The performance additives market is expected to register a CAGR of more than 8% during the forecast period. The major factors driving the growth of the market studied are the replacement of conventional materials by plastics in several applications, and increasing demand for plastic in emerging nations. On the flip side, the stringent governmental regulations on plastic usage, and depleting natural resources, such as oil and gas, are some of the factors hampering the growth of the studied market.
- The plastic additives segment dominated the market and is likely to grow during the forecast period, with the increasing application of plastic in various end-user industries, such as construction, automotive, consumer goods, and packaging.
- The research to develop bio-based additives is likely to provide opportunities for the studied market, during the forecast period.
- Asia-Pacific dominated the market across the world, owing to the high demand for plastics, paints and coatings, rubber, leather, automotive, packaging, and adhesives and sealants from numerous end-user industries in the region.
Key Market Trends
Plastic Additives Segment to Dominate the Market Demand
- Plastic additives segment dominated the performance additives market. Plastic additives find extensive application in lubricants, plasticizers, stabilizers, flame retardants, anti-fog additives, pigment wetting agents, and others.
- Plastic additives' demand for such applications is expected to increase, owing to their growing demand from industries, such as paints and coatings, adhesives and sealants, plastic, packaging, and automotive.
- The Asia-Pacific and North American regions have been witnessing strong growth in residential construction. Besides, Asia-Pacific and Middle East & Africa are experiencing huge domestic, as well as foreign, investments for setting up industrial units, hospitals, malls, multiplexes, hospitality industry, and IT sectors.
- In Asia-Pacific, countries, such as India, Indonesia, Thailand, and Malaysia, have been witnessing an increase in investments and production in the automotive industry. Besides, regions, like North America and Europe, are investing heavily in developing lightweight, hybrid, and greener vehicles.
- Moreover, the packaging industry is also growing at a significant rate, owing to the growing demand from industries, such as food and beverages and consumer goods. E-retail has further driven the growth of the packaging industry in recent years, and the trend is likely to continue over the coming years.
- Hence, all such favorable trends are expected to increase the demand for paints and coatings, lubricants, adhesives, and sealants, etc., which is further projected to create demand for additives, during the forecast period.
Asia-Pacific Region to Dominate the Market
- Asia-Pacific region dominated the global market share. Rising production in industries, such as paints and coatings, plastics, inks, automotive, and electronics, and growing construction activities in the region, have been increasing the consumption of performance additives in the region, during the forecast period.
- With growing investments into the residential and commercial construction in the countries, such as India, China, the Philippines, Vietnam, and Indonesia, the demand for paints, coatings, plastic, and adhesives and sealants is expected to increase in the coming years.
- China has planned numerous airport construction projects, which are currently either in the planning or development phase. Besides, the Indian government has planned to construct 100 airports by 2032. The Indian government's plan to invest USD 120.5 billion for developing 27 industrial clusters is also expected to boost commercial construction in the country. Besides, residential construction is also increasing in countries, such as India, Indonesia, Vietnam, and Singapore.
- Online retail shopping is increasing at a higher rate with rising internet technologies and web applications, which has largely supported the growth of the packaging industry in the region. Moreover, the demand for food and beverages and consumer goods is growing at a high rate, due to the increasing income levels, urbanization, and consumers inclining toward technology, hence, fueling the demand for the packaging industry in the region.
- Hence, such trends in the end-user industries are likely to drive the demand for performance additives in the region, during the forecast period.
The performance additives market is consolidated, where few major players hold a significant share of the market demand. Some of the major players in the market include BASF SE, Dow, AkzoNobel NV, Arkema SA, and Honeywell International Inc. amongst others.
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