Coloray Enters Synthetic Mica Production Industry... "Supply Chain Secured, Profit Improvement Expected"

ColorRay, a Chinese company specializing in cosmetics and industrial pearl luster pigments, announced on the 21st that it will build a new synthetic mica industrial base with an annual capacity of 6,000 tons. ColorRay plans to invest a total of 80 million yuan (approximately 14.3 billion KRW) in this new synthetic mica industrial base. Upon completion in January 2024, it is expected to become one of the world's top three synthetic mica production bases.

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Mica, the raw material for pearl luster pigments, is broadly divided into natural mica and synthetic mica. High-quality natural mica is gradually depleting worldwide, leading to rising prices and declining quality, which has resulted in synthetic mica replacing it. Synthetic mica is a mica synthesized using common minerals by replicating the composition and structure of natural mica. By adjusting the raw material ratios and controlling core synthesis technologies, synthetic mica surpasses natural mica in all aspects such as quality (insulation, heat resistance), corrosion resistance, stability, and purity.

Accordingly, ColorRay is preparing for large-scale production at the new industrial base using the core synthetic mica manufacturing technology it has secured through years of technological accumulation.

A ColorRay representative stated, “The construction of the synthetic mica new industrial base with an annual capacity of 6,000 tons is expected to significantly enhance the safety of ColorRay’s product supply chain. As of the first quarter of this year, ColorRay’s synthetic mica purchase cost accounts for 10% of raw material expenses, and by producing synthetic mica directly, we aim to secure cost competitiveness.”

Additionally, ColorRay plans to launch a large number of pearl pigments using synthetic mica, accelerating its entry not only into cosmetics but also into high-end industrial paints, automotive paints, and textiles, which is expected to greatly contribute to the company’s growth.

Synthetic mica is a layered silicate mineral with heat resistance exceeding 1200 degrees Celsius, excellent insulation, and very low vacuum air release at high temperatures. It also features acid resistance, transparency, separability, and elasticity. It belongs to the core basic new materials of the national industrial foundation strengthening project.

Last year, ColorRay received the ‘Zhejiang Special Innovation’ certification from Zhejiang Province, China. Synthetic mica is widely applied not only in pearl luster pigments but also across various industries and is known as an ‘industrial seasoning.’ It is also an important basic material for pearl pigments. The increasing market share of synthetic mica and pearl pigments is becoming one of the future trends.

Pearl pigments formed by oxide films (coating layers) coated with basic new materials such as mica represent an upgrade direction in the pigment industry and belong to strategic emerging industries. Due to their pearl-like luster and color, non-toxicity, environmental protection, and low metal content, they are widely applied in cosmetics, children’s products, paints, inks, and other fields. As consumer quality improves, demand for pearl pigments is growing rapidly, and there is significant potential to replace traditional pigments.

According to estimates from Frost & Sullivan, a US business consulting firm, the global pearl pigment market is expected to grow at a compound annual growth rate (CAGR) of 14.4% from 2022 to 2025. As a key component of the global pearl pigment market, the Chinese pearl pigment market is also growing rapidly. The CAGR from 2016 to 2021 was 23.2%. The market share of the Chinese market increased from 21.9% in 2016 to 27.0% in 2021 and is expected to rise further to 31.2% by 2025.

Thanks to the excellent heat resistance and insulation properties of synthetic mica, it is also widely used as an insulating and refractory material. According to report estimates, by 2025, the global synthetic mica market size for refractory materials will reach 9.7 billion yuan (approximately 1.7 trillion KRW), the insulating materials market will reach 8.2 billion yuan (approximately 1.4 trillion KRW), and the pearl pigment market size will rise to 2.4 billion yuan (approximately 431.1 billion KRW).

ColorRay is a leading company in cosmetics-grade pearl pigments in China, holding over 50 core patented technologies. Currently, it develops about 100 new pearl pigment products annually to meet the growing demand of downstream customers. Globally, ColorRay’s high-quality pearl pigment cosmetics rank first in China and second worldwide, rivaling Germany’s Merck. The company’s end customers include internationally renowned makeup brands such as Chanel, Dior, Lanc?me, L’Or?al, Est?e Lauder, and Unilever. ColorRay maintains long-term cooperative relationships with well-known cosmetic raw material and OEM companies such as P&G in the US, KOBO, and Intercos in Italy. It is also actively conducting business in Korea, collaborating with various companies.

With the cosmetics industry recovering from the impact of COVID-19, demand for color cosmetics, which was the most affected segment, is expected to increase. A ColorRay representative said, “As the cosmetics industry revives, demand for synthetic mica, the main raw material for pearl luster pigments, is also expected to rise. We anticipate cost reduction effects through the establishment of this new industrial base,” adding, “We plan to create a systematic and convenient production environment from raw material production to final pearl luster pigment manufacturing.”

Meanwhile, ColorRay Korea is scheduled to participate in In-Cosmetics Korea, to be held at COEX in July, which will be the largest event in its history.

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