July 21, 2024
Solvent Red Market

Solvent Red Market driven by Growth of Printing Industry

The solvent red dyes find wide application in printing ink formulations for packaging, textiles and other printing purposes. They impart bright red color and have good light fastness properties. Solvent red dyes offer excellent solubility in various organic solvents used as vehicles in printing inks. They provide uniform color and good adhesion to different substrates. The global printing industry has been witnessing steady growth with increasing demand for flexible packaging from food and pharmaceutical industries. Rise in e-commerce has further augmented the packaging requirements. Growing packaging sector is favoring the solvent red dye consumption.

The global Solvent Red Market is estimated to be valued at US$ 2.18 Bn in 2023 and is expected to exhibit a CAGR of 4.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Key Trends

One of the key trends in the solvent red market is growing demand for bio-based dyes. Consumers are becoming increasingly environment conscious and prefer sustainable products. Manufacturers are responding to this demand by developing bio-based alternatives to petroleum-derived dyes. For instance, various plant-derived compounds like anthocyanins found in red grapes and berries can be used for development of natural solvent red dyes. These natural dyes offer comparable color strength and lightfastness properties. Their adoption is expected to increase in the coming years due to stringent regulations on use of synthetic dyes.

Porter’s Analysis

Threat of new entrants: The threat is moderate as the solvent red market requires considerable capital investment for establishing manufacturing facilities. However, the market is fragmented with presence of several small players.

Bargaining power of buyers: The bargaining power of buyers is moderate since solvent red is widely used by various end-user industries. Buyers can switch to substitute products if pricing is not competitive.

Bargaining power of suppliers: The bargaining power of suppliers is moderate due to availability of adequate raw material suppliers and suppliers have no control over the prices of raw materials.

Threat of new substitutes: The threat is low as solvent red is used for specific applications in printing inks, thermoplastics, paints & coatments and there are limited substitutes.

Competitive rivalry: The competition in the market is high due to presence of numerous established as well as local players operating globally.

Key Takeaways

The Global Solvent Red Market Size is expected to witness high growth. The Asia Pacific region currently dominates the market and is expected to maintain its leading position during the forecast period. This can be attributed to increasing use of printing inks in packaging industry in China and India.

Regional analysis: The Asia Pacific region accounts for more than 40% share of the global solvent red market led by China, India, Japan and South Korea. This is due to robust growth of textile, plastics, coating and printing industries in the region. North America and Europe are also significant markets driven by established end-use industries.

Key players: Key players operating in the solvent red market are Mitsubishi Chemical, Gabriel Performance Products, LLC, DIC Corporation, Kukdo Chemical, Georgia-Pacific (GP) Chemicals, SpecialChem, Brenntag Asia Pacific Pte. Ltd., SHOWA DENKO K.K., ICL Phosphate Specialty, and Merck KGaA.

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