The plastic pigments market is expected to grow from USD 15.446 billion in 2025 to USD 20.878 billion in 2030, at a CAGR of 6.21%.
Plastic pigments are the particles that are added to the polymer base for providing functional benefits to the plastic such as high weather resistance, transparency, chemical, and dust resistance. Such particles are either organic or inorganic and owing to their major performance features, they have high applicability in the automotive and building & construction sectors in paints & coatings applications. The growing productivity in these sectors coupled with technological innovations in pigment manufacturing has increased the demand for lightweight and long-lasting plastic pigments in such sectors, which has become a major driving factor for their market growth. Moreover, plastic pigments are also applied in cosmetics products such as eyeliners, skin care, nail polish, and in makeup products. Rapid urbanization, improvement in living standards, and improvement in disposable income have created a surge in demand and consumption of cosmetics products owing to which major cosmetics and consumer products companies reported an increase in their revenue. For instance, according to the 2021 annual report of Japan-based cosmetic giant Shiseido, the company reported a 7% increase in its cosmetics sales in America. Furthermore, Unilever as per its quarterly report reported an increase of 7.5% in its beauty & personal care products sales in the first half of 2022.
Based on type, the plastic pigments market is segmented into organic and inorganic. The organic type is projected to hold a decent market share during the forecast period. The growing concern about pollution caused by inorganic pigment manufacturing has shifted the interest of manufacturers toward organic pigments, thereby leading in their plant establishment. For instance, DCC Lansco, 2019 announced the establishment of its organic pigments manufacturing plant in Canada. In addition to that, the growing awareness regarding the usage of inorganic pigments in cosmetics has raised the demand for organic pigments in the cosmetics sector which is further pushing the market growth.
Plastic pigments having thermal stability, weather, and dust resistance is applied as coatings on automotive dashboard and bumpers. Post-pandemic the automotive sector has witnessed steady growth owing to favorable investment inflows and growing demand for new fuel-efficient vehicles which has increased the production and consumption scale. For instance, according to the International Organization of Motor Vehicle Manufacturers, in 2021, global automotive production reached 80.1 million showing a 3% increase over 2020, whereas global sales reached 82.6 million showing a 4.9% increase. With automotive sales and production on the rise, the market demand for plastic pigments is also expected to increase for paints and coatings applications, thereby augmenting the overall market growth during the forecast period.
Stringent regulations on VOC emission are expected to pose a challenge to the plastic pigments market growth. The volatile organic compound emitted in the atmosphere during inorganic plastic pigment production causes major health problems such as damage to the kidney, liver, and lungs, and throat infection. Government authorities to reduce the effect of such emissions have implemented certain regulations. Such as, the emission standards under the Clean Air Act require the EPA to control VOC emissions.
Plastic Pigments Market Segmentation: