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Paper Dyes Market size is estimated to grow at a CAGR of 4.2% in 2022-2027 and is valued at USD $1.33 billion by 2027. Paper dyes encompass all the different types of natural and synthetic dyes used for the coloration of paper materials to obtain the coated paper, with some common examples being direct dyes that are carried out in alkaline conditions, acidic dyes, basic dyes, and sulphur dyes. The increasing demand for paper & paperboard products like printing & writing paper, tissue paper for household sanitation and hygiene, and packaging paper, among others, is one of the key factors driving the demand for the Paper Dyes Market.
During the COVID-19 Pandemic, many industries had suffered a tumultuous time, and it was no different for the Paper Dyes Market. Many governments across the globe implemented lockdown regulations and factories & production facilities in many sectors came to a halt. The supply chain was greatly disrupted as many businesses followed the lockdown protocols. The global pulp & paper industry saw a huge fluctuation in demand during the pandemic, with the demand being far lower than compared to the previous years. According to the Confederation of European Paper Industries (CEPI), the total production of paper & board decreased by 4.8% from 89.5 million tons in 2019 to 85.2 million tons in 2020 of the CEPI association members, that comprise 18 countries in Europe. This trend was common worldwide as production decreased due to pandemic protocols. The Paper Dyes Market was directly affected by this as the market directly supplies to the global pulp & paper market. As such, the demand for paper dyes also declined during the pandemic. However, the market has seen a recovery in 2021 and as the world population is being vaccinated and lockdown protocols are being lifted, it is estimated that the Paper Dyes Market will observe substantial growth during the forecast period of 2022-2027.
Paper Dyes Market Analysis – By Type
Direct Dyes held the largest share of 42% by type segment in the Paper Dyes Market in 2021. Direct dyes are a type of water-soluble dyes that are usually of the azo class and is used in alkaline or neutral solutions for dyeing cotton and paper directly. Direct dyes have excellent fastness properties that are improved after treatment and has an advantage over other dyes due to their ease of application as they can be applied directly to the substrate, making them usable in a wide variety of applications. Other types of paper dyes include acidic dyes, which are anionic dyes containing one or more sulfonic acid substituents or other acid groups, basic dyes, which are cationic dyes derived from coal and tar, and sulphur dyes, which resist washing.
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Paper Dyes Market Analysis – By Form
Liquid Dyes held the largest share of 57% by form segment in the Paper Dyes Market in 2021. Liquid dyes are a form of dye that is dissolved in water and have a high concentration of dyestuff. As a result, liquid dyes are easier to use in paper material as powder dyes have to be dissolved with a solvent before adding it to the dyebath. Common applications of liquid dyes include writing & printing paper, coated paper, tissues and towelling, package & board papers, and so on. According to the International Energy Agency, (IEA), the global production of pulp and paper is estimated to increase 1.5% annually to 2030. According to the Bureau of International Recycling (BIR), around 42 million tons of paper & cardboard is produced annually as calculated in 2021. As such, the demand for paper dyes is also expected to increase within the forecast period of 2022-2027.
Paper Dyes Market Analysis – By Geography
Asia-Pacific region held the largest share of 44% by geography in the Paper Dyes Market in 2021. There is an increasing demand for packaging in the region which is further reinforced with a developing economy and higher standards in quality of lifestyle. As such the demand for pulp & paper, and by extension, the demand for paper dyes has seen an increase in the region as well. According to the Interpack Alliance, the Asia-Pacific region dominated the global packaging market in 2019 with a sale of 2.1 trillion packaging units. According to Invest India, the packaging sector of India, which is the country’s fifth-largest sector, is growing at a CARG of 25%, with the packaging consumption increasing by 200% in the past decade. China is also considered to have the second-largest packaging industry globally. As such, the Asia-Pacific region will dominate the market within the forecast period of 2022-2027.
Paper Dyes Market Drivers
The growth of the Packaging Industry:
One of the key driving factors for the Paper Dyes Market is the growing Packaging Market as one of the key applications of paper dyes is in packaging paper and cardboard. According to Invest India, the global packaging market is growing at a CAGR of 2.8% and is estimated to reach an astounding value of USD$ 1.05 trillion in 2024, breaking the trillion mark. Of this, the packaging paper and cardboard segment are estimated to have the largest share of 35.7%. According to the COMEXPOSIUM group, the production demand for corrugated cardboard packaging is estimated to reach 170 million tons in 2023 and the production demand for paper & plastic flexible packaging is estimated to reach 33.5 million tons by 2022. This is reinforcing the growth of the Paper Dyes Market within the forecast period of 2022-2027.
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Paper Dyes Market Challenges
Stringent regulations limiting the production and trade of Dyes:
A key challenge to the Paper Dyes Market are the various stringent regulations that heavily regulate the production and trade of dyes in the global market. For example, the Registration, Evaluation, Authorisation, and Restriction of Chemicals (REACH), is a regulation set by the European Union (EU) that addresses the production and usage of chemical substances. Dyes, especially azo dyes, must especially be clear of carcinogenic, mutagenic, or toxic elements and must not be hazardous to the environment for the dye to be produced and distributed in Europe. These regulations are positively important for the wellbeing of human health and the environment; however, they do tend to heavily restrict the manufacturing processes involved in various chemicals such as dyes. Hence, such regulations can be a restraint during the forecast period of 2022-2027.
Paper Dyes Industry Outlook
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the market. Paper Dyes top 10 companies include:
Vipul Organics Ltd
Organic Dyes and Pigments
Sterling Pigments & Chemicals
On December 6, 2019, Archroma India Private Limited, a subsidiary of Archroma, acquired BASF India’s stilbene-based optical brightening agent (OBA) business which will help to expand Archroma’s paper and powder detergent capacity and applications in India and Asia.
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The Asia-Pacific region dominates the Paper Dyes Market due to a heavy demand for the Packaging Industry within the region.
The most commonly used type of paper dye is direct dyes that can be applied directly to the substrate.
The growing global packaging market is one of the key drivers for the Paper Dyes Market as it is increasing the demand for paper and cardboard packaging.
A. Paper Chemicals Market
B. Pulp & Paper Market
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