Titanium Dioxide Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Market Overview

The titanium dioxide market was estimated at over 6.2 million ton in 2020, and the market is projected to register a CAGR of over 6% during the forecast period (2021-2026).

The market was negatively impacted due to COVID-19 in 2020. Owing to the pandemic scenario, several countries around the world went into lockdown to curb the spreading of the virus. The manufacturing activities and construction work were halted due to supply chain disruptions and labor shortages or as a protective measure to stop the spreading of the virus. This affected the demand from various applications such as paints and coatings, plastics, cosmetics, and others. For instance, the demand for luxury and cosmetics products also went down at the beginning of 2020. Loreal, the largest cosmetics company globally, registered a loss of EUR 1,735 million (USD 2024.52 million) during the first half of 2020, compared to the same period in 2019. However, the condition is expected to recover in 2021, which will restore the growth trajectory of the market studied, thereby benefitting the market over the forecast period.

• Over the short term, rapidly increasing demand from the paints and coatings industry is the major factor driving the growth of the market studied. The rapid growth of the construction industry in many countries, such as India, China, Malaysia, ASEAN countries, the United States, Germany, and Mexico, among others, owing to the increasing population and infrastructure demand, along with the continuously increasing housing construction activities in emerging economies of Asia-Pacific, and a rise in the electric vehicle production and sales, are boosting the paints and coatings market, thereby stimulating demand for the market studied.
• On the flip side, the toxicity of titanium dioxide and the negative impact of the COVID-19 pandemic are expected to hamper the growth of the market.
• Paints and coating applications dominated the market, and they are likely to grow during the forecast period with the continuous growth in construction activities.
• The Asia-Pacific region dominated the market across the world, and it is also expected to register the highest growth rate during the forecast period due to increasing consumption from countries such as China and India.

Scope of the Report

Titanium dioxide is one of the whitest material on the earth. It is used extensively as a white pigment to add whiteness and opacity in various applications such as paints and coatings, cosmetics, food, and others. The titanium dioxide market is segmented by grade, application and geography. By grade, market is segmented into rutile and anatase. By application, the market is segmented into paints and coatings, plastics, paper and pulp, cosmetics, and other applications. The report also offers market size and forecasts for 15 countries across major regions. For each segment, market sizing and forecasts have been done on the basis of volume (kiloton).

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Key Market Trends

Paints and Coatings Segment to Dominate the Market Demand

• Titanium dioxide is the most widely used white pigment material in the paints and coatings industry. It efficiently scatters visible light and thereby imparts whiteness, brightness, and opacity when incorporated into a coating, which makes it widely used in the paints and coatings industry.
• The paints and coatings industry is experiencing a boom with the rapid growth of the building and construction and automotive end-user industries.
• Residential and commercial construction has been increasing significantly across the world, which is further driving the demand for titanium dioxide for construction applications.
• Asia-Pacific and North American regions have been witnessing strong growth in residential construction, which is further likely to increase the demand for titanium dioxide for residential applications during the forecast period.
• In India, the government is pushing huge projects in the next few years. The government’s ‘Housing for All’ initiative aims to build more than 20 million affordable homes for the urban poor by 2022. This will provide a significant boost to residential construction. Smart cities mission is another major project undertaken by the government, which will construct more than 100 smart cities all over the country to achieve rapid urbanization in the country. In the 2021-22 budget, the smart cities mission has been given INR 6,450 crore as against INR 3,400 crore in the 2020-21 revised estimates.
• Germany has the largest construction industry in Europe. The construction industry in the country has been growing at a slow pace, which is majorly driven by the increasing new residential construction activities. The increasing migration to the country has been stimulating the current demand for new residential construction. ​About 3.6 million migrants were expected to arrive in Germany by the end of 2020-2021, which will require at least 350,000 new dwellings per year.
• Besides, regions like Asia-Pacific and the Middle East & Africa are experiencing huge domestic as well as foreign investments for setting up industrial units, hospitals, malls, multiplexes, hospitality industry, and IT sectors. This is further expected to add noticeably to the demand in the titanium dioxide market.
• Similarly, investments and the adoption of electric vehicles in the automotive industry have been increasing in the Asia-Pacific region at a significant rate. Moreover, North America and Europe have been investing significantly in innovation and development, which is likely to increase the market demand over the forecast period.
• Hence, all such trends in industries, such as construction and automotive, have been increasing the demand for paints and coatings, which is expected to add to the demand in the titanium dioxide market.

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