The Global Aluminum Pigments Market is estimated to be worth US$ 422.4 Million in 2019 and is poised to grow at 6.2% to attain a market size of US$ 609.4 Million in 2025.
The Primary Factors driving the growth of the Global Aluminum Pigments Market include Surging Demand in Automotive sector, Growing demand from personal care industry and Surge in construction activities.
- Definition / Scope
- Market Overview
- Market Risks
- Top Market Opportunities
- Market Trends
- Industry Challenges
- Technology Trends
- Pricing Trends
- Regulatory Trends
- Other Key Market Trends
- Market Size and Forecast
- Market Outlook
- Technology Roadmap
- Distribution Chain Analysis
- Competitive Landscape
- Competitive Factors
- Key Market Players
- Strategic Conclusion
Definition / Scope
Aluminum pigments are almost exclusively manufactured using a method of wet-milling that requires mineral spirits or other solvents. The geometry of the particles creates distinct shapes as Aluminum powder is milled into a pigment.
Pigments used in plastics, for instance, come in three different forms. They resemble a flat cornflake, a flat sphere and a flat ellipse. Mirror-like pigments are formed when a thin Aluminum layer is deposited on a carrier film via a vapor deposition process.
A solvent tank where the release coating is dissolved runs through the metallized film.
To form coarsely reflective Aluminum pigment flakes, the remaining Aluminum layer is removed.
Aluminum pigments tend to have color because certain wavelengths of light (selective absorption) are more readily absorbed than other wavelengths. A pigment is normally insoluble in relation to a dye and will not combine with the substrate. As absorption-prone materials are used, this is a critical gain.
Metallescence (a colored pearlescent effect), a “liquid metal” appearance, a high or pinpoint sparkle and the glitter effect are the appearances produced by Aluminum pigment. Depending upon the surface polish, pigments can appear low-sheen or exceptionally bright.
The different appearances of paints and coatings used in the automotive industry relate to these light-absorption and reflective variables.
The Global Aluminum Pigments Market is valued at US$ 422.4 Million in 2019 and is projected to grow at 6.2% to reach US$ 609.4 Million in 2025.
The market for Aluminum pigments can be segmented into leaf and non-leaf types based on grade. Leafing grades generally float on the surface of the coating film, giving the coated surface a brilliant and lustrous effect.
However, the components of the leafing grade are unable to withstand mechanical strain and are not fully dispersed with the resin. They appear to fade over time as a result. This grade of products experienced widespread use for temporary brightness effects in cosmetics and printing inks.
Non-leafing grades will account for 70% of the global Aluminum pigments market in the forecast years owing to its long-lasting effects. They show greater resistance to corrosion and abrasion and find a wide variety of applications for metallic paint.
For superior aesthetic characteristics, the automotive industry requires durable and stable paints. Growing demand for personal vehicles in developing countries would have a major effect on the growth of the non-leafing industry.
In 2019 the global market for Aluminum pigments was dominated by paints & coatings. The metallic effect is imparted by Aluminum pigments which reflect light on the smooth surface and diffuse light on the rough surface.
The proportion of the emitted and reflected light determines the metallic effect’s intensity. The particle size, shape, morphology, and particle distribution play an important role in giving the substratum metallic and lustrous effects.
Plastics & Printing inks accounted for a significant share of the global market for Aluminum pigments in 2019. Aluminum pigments are used in different types of inks such as gravure, screen and flexographic printing. Screen printing inks offer excellent versatility with pigments made from Aluminum.
During the forecast period, the personal care segment is one of the lucrative segments for the global Aluminum pigments industry. They are used in shampoos, lip gloss, eye shadows and nail varnish.
In 2019 Asia Pacific dominated the global demand for Aluminum pigments in terms of volume. China, India, Japan and South Korea are the major consumer of Aluminum pigments in the region. Strong demand from the paints & coatings and plastics industries is expected to drive the market in the APAC region.
China owns more than 50% of the Aluminum pigment market in Asia Pacific in 2019. Growth in construction activities and subsequent demand for paints & coatings is the major factor driving China Aluminum pigment market.
Paints & coatings and personal care segment is likely to grow at a decent pace in Latin America Aluminum pigments market. Brazil dominated Latin America Aluminum pigments market in 2019. Rising construction activities is likely to boost demand for Aluminum pigments in the region.
