Iron Oxide Pigment Market

The global iron oxide pigment market is expected to continue its upward consumption trend, with a forecasted CAGR of +2.9% for the period from 2022 to 2030. Consumption decreased in 2022 but is projected to reach 4.3M tons by 2030. Market value is also expected to increase with a CAGR of +3.8%. South Africa leads in production, while the United States and China are top importers. Germany has the highest export price, and the United States boasts the highest import price. Overall, the market shows growth potential with significant fluctuations in prices and consumption levels.

Market Forecast

Driven by increasing demand for iron oxide pigments worldwide, the market is expected to continue an upward consumption trend over the next eight years. Market performance is forecast to decelerate, expanding with an anticipated CAGR of +2.9% for the period from 2022 to 2030, which is projected to bring the market volume to 4.3M tons by the end of 2030.

In value terms, the market is forecast to increase with an anticipated CAGR of +3.8% for the period from 2022 to 2030, which is projected to bring the market value to $6.5B (in nominal prices) by the end of 2030.

Consumption

World Consumption of Iron Oxide Pigments

In 2022, consumption of iron oxide pigments decreased by -3.7% to 3.4M tons, falling for the second year in a row after two years of growth. Over the period under review, the total consumption indicated a measured increase from 2012 to 2022: its volume increased at an average annual rate of +4.2% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, consumption decreased by -3.9% against 2020 indices. Over the period under review, global consumption hit record highs at 3.6M tons in 2020; however, from 2021 to 2022, consumption failed to regain momentum.

The global iron oxide pigment market size dropped modestly to $4.8B in 2022, which is down by -2.3% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Overall, consumption, however, showed a relatively flat trend pattern. As a result, consumption attained the peak level of $4.9B. From 2015 to 2022, the growth of the global market remained at a somewhat lower figure.

Consumption By Country

The countries with the highest volumes of consumption in 2022 were China (504K tons), the United States (338K tons) and India (216K tons), together comprising 31% of global consumption. Germany, Japan, Pakistan, Nigeria, Indonesia, Brazil, Bangladesh, Mexico, South Korea and Turkey lagged somewhat behind, together accounting for a further 30%.

From 2012 to 2022, the biggest increases were recorded for Nigeria (with a CAGR of +10.7%), while consumption for the other global leaders experienced more modest paces of growth.

In value terms, the largest iron oxide pigment markets worldwide were China ($523M), the United States ($504M) and Germany ($253M), with a combined 27% share of the global market. Pakistan, Japan, India, Mexico, Bangladesh, Nigeria, Indonesia, Brazil, South Korea and Turkey lagged somewhat behind, together accounting for a further 16%.

Among the main consuming countries, Nigeria, with a CAGR of +13.7%, saw the highest rates of growth with regard to market size over the period under review, while market for the other global leaders experienced more modest paces of growth.

The countries with the highest levels of iron oxide pigment per capita consumption in 2022 were Germany (1,687 kg per 1000 persons), South Korea (1,506 kg per 1000 persons) and Japan (1,057 kg per 1000 persons).

From 2012 to 2022, the biggest increases were recorded for the United States (with a CAGR of +9.1%), while consumption for the other global leaders experienced more modest paces of growth.

Production

World Production of Iron Oxide Pigments

For the fourth year in a row, the global market recorded growth in production of iron oxide pigments, which increased by 58% to 5.4M tons in 2022. In general, production posted a buoyant increase. As a result, production reached the peak volume and is likely to continue growth in the immediate term.

In value terms, iron oxide pigment production stood at $3.3B in 2022 estimated in export price. Over the period under review, the total production indicated resilient growth from 2012 to 2022: its value increased at an average annual rate of +5.1% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, production decreased by -26.4% against 2018 indices. The most prominent rate of growth was recorded in 2018 with an increase of 46%. As a result, production reached the peak level of $4.5B. From 2019 to 2022, global production growth remained at a lower figure.

Production By Country

South Africa (2.1M tons) constituted the country with the largest volume of iron oxide pigment production, accounting for 38% of total volume. Moreover, iron oxide pigment production in South Africa exceeded the figures recorded by the second-largest producer, China (712K tons), threefold. The third position in this ranking was taken by Germany (256K tons), with a 4.7% share.

In South Africa, iron oxide pigment production increased at an average annual rate of +68.2% over the period from 2012-2022. In the other countries, the average annual rates were as follows: China (+6.0% per year) and Germany (+2.3% per year).

