Chemical and material

Solvent Red Market Is Estimated To Witness Moderate Growth Owing To Rising Applications In Paints And Coatings

The Solvent Red Market is estimated to be valued at US$ 2.18 Bn in 2023 and is expected to exhibit a CAGR of 3.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Solvent Red dye find widespread applications in paints and coatings industry due to their excellent color strength, brilliant shades and compatibility. They impart intense and reddish-orange color to solvent based inks, coatings and plastics. Some key advantages of solvent red dyes include light fastness, weather resistance, color purity and chemical stability. Rising paints and coatings demand from construction and automotive sectors are fueling market growth.

Market key trends:

Solvent red dyes have witnessed rising adoption in paints and coatings applications owing to their excellent tinting strength, compatibility and resistance to weathering. They are primarily used in automobile, packaging and construction applications. Growing construction activities along with increasing vehicle production across emerging economies are providing a fillip to solvent red dye consumption. Furthermore, expanding modern retail sector and growth in plastic and polymer industry are creating new revenue channels for market participants. Research and development towards development of environment friendly and sustainable solvent red dyes with higher efficiencies may present new opportunities over the forecast period.

Porter’s Analysis

Threat of new entrants: Low economies of scale in solvent red industry and established brand value of existing players pose barrier for new entrants.

Bargaining power of buyers: Large buyers like paints & coatings manufacturers can negotiate with suppliers on price and quality standards due to their high purchase volumes.

Bargaining power of suppliers: Few global players control the supply of raw materials used to produce solvent red, giving them bargaining power against buyers.

Threat of new substitutes: New product innovations with better performance characteristics compared to solvent red can impact its demand.

Competitive rivalry: Intense competition exists among key solvent red manufacturers to capture larger market share through competitive pricing and new product development.

SWOT Analysis

Strength: Solvent red finds wide application in printing inks, plastics, paints & coatings industries. Established distribution network of major players.

Weakness: Stringent environmental regulations regardingVOC emissions during solvent red production. High dependency on limited number of raw material suppliers globally.

Opportunity: Growing demand for solvent red from coatings used in automotive and construction industries in Asia Pacific.

Threats: Volatility in raw material prices can impact profit margins of solvent red producers. Shift towards eco-friendly substitutes may threaten demand.

Key Takeaways

The Global Solvent Red Market Demand  is expected to witness high growth, exhibiting CAGR of 3.9% over the forecast period, due to increasing demand from printing inks industry.

Regional analysis indicates Asia Pacific as the fastest growing market for solvent red due to expanding coatings industry in China and India. It is expected to capture around 45% share of global solvent red market by 2030.

North America and Europe are also projected to retain their dominance, collectively accounting for over 40% share through 2030.

Key players operating in the solvent red market are Clariant International Ltd., BASF SE, Huntsman Corporation, Lanxess AG, Dow Chemical Company, Arkema Group, DIC Corporation, Sudarshan Chemical Industries Limited, Asahi Kasei Corporation, Meghmani Organics Limited.

 

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it

Money Singh

Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.