect pigments is expected to remain high throughout the forecast period.

Latin America & MEA

• These regions account for a relatively small proportion of the global special effect pigments market, largely due to low production volumes of end products. However, they are expected to witness a higher growth rate as downstream brand owners ramp-up production capabilities.
• The rising automotive production in Latin America and the increasing sales of luxury vehicles in MEA drive regional growth.
• In addition, rising disposable income and emerging consumer interest in cosmetics and personal care products attract brand owners and indirectly create demand for special effect pigments.

Key Competitors

Pearlescent Pigments 

• Merck KGaA 
• Altana AG (Eckart GmbH) 
• Schlenk SE 
• Fujian Kuncai Material Technology Co. Ltd. 
• Sudarshan Chemical Industries Limited 
• DIC Corporation (Sun Chemical) 
• Guangxi Chesir Pearl Material Co., Ltd. 
• CQV Co., Ltd. 
• Pritty Pearlescent Pigments Co., Ltd. 
• Shantou Longhua Pearl Lustre Pigments Co., Ltd. 
• Geotech International B.V. 
• Glassflake Limited 
• Nanyang Lingbao Pearl Pigment Co., Ltd. 
• YORTAY Chemical Pigment Co., Ltd. 
• Nihon Koken Kogyo Co., Ltd. 
• DCL Corporation 
• Guangzhou Sheenbon Pigment Technology Co., Ltd 
• Kromachem Ltd 

Metallic Pigments 

• Merck KGaA 
• Eckart GmbH (Altana) 
• Schlenk SE 
• DIC Corporation (Sun Chemical) 
• Toyal Group 
• Asahi Kasei Corporation 
• CQV Co., Ltd. 
• The Shepherd Color Company 
• Carlfors Bruk AB 
• Metaflake Ltd. 
• Alba Aluminium SRL 
• Zhangqiu Metallic Pigment Co., Ltd. 
• Kolortek Co., Ltd.

Market Segmentation

Special Effect Pigments

By Type 

• Pearlescent Pigments 
• Natural Substrates 
• Synthetic Substrates 
• Metallic Pigments 
• Aluminum Pigments 
• Other Metallic Pigments 

By Application 

• Paints & Coatings 
• Inks 
• Plastics 
• Cosmetics & Personal Care 
• Others 

Note: Other metallic pigments include zinc-based pigments and CU-Zn alloys. Other application segments include ceramics and glass, textiles and leather, and electronics.

Revenue and Volume Forecast

Special Effect Pigments: Revenue and Volume Forecast, Global, 2020–2030 
Revenue CAGR = 4.7% 
Volume CAGR = 4.4%