New Product Development Key to Success of Pigment Producers

By Cynthia Challener

Pigment producers face challenging times, with competition from emerging regions forcing prices downward while raw material and energy prices continue to climb and regulatory requirements become more restrictive. In addition to taking such actions as increasing their own product prices and reducing production costs where possible, pigment manufacturers are also looking to improve their product development processes, decrease time-to-market, and identify opportunities for providing higher value to their customers.

The market for pigments used in paints and coatings is growing at an overall rate of 1% per year, both in the U.S. and globally. In 2006, the value of pigment sales to the coatings industry in the U.S. was approximately $3 billion based on a volume of about two billion pounds, according to Steven Nerlfi, a consultant with Kusumgar, Nerlfi & Growney (KNG). White pigments, which are 99% titanium dioxide-based, accounted for nearly 62% of the total dollar sales and 83% of all pounds.