Packaging and board applications to significantly drive demand for paper dyes
The global paper dyes market is poised to surpass $1billion, expanding at a little over 2% in terms of value compound annual growth rate (CAGR) across the 2021-2031 forecast period.
The findings, published in an ESOMAR-certified market research and consulting firm’s market intelligence report reveal that demand is expected to remain sustained amidst growing adoption of paper-based packaging solutions across various industries.
Historically, the market performed moderately, expanding at under 2% CAGR to surpass $950million in 2020. This moderate outlook is an outcome of the recessionary impacts ushered in by the COVID-19 pandemic on industrial production, particularly regarding chemicals and materials. Growth is expected to remain sustained amidst the surging need for disposable hygiene products.
According to the World Health Organisation, mortality rates from communicable diseases have registered a significant decline in the past 20 years. While pneumonia and other lower respiratory infections claimed many lives in 2019, it was much less compared to 2000. Also, tuberculosis-related deaths have also fallen drastically. This is mostly an outcome of increased consciousness regarding personal hygiene, prompting consumers to purchase tissue papers, toilet papers and other paper products, driving demand for paper dyes.
“As demand for flexible and lightweight packaging increases, industries are incorporating paper-based packaging solutions, inclining demand for paper dyes across key regions,” says a senior research analyst at Fact.MR.
In the aftermath of the COVID-19 pandemic, consumers worldwide have become conscious about maintaining personal hygiene. This includes using disposable products such as tissues, paper towels, toilet papers, kitchen rolls and serviettes among others.
Most of these are manufactured from recycled paper, which is proving beneficial to the environment. Consequently, leading paper products manufacturers are augmenting production, thus stimulating demand for paper dyes in recent years, a trend likely to continue in the future.
Why is demand for paper dyes highest from the packaging & boards segment?
By application, sales of paper dyes are expected to remain the highest in the packaging & board segment, expanding at approximately 5% CAGR from 2021-2031. Extensive reliance on paper-based packaging is the chief growth driver.
Rising demand for lightweight and flexible packaging solutions, particularly across the e-commerce industry, is majorly driving demand for paper dyes by major online retail companies.
Which paper dye type is expected to remain the preferred choice for key end users?
By dye type, basic dyes are expected to grab significant attention; poised to record a modest 3% CAGR across the forecast period. Demand is expected to be strong because these dyes are relatively economical and offer high tinctorial strength.
Simultaneously, sales of direct dyes and sulphur dyes are also inclining, collectively expanding at over 4% CAGR across the 2021-2031 forecast period.
Will liquid paper dyes continue to hold sway in the long run?
By form, liquid paper dyes are expected to remain largely preferred, experiencing a growth rate of over 4% in value CAGR terms. Liquid paper dyes impart optimum shade and depth, good affinity and easy applicability across various paper forms.
Liquid paper dyes are frequented for printing & writing, coated paper, tissue & towelling, packaging & board, copier papers, envelope grades, newsprint applications and decorative laminated paper manufacturing.
Key paper dye manufacturers are leveraging multiple growth strategies, including product launches, capacity expansion via strategic collaborations, mergers and acquisitions, and undertaking R&D initiatives.
Prominent paper dye manufacturers featured in recent market intelligence study include BASF SE, Archroma, Cromatech Inc., Atul Ltd., Alliance Organics LLP, Keystone Aniline Corporation (Milliken & Company), Bhanu Dyes Private Limited, Burboya, DyStar Singapore Ltd., Axyntis SAS, and Shreem Industries.
- In March 2021, Milliken & Company formally acquired Zebra-Chem GmbH, a global chemicals company, known for its peroxide and blowing agent masterbatches. This acquisition will enable the company to strengthen its portfolio in recycled plastic and other chemicals.
- Burboya, a prominent Turkish dyes manufacturer, offers paper dyes produced from fenazol. The company initiated the business in 2012, and empowers clients by providing unique, cost effective formulations, customized color preferences and enhanced quality products.
These insights are based on a report on Paper Dyes Market by Fact.MR.