Pigments Procurement Category Market Research Report from IBISWorld has Been Updated

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In the three years to 2014, pigment prices have risen rapidly due to increased demand from clients including cosmetic and beauty products manufacturers, paint manufacturers, ink manufacturers and automobile manufacturers. For these reasons and to help procurement professionals make better buying decisions faster, business intelligence firm IBISWorld has updated a report on the procurement of Pigments in its growing collection of procurement category market research reports.

IBISWorld procurement market research
Pigment prices are projected to increase further due to forecast growth in the value of construction, the industrial production index and the price of nonferrous metal ore.

The pigments market has a buyer power score of 2.4 out of 5, reflecting a moderate level of negotiation power for buyers and suppliers. Low product specialization and low market share concentration are beneficial for buyers, but high price volatility and rising material costs hamper these positive effects.

Recent pricing trends for pigments have had an adverse effect on buyer power. In the three years to 2014, prices have risen rapidly due to increased demand from clients including cosmetic and beauty products manufacturers, paint manufacturers, ink manufacturers and automobile manufacturers. As the industrial production index and the value of construction have risen, buyers in these sectors have required more pigments, boosting demand and fostering price growth. “This trend is expected to continue in the three years to 2017, further reducing buyers' ability to negotiate favorable prices and contract terms,” according to IBISWorld business research analyst Jesse Chiang.

Another challenge facing buyers is the high price volatility of pigments. Inputs to pigment production, including nonferrous metal ores, fluctuate greatly. In most cases, pigment suppliers adjust 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 should try to negotiate set pricing terms to prevent unexpected price increases,” says Chiang.

Although rising price trends and volatility can damage buyer power, low market concentration and low product specialization offset their effects. As a result of low market concentration, pigment suppliers face a high level of competition, giving them an incentive to offer buyers competitive prices. Low product specialization aids buyers because it gives them the ability to procure services from all available suppliers, rather than having to find a niche provider. These factors improve buyers' ability to negotiate lower prices. Major vendors include Lanxess AG, BASF and Clariant International Ltd. For more information, visit IBISWorld’s Pigments procurement category market research report page.

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IBISWorld Procurement Report Key Topics

This report is intended to assist 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
-- Market Profitability
-- 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 insights 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.

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Gavin Smith
IBISWorld Inc.
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