The market for dyes and pigments - France (2024)

1.2 The global colorants and pigments market

The global market for pigments and colorants is set to grow at a steady pace over the coming years. Estimated at $**.* billion in ****, Grand View Research forecasts that it will reach $**.* billion in ****, recording a CAGR of *.*%. This growth will be fuelled by growing demand in the textiles, paints and coatings, construction and plastics sectors.

Global market value for colorants and pigments World, ****-****, US$ billion Source: ****

1.3 French market trends

The trend in activity since the ****s highlights the overall decline in activity over the last ** years, for both the domestic and export markets. This decline is particularly marked between **** and ****: activity was *.** times higher in France in **** than in ****.

Business trends for colorant and pigment manufacturers France, **** - ****, index base *** **** Source: ****

Nevertheless, growth resumed between **** and ****: activity was **.*% higher in **** than in ****. A major leap was observed in ****, when the index reached ***.*, an increase of **% on ****. In ****, the index continued to soar, reaching ***.*, a **% increase on ****. However, a decline was forecast for ****, with an index of ***.*, down **.*% on ****.

The market is estimated at €*.** billion excluding VAT in ****, with an average annual growth rate of around *.*% over the ****-**** period. Growth is not linear, however, with strong growth - in excess of *% - between **** and ****, as well as between **** and ****.

Estimated sales for colorant and pigment manufacturers France, **** - ****, in € millions Source: ****

The industry then experienced significant sales growth between **** and ****, rising from €****.* million to €****.* million, an increase of **.*%. However, forecasts for **** indicate a decline of **.*%, bringing sales down to ****.* million euros. This trend suggests a certain volatility in the sector's financial performance.

1.4 Foreign trade in dyes and pigments

The code used in this section is ****, which covers "inorganic or mineral coloring matter, n.e.s.preparations based on inorganic or mineral coloring matter, of a kind used for coloring any material or intended to be used as ingredients in the manufacture of coloring preparationsparations (***); inorganic products of a kind used as luminophores, whether or not chemically defined.

Foreign trade in dyes and pigments France, **** -****, in billions of US$ Source: ****

comparative analysis of the data shows that exports increased at the margin in **** (***). Imports, on the other hand, have fallen from $*** million in **** to $*** million in ****, a drop of almost *%. This decrease in imports is significantly more marked than the increase in exports.

Main trading partners :

The main suppliers of pigments and colorants are mainly neighboring European countries, with Belgium in first place, followed by the UK and Germany. China is France's *th largest supplier in this sector, accounting for **% of our imports.

Main destinations for French exports of colorants and pigments France, ****, in Source: ****

This is also the case for French exports of dyes and pigments, which are largely destined for neighboring European countries.

Origin of dye and pigment imports France, ****, in Source: ****

2.1 Paint, varnish and ink: key demand drivers

Paint, varnish and ink are very common applications for colorants and pigments. The activity of colorant and pigment manufacturers in France therefore depends on various sectors, such as the building and civil engineering industry and the automotive sector.

Insee groups under NAF code **.**Z the manufacture of paints, varnishes, inks and mastics, which is one of the main outlets for pigment and colorant manufacturers. In detail, these include :

the manufacture of paints and varnishes the manufacture of pigments, opacifiers and prepared colors vitrifiable compositions, engobes and similar preparations manufacture of mastics manufacture of coatings used in painting and other non-refractory coatings of the type used in masonry work manufacture of organic composite solvents and thinners manufacture of paint and varnish removers manufacture of printing inks

After a period of stagnation between **** and ****, the sector experienced a period of growth between **** and ****. In ****, sales are **.*% higher than in ****.

Business trends for paint, varnish, ink and sealant manufacturers France, **** - ****, index base *** **** Source: ****

This growth has continued in **** and remains significant in ****. In ****, the average sales index for the first ** months was ***.*, i.e. **% higher than in ****.

Industry trends: eecological and natural paints

Organic paints are increasingly popular with the French. Composed of ...

2.2 Textiles: driving demand in the dyes and pigments market

The textile industry suffered greatly from Asian competition at the start of the XXIᵉ century: the **** level being *.** times lower than in ****.

Trend in textile industry sales France, ****-****, in billions of euros Source: ****

The textile industry has seen moderate growth in sales (***) over the period from **** to ****. Starting with a turnover of **.* billion in ****, the industry recorded a continuous increase until ****, reaching a peak of **.* billion. However, in ****, sales fell slightly to **.* billion, probably due to the impact of the COVID-** pandemic. In ****, the industry rebounded to its peak level of **.* billion. Over the entire period, sales rose by *. *%, representing average annual growth of around *.*%.

