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Home / India News / 2007 / January / January 10, 2007
Growth of Plastics Market to Propel Greater Demand for Plastic Colourants

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Growth of Plastics Market to Propel Greater Demand for Plastic Colourants

Mumbai, Maharashtra, India

In recent years, several sectors of the European manufacturing industry have shifted their business to Asia to benefit from cost advantages and capitalise on market growth in the region. Plastic processors have also followed suit in order to compete with Asian companies and improve their offerings to customers in those regions. This has adversely affected the European masterbatch and colourants industry, which has lost customers to Asia and therefore become more competitive, price-driven and less profitable.

Frost & Sullivan ( finds that the European Markets for Plastic Colourants earned revenues of €292.6 million in 2005 and estimates this to reach €339.3 million in 2012.

"The plastics market is growing in the European Union (EU) in virtually every sector of the industry and chemical class," remarks Frost & Sullivan Industry Analyst Robert Outram. "Growth in the high density polyethylene (HDPE) and PolyEthylene Terephthalate (PET) sector has been particularly good, with growth rates since 2001 ranging between 3.4 to 4.4 per cent per year. This is an important sector of the plastic colourants markets as HDPE and PET are used in the making of plastic bottles and containers, often requiring some colourant."

To a large extent, expansion of the European plastic industry is driving the plastic colourants markets. The industry is witnessing growth, particularly in high-price and technical applications such as films and automotive parts. As Asian companies enter the market, compelling prices to decline, these high-performance applications are providing opportunities to European pigment producers and allowing them to distinguish themselves as technology leaders.

However, European pigment producers are facing growing price pressure. The cost of producing a kilogram of organic pigment is lower in India and China, than in Europe. Typically, Asian pigment producers charge €2 to €3 less per kilo for organic pigments, in comparison to their European counterparts. This is attributed to low costs of construction, workforce wages and environmental controls in the regions. While tightening of environmental legislations in these countries is expected, it is unlikely to make a significant impact on bridging cost disparities.

"Competition for sales has largely been on a price basis as the degree of innovation in the market is limited and the market itself has noticeable resistance to evolving technologically," explains Mr. Outram. "Consequently, the main tool competitors can leverage in the market is price."

With competition focussed on price, driven by masterbatchers and plastic producers, price erosion of colourants has occurred. As a result, funds available in the market for innovation and development of new additives have dwindled and products are becoming commoditised further.

In view of the competitive nature of the plastic colorants markets, an effective business strategy will become crucial for survival. European participants are likely to acquire Asian companies or form alliances with them in order to shift production to East Asia to curb costs and remain competitive. Product innovation will become essential for European companies to successfully differentiate themselves from their Asian competitors. In addition, finding feasible methods to fund research and development, while reducing current production costs will become imperative for market success.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the latest analysis of European Markets for Plastic Colourants, then send an e-mail to Shwetha Thomas, Corporate Communications, at with your full name, company name, title, telephone number, e-mail address, city, state, and country. We will send you the information via email upon receipt of the above information.

European Markets for Plastic Colourants is part of the Chemicals and Materials Subscription, which also includes research in the following markets: The Global Inkjet Inks Market, European Markets for Engineering Polyester Thermoplastics, European Markets for Flexible Plastic Food Packaging, European Market for High Performance Polyamides and, Innovative Engineering Plastics. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community, by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics. For more information, visit

Frost & Sullivan Chemicals and Food Group is the strategic market consultant delivering insight and understanding to support business growth internationally. We identify and analyse the critical market challenges companies must address to become successful competitors in their industry. Our work is focused on these challenges in order to provide our clients with market strategies that enable them to increase revenues, market share and profitability.

The Group continuously monitors a comprehensive spectrum of chemical and food markets for trends, market measurements and strategies, and delivers powerful data via research publications, bespoke market intelligence projects and customised consulting.

European Markets for Plastic Colourants

Shwetha Thomas, Corporate Communications, Frost & Sullivan, + 91 (022) 4001 3429

Source: Frost & Sullivan (Business Wire India)

Press release presented here is sourced from the Source mentioned above and is provided on as-is basis. Please contact the Company / Source directly for any further information in regard to this release. This website will be unable to assist you in regard to the accuracy or correctness of information in this release.

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