The formulation additive market is expected to register a CAGR of more than 4%, globally, during the forecast period. Formulation additives are used in small quantities to improve or modify the properties of various formulations. The use of formulation additives enhances the performance and improves the processing characteristics and properties of the materials. The increase in demand from the construction and transportation sectors has been driving the market growth.
- However, the fluctuating raw material prices and the outbreak of coronavirus across the world are likely to hinder the growth of the studied market.
- The R&D in innovative adjuvant technologies for developing innovative formulation additives is likely to provide opportunities for the formulation additive market over the next five years.
- Asia-Pacific dominated the market worldwide, with increasing consumption from countries, like China and India.
Key Market Trends
Construction Sector to Dominate the Market
- The construction sector stands to be the dominating segment, owing to the increasing construction and reconstruction activities, coupled with wide applicability of formulation additives.
- These additives offer numerous advantages, such as improved slip, substrate wetting, better pigment dispersion, anti-settling, and plasticizing characteristics.
- Formulation additives are utilized in the construction industry for several applications, such as architectural coatings and building materials, to optimize foam control, improve dispersing properties, and ensure better wetting, which, in turn, may drive the demand for formulation additives in the construction industry.
- Rising standards of living and customer preferences for attractive homes and commercial spaces are leading to the increasing demand for formulation additives used in the construction industry, as they help enhance the building structures and reduce the need for maintenance.
- All the aforementioned factors are expected to drive the formulation additive market during the forecast period.
Asia-Pacific to Dominate the Market
- Asia-Pacific is expected to be the largest and fastest-growing market over the forecast period, owing to robust demand from the construction and transportation industries, particularly in emerging countries, such as India and China.
- The established industrial base and chemical manufacturing are expected to support the growth in the region.
- Increasing demand for rheology modifiers, as they are essential additives employed in almost every coating to achieve desired rheological characteristics, help in controlling paint shelf stability, ease of application, open time wet edge, and sagging. Thus, these modifiers are likely to drive the demand for formulation additives over the forecast period.
- Asia-Pacific provides expansion opportunities for formulation additive manufacturers, owing to the low cost of manufacture and a smaller number of regulations related to the use and manufacture of formulation additives in China, South Korea, and India. The ASEAN countries are also the emerging markets for formulation additives, owing to the increasing foreign investments in the manufacturing sector.
- Hence, such market trends are expected to drive the demand for formulation additives in the region during the forecast period.
The formulation additive market is fragmented in nature, with few major players dominating a significant portion of the market. Some of the major companies are BASF SE, Eastman Chemical Company, BYK (A member of ALTANA), Dow, and Honeywell International Inc.
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