Increasing use of formulation additives in the construction and transportation industries and high growth in emerging countries drive the formulation additives market.
The formulation additives market is estimated at USD 20.62 billion in 2018 and is expected to reach USD 27.86 billion by 2023, at a CAGR of 6.2% between 2018 and 2023. Formulation additives are substances that are added in small quantities to formulations, including coatings, adhesives, and others, to improve or modify one or more properties. The objective of using these additives is to enhance performance and improve the processing characteristics and properties of materials. The major types of formulation additives are dispersing agents, rheology modifiers, defoamers, and others. Increasing demand from end-use industries of formulation additives such as construction, transportation, industrial and oil & gas, furniture & flooring, and others is driving the demand for formulation additives. The global formulation additives market is witnessing a shift of consumption and production capacity from developed markets to emerging markets due to the factors such as economic growth rate, growth of manufacturing industries, availability of cheap labor, easy availability of raw materials, and less stringent government regulations. The continuously increasing raw material prices is one of the major concerns for the growth of the formulation additives market. Pricing pressure and high raw material costs are expected to reduce profit margins for market participants. This is a major restraining factor for the growth of the formulation additives market.
Construction end-use industry segment is projected to grow at the highest CAGR in the formulation additives market.
Based on end-use industry, the construction segment is projected to grow at the highest CAGR from 2018 to 2023. Formulation additives play a vital role in several coating applications owing to their properties such as better lightfastness, good substantivity, and optimum depth. Formulation additives are used in architectural coatings, automotive coatings, etc. The demand for formulation additives from the construction application is gaining momentum due to the increasing number of infrastructural projects and construction activities in emerging economies such as Brazil, China, and India.
Rising demand for formulation additives in Asia Pacific is driving the formulation additives market.
The formulation additives market in the Asia Pacific region is projected to grow at the highest CAGR during the forecast period. This can be attributed to the easy availability of raw materials, increasing number of industry alliances, and less stringent regulations for the manufacturing of formulation additives. Asia Pacific is a strategic location for formulation additives manufacturers, as an overall slowdown in the global economic scenario has encouraged many established manufacturers to expand their manufacturing facilities in this region and, thus, increase their sales. The growth of the Asia Pacific market is expected to be primarily driven by China, India, and Japan. Key manufacturers of formulation additives are focusing on expanding their bases in the Asia Pacific region to increase their market shares and enhance profit margins.
The breakdown of primary interviews is given below.
- By Company Type: Tier 1 - 46%, Tier 2 - 31%, and Tier 3 - 23%
- By Designation: C-Level Executives - 54%, Directors - 31%, and Others - 15%
- By Region: North America - 23%, Europe - 31%, Asia Pacific - 38%, RoW – 8%
The report provides company profiles and details of competitive strategies adopted by key market players, such as BASF (Germany), Eastman (US), Evonik (Germany), BYK Additives (Germany), Dow (US), Cabot (US), Allnex (Germany), M?nzing (Germany), Arkema (France), Honeywell (US), Momentive (US), and others.
The formulation additives market has been segmented on the basis of type, end-use industry, and region. The report covers the formulation additives market, in terms of value, and forecasts its market size till 2023. It also provides company profiles and details of competitive strategies adopted by key players operating in the formulation additives market.
Reasons To Buy the Report
The report will help market leaders/new entrants in this market in the following ways:
- The report segments the formulation additives market comprehensively and provides the closest approximations of the revenues for the overall market and its subsegments across different verticals and regions.
- The report will help stakeholders understand the pulse of the market and provide information on key market drivers, restraints, opportunities, and challenges.
- The report will help stakeholders understand their competitors and gain additional insights into the business.
- The competitive landscape section includes expansions, new product launches, partnerships & collaborations, and mergers & acquisitions.