The colorants market was valued at US$47.45 bln in 2016 and is projected to reach US$65.65 bln by 2022, at a CAGR of 5% from 2017 to 2022, as per Research and Markets. The increasing demand for colorants in the packaging end-use industry due to the growing importance of aesthetics in packaging products and increasing use of colorants in the plastics and paints & coatings applications is driving the colorants market.
Among types, the market for masterbatch is projected to grow at the highest CAGR from 2017 to 2022. The market for the masterbatches type of colorants is projected to grow at the highest CAGR during the forecast period due to its low cost and color consistency. Moreover, the growing plastics industry offers new avenues for the growth of masterbatches in a wide range of end-use industries such as, packaging, automotive, building & construction, and so on.
Among end-use industries, the packaging segment is leading the colorants market and is projected to grow at the highest CAGR from 2017 to 2022. The packaging end-use industry segment is leading the colorants 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 the increased use of colorants to color plastics, paper, and metal in the form of coating and fabric used in packaging. Use of colorants not only provides aesthetic appeal to packaged products but also helps in product differentiation, thereby influencing preferences of customers.
The Asia-Pacific colorants market is projected to grow at the highest CAGR during the forecast period. The Asia-Pacific colorants market is projected to grow at the highest CAGR during the forecast period, owing to the increased demand for plastics in the region, resulting from a growing middle class population, rapid urbanization, and increasing purchasing power of consumers. The growing consumer goods and packaging end-use industries in the region are also fueling the demand for colorants in the Asia-Pacific region, thereby contributing to the growth of the colorants market in the region.