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Pigments Procurement Research Report Now Available from IBISWorld
  • USA - English


News provided by

IBISWorld

Oct 25, 2013, 03:00 ET

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Los Angeles, CA (PRWEB) October 25, 2013 -- Pigments have a buyer score of 2.7 out of 5. This score reflects a medium level of buying power. “Low product specialization and low market share concentration help to keep buying power for pigment purchasers at a steady level,” IBISWorld procurement analyst Kayley Freshman-Caffrey says. However, high price volatility and rising material costs hamper these positive effects. Currently, the market’s major vendors include BASF Aktiengesellschaft, Clariant International Ltd., Ferro Corporation and Rockwood Holdings, Inc.

Pigment prices are forecast to continue rising in the three years to 2016 because of continued growth in demand from client industries and further increases in the cost of key inputs.

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Prices for Pigments depend highly on the base chemical used to create a specific pigment. Iron oxides and other metal bases that provide basic colorant properties are the least expensive. Titanium dioxide, the most popular type of pigment, is slightly higher in price. A buyer in need of a titanium dioxide pigment will be hard-pressed to find an alternative in iron oxides; this means the buyer has less leverage in lowering the price. However, they may seek price reductions based on other aspects of the pigment or on aspects of service. “Titanium dioxides are largely responsible for the wide price range of pigments,” Freshman-Caffrey says. Prices for iron oxide and ocher pigments, which are used solely for color, will be on the lower end of this range, while prices for titanium dioxide pigments will be on the higher end of this range.

Recent pricing trends for pigments have had an adverse effect on buyer power. In the three years to 2013, prices rose rapidly because of increased demand from clients including cosmetic and beauty products manufacturers, paint manufacturers, ink manufacturers and automobile manufacturers. As consumer spending on products produced by these industries has increased in the wake of the recession, downstream manufacturers have required more pigments. This trend is expected to continue in the three years to 2016, further reducing a buyer's ability to negotiate a low price and favorable contract terms.

Another challenge facing buyers is the high price volatility of pigments. Inputs to pigment production, including nonferrous metal ores, have high price volatility. In most cases, pigment suppliers pass this volatility on to buyers by adjusting the price of pigments based on the price of key inputs. High price volatility hurts buyers because it can lead to sudden price spikes. When possible, buyers of pigments should try to negotiate set pricing terms to prevent the unfavorable effects of price volatility. Although rising price trends and volatility can damage buyer power, other parts of the purchasing process, such as low market concentration and low product specialization, can help improve buyer power. As a result of low market concentration, pigment suppliers face a high level of competition, giving them an incentive to offer buyers a competitive price. These factors improve a buyer's ability to negotiate a lower price, leading to a medium level of buyer power overall. For more information, visit IBISWorld’s Pigments procurement research report page.

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IBISWorld Procurement Report Key Topics

This report is intended to help buyers of pigments. Pigments are dry powders used to add color to products such as paints, inks, textiles and cosmetics. These powders come in a variety of colors and metal bases, including iron oxide and titanium dioxide. Suppliers of pigments include pigment manufacturers and pigment wholesalers. This product group excludes dyes, which are colors in liquid form.
Executive Summary
Pricing Environment
Price Fundamentals
Benchmark Price
Pricing Model
Price Drivers
Recent Price Trend
Price Forecast
Product Characteristics
Product Life Cycle
Total Cost of Ownership
Product Specialization
Substitute Goods
Regulation
Quality Control
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Imports
Competitive Environment
Market Share Concentration
Vendor Financial Benchmarks
Switching Costs
Purchasing Process
Buying Basics
Buying Lead Time
Selection Process
Key RFP Elements
Negotiation Questions
Buyer Power Factors
Key Statistics

About IBISWorld Inc.
IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

Danielle Goodman, IBISWorld, +1 3108762175, [email protected]

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