Coating Additives Market By Product (Acrylic Based, Urethane, Metallic), By Function (Dispersants, Foam Control, Wetting Agents), By Formulation (Waterborne Coating, Powder Coating, UV Cure), By Application (Architectural, Wood Coating)- Global Market Insights 2021 to 2031

Market Snapshot

According to Fact.MR’s latest consumption analysis on coating additives, the market was valued at US$ 8 Bn in 2020, and is expected to accelerate at a CAGR of 5% to top US$ 11 Bn by 2031. Demand for waterborne coating additives is projected to rise at a CAGR of 4.5% across the assessment period of 2021 to 2031.

Key Points Covered in Coating Additives Industry Survey:

• Market Estimates and Forecasts (2016-2031)
• Key Drivers and Restraints Shaping Market Growth
• Segment-wise, Country-wise, and Region-wise Analysis
• Assessment by Product Grade / Purity / Formulation Standards
• Certifications and Compliance Requirements
• Assessment of Import Price, Bulk Price, Contractual Price, Producer / Distributor Price
• Competition Mapping and Benchmarking
• Brand Share and Market Share Analysis
• Key Product Innovations and Regulatory Climate
• COVID-19 Impact on Sales of Coating Additives and How to Navigate
• Recommendation on Key Winning Strategies

Revenue Analysis of Coating Additives from 2016 to 2020 Vs Demand Outlook for 2021 to 2031

As per Fact.MR - a market research and competitive intelligence provider, the global market for coating additives was valued at US$ 8 Bn in 2020.

Coating additives are the type of solutions that are induced in paints to enhance their quality and performance. Due to the advancements in coating additives technology, they are used for the improvement of product properties and eliminates or reduces the problems arising during formulating paint systems production processes. They are used in small quantities but it has a huge impact on coating additives market size.

Coating additives are increasingly required to comply by zero-VOC emission norms. Governments worldwide are stepping up efforts to reduce carbon emissions from construction activities.

Emergence of green coatings is moving the coating additives market into a new phase of development. In the years to come, the use of green coatings is expected to be more popular within the motive industry, which is helping the growth of the coating additives market.

Coating additives are used in construction paints to improve impact resistance, viscosity, and surface effectiveness of substrates. Growth of the construction industry is expected to drive the demand for paints & coatings which in turn coating additives market is projected to witness growth over coming years, registering a CAGR of 5% to reach above US$ 11 Bn by 2031.

Which Factors are Stimulating Market Growth for Coating Additives?

Coating additives are a group of chemically engineered materials, which find applications of coating additives in a number of industries. Chemical formulation of coating additives is increasingly becoming popular due to the performance enhancements that these materials offer.

They impart excellent chemical properties to the formulation, including improved wettability, dispersion, rheology, UV protection, chemical resistance, and high-temperature stability. They are widely used in many industrial fields under severe conditions. The anti-microbial property of these additives is beneficial in numerous applications. Coating additives help the surfaces to deal with higher temperature, abrasion, moisture, biocides and chemical resistance makes positive impact on the multi-functional coating additives market.

Sustainability is playing a significant role in the growth of sustainable coating additives market. As the world inches closer to environmental conservation, many sectors and businesses are choosing eco-friendly materials. Coating additives manufacturers are creating the additives by using eco-friendly materials. The growing influence of eco-friendly coating additives will add extra growth to the environment-friendly coating additives market.

What are the Restraints being Encountered by Coating Additive Providers?

However, fluctuations in the raw material prices such as acrylate, silicones, and urethane due to the fluctuating prices of petrochemical is a major constrain for the growth of the global market for coating additives. In addition, concerns with emission of harmful volatile organic compounds (VOC) is another factor hampering growth of the global coating additives market.

Country-wise Analysis

What is the Coating Additives Demand Outlook for the U.S.?

The market in the U.S. was valued at over US$ 2.5 Bn in 2020. The coating additives industry is an essential and dynamic part of the US economy. Coatings are indispensable products for the protection of a great multitude of end-uses. The U.S. coatings industry includes top coating additives manufacturers, coating additives suppliers, raw material suppliers, and distributors. The industry consists of approximately 1,000 companies operating in nearly 1,300 establishments.

Coating industry facilities are located in urban areas like Chicago, Cleveland, Louisville, Northern New Jersey, California, Florida, and Washington State. Architectural coatings shipments represent more than half of the volume of paint sold in the United States, and approximately 90% of all architectural coatings in the country are water-based.

The construction industry is a significant contributor to the economy of the United States. The US$ 20 Tn U.S. economy relies on a vast infrastructure network, from bridges and roads to freight rail and ports to electrical grids and internet provision. The country’s coatings additives market is mainly driven by rising investment in the residential construction segment and growing demand for remodeling the old buildings.

What are the Growth Opportunities for Coating Additives Providers across China?

By 2031, China is expected to have a market of roughly US$ 3 Bn. China, which strives towards self-sufficiency, has witnessed higher growth in the global coating additives market.

Major R&D investments, growing demand for paints and coatings additives, expansion of production facilities, and rise in architectural development in the country has further boosted the sales of coating additives.

Category-wise Insights

Why is the Popularity of Architectural Application of Coating Additives Rising Rapidly?

Architecture is the largest application of coating additives, which enhance the quality of building structures for a longer period, which reduces the intermittent maintenance of the structure.

Industrial application of additives in architectural coatings such as offshore platforms, underground pipelines, and towers are subjected to the maximum stressful environment. Thus, industrial coating additives are used in such applications to provide resistance to corrosion, heat, and moisture. The demand for wood coatings additives in construction industry is increasing. Economic expansions in different regions will gradually lead to more industrial activities, which is likely to help the architectural coatings additives market.

The architectural coatings segment acts as a huge market for biocides, rheology modifiers, and flow and leveling products. In accordance with global trends and regulations aimed at decreasing VOCs many traditional materials, formulators are looking to transition to more environmentally friendly systems.

High durability with superior technology additives and demand for high-performance coating additives is significantly expanding to provide an extended service life infrequently disinfected areas and scrubbed with harