Formulation Additives Market size is forecast to reach $27.73 Billion by 2025, after growing at a CAGR of 5.2% during 2020-2025. Rapid industrialization and increasing demand for formulation additives from various consumer sectors are projected to drive development on the global market in developed and developing countries. In addition, the growing population of developing countries and increased building and renovation operations, coupled with wide applicability of formulation additives such as architectural coatings and building materials, are also projected to contribute to the development of the global industry in some respects, boost the dispersal properties and ensure better environment.
Key Takeaways
- The demand in Latin America is expected to expand moderately, provided the rising growth and construction activities in developing countries such as Brazil and Argentina, and the growing presence of painting and coating companies in this area.
- Due to the rising usage of such additives by many companies, the global demand for formulation additives is growing at a respectable rate. Improving the properties and processing qualities of products used in these additives is the key objectives of such additives. The requirement for such additives often greatly rises in the coating and painting sector, which stimulates business development further.
- Due to its extensive usage in many sectors, demand for formulation additives is growing rapidly. Numerous reasons, including increasing usage of wording additives in the construction and transport sectors, growing demand for oil & gas, food & beverage additives are boosting the world's market for formulation additives.
- During most of 2020 as a result of disruptions to industry and economic activity due to COVID-19 and stringent control policies that have sharply limited all modes of industries.
Type - Segment Analysis
Rheology Agents type holds the largest share in Formulation Additives Market in 2019. The primary materials for paint, coatings and inks are rheological compounds, since they tend to regulate the formulation and finish. Rheology modifications help to change the flow actions of paints and coatings, while improving viscosity, rising leakage and scattering of colours. In the paint and coating industry, the demand is therefore rising for rheology modifiers, which contribute to development of the market for formulation additives over defoamers, Dispersing Agents.
End Use Industry - Segment Analysis
Construction segments holds the largest share in Formulation Additives Market in 2019, is growing at a CAGR of 5.4% during forecast period 2020-2025. Due to its wide industrial application such as enhancing dispersion properties, enhancing the environmental conditions and maximizing the foam regulation over building products and architectural fabrics, the construction industry is the largest user of such additives. Consumers often enjoy beautiful homes as their living conditions rise with increasing income, raising the need for such additives in the construction industry because they enhance the construction’s stability as well as the decreased maintenance needs.
Geography - Segment Analysis
APAC dominated the Formulation Additives Market share with more than 40% in 2019, followed by North America and Europe. The simple availabilities of raw material for the fabrication of formulation additives can be attributed to that development. Due to the low cost of manufacturing in China, South Korea and India, the Asia Pacific zone presents prospects for expansion for formulation additives. The rising demand in this area of formulation additives is further driven by less restrictions related to the application and manufacture of formulation additives in the Asia Pacific. With expanded building and architecture activities in developing countries such as Brazil, China and India, global demand for formulation additives in the construction industry is rapidly rising. However, the growing demand for formulation additives is also rising in population and in rapid urbanization in developing economies.
Drivers – Formulation Additives Market
- Increasing demand along with growing investment
The trend that has been anticipated to fuel demand growth over the projected timeframe is the improved commitment by manufacturers towards delivering cost-effective solutions without compromising product quality. The trend that is expected to stimulate growth of the global market is the expanded usage of formulation additives by sectors such as furniture & flooring, food & beverages and oil & gas. Increased expenditure by major players in technical advances and research and development operation would create new sales opportunities for players on the target market throughout the forecast period. Furthermore, expanded strategic alliances and deals by key players with a view to growing their market share is projected to lead to a certain degree of business development.
Challenges – Formulation Additives Market
- Fluctuating raw material prices is a major factor expected to hamper growth of the global formulation additives market to certain extent.
To be a major competitor in the demand for formulations additives, producers are constantly being forced to supply the high-performative and cost-effective product and increased commodity prices. Specific producers spend extensively in producing high-performance and economic goods for customers so that they remain successful on the market as the key players allow different developments in the industry. The broad variety is available in the industry under various types of formulation additives. The demand for the additional formulation is taken up by the major companies, whose product lines continually strengthen and grow, making it impossible for small players to grab the business.
Market Landscape
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Formulation Additives Market. In 2019, the market of Formulation Additives has been consolidated by the top ten seven players accounting for XX% of the share. Major players in the Formulation Additives Market are BASF SE, Eastman Chemical Company, Evonik Industries AG, BYK Additives, Dow Chemical Company, Cabot Corporation, ALLNEX NETHERLANDS B.V., Münzing, Momentive Performance Materials, Arkema, Honeywell, and among other.
Acquisitions/Product launches:
- In November 2017, Dow Performance Silicones, a business unit of DowDuPont Material Sciences Division, introduced a coating additive called Dow Corning 904H for architectural façade coatings that supports enhanced aesthetics for building exteriors and improves water resistance, repellency, and surface hydrophobicity.
