For the specialty chemical business and especially for the organic pigments segment, organic HPPs remain an attractive business. The fact that five major suppliers continue to dominate the market is another reason why most pigment producers would like to get at least a minimum share.
However, entry barriers are much higher than for example with textile dyes and classical azo pigments. This is the chief reason why the “commoditization process” will not be fast. But by fixing their own strategy concerning R & D activity and the possible transfer of production know-how, the major HPP producers will significantly influence their own future. It is therefore quite difficult to accurately predict the future HPP supply structure. On the demand side, the forecast is perhaps easier, as there seems to be a common belief that the future growth rate for HPPs will remain above the average growth in the specialty chemical business.