The Global "Formulations Additives Market" is growing at a high CAGR during the forecast period (2022-2029).
Formulation Additives are used to adjust the qualities of the adhesive and sealant solutions, modifying the foaming properties and adhesion strength of various substrates.
The purpose of adding formulation additives is to enhance the performance and improve the properties and processing characteristics of the materials.
The increasing demand from end-user industries such as construction and transportation, as well as paints and coatings industries, is expected to drive market growth during the forecast period.
The increase in disposable income of an ever-increasing population and rapid industrialization efforts to improve the economic scenario of emerging countries would positively influence the growth of the market. Formulation additives promote pigment wetting and stabilization, prevent flooding and floating of materials, and prevent foam during the application, which further propels the demand for end-products.
The increasing prices of raw materials are negatively hampering the market growth, coupled with the issues arising from the adoption of stringent environmental regulations.
The companies are thus focused on launching eco-friendly end-products. For instance, in March 2017, Evonik Industries AG announced the launch of CARBOWET® GA-200, uniquely engineered to meet VOC and regulatory compliances in coatings and inks.
The need for introducing cost-effective commercial end-products which can offer better performance is also increasing, as consumers are always looking out for cheaper substitutes. As such, the formulations are failing to gain market traction in the presence of increased competition from locally-sourced sub-standard products.
The rise in demand for formulation additives from emerging countries is expected to increase the opportunities for business expansion to significant market players.
The formulation additives market is segmented by type into dispersing agents, defoamers, rheology modifiers, and others.
The rheology modifier segment is leading by overall market share as it helps in upgrading the flow behavior of the substrate, thereby improving viscosity and reducing spattering and dripping of material during the application of substrate. The demand for rheology modifiers is thus increasing in the paints & coatings industry, which in turn is boosting the growth of the formulation additives market.
By end-user, the market is categorized into construction, food & beverage, furniture & flooring, industrial and oil & gas, transportation, and others including pharmaceuticals, printing, and cosmetics.
The construction sector is the leading consumer of end-products and is expected to dominate the market scenario during the forecast period owing to the widespread application of formulation additives in buildings and bridges.
The consumer interest in construction end-products is also on the rise as enhanced benefits such as better wetting, optimized foam control, and improved dispersion properties are offered after the addition of formulation additives.
For instance, in August 2018, Clariant AG announced the launch of formulation ingredients –renewable-based and hazard label-free multifunctional neutralizer Genamin Gluco 50, which offers formulators the chance to reduce formulation complexity with a single additive and keep within the low VOC/SVOC limits of the most stringent regulations and eco-labels.
The global formulation additives market is segmented geographically by region into North America, South America, Europe, Asia-Pacific, and Rest of the World (RoW).
Asia-Pacific is expected to witness robust growth rate during the forecast period, owing to strong demand from emerging countries such as China and India, the absence of stringent environmental regulations, low manufacturing costs, and easy availability of raw materials in the region.
The companies are thus focused on the launch of new products to capture local market share. For instance, in May 2018, BYK-Chemie GmbH announced the launch of two further process additives, Thixbooster and Thixbreaker, in Asia-Pacific through its regional subsidiaries that form the basis for the innovative BYK Viscosity Control Technology (VCT), and thus help reduce or adapt the initial viscosity of high-viscosity two-component adhesives, sealing and putty materials.
The market scenario of formulations additives market is highly competitive and intense, owing to continued technological innovation and commercial launch of improved products.
The key market players include BASF SE, DowDuPont Inc., Honeywell International Inc., Cabot Corporation, Evonik Industries AG, and Arkema S.A. The companies are focused on strengthening its global market position through expansion of their product portfolio.
For instance, in September 2018, Evonik Industries AG announced the launch of TEGO® Dispers 687, a new dispersant specially developed for the wetting and dispersing of matting agents in solvent-borne coatings which helps achieve coating characteristics such as excellent anti-sedimentation and consistent matte values.
In June 2018, Momentive Performance Materials Inc. announced the launch of SilGrip PSA810 pressure-sensitive adhesive for specialty masking and assembly tapes used in Electronic and Industrial market segments.
• The rheology modifiers segment is leading by market share owing to its assistance in upgrading the flow behavior of the substrate, thereby improving viscosity and reducing spattering and dripping of material during the application of substrate.
• Asia-Pacific is expected to witness robust growth rate during the forecast period, owing to strong demand from emerging countries such as China and India, the absence of stringent environmental regulations, low manufacturing costs, and easy availability of raw materials in the region.
• The companies focus on upgradation of the distribution network and production facilities in an attempt to increase company revenue. For instance, in August 2018, Evonik Corporation’s Formulation Additives Business Line announced the reorganization of its distribution network in North America to deliver additional value to its customers.
The report covers the factors impacting the market, Porter 5 Forces, Competitive Scenario, Product Benchmarking, and company profiles. Formulation Additives Market is segmented by type into dispersing agents, defoamers, rheology modifiers, and others.
By end-user, the global Formulations Additives market is segmented into construction, food & beverage, furniture & flooring, industrial and oil & gas, transportation, and others. Geographically, the market is segmented into North America, South America, Europe, Asia Pacific, and Rest of the World.