U.S. pigments demand to reach $3.6 billion in 2007.

U.S. demand for pigments--inorganic, organic, and specialty types--is expected to rise 5% per year to $3.6 billion in 2007. According to a study completed by the Freedonia Group, Inc., Cleveland, OH, gains will be driven by a shift toward more expensive organic and specialty types offering acceptable environmental profiles or providing unique optical effects for heightened consumer appeal. The study suggests growth in inorganic pigments will lag behind industry average primarily because of the continuing phase out of heavy metal pigments. However, some inorganic products, such as industrial grade ultramarine, complex inorganic, and bismuth vandate types, show potential for continued healthy growth. Bismuth vandates are an environmentally friendly alternative to heavy metal pigments in end uses like motor vehicle coatings. Complex inorganics will find greater use because of their excellent lightfastness and chemical resistance.

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The more expensive organic and specialty types that offer acceptable environmental profiles or provide unique optical effects will drive value gains. Organic pigments, the largest category, are predicted to record above average growth. Gains will be spurred by the use of these environmentally acceptable colorants as replacements for heavy metal inorganic pigments. Increases will also be driven by greater use of high performance pigments, in such applications as water-based inks, powder coatings, and radiation-curable inks and coatings.

Specialty pigments are projected to achieve the most rapid gains, increasing 6.7% per year to $560 million in 2007. Further penetration of metallic and pearlescent types in automotive finishes will support gains. Higher demand by manufacturers of printing inks, plastics, and leather for novel optical effects will offer added opportunities.

Printing inks will remain the largest market for pigments, reaching $1.2 billion in 2007 with expected annual gains of 6%. Greater use of metallic pigments in inks designed for packaging and promotional graphics; phosphorescent pigments in anti-forgery, anti-counterfeiting, and other security applications; and pigments designed for use in digital ink formulations, such as wide format printers, will boost growth.

These and other trends are presented in the new study Pigments: Organic, Inorganic & Specialty by The Freedonia Group, an industrial research firm. The 271-page study is available for $3,900 from the group. Contact Corinne Gangloff at [e-mail], 440.684.9600, fax: [phone].