High material costs and import competition prolong industry decline
London, UK (PRWEB) August 09, 2012
The Dye & Pigment Manufacturing industry is a very small component of the overall UK chemical sector as it stands today. However, it has a proud history and can lay claim to the discovery of a number of dyes. Over the years it has gradually declined in importance in both domestic and global terms. Much of this has been linked to the demise of the British textile industries. Products manufactured by the industry are chemical intermediate products used by other chemical industries, including the textile industry as well as the coatings and ink manufacturing industries. According to IBISWorld industry analyst Arna Richardson, “this has meant that the industry's fortunes have been inextricably tied with those of the general UK manufacturing base”.
In the past five years, the industry has faced a number of additional challenges. Richardson adds, “these have included unprecedented changes, instability and shortages in the supply chain; historically high raw material and transportation costs; and a backdrop of markedly sluggish demand”. In view of this potent combination of variables, industry revenue is expected to contract at an annualised 10.3% over the five years through 2012-13. The industry is forecast to generate £1.1 billion in revenue in 2012-13, a decline of 4.3% on the previous year. IBISWorld expects there to be further closures of local manufacturing facilities as global players continue to shift production offshore to low-cost Asian manufacturing facilities. The industry is in the decline phase of its life cycle. As such, revenue is expected to continue to contract over the next five years to 2017-18. To ensure their continued survival, players will have to establish themselves in niche segments catering for new markets, such as printed electronics or environmentally friendly dyes, as they evolve in line with the changing dynamics of the global dyestuffs industry.
With no one player dominating the industry and the top four players commanding a combined market share of less than 40%, the Dye & Pigment Manufacturing industry is deemed to have a low level of market share concentration. This reflects the fragmented nature of the industry, the diverse range of product segments and the large number of small, niche players operating within confined markets. Key players in the industry tend to be subsidiaries of large international chemical giants (often with diverse chemical product portfolios) that dominate sectors of the global chemical industry. Despite this, their dominance in the industry may be confined to small product segments. The dominant role of imports in satisfying domestic demand (85.3% in 2012-13) limits the role played by domestic players. Major companies include Millennium Inorganic Chemicals and BASF Performance Products.
For more information on the Dye & Pigment Manufacturing industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.
IBISWorld industry Report Key Topics
Companies in the Dye and Pigment Manufacturing industry manufacture dyes and pigments in both basic form and as a concentrate. The industry also includes firms that manufacture products used as fluorescent brightening agents or as luminophores.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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