Aluminum Pigments Market Trends

Growth Drivers

• Increasing Consumption of Plastic Along with Widespread Use of Aluminum Pigments in the Plastic Industry – The use of aluminum pigments enhances the functional properties of plastics in both commodity products and high-end automotive parts. Plastic components are given a glossy finish and metallic effect with aluminum pigments. In the consumer electronics industry, they are widely used for coating. Thus, the extensive application of the product in the plastic industry is expected to enlarge the global aluminum pigments market size during the forecast period. It was observed that the rise of emerging markets has driven a triple-digit growth in plastic consumption over the last 25 years. For instance, approximately 450 million tons of plastics were produced worldwide in 2019 up from a significant million tons in 2000.

• Increase in the Sale of Personal Premium-End Products - For instance, by the end of 2021, the worldwide sales of luxury items for personal use accounted for around USD 320 billion. It represented an increase from the recorded sales of nearly 310 billion in 2019.

• Rising Level of Personal Disposable Income - There was an increase of around USD 45 billion in the personal income of Americans in July 2020, as well as an increase of approximately USD 35 billion in disposable personal income as reported by the Bureau of Economic Analysis.

• A Surge in Exports of Metallic Pigments Worldwide - According to the statistics by the International Trade Center (Trademap), the value of exports of metallic pigments in Germany in the year 2021 was recorded to be USD 342,141 thousand, which was an increase from USD 286,537 thousand in the previous year.

• Increasing Production of Innovative Aluminum Pigments by Manufacturers - AQUAVEX Plus, an aluminum pigment in granule form, was launched by Silberline Manufacturing Co. in June 2020. Specially designed for water-based inks. With excellent adhesion and a wide range of effects, the product can achieve extremely bright metallic effects as well as very high opacity.

Challenges

• High Production Costs Associated with the Raw Material – The manufacturing costs of aluminum pigments are increased with the high costs of raw materials. The high production costs are expected to slow down the production rate and push away the population to adopt aluminum pigments.
• Regulatory Restrictions by the Government on Mining Activities
• Insufficient Shelf Life and Complex Storage of Aluminum Pigments