The Global Aluminum Pigments market is highly consolidated and concentrated with 4 of the major players occupying 60% of the market share. The consolidated state of the Aluminum Pigments market is a bane for the new entrants as it offers little to no market expansion.
The Global Aluminum Pigments market is concentrated with few of the global giants occupying a major share of the pie and they are focused on offering innovative products through their R&D activities, which is a no-goer for the new entrants as they have shoe-string margins for their R&D activities.
The consolidated nature of the Global Aluminum Pigments market affects the profitability of existing players and acts as a blockade for new entrants.
Top Market Opportunities
Opportunities in Emerging Markets
In 2019, APAC was the largest Aluminum pigment market, and the area will give market vendors many growth opportunities during the forecast period.
The demand in different end-user industries for paints and coatings, printing inks, and plastics would significantly drive the growth of the Aluminum pigment market in this area over the forecast period.
49 percent of the market ‘s growth will derive from APAC during the forecast period. The primary Aluminum pigment markets in APAC are China and Japan. The growth of the demand in this area will be higher than market growth in other regions.
Advent of Low VOC Aluminum Pigments
One of the major trends being seen in the global Aluminum pigment market is Aluminum pigments with low VOC. Several governments have imposed strict regulations on the global paint and coatings industry in order to minimize air pollution.
Manufacturers of paints and coatings often use Aluminum pigments based on solvents for colors. These are vulnerable to atmospheric release of VOC.
As solvent-based pigments are used more commonly in paints and coatings, manufacturers of paints and coatings face a huge challenge. The recent innovation of water-based Aluminum pigment proves to be a potential solution for the VOC emission rate issue.
Manufacturers are also introducing Aluminum pigments with low VOC for paints and coatings which is offering lucrative opportunities for the market players.
Surging Demand in Automotive sector
Growing demand for aesthetically superior cars with lustrous paint would greatly enhance the global Aluminum pigments market in the forecast years. Increased demand for family cars, especially in Asia-Pacific countries such as China, Japan, South Korea and India, will have a positive impact on market growth due to their rapid economic development.
In 2019, sales of passenger cars exceeded 36 million units, with China accounting for over 21.14 million units. In order to meet the growing demand, several leading automotive manufacturers have shifted their production facilities towards this region.
Increasing the application of products in automotive OEM parts, exterior and interior coatings, as well as refinishing and repair work, will be an important driver for the global demand for Aluminum pigments.
Growing demand from personal care industry
One of the significant factors that is expected to drive the global Aluminum pigment market is the growing demand from the personal care industry due to the increasing demand for cosmetic products.
Aluminum pigment impact metallic luster and color to various cosmetic products that includes nail polishes and lipsticks among others. It is often used as a substrate for precipitating various colors.
These pigments also help to reduce the bleeding effects in lipsticks and also inhibit the flow of sweat. The global market for Aluminum pigment is therefore expected to rise at a steady pace during the forecast period from 2019 to 2025 as demand for cosmetic products increases.
Surge in construction activities
In paints, Aluminum pigments are used to have a metallic effect and to strengthen their technical properties, such as resistance to corrosion and conductivity.
They are used in paints for automotive, industrial paints, paints for construction and other decorative paints. Increased construction activities and increased use of automotive paint globally are expected to boost demand for Aluminum pigments in paints and coatings.
In the coming years, packaging problems due to the combustible nature of the product may present obstacles to the overall demand for Aluminum pigments. Product mixture with air is flammable and can result in devastating explosions of dust.
In addition, long-lasting interaction with acid, alkali, or even water may form highly ignitable hydrogen. The market may be threatened by the requirement for specifically designed fire-resistant storage spaces and strict packaging techniques.
This could also contribute to the use in the cosmetics and painting and coating industries of substitutes such as silver or stainless steel pigments.
Some VOCs are dangerous to human health or cause harm to the environment. VOCs are regulated by law, especially indoors, where concentrations are the highest.
Harmful VOCs typically are not acutely toxic, but have compounding long-term health effects. Because the concentrations are usually low and the symptoms slow to develop, research into VOCs and their effects is difficult.
Stringent regulations pertaining to the usage of solvent borne pigments have been enacted due to the detrimental effects of volatile organic compounds. This is projected to adversely affect the market for Aluminum pigments during the forecast period.