If we take into account manufacturers of other textile articles, we can see that business has risen significantly in recent years.

This class **.** covers :

manufacture of articles in all textile materials, including knitted fabrics (***). manufacture of textile furnishing articles: curtains, drapes, blinds, bedspreads, machine and furniture covers, etc.; tarpaulins, awnings and outdoor blinds, tents, textile camping equipment, boat sails, protective covers for cars, appliances or furniture; flags, banners, streamers and pennants; dust cloths, floor cloths, tea towels and similar articles, life jackets, parachutes, etc.

Sales index for companies manufacturing other textile articles France, ****-**** Source: ...

2.3 Plastics: another major market outlet

With annual sales of over *** billion euros, the plastics industry is a key factor in the growth of the colorants and pigments market. [***]

the main demand countries for plastics in Europe are Germany (***). Hence the importance for pigment and colorant manufacturers of forging relationships with German industrial partners in particular.

Plastics demand by country Europe, ****, in Source: ****

Packaging is the leading sector for plastic demand in Europe, accounting for **% of total plastic demand. Plastic packaging is generally used to preserve or contain consumer products (***).

Plastic demand, by sector Europe, ****, in Source: ****

In France, average annual production of plastic packaging rose slightly over the period **** - ****, by an average of *.*% each year. However, it decreased between **** and **** [***]

Average annual industrial production of plastic packaging France, ****-****, base *** in **** Source: ****

2.4 Paper and board production trends in France

Growth in the French corrugated board industry halted by the Covid-** crisis:

The corrugated board industry France, **** - ****, in billions of € and millions of tons Source: ****

The plastics industry saw its value and volume decline between **** and ****, from *,*** to *,*** and from *.** to *.* respectively. This represents a drop of *.*% in value and *.*% in volume. However, **** saw a recovery, with an increase in value to *.** and volume to *.**, representing growth of *.*% in value and *.*% in volume compared to ****. Finally, for the year ****, strong growth is forecast for the value of the plastics industry, which should reach *, representing an increase of **.*% compared to ****. Volume, on the other hand, is expected to return to its **** level of *.*, marking a *.*% decline on ****.

Paper and board manufacturing in France:

There has been a decline in activity among paper and cardboard manufacturers since ****. Thus, in ****, the level of activity is located at nearly **% of the **** level.

Paper and cardboard manufacturer activity trend France, ****-****, index base *** **** Source: ****

*the initial series ends in ****; the new series therefore does not have exactly the same reference base, which is why we need to take these results with a grain of salt.

After suffering a major setback as a result of ...

3.1 Colorants and pigments industry value chain

Source: ****

3.2 Number of establishments and employees in the sector

The number of establishments manufacturing colorants and pigments in France is fairly low, reflecting a relatively undeveloped industrial fabric that has been in decline for some ten years. This is mainly due to international competition.

Number of colorant and pigment manufacturers (***) France, ****-****, in number of companies and employees Source: ****

Between **** and ****, the number of dye and pigment manufacturing establishments fluctuated, with an overall drop of **.*%, from ** to ** companies. After a significant drop between **** and **** (***), a slight recovery is observed up to ****. Despite this recovery, the sector remains below its **** levels.

Dye and pigment manufacturing workforce trends France, **** - ****, in units Source: ****

The dyestuff and pigment manufacturing industry experienced a general downward trend in terms of headcount from **** to ****. In ****, it employed *,*** people, and this number fell to *,*** in ****, a drop of **.*%. The biggest drop occurred between **** and ****, with an **.*% reduction in the workforce. However, there was a slight increase in the workforce between **** and ****, as well as between **** and ****, although these increases did not offset the overall downward trend.

3.3 Geographical breakdown of the industry

With ** companies registered under NAF code **.**Z, the Auvergne - Rhône - Alpes region is a major player in the sector, followed by the northern regions of France.

The region's proximity to Germany is an important factor, as there are many industrial outlets there.

