The market for paper dyes is expected to grow at a CAGR of approximately 5% globally during the forecast period.
- Major factors driving the market studied is the banning/limiting plastic use in packaging applications around the world.
- Major restraint is the harmful amines in dyes that when exposed over the years are found to have been carcinogenic agents. Also, different paperless green initiatives that have the main aim to preserve the environment and opting for digital media is also expected to hinder the market growth.
Key Market Trends
Packaging Segment to be the Largest Application
- Paper-based packaging is a cost-effective method for transportation and preservation of a variety of items. It is engineered to be sturdy, yet lightweight, and is customizable to meet product- or customer-specific needs. Paper based packaging includes corrugated contain board, paperboard packages, paper bags and paper shipping sacks, with increasing concerns regarding single use plastic a wide variety of paper packaging comes in different colors and designs. Therefore, paper dyes are extensively used in these.
- 57% of the Global consumption of paper by category was occupied by packaging industry, the next biggest segment was writing and printing occupying 26%.
- The worldwide paper sales from 2010-2018 experienced a steady growth. The industrial packaging segment had about 12,700 metric tons of sales in 2010, in 2014 it increased to 16,700 metric tons and 17,100 metric tons in 2018.
- Also, production capacity of paper and paperboard which are significantly used in packaging industry is expected to grow in the future. Right now, in 2018 the production capacity was approximately 267,355 kilo metric tons, it is estimated to reach 268,598 kilo metric tons in 2019 and forecasted to reach 278,247 kilo metric tons by 2023.
Asia Pacific Region to Dominate the Market
- Asia Pacific region has been the forefront of the criticism by the environmental community for the use of single use plastics. The amount of single used plastics dumped in the Pacific Ocean has resulted in a patch larger than the area of France floating in East Pacific Ocean full of plastic.
- Other than this, countries like India, Bangladesh and Sri Lanka has been facing hygiene problems due to disease borne mosquitos breeding in water clogged in drainages because of plastics.
- Hence, various governments in this region has taken stringent policy to ban or limit the use of plastics, thereby paper being preferred for packaging.
- Asia Pacific lead both the paper production and consumption worldwide. 45% of the total production was from Asia Pacific, Europe a distant second with 25%.
- Asia Pacific is also the largest market for the flexible packaging industry worldwide. 40% of the market share was occupied by Asia Pacific.
- Therefore, by various government measures, and growing demand from various industries, the Asia Pacific is the region that dominates the paper dyes market.
The Global Paper Dyes Market is fragmented in the market with the presence of number of companies eyeing for share in the market. The major companies are BASF SE, Celanese Corporation, Standard Colors, Inc, Archroma, and Cromatos among others.
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