Bismuth Oxychloride Market – Insights
Bismuth oxychloride is a synthetically prepared white or nearly white amorphous or finely crystalline powder. Bismuth oxychloride is used as a color additive in various products such as drugs, coatings, printing inks, and automotive paints. Major end-use industries for bismuth oxychloride include cosmetics and personal care, pharmaceutical, and automotive. Growth of these industries is expected to increase the demand for bismuth oxychloride in the near future.
According to a report titled 'The Pharmaceutical Industry and Global Health' published by the International Federation of Pharmaceutical Manufacturers & Associations (IFPMA) in 2017, the global pharmaceutical industry is projected to reach US$ 1,430 billion by 2020. Therefore, growth of end-use industries is expected to drive growth of the global bismuth oxychloride market.
Key players are focused on development of cosmetic products that can offer enhanced properties such as better smoothness and whiteness. This in turn is expected to boot demand for bismuth oxychloride. Moreover, key players are also focused on developing hybrid powder technology, in order to offer efficient formulation for cosmetic products providing number of benefits such as UV-stable pigment technology, good adhesion, and extended wear with a soft satin finish. For instance, BASF offers Chroma-Lite Brown CL4509 cosmetic grade pigment, which is a mixture of mica, BiOCl, yellow iron oxide, and red iron oxide. Such hybrid/composite pigments combine the performance benefits of all ingredients. For instance, mica substrate improves crystal strength of the formulation. Therefore, hybrid powder is expected to witness major demand in the global bismuth oxychloride market during the forecast period.
However, bismuth, which is the major raw material required for bismuth oxychloride manufacturing, is a by-product of lead, tin, or copper, extraction process, and is then purified. Purified bismuth is chlorinated to form the pigment bismuth oxychloride, which may contain toxic impurities such as lead that could enter product formulations, in which bismuth oxychloride is used as an additive. As a result, government regulatory authorities have set strict regulations on impurities present in bismuth oxychloride.
According to specific requirements for using bismuth oxychloride as a color additive, Code of Federal Regulations (21CFR73.1162) of the U.S. FDA, bismuth oxychloride should not contain Lead (Pb) more than 20 parts per million (ppm), Arsenic (As) not more than 3ppm, Mercury (Hg) not more than 1 ppm, and volatile matter not more than 0.5%. Therefore, adverse effects due to long-term exposure to bismuth oxychloride, and stringent guidelines by regulatory authorities are expected to hamper the market growth.
The global bismuth oxychloride market was valued at US$ 24.6 Mn in 2018, and is expected to register a CAGR of 4.1%, in terms of revenue over the forecast period (2019-2027), to reach US$ 35.0 Mn by 2027.
Figure 1. Global Bismuth Oxychloride Market Share (%), By Region, 2018
Source: Coherent Market Insights, 2018-19
In 2018, Asia Pacific accounted for the largest revenue share in the global bismuth oxychloride market. Moreover, North America contributed for second largest revenue share in the market and recorded a CAGR of 4.0% during 2019 to 2027. Pharmaceutical industry is expected to contribute to growth of the global bismuth oxychloride market in North America over the forecast period. For instance, according to a report ‘The Pharmaceutical Industry and Global Health’ published by The International Federation of Pharmaceutical Manufacturers & Associations, in 2017, the share of the U.S. in the global pharmaceutical industry is expected to increase from 40.3% in 2015 to 41% in 2020. Therefore, growing pharmaceutical industry in the U.S. is expected to drive growth of the bismuth oxychloride market in North America.
Figure 2. Global Bismuth Oxychloride Market Share (%), By End-Use Industry, 2018
Source: Coherent Market Insights, 2018-19
Based on end-use industry, cosmetics segment held the largest revenue share of 74.9% in the global bismuth oxychloride market in 2018. This is attributing to significant growth in cosmetics industry, which is supported by rising awareness and demand for safe or non-toxic cosmetics. For instance, according to The Ministry of Economy, Trade and Industry (METI), Japan, in 2015, the production of cosmetics was 403.08 in million kilograms in Japan and increased to 434.07 million kilograms in 2017.
Major players operating in the global bismuth oxychloride market are Geotech International B.V, BASF SE, Satyam Pharma-Chem Pvt. Ltd., Uni-Powder, Zhonglan Industry Co., Ltd., Ava Chemicals Pvt. Ltd., Omkar Speciality Chemicals Ltd., Vital Materials Co., Limited, Hangzhou Rebtech Novel Material Co., Ltd., Nanoshel LLC, and Muby Chemicals.
Bismuth oxychloride is an inorganic compound with formula BiOCI, which finds its applications as a makeup colorant that provides an iridescent (shiny) effect. Moreover, it is utilized in pharmaceutical, automotive, and other industries. Therefore, growth of these industries is projected to boost growth of the global bismuth oxychloride market in the near future. According to International Organization of Motor Vehicle Manufacturers (OICA), the global automobile production was increased from 94.9 billion units in 2016 to 95.6 billion units in 2018.
Among product type, cosmetics & pharmaceutical grade segment held largest revenue share and contributed 83.4% in global bismuth oxychloride market in 2018. Whereas, industrial grade segment is expected to record fastest growth over the forecast period. Industrial grade bismuth oxychloride finds its applications in end-use industries such as wood coating, printing inks, and automotive. Growth of end-use industries is likely to drive growth of global bismuth oxychloride market in the near future.
Among regions, in 2018, Asia Pacific held dominant position in the global bismuth oxychloride market and contributed revenue share of 34.4% in the global market. According to India Brand Equity Foundation (IBEF), Indian cosmetics, beauty, and grooming industry was valued at US$ 6.5 billion in 2017 and is expected to reach US$ 20 billion by the end of 2025. This factor is expected to boost the demand for bismuth oxychloride from cosmetics industry over the forecast period.
Key features of the study:
“*” marked represents similar segmentation in other categories in the respective section.
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