Source: ****

3.4 Strategy and dynamism

The French pigments and dyes market features two types of players:

*/ Major international groups present in France via various subsidiaries

Venator, an American group, has two production sites in France AMG (***), a Dutch group, has a plant in France PolyOne, American group Tronox, American group BASF, German group specialized in chemicals DIC, Japan's leading pigment group Ferro, American group

These groups compete on the basis of :

investing in R&D in order to innovate, particularly with a view to creating natural, eco-responsible pigments and colorants (***)

buyout strategies (***)

In ****, the Japanese group DIC acquired the pigment activities of the German group BASF, including the Huningue site in Alsace, for €*.** billion. [***]

*/ Smaller French players specialized in certain segments

In ****, Addiplast Group - a French SME with pre-transaction sales of €** million - acquired Toyo Ink Europe Speciality Chemicals in the Oise region. This plastics colorants unit also produces pigments for LCD screens and industrial machinery. Addiplast is aiming for sales of €** million by ****.specializing in the formulation, manufacture, fireproofing and coloring of polypropylene, polycarbonate and polyamide compounds used in plastic injection in granule form, Addiplast targets the automotive, electrical engineering, electronics, luxury cosmetics, healthcare and chemical markets. The company is positioning itself ...

4.1 Product typology

The manufacture of dyes and pigments is covered by NAF code **.**Z. This code covers the following products:

**.**.** - Zinc oxides and peroxides; titanium oxides- **.**.** - Chromium, manganese, lead and copper oxides and hydroxides- **.**.** - Other metal oxides, peroxides and hydroxides- **.**.** - Synthetic organic colorants and preparations based thereon; synthetic organic products used as fluorescent brightening agents or as luminophores; color lakes and preparations based thereon- **.**.** - Tanning extracts of vegetable origin; tannins and their salts, ethers, esters and other derivatives; coloring matter of vegetable or animal origin- **.**.** - Synthetic organic tanning products; inorganic tanning products; tanning preparations; enzymatic preparations for pre-tanning- **.**.** - Dyestuffs n.e.c.; inorganic products used as luminophores- **.**.** - Sub-contracted operations involved in the manufacture of dyestuffs, pigments and tanning agents

The table below, according to Prodcom - Eurostat, shows the value of production in France of certain categories of products grouped under this code **.** in ****:

The amounts given concern the value of marketed production. The value of production marketed or intended for marketing is calculated on the basis of the selling price at the plant's départ de l'usine realized́ or likely to be realized́ during the period covered by the survey. It also includes ...

4.2 Price trends

Between **** and ****, there will be an overall increase in the Producer Price Index - all markets combined.

Producer price indices (***) in industry for the French market measure changes in transaction prices, excluding VAT, of goods produced by industry and sold on the French market.

Producer price index, Dyes, pigments and tanning agents France, **** - ****, index base *** **** Source: ****

The industry has largely suffered from inflation since ****. Prices have risen by almost ** points in two years.

4.3 Supply trends: towards "natural" and eco-responsible colorants

The rise of natural food coloring :

Fermantalg is a French biotech specializing in microalgae for nutrition and health. The company is partly owned by the Japanese group Dic: together, the two companies aim to develop natural food colorants by developing an innovative "phycocyanin" (***).

In ****, phycocyanine represented a market worth *** million euros (***), of which DIC held **% in ****.

The market for "natural" colorants is indeed growing very fast compared to artificial food colorants. Although they accounted for only *-**% of the overall colorants market in ****, they have seen average annual growth rates of *-**% in recent years.

Source: ****

The rise of eco-friendly colorants:

Pili designs eco-friendly, bio-based colorants and pigments, whereas virtually all colorants today are derived from petrochemicals. Pili's ambition is to have dyes produced by microorganisms.[***] In June ****, Pili raised €*.*m after raising €*.*m in ****.

Examples of players' eco-responsible actions:

According to Les Echos, Tronox has a titanium dioxide (***) production site in France and has begun a recycling initiative within its manufacturing process. The Group's ambition is to reduce the site's sulfur consumption by **% by installing sulfuric acid effluent filtration units. TiO* is notably used as a pigment thanks to its opacity and whiteness properties in papers, plastics and paints. The ...

5.1 Current regulations

REACH regulations (***)

European regulation ****/**** aims to protect against the risks associated with the circulation of chemicals on European territory. The regulation sets out a timetable for the registration, classification and evaluation of over **,*** substances. The regulation also sets fees to be paid according to the substances used and their quantities. It makes industry responsible for assessing the hazards and risks associated with the use of chemicals, and for providing users with the information they need to use these products safely. All substances manufactured or imported in quantities of one tonne or more per year per manufacturer/importer must be registered for all uses.

Seveso, Seveso II and Seveso III directives

The Seveso, Seveso II and Seveso III directives govern the control of hazards at industrial sites using hazardous substances.

6.1 Player segmentation

• Tronox Mic Thann France
• Ferro
• AVIENT (ex PolyOne)
• BASF
• DIC Corporation
• Addiplast Group
• Venator Pigments
• AMG (Advanced Metallurgical Group)
• Colorey
• Venator France (Huntsman group)