Paper Pigments Market

Market Overview

The global paper pigments market size was valued at USD 13.18 billion in 2022 and is projected to reach USD 26.35 billion by 2031, registering a CAGR of 8% during the forecast period (2023-2031). The growing need for paper in the packaging industry and the widespread use of paper pigment are the primary market drivers of the paper pigment market.

Paper pigments are colorants and additives used in the paper industry to provide paper products with color, brightness, and certain optical qualities. They are important in affecting the visual look and printability of various paper goods such as newspapers, periodicals, packaging, and specialty papers.

The widespread use of paper pigments and the rising demand for Paper in the packaging industry are expected to drive the worldwide paper pigments market growth during the forecast period. However, increased digitization is expected to hamper market growth for paper pigments. On the contrary, the increased demand for high-quality coated Paper will likely drive the worldwide paper pigments market.

Market Dynamics

Global Paper Pigments Market Drivers

Growing Packaging Industry

The packaging industry is expanding due to rising demand for packaged items in various industries. Food and beverage, medicines, e-commerce, and other industries are included. The demand for high-quality packaging materials and advanced printing technologies to improve the visual appeal and branding of packaging is increasing. As paper pigments are essential in manufacturing visually appealing packaging materials, this trend has a substantial impact on the worldwide paper pigment market. Smithers states that the worldwide packaging market was worth USD 917.82 billion in 2020 and is expected to grow to USD 1.05 trillion by 2025. This expansion might be ascribed to rising demand for packaging materials, particularly in the food and beverage industries.

Furthermore, the advent of e-commerce has increased demand for packing materials. According to the Flexible Packaging Association, e-commerce sales in the United States are expected to climb by 44.5% by 2020, necessitating the development of novel packaging solutions. The e-commerce company's use of sustainable paper packaging with sophisticated paper pigments has been highly accepted by its environmentally conscientious customers. It lowers the company's carbon impact and improves the unboxing experience for customers, boosting brand loyalty and driving favorable reviews and word-of-mouth referrals. The expansion of the e-commerce sector, together with the demand for environmentally friendly packaging, increases the demand for paper pigments. These pigments are critical for developing packaging solutions that suit both sustainability aims and the visual demands of the e-commerce industry and beyond. As a result, the paper pigments market trend is predicted to evolve in tandem with the packaging sector.

Global Paper Pigments Market Restraints

Fluctuation in Raw Material Prices

The price of raw materials used in producing paper pigments, such as minerals and chemicals, might fluctuate due to supply and demand dynamics, geopolitical considerations, and market conditions. These price changes can impact the production costs of paper pigments, thereby impacting final product pricing and profit margins. Titanium dioxide is an important raw element in the manufacture of paper pigments. TiO2 prices fluctuate because of variables such as supply-demand imbalances and geopolitical effects. The price of TiO2 fluctuated in 2020 because of variables such as the influence of the COVID-19 epidemic on supply chains.

According to a survey by the National Association of Printing Ink Manufacturers (NAPIM), raw material costs make for a considerable amount of overall printing ink production costs, and price volatility is a big worry for ink manufacturers. As a result, manufacturers may need to carefully manage their supply chains and investigate alternate materials to negotiate these price dynamics and remain competitive.

Global Paper Pigments Market Opportunity

Demand for Sustainable and Eco-Friendly Pigments

The growing demand for environmentally friendly and sustainable pigments represents a huge opportunity for the global paper pigment industry. Consumers and organizations are becoming more aware of environmental issues and looking for products corresponding to their sustainability objectives. Manufacturers can capitalize on this potential by producing and marketing environmentally friendly paper pigments. These pigments should have a low environmental impact throughout their lifecycle, from raw material procurement to disposal.

A recent Drapers survey shows that UK consumers' demand for ecological packaging has increased dramatically. 64% more likely to purchase from retailers who use sustainable packaging. 50% of consumers are prepared to pay more for environmentally friendly packaging and delivery. Furthermore, consumers are increasingly favoring environmentally friendly items. According to Nielsen's study, 81% of global respondents strongly believe that businesses should assist in improving the environment. This sentiment is shared by sustainable packaging, which frequently uses eco-friendly colors.

Regional Analysis

The global paper pigments market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

Asia-Pacific Dominates the Global Market

Asia-Pacific is the most significant global Paper Pigments market shareholder and is estimated to grow at a healthy CAGR over the forecast period. During the projection period, Asia-Pacific is expected to grow rapidly. Paper pigments are commonly used in Asia-Pacific face tissue paper, envelopes, cover sheets, and specialty papers. In Asia-Pacific, coated Paper is popular as enamel, gloss, and slick Paper. Coated Paper has been coated with a polymer or a combination of materials to impart particular attributes to Paper, such as weight, surface gloss, smoothness, or reduced ink absorption. Coated Paper generates clearer and brighter images or drawings because it absorbs less ink.