Imports

World Imports of Iron Oxide Pigments

In 2022, approx. 1M tons of iron oxide pigments were imported worldwide; approximately equating the previous year's figure. Over the period under review, imports, however, showed a relatively flat trend pattern. The most prominent rate of growth was recorded in 2017 with an increase of 20% against the previous year. Global imports peaked at 1.1M tons in 2014; however, from 2015 to 2022, imports remained at a lower figure.

In value terms, iron oxide pigment imports soared to $1.4B in 2022. The total import value increased at an average annual rate of +2.7% over the period from 2012 to 2022; the trend pattern indicated some noticeable fluctuations being recorded in certain years. The growth pace was the most rapid in 2021 when imports increased by 27%. Global imports peaked in 2022 and are expected to retain growth in the immediate term.

Imports By Country

In 2022, the United States (228K tons), distantly followed by China (148K tons), Spain (59K tons), Germany (49K tons) and the Netherlands (48K tons) represented the largest importers of iron oxide pigments, together creating 51% of total imports. Australia (30K tons), France (28K tons), Italy (27K tons), Canada (24K tons), India (24K tons), Russia (24K tons), Poland (21K tons) and Belgium (20K tons) took a relatively small share of total imports.

From 2012 to 2022, the most notable rate of growth in terms of purchases, amongst the key importing countries, was attained by the Netherlands (with a CAGR of +9.3%), while imports for the other global leaders experienced more modest paces of growth.

In value terms, the United States ($360M) constitutes the largest market for imported iron oxide pigments worldwide, comprising 27% of global imports. The second position in the ranking was taken by China ($95M), with a 7% share of global imports. It was followed by Germany, with a 4.8% share.

In the United States, iron oxide pigment imports increased at an average annual rate of +5.7% over the period from 2012-2022. The remaining importing countries recorded the following average annual rates of imports growth: China (-2.9% per year) and Germany (+5.0% per year).

Import Prices By Country

The average iron oxide pigment import price stood at $1,292 per ton in 2022, growing by 22% against the previous year. Over the period from 2012 to 2022, it increased at an average annual rate of +2.1%. As a result, import price reached the peak level and is likely to continue growth in the immediate term.

There were significant differences in the average prices amongst the major importing countries. In 2022, amid the top importers, the country with the highest price was the United States ($1,576 per ton), while Spain ($631 per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Germany (+2.5%), while the other global leaders experienced more modest paces of growth.

Exports

World Exports of Iron Oxide Pigments

In 2022, overseas shipments of iron oxide pigments increased by 224% to 3.1M tons, rising for the second year in a row after three years of decline. Over the period under review, exports saw a resilient increase. As a result, the exports attained the peak and are likely to continue growth in the immediate term.

In value terms, iron oxide pigment exports surged to $1.6B in 2022. In general, exports enjoyed a remarkable increase. As a result, the exports reached the peak and are likely to continue growth in the immediate term.

Exports By Country

In 2022, South Africa (2.1M tons) represented the largest exporter of iron oxide pigments, constituting 68% of total exports. China (357K tons) held a 12% share (based on physical terms) of total exports, which put it in second place, followed by Germany (5.4%). The United States (46K tons) followed a long way behind the leaders.

South Africa was also the fastest-growing in terms of the iron oxide pigments exports, with a CAGR of +87.7% from 2012 to 2022. At the same time, China (+2.0%) displayed positive paces of growth. Germany experienced a relatively flat trend pattern. By contrast, the United States (-4.2%) illustrated a downward trend over the same period. South Africa (+67 p.p.) and Germany (+5.4 p.p.) significantly strengthened its position in terms of the global exports, while the United States and China saw its share reduced by -4.9% and -14.9% from 2012 to 2022, respectively.

In value terms, China ($464M), South Africa ($381M) and Germany ($306M) appeared to be the countries with the highest levels of exports in 2022, with a combined 72% share of global exports.

Among the main exporting countries, South Africa, with a CAGR of +69.6%, saw the highest growth rate of the value of exports, over the period under review, while shipments for the other global leaders experienced more modest paces of growth.

Export Prices By Country

In 2022, the average iron oxide pigment export price amounted to $525 per ton, declining by -41.7% against the previous year. In general, the export price saw a noticeable descent. The growth pace was the most rapid in 2014 an increase of 32%. Over the period under review, the average export prices hit record highs at $900 per ton in 2021, and then reduced sharply in the following year.

Prices varied noticeably by country of origin: amid the top suppliers, the country with the highest price was Germany ($1,852 per ton), while South Africa ($184 per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by the United States (+2.9%), while the other global leaders experienced mixed trends in the export price figures.

Source: IndexBox Market Intelligence Platform