Titanium Dioxide Market

Market Overview

The global titanium dioxide market size was valued at USD 19.17 billion in 2022. It is projected to reach USD 32.02 billion by 2031, growing at a CAGR of 5.7% during the forecast period. (2023–2031).

Highlights

• Rutile dominates the grade segment.
• Sulfate dominates the production process segment.
• Paints and coatings dominate the application segment.
• Asia-Pacific is the highest shareholder in the global market.

One of the whitest substances on earth is titanium dioxide. It is widely used as a white pigment to add opacity and whiteness in various applications, including paints and coatings, cosmetics, food, and other products. Titanium dioxide is widely used in paints and coatings as they provide opacity, durability, tinting strength, and brightness in industrial coatings, as well as coatings for commercial and residential interiors and exteriors, automobiles, aircraft, machines, appliances, traffic paint, and other special purpose coatings. The amount of TiO2 used in paints and coatings varies widely depending on the opacity, color, and quality desired. The higher the opacity requirement of the paints and coatings, the greater the titanium dioxide content.

Market Dynamics

Global Titanium Dioxide Market Drivers:

Rising Demand from Paints and Coatings Application

Titanium dioxide is widely used in paints and coatings applications. Titanium dioxide combined with other colored pigments is employed in numerous end-user applications, including automotive coatings, aircraft coating, marine coatings, and architecture and decorative coatings. Growing building activities benefit the need for paints and coatings, driving the price of titanium dioxide.

In addition, global demand for building and infrastructure development has increased due to rising urbanization rates and industrial expansion, particularly in developing regions like the Asia-Pacific, Central and South America, and the Middle East. Nations like China, India, Japan, and other Southeast Asian nations are considerably aiding the development of the Asia-Pacific construction sector. This region's main drivers of construction expansion are rising industrialization and urbanization, an expanding middle-class population, and rising living standards.

Growing Demand from Various Applications

Titanium dioxide is used in various applications such as plastics, cosmetics, pulp and paper, paints and coatings, and others. Rising demand for titanium dioxide in the plastics industry will promote market growth over the forecast period. Titanium dioxide is used in various plastics such as polyolefins, polystyrene, acrylonitrile butadiene styrene, polyvinyl chloride, etc. Properties such as UV damage resistance, color retention, gloss, brightness, mechanical strength, and others propel the demand for titanium dioxide in plastic applications.

Increasing substitution of glass, metals, wood, natural rubber, and other materials is expected to drive the global plastics market. Various products such as polyvinyl chloride, polyethylene terephthalate, polyolefins, acrylonitrile butadiene styrene, and other plastics rapidly replace most materials in automotive, construction and infrastructure, packaging, and other application sectors. In addition, increasing regulations and awareness regarding reducing carbon emissions are leading to replacing metals and heavy materials with lightweight plastics, especially in automobiles and industrial machinery. Therefore, the growing demand for plastics in various end-use industries is projected to substantially drive the demand for titanium dioxide during the forecast period.

Global Titanium Dioxide Market Restraint:

Stringent Regulation

Titanium dioxide has wide application scope and is used in numerous end-user applications. However, several restrictions on how the product may be used are anticipated to stifle market expansion. IRAC categorizes the product's dust particles as 2B carcinogenic, which may cause human cancer. Workers in industrial facilities must adhere to several safety precautions, such as wearing personal protection equipment and using safety data sheets when handling materials. According to 21 CFR Volume 1 Sections 73.25 and 352.10, titanium dioxide used in the cosmetics industry is prohibited from being utilized for either a coloring effect or as an active ingredient in sunscreen. The product must be included in adequate amounts when applying cosmetics to the eye. Such factors hinder market growth over the forecast period.

Global Titanium Dioxide Market Opportunities:

Growing Demand for Green Buildings

The growing demand for green buildings is projected to fuel the construction sector's growth, thereby propelling the demand for paints and coatings (titanium dioxide). This will create demand for titanium dioxide in paints and coatings applications in coming years. The demand for green buildings is fueled by the efficient use of energy and water, renewable energy, decreased operating costs, improved air quality, and a lower overall load on metal structures than conventional buildings. Furthermore, the increasing influence of social factors, such as creating a sense of community, improving occupant health and well-being, and promoting sustainable business practices, is propelling the growth of green buildings.

Regional Analysis

Region-wise, the global titanium dioxide market is segmented into North America, Europe, Asia-Pacific, and LAMEA.

Asia-Pacific Dominates the Global Market

Asia-Pacific is the most significant global titanium dioxide market shareholder and is predicted to exhibit a CAGR of 6.6% over the forecast period. The Asia-Pacific's market of titanium dioxide has expanded due to recent economic growth and fast industrialization. The region is expected to experience the titanium dioxide market's fastest expansion throughout the forecast. Countries such as China, India, Japan, Malaysia, Vietnam, Indonesia, and South Korea are projected to be the major factors in the growth of the titanium dioxide market in the Asia Pacific. In paints and coatings, the product is used in automotive coatings, emulsion-bound plasters, and industrial coatings. Rising demand for lightweight automotive vehicles is a prime factor fueling the market growth. Polycarbonate with titanium dioxide is used in manufacturing lightweight vehicles due to its superior property of high scratch resistance. This factor is expected to boost the product market over the forecast period.

Additionally, increasing demand for publication and printing activities is expected to boost the industry over the projected period. The product is used in printing inks with wide application scope in the packaging and paper &paperboard industry. Due to properties like insolubility and opacity, the product has an increasing application scope in chemical fibers and textiles. This is expected to augment demand over the forecast period.

Europe is expected to grow at a CAGR of 4.6% over the forecast period. Titanium Dioxide Manufacturers Association (TDMA) is a group of the European Chemical Industry Council formed in 1974 with major producers of titanium dioxide. It is a non-profit organization that promotes and defends the merits of titanium dioxide in numerous applications by bringing forward evidence of its safety and efficiency. The members of this council, including CINKARNA Celje d.d., KRONOS Worldwide, Inc, LB Group, Precheza, TAYCA Co., Ltd., The Chemrous Company, Tronox Holdings plc, and Venator Materials PLC strive for responsible, safe, and sustainable manufacture and use of TiO2, driving market growth over the forecast period.

North America is the third largest region. The strong demand for non-residential construction projects, including hospitals, office buildings, and colleges, is predicted to propel the expansion of the construction sector in North America over the upcoming years. It is also projected that implementing the "Affordable Healthcare Act" will promote the construction of additional hospitals and medical institutions, raising the regional demand for architectural and decorative paints and coatings. This is expected to increase the demand for titanium dioxide (TiO2) in the paints and coatings sector over the forecast period.

Segmental Analysis

The global titanium dioxide market is segmented based on grade, application, and production process.

Based on grade, the global market is classified into anatase and rutile.

The rutile segment dominates the global market and is predicted to exhibit a CAGR of 5.7% during the forecast period. The most prevalent naturally occurring titanium dioxide (TiO2) type is rutile pigment, which outperforms anatase in concealment and weather resistance. At higher temperature conditions, anatase TiO2 converts to rutile TiO2, having higher weather ability and hiding power than its other counterparts and making it suitable for manufacturing outdoor coatings, inks, plastics, and paper. This grade of titanium dioxide is used to manufacture refractory ceramics, titanium oxide pigments, and the production of titanium metal.

Furthermore, it is used as a carrier in paint applications, produces white color in plastics, and provides color fading in paper and other products. In recent years, the growing construction industry is anticipated to fuel the demand for paints, coatings, and paper applications such as wallpapers and sanitary products. This is expected to increase the demand for rutile-grade Titanium Dioxide during the forecast period.

The anatase segment is the second largest segment. Low-end paper generally uses talc, calcium carbonate (CaCO3), and calcined kaolin due to the low production cost. Titanium Dioxide (TiO2) provides higher whiteness, high density, reflective index, and fine and uniform particles than the materials mentioned above. Hence paper treated with Titanium Dioxide (TiO2) has enhanced whiteness, stronger hiding power, and high strength. Furthermore, the opacity of paper using TiO2 is ten times higher than that of other materials, and the weight can be decreased by 15% to 30%.

Based on the production process, the global market includes sulfate and chloride.

The sulfate segment is the largest contributor to the market and is expected to grow at a CAGR of 6.1% over the forecast period. Iodine powder is treated with strong sulfuric acid (H2SO4) to produce titanium sulfate, which is then hydrolyzed to produce metatitanic acid, calcined, and ground to produce whiter titanium powder. In the sulfate process of producing Titanium Dioxide, ilmenite (FeTiO3), a common iron/titanium oxide, is used by treatment with concentrated Sulfuric Acid (H2SO4), and Titanium Oxygen Sulfate (TiOSO4) is selectively extracted and converted into Titanium Dioxide (TiO2). Furthermore, the advantage of the sulfate process is the availability of raw materials such as ilmenite and sulfuric acid, advanced technology and equipment, and easy solution of anti-corrosion material.

Based on the application, the global market includes paints and coatings, plastics, pulp and paper, cosmetics, and others.

The paints and coatings segment dominates the global market and is predicted to exhibit a CAGR of 6.2% during the forecast period. Titanium Dioxide (TiO2) is a widely used white pigment in paints and coatings. Its highly efficient attributes of scattering visible light impart whiteness, brightness, and opacity when incorporated into coatings. Due to their superior stability and durability compared to their competitors, rutile TiO2 pigments are generally preferred due to their great light scattering. These inorganic surface treatments enhance one or more crucial coating performance characteristics, such as the coatings' ability to disperse in water and a variety of organic liquids, their effectiveness as concealing agents, their resistance to chalk, and their resistance to color fading brought on by heat and photoreduction. In addition, TiO2 and other white pigments opacify paint films primarily by diffusely reflecting light. This reflection occurs due to a strong light scattering, bent on exposure to the white pigment surface.

The plastic segment is the second largest. Adding Titanium Dioxide (TiO2) to plastics improves the attributes such as higher heat resistance, light resistance, and weather resistance of plastic products. TiO2 also protects plastic products from ultraviolet rays and improves the mechanical and electrical properties of the plastic products. Almost every thermosetting and thermoplastic plastic, such as polyolefins (primarily low-density polyethylene), polystyrene (PS), acrylonitrile butadiene styrene (ABS), polyvinyl chloride (PVC), among others, utilize Titanium Dioxide (TiO2). It is mixed with dry resin or liquid-containing plasticizer, and few manufacturers process Titanium Dioxide into masterbatch before its use.

Recent Developments

• May 2023- Effective August 1, 2023, the Coatings division of BASF will implement global units for its Automotive OEM Coatings Solutions and Automotive Refinish Coatings Solutions businesses. With the new organizational setup, BASF better serves its global customers, who increasingly ask for global support and services.

• April 2023- BASF announced that it had received the International Sustainability and Carbon Certification (ISCC) PLUS for certain grades of plastic additives produced at its manufacturing sites in Kaisten, Switzerland, and McIntosh, Alabama, United States. This certification will enable BASF to offer more sustainable grades of its core plastic additives with a reduced Product Carbon Footprint (PCF) using renewable raw materials in a mass balance approach.