Aluminum pigment applications in solvent medium leads to serious impact on environment. Solvent-borne Aluminum coatings emit volatile organic compounds that are converted to carbon dioxide using the oxidizing effect of sunlight. Volatile organic compounds also react to ozone production from air pollutants. Both ozone and carbon dioxide are air pollutants.
In addition, repeated exposure to volatile organic compound photochemical reactions contributes to human health toxicity and also causes health problems.
It is expected that growing consumer awareness of environmental safety, followed by growing demand for natural paints and coatings, would hamper market growth for Aluminum pigments.
Increasing Raw Material Costs
Growing raw material prices, combined with increasing fuel costs, are two of today’s major challenges facing the Aluminum pigment industry.
There has been a cost increase in all raw material types, including intermediates, bulk chemicals and specialty chemicals. In conjunction with the sharp rise in energy costs, this spike in raw material prices has put companies in a situation where they have been forced to raise the prices for their pigments and pigment preparations.
Many pigment companies work hard internally to make changes to compensate for rising costs, however they feel the consequences. Increased raw material prices continue to influence profits in spite of the fact that these price rises have not been fully passed on to consumers by businesses.
Some of the emerging technologies in the Global Aluminum Pigments Market include
Aluminum Nanopowder can be added to any number of coatings, paints, textiles, inks, plastics, and other materials to add a silver metallic sheen, making it a popular aesthetic addition in automotive, electronics, and other industries.
Aluminum Nanopowder also finds application in 3D Printing as Building upon the base usage of Aluminum in metalworking to produce useful alloys, some industrial 3D printing solutions can utilize Aluminum nanopowders to fabricate alloy components directly.
The recent trend of thinner coatings in the automotive industry is also driving the demand for new low-aspect-ratio effect pigment particles like colored and thin-silver Aluminum pigments.
These Aluminum pigments deliver detailed metallic luster in high chroma-hues with better opacity and gloss. OEMs are expanding these chromatic color series in economy cars as well.
The Price of the Aluminum Pigments depends on several factors such as type, form and the application of the pigments. The price of Aluminum Pigments are as listed in the table below
|Aluminum Pigment Type||Price|
|Non-Leafing||US$ 4.8 – 5.2 Per KG|
|Solvent Based Automotive specialty||US$ 8 – 20 Per KG|
|Aluminum Pigment Pellet Granule||US$ 15.2 – 19.1 Per KG|
|Silver Chrome Pigment||US$ 480 – 660 Per KG|
|Aluminum Triphosphate||US$ 20 Per KG|
|Aluminum VMP Metallic Pigment||US$ 190-210 Per KG|
|Aluminum Metaphosphate||US$ 6 Per KG|
The Regional Governments of the respective governments regulate the application of Aluminum Pigments particularly, Volatile Organic Compounds used in the Aluminum pigments. Some of the Key Regulations in major economies include:
Regulation in USA
The definitions of VOCs used for control of precursors of photochemical smog used by the U.S. Environmental Protection Agency (EPA) and state agencies in the US with independent outdoor air pollution regulations include exemptions for VOCs that are determined to be non-reactive, or of low-reactivity in the smog formation process.
In the US, regulatory requirements for VOCs vary among the states. Most prominent is the VOC regulation issued by the South Coast Air Quality Management District in California and by the California Air Resources Board (ARB).
However, this specific use of the term VOCs can be misleading, especially when applied to indoor air quality because many chemicals that are not regulated as outdoor air pollution can still be important for indoor air pollution.
Regulation in European Union
The VOC Solvents Emissions Directive is the main policy instrument for the reduction of industrial emissions of volatile organic compounds (VOCs) in the European Union.
It covers a wide range of solvent using activities, e.g. printing, surface cleaning, vehicle coating, dry cleaning and manufacture of footwear and pharmaceutical products.
The VOC Solvents Emissions Directive requires installations in which such activities are applied to comply either with the emission limit values set out in the Directive or with the requirements of the so-called reduction scheme.
Article 13 of The Paints Directive, approved in 2004, amended the original VOC Solvents Emissions Directive and limits the use of organic solvents in decorative paints and varnishes and in vehicle finishing products.
The Paints Directive sets out maximum VOC content limit values for paints and varnishes in certain applications.
