The Global Rheology Modifiers Market is expected to grow at a CAGR of 3.5% during the forecasting period (2022-2029).
Rheological control agents, also known as thickeners and rheology modifiers, are ubiquitous, multi-functional ingredients found in several formulations that can substantially affect the product's performance and stability. These are designed to provide formulators unparalleled control over the texture, viscosity, and suspension of personal care and home care solutions. For manufacturers and formulators, the thickening and suspension polymers can ensure long-term stability to the products. The increasing development of more hydrophobically modified polymers is the major trend factor in rheology agents.
Rheology modifiers' demand increases from various applications globally, coupled with the rising crude oil production and shale gas exploration. Rheology modifiers are considered the key ingredient of adhesives & sealants, paints & coatings, cosmetics & personal care products. Therefore, the increasing demand for these applications is a significant growth driver of the rheology modifiers market.
Increasing Demand for Personal Care Products
Personal care products' demand is continuously increasing globally, driven by increased population and rising awareness for aesthetics. Moreover, the increase in disposable incomes from developed and emerging nations is the major contributor to its growth. The demand for premium products in the personal care market is also a driver for the rheology market.
The continuous rise in population coupled with the improving economic conditions in emerging economies is expected to generate larger housing transactions and more disposable income, which is driving the application of rheology for paints, adhesives, and coatings in the construction industry, which has a direct effect on the rheology modifiers market.
Fluctuating Crude Oil Prices
Fluctuating crude oil prices has been one of the major factors influencing the cost of the commodity chemicals and the number of raw materials employed in product manufacturing. It is considered the primary raw material used to produce distinct raw materials for the rheology modifiers synthesis. Therefore, fluctuating crude oil prices are a key factor affecting the rheology modifier's market price.
COVID-19 Impact Analysis
The outbreak of COVID-19 will have a considerable negative impact on the global rheology modifiers industry. The personal care ingredients industry has seen crises before, such as the 2008 Financial Crisis; however, the industry has effectively and efficiently come through them by 2010. Though, the concern from the outbreak of COVID-19 will act differently for the personal care ingredients industry. This includes a dramatic change in the purchase and usage behaviour, leading to the fall of sales across various segments, including colour cosmetics and inorganic products. Moreover, rapid growth in the cosmetics industry can be expected in mid-2021 or the first quarter of 2022, considering the arrival of COVID-19 vaccines and cease of social distancing, which, in turn, will ease the rheology modifier market functioning.
The rheology modifiers market has been classified into paints & coatings, cosmetics & personal care, adhesives & sealants, and others based on the application.
Cosmetics & personal care application to witness the fastest growth during the forecast period
The cosmetics & personal care segment is expected to record the global rheology modifiers market's highest growth. It is mainly used as a thickener across numerous cosmetics & unique care applications, including skincare creams, make-up products, foundations, and toiletry products. The concentration of rheology modifiers depends upon the cosmetic application of the products. Presently, the cosmetics & personal care industry is witnessing an increase in disposable income and changing lifestyles. Emerging nations, such as Asia-Pacific nations, present considerable potential for international companies that offer better quality products than locally produced ones.
Based on the type, the rheology modifiers market has been classified into organic and inorganic.
The organic segment is projected to be the fastest-growing type of the rheology modifiers market during the forecast period.
Organic is expected to project the fastest growth in the global rheology modifiers market during the forecast period. Organic rheology modifiers are varied in terms of chemistry compared to inorganic rheology modifiers. The organic segment comprises natural raw materials, which are further classified into natural and synthetic. The demand for organic rheology modifiers is increasing rapidly across distinct applications. This is mainly due to its advantageous factors, including the high performance and environmentally friendly nature. Furthermore, the organic rheology modifiers can be used in various mediums such as solvent-borne systems, waterborne systems, and solventless systems.
Based on geography, the study analyzes the rheology modifiers market in the global market, including North America, Europe, Asia-Pacific, South America, and the Middle East & Africa.
APAC to account for the largest share of the global rheology modifiers market during the forecast period
APAC is estimated to account for the major share in the global rheology modifiers market. The growing population and the rise in the region's infrastructural developments are key factors that have increased the use of rheology modifiers in distinct applications. Moreover, the increasing economic growth in the emerging markets and substantial investments in applications, such as power generation, construction, oil & gas, and others, further augment the region's market growth.
The rheology modifiers market is highly competitive, owing to the presence of ample food brands. The key rheology modifiers players contributing to the global market's growth include The Dow Chemical Company, BASF SE, Arkema, Clariant, Croda International Plc., Akzo Nobel N.V., Elementis Plc., BYK Additives & Instruments. The major players are adopting new product launch and expansion strategies for global growth in the rheology modifiers market.
BASF SE Overview:
BASF SE was incorporated in 1865 and is based in Germany. It is operated as a chemical company across the globe. The company in its chemical segment offers plasticizers, solvents, monomers, and glues. Besides, it offers raw materials for plastics, detergents, paints, textile fibres, coatings, crop protection products, and medicines. The other segments through which the company is operated include Performance Products (contains care chemicals, dispersions and pigments, cosmetics, and personal care products, and many others); Functional Materials & Solutions (battery materials, catalysts, polyurethane systems, and so on.); Agricultural Solutions (herbicides, fungicides, insecticides, and so forth); and Oil & Gas segment.
Product Portfolio: BASF’s range of rheology modifiers includes Cosmedia, Hispagel, Luvigel, Rheocare, Salcare, and Tinovis. Cosmedia range of products includes Cosmedia ATC, Cosmedia Ultragel 300, Cosmedia SP, and Cosmedia CTH(E).
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