In the packaging sector, coated Paper is commonly utilized. The market will likely be driven by rising e-commerce and food delivery industry demand. Alibaba controls around 45% of the Chinese e-commerce market. The company's annual revenue in fiscal year 2022 was USD 134.6 billion, and the expanding e-commerce industry's demand for paper packaging will likely boost the market throughout the forecast period.

Furthermore, e-commerce revenue in India reached approximately USD 83 billion in 2022 and is expected to expand to USD 185 billion in 2026, owing to internet penetration during the projection period. Furthermore, coated paper use in Asia-Pacific will likely enhance demand for paper pigments.

North America is anticipated to exhibit a healthy CAGR over the forecast period owing to the rising demand for paper goods such as coated and uncoated papers. Rapid economic expansion has increased demand for paper products, which is expected to boost market growth. Geographically, the United States is one of the oldest and most significant users of paper napkins and other tissue paper goods in daily life. Despite sluggish overall development, this regional market will dominate other regions throughout the forecast period. Despite extensive usage of tissue paper products and many paper mills, Paper, and pulp processing chemicals are purchased in North America, which is the primary driver of paper pigments market growth.

Therefore, the North American market for paper pigments is critical to satisfying the increasing needs of the North American paper and printing industries, with a focus on sustainability, quality, and regulatory compliance. It highlights the region's dedication to environmentally friendly packaging and high-quality print materials.

The European paper pigment market is predicted to expand at the quickest CAGR over the forecast period, according to paper pigment market insights. This is attributable to the rising demand for high-quality coated paper products and the expansion of the packaging industry. Furthermore, the German paper pigment market had the biggest market share, while the UK paper pigment market grew fastest in Europe.

Although sectors of Europe's printing ink and raw material markets, such as pigments, will continue undercut by fierce competition from online media, inks can expand into new markets. This will be mostly due to improved formulations that allow a wider range of inks to be printed on a wider range of substrates, such as fabrics and ceramics, allowing for more varied color designs. The extent to which the European ink business relies on Chinese pigments and raw materials has pushed corporations to contemplate expanding European manufacturing capacity in recent years. These have focused on strengthening the premium end of the pigment business in Europe, particularly in areas where tight contact with end-users is required.

Segmental Analysis

The global paper pigments market is segmented based on type, application, and region.

By type, the market is further segmented into Calcium Carbonate and kaolin.

Calcium Carbonate holds the maximum market share,calcium carbonate is a mineral pigment commonly used in paper manufacturing to improve paper characteristics. It is a plentiful, inexpensive alternative that improves opacity, brightness, and printability. It is commonly employed to manufacture coated and uncoated papers, particularly in the printing and writing paper segments. Calcium carbonate produces neutral or alkaline Paper, producing a more durable sheet than acid papermaking. It is utilized as a filler in the paper base sheet and a paper pigment in the coating.

Calcium carbonate improves ink setting in paper pigments by rapidly pulling oils or solvents out of the ink. Precipitated calcium carbonate (CaCO3) is frequently used in the pulp and paper industry as a paper filler and in coatings to provide opacity, high brightness, and increased printability because of its high ink receptivity. Calcium carbonate is also utilized as a filler or coating pigment in producing Paper from pulp with a high percentage of mechanical pulp.

Another mineral pigment in the paper industry is kaolin, often known as China clay. It is prized for its tiny particle size and distinct qualities that improve paper smoothness and print quality.

The segment can be bifurcated by application into Coated, Satin-Coated, Gloss-Coated, Dull-Coated, Uncoated, Woven/Smooth Uncoated Paper, and Laid Uncoated Paper.

Uncoated Paper is a significant contributor to the market, Uncoated Paper does not have the additional coating layer that coated Paper does. It has a natural, tactile surface and is widely utilized in print and writing applications. In uncoated Paper, paper pigments are used as fillers. Fillers are important in printing papers because they boost opacity and brightness while improving printing quality. Uncoated Paper is perfect for real estate brochures, restaurant menus, forms and spreadsheets, business stationery (such as calling cards, invoices, letterhead, and envelopes), and booklets that require a classic or elegant touch. 

Coated Paper is distinguished by applying a layer of pigment-coated material to the paper surface, resulting in improved print quality, smoothness, and opacity. It's popular for high-quality printing.

Recent Developments

• September 2023- Kemira joined the UN Global Compact Forward Faster Initiative to accelerate the implementation of the UN Sustainable Development Goals.
• September 2023- Imerys announced that the planned sale of its paper market assets to Syntagma Capital is unlikely.