The color concentrates market was valued at US$4.24 bln in 2016 and is projected to reach US$.8 bln by 2021, at a CAGR of 6.5% from 2016 to 2021, as per Research and Markets. The increasing demand for color concentrates in the packaging end-use industry due to the growing importance of aesthetics in the packaging of products and increasing use of plastics in various industries, such as textiles, building & construction, and automotive, among others, is driving the growth of the color concentrates market.
The liquid form segment of the color concentrates market is projected to grow at the highest CAGR during the forecast period due to various properties offered by liquid color concentrates, which include rapid color development, reduced energy consumption in their manufacturing, low material costs, enhanced color dispersion, accuracy in metering, and increased color consistency. Among end-use industries, the packaging segment is leading the color concentrates market and is projected to grow at the highest CAGR from 2016 to 2021.
The packaging end-use industry segment is leading the color concentrates market and is projected to grow at the highest CAGR during the forecast period. The growth of this segment of the market can be attributed to increased use of color concentrates to color plastics, which are extensively used in the packaging industry. Plastics are preferred for packaging as they offer high strength, increased flexibility, excellent impermeability, lightness, and high stability. Use of color concentrates not only provides aesthetic appeal to the packaging of products but also helps in product differentiation, thereby influencing preferences of customers.
The Asia-Pacific color concentrates market is projected to grow at the highest CAGR during the forecast period, owing to increased demand for plastics in the region resulting from growing middle class population, rapid urbanization, and increasing purchase power of consumers. The growing consumer goods and packaging end-use industries in the region are also fueling the demand for color concentrates in the Asia-Pacific region, thereby contributing to the growth of the color concentrates market in the region.