Regulation in China
The People’s Republic of China defines a VOC as those compounds that have “originated from automobiles, industrial production and civilian use, burning of all types of fuels, storage and transportation of oils, fitment finish, coating for furniture and machines, cooking oil fume and fine particles (PM 2.5),” and similar sources.
The Three-Year Action Plan for Winning the Blue Sky Defence War released by the State Council in July 2018 creates an action plan to reduce 2015 VOC emissions 10% by 2020.
Regulation in India
The Central Pollution Control Board of India released the Air (Prevention and Control of Pollution) Act in 1981, amended in 1987, to address concerns about air pollution in India.
While the document does not differentiate between VOCs and other air pollutants, the CPCB monitors “oxides of nitrogen (NOx), sulphur dioxide (SO2), fine particulate matter (PM10) and suspended particulate matter (SPM).
Other Key Market Trends
Impact of COVID-19
The prevailing pandemic situation has led to weakened demand for paints and coatings in automotive, construction, electronics, and white goods. The road to the industry’s growth recovery is highly dependent on the duration of the restrictions imposed and their effect on global economic activity.
Contrary to the general trend in the industry, certain segments of the market, such as antimicrobial coatings, are experiencing a rise in demand in the healthcare and food sectors.
Market Size and Forecast
The Market size of the Global Aluminum Pigment Market is estimated to be worth US$ 422.4 Million in 2019 and is poised to grow at 6.2% to reach US$ 609.4 Million in 2025.
Market Size based on Grade
Non-leafing grades will account for a significant share of the global Aluminum pigments market in the forecast years owing to its long-lasting effects.
The Non-Leafing segment dominates the market on the basis of Grade as it accounts for 70% of the market share and generated revenues to the tune of US$ 295.7 Million in 2019 and is poised to grow at 6.5% to reach US$ 431.5 Million in 2025.
Leafing segment is expected to witness muted growth and it constitutes 30% of the market share and is poised to reach market size of US$ 178.7 Million in 2025 from US$ 126.7 Million in 2019 growing at a CAGR of 5.9% in the forecast period (2019 – 2025).
Market Size based on Application
The Paints and Coatings segment dominates the market on the basis of Application accounting for 42.4% of the market share and US$ 179 Million in market size in 2019 and is projected to grow at a CAGR of 6.7% to reach US$ 264.1 Million in 2025.
Plastics segment constitutes 22.3% of the market share and US$ 94.2 Million in market size in 2019 and is expected to grow at a CAGR of 6% to reach US$ 133.6 Million in 2025.
Printing Ink segment accounts for 17.2% of the market share and US$ 72.6 Million in 2019 and is projected to reach a market size of US$ 101.25 Million in 2025 growing at 5.7% in the forecast period (2019 – 2025).
Personal Care segment contributes to 9.8% of the market share and US$ 41.4 Million in market size in 2019 and is poised to grow at a CAGR of 5.8% to reach US$ 58 Million in 2025.
The Other segments constitute 8.3% of the market share and generated revenues to the tune of US$ 35 Million in 2019 and is projected to grow at 6.2% to reach US$ 50.2 Million in 2025.
Asia Pacific dominates the Global Aluminum Pigments Market. APAC constitutes 42% of the market share and it is estimated to have generated revenues to the tune of US$ 177.4 Million in 2019 and is projected to grow at 6.4% to reach US$ 257.4 Million in 2025.
Europe is the second largest market contributing to 22% of the market share and US$ 93 Million in market size in 2019; it is poised to grow at 5.8% to reach US$ 130.4 Million in 2025.
North America accounts for 18% of the market share and US$ 76 Million in market size in 2019 and is projected to grow at a CAGR of 5.6% to reach US$ 105.4 Million in 2025.
South America accounts for 10% of the market share and generated US$ 42.2 Million of revenue in 2019 and is expected to grow at 5.7% to reach US$ 58.8 Million in 2025.
Middle-East & Africa constitutes 8% of the market share and recorded revenues of US$ 33.8 Million in 2019 and is poised to grow at 6.2% to attain market size of US$ 48.5 Million in 2025.
The Market size of the Global Aluminum Pigments Market is estimated to be US$ 422.4 Million in 2019 and is projected to grow at 6.2% to reach US$ 609.4 Million in 2025.
Paints & coatings is expected to be the largest application segment over the forecast period. The demand for Aluminum pigments used in these coatings is expected to rise over the forecast period, with an growing preference given to water-based coatings over solvent-based coatings.
Furthermore, waterborne coatings have a quick dry time, excellent durability, and emit less odor, making them a popular consumer choice.
It is estimated that the plastic application segment will account for a substantial market share over the forecast period.
With numerous developments under way, the demand for plastics is expected to increase in order to produce recyclable plastic products, thereby impacting the demand for Aluminum pigments.
In volume terms, Asia Pacific dominated the global market for Aluminum pigments in 2019. The region’s major consumers of Aluminum pigments are China, India, Japan and South Korea.
The market in the Asia Pacific region is expected to be driven by high demand from the paint & coating and plastic industries.
In 2019, China controlled over 50 percent of the demand for Asia Pacific Aluminum pigments. The major factor driving China’s Aluminum pigment market is the rise in construction activities and subsequent demand for paints & coatings.
Europe was the second largest consumer of global Aluminum pigments in 2019. It is expected that rising customer preference for sustainable goods with attractive aesthetic effects would drive demand for Aluminum pigments over the next few years.
The industry players are laying emphasis on innovation as a key differentiator for the marketing of their portfolio. The key players such as ALTANA AG, Asahi Kasei Corp., and BASF SE are investing heavily on their Research & Development activities to improve the product portfolio and to cut down costs of production.
They are introducing new age technologies such as nano technology and high chroma-hues to improve the quality of automation in their range of products.
The market players are focusing on introducing intelligent high-end metal and pearlescent pigments such as ECKART to capture the majority of the market share.
The large investments made by the players on the R&D of new product categories is expected to pay heed to the segment in the form of innovation in the long run.
Distribution Chain Analysis
The various contributors involved in the value chain of the product include manufacturers, suppliers, distributors, intermediaries, and customers.
The Global Aluminum Pigments Market’s supply chain starts with raw materials being sourced and extracted. The raw materials are then brought to a supplier, who serves as the wholesaler, by a logistics provider.
The materials are taken to a manufacturer or, even, to different manufacturers who refine and process them into a finished product.
Subsequently, it goes to a distributor who sells the Aluminum Pigment wholesale, which is next sold to a retailer. The manufacturer sells the Aluminum Pigment to customers in a store.
This completes the cycle once the customer buys it, but it is the demand that then goes back and drives the manufacture of more raw materials, and the cycle continues.
There is a concentrated Aluminum pigment sector. Different grades of Aluminum pigments are sold by market vendors, which increases the distinction between their products and, in turn, the competition between the existing vendors.
Some of the major market players are ALTANA AG, Asahi Kasei Corp., and BASF SE. Although the rising demand for Aluminum pigment in the automotive industry will offer tremendous opportunities for growth.
The strict VOC regulations will challenge the growth of market participants. Market vendors should concentrate more on the growth prospects in the fast-growing segments to make the most of the opportunities, while retaining their positions in the slow-growing segments.
Key Market Developments
In January 2020, SCHLENK Metallic Pigments expanded pigment product line Zenexo which is based on UTP technology and finds applications in automotive segment.
In November 2019, DIC Corporation collaborated with PIGMENT TOKYO, an art materials lab operated by storage company Warehouse TERRADA to provide DIC pigments for cosmetics, with a view to expanding the focus of marketing to include art application.
The behemoths have implemented key business strategies such as product innovation, strategic alliances & collaborations, launches of new products, launches of new services, joint ventures, and contracts to improve their market position along with acquiring a huge share of the market.
In September 2019, Silberline has undergone expansion of waterborne aluminum pigment in Tamaqua, Pennsylvania production facility.
In March 2019, Sun Chemical Performance Pigments launched Benda Lutz COMPAL PC, a highly concentrated Aluminum preparation for powder coatings that comes in a groundbreaking pelletized form and eliminates dusting and helps in equipment clean-up and improves worker exposure.
In June 2018, BASF plans to expand its production capacity for Paliocrom effect pigments to allow its customer to create new trendy high-quality coatings.
Key Market Players
Some of the Key players in the Global Aluminum Pigments Market include
Hefei Sunrise Aluminum Pigments Co., Ltd is specializing in the production of Aluminum pastes for 10 years. It has an annual capacity of yielding 4,000 tons Aluminum pastes at present.
Products series: Fineness and Whiteness series, Metallic Sparkle series, Imitating Electroplate series, Leafing series, Water Based series, Resin-coated series and Electroplate series. The products are widely used in coatings, paints, printing ink, color masterbatch, plastic and so on.
The company owns advanced production equipment, research technology and precise inspect instrument, and strictly compliant with the certification of ISO9001:2000 Quality Management System, which assure the consistency and credibility of high quality products.
BASF SE is a Germany-based chemical company. The Company operates through six segments, which include Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition & Care and Agricultural Solutions. The Industrial Solutions segment consists of Dispersions & Pigments and Performance Chemicals divisions.
Asahi Kasei Corporation is mainly engaged in material business, housing business and others. The Company operates in three business segments. chemical business, including petrochemicals, high performance polymer, high performance materials and consumer goods, separators for lithium secondary batteries, separators for lead storage batteries, mixed signal LSI and other electronic businesses.
Kolortek Co., Ltd. is a leading professional manufacturer of effect pigments, and cosmetic color additives, specializing in pearl pigments, cosmetic iron oxides, mica powders and cosmetic fillers, etc.
Established in 2002, the headquarter of Kolortek is located at Huaian Economic & Technical Development Zone, Jiangsu province, China, certificated by ISO 9001, has a 18000 square meters’ workshop with advanced and auto-controlled equipments, more than 150 skilled workers.
Carl Schlenk AG was founded in 1879 and has its central headquarters in the Middle Franconian Barnsdorf in Roth near Nuremberg. SCHLENK employs about 900 members of staff worldwide and acts as a leading international manufacturer of metal powders, pigments and foils. As a holding it is divided into its two divisions Schlenk Metallic Pigments and Schlenk Metal Foils.
The worldwide presence with production sites in Europe and the USA, technical application & service departments in Germany, USA, China and South-East Asia, and also a global sales and service network make SCHLENK a reliable partner of a demanding and international clientele.
As a global player it focuses on the business areas metal foils, coatings & plastics industries, printing & graphics industries, building material & chemical industries, and the materials industry.
AMETEK, Inc. (AMETEK), incorporated on May 8, 1930, is a manufacturer of electronic instruments and electromechanical devices with operations in North America, Europe, Asia and South America.
The Company markets its products across the world through two groups: the Electronic Instruments Group (EIG) and the Electromechanical Group (EMG). EMG supplies powdered metals, strip and foil, specialty clad metals and metal matrix composites.
Its blowers and heat exchangers provide electronic cooling and environmental control for the aerospace and defense industries. Its motors are used in commercial appliances, fitness equipment, food and beverage machines, hydraulic pumps and industrial blowers.
It also operates a global network of aviation maintenance, repair and overhaul (MRO) facilities.
Toyal America, Inc. manufactures Aluminum pigments. The Company offers non-leafing paste, powder coatings, flakes, Aluminum nitride, and other related products. Toyal America operates worldwide.
Silberline Manufacturing Co Inc manufactures and supplies Aluminum effect pigments. The Company provides effect pigments for automotive coatings, aqueous coatings, automotive parts and accessories, and degradation resistant effect pigments. Silberline Manufacturing serves customers worldwide.
The US$ 422 Million Global Aluminum Pigments Market is expected to show steady growth rate of 6.2% to reach a market size of US$ 609 Million in 2025.
The Global Aluminum Pigments market is driven by Surging Demand in Automotive sector, Growing demand from personal care industry and Greater construction activities and Higher use of automotive paint.
Though growth bottlenecks exist in the segment, the need to rapidly innovate is fueling the growth of the market. Growth in emerging Markets and Advent of Low VOC Aluminum Pigments are offering lucrative opportunities for the Global Aluminum Pigments Market.
- APAC – Asia-Pacific Countries
- R&D – Research & Development
- VOC – Volatile Organic Compounds
- OEM – Original Equipment Manufacturers
- EPA – Environmental Protection Agency
- ARB – Air Resources Board
- NOx – Oxides of Nitrogen
- SO2 – Sulphur dioxide
- PM10 – Fine Particulate Matter
- SPM – Suspended Particulate Matter