Dyes are colored substances applied in the form of an aqueous solution on various substrates. These are used as colorants in different industrial applications such as food processing, printing inks, wood stain, textile processing, and others. Dyes have high selective absorptivity for liquids as well as substrates as compared to other color-imparting materials such as pigments.

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Excellent absorption characteristics of dyes enable them to lose their physical and structural properties during their application on substrates. Low resistance to light and reduced shelf life are some of the other distinct features of dyes. Thus, they are generally used in surface coating, food, and printing applications that require high transparency levels for manufacturing finished products. Dyes can be classified on the basis of their solubility in a particular medium or substrate as basic dyes, fat-soluble dyes, and metal complex dyes.

The global market for dyes has been witnessing significant growth due to rising demand from end-user industries such as food, textile, printing inks, and paints & coatings. Developing economies such as China, India, Brazil, and Indonesia are likely to play a substantial role in boosting consumption of dyes in the next few years. India and Indonesia are gradually taking the lead in manufacturing dyes due to availability of raw materials as well as various organic intermediate chemicals.

Countries in ASEAN such as Indonesia, Vietnam, and Singapore are expected to be emerging markets owing to development of key end-users such as paints & coatings and food processing. Furthermore, growth in these countries is expected to be boosted by shift in production of dyes from developed regions such as Europe and North America. Trends have changed during the past 10 years due to several factors such as lower cost of production in Asia Pacific as well as rising prominence of the region, which acts as the hub for end-user industries such as textile, food, and paints & coatings. This shift in production trends from the West to East has caused the global market for dyes to become concentrated, particularly in Asia Pacific. This, in turn, has resulted in intense competition in the market.

However, concerns have been raised over excess cost of interest. This has lowered investment in research and development activities, which serve as the key source of service and product innovations. In addition, high energy costs have negatively impacted production units.

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Asia Pacific accounted for the largest share of the dyes market, followed by developed regions such as Europe and North America in 2014. Increasing demand from various end-user industries coupled with growing population and governmental support is expected to boost demand for dyes in the next few years. In addition, growing preference of end-users for eco-friendly products is anticipated to drive growth of the dyes market during the forecast period.

However, rising health concerns regarding hazardous usage of dyes is likely to decelerate growth of the market in Europe and North America. This has forced manufacturers toward producing environmentally-friendly dye products. Rising demand for innovative products such as high-performance dyes is projected to provide new opportunities for growth of the market in the near future. Furthermore, ease of transportation modes and support from the government and regulatory bodies to improve clearance tax re estimated to propel trade. This, in turn, is expected to boost consumption of dyes in the global market.

BASF SE, KRONOS Worldwide Inc., Haining Tongyuan Chemical Factory, Lanxess, Rockwood Holdings, Inc., and Tokai Carbon Co., Ltd. are key players present in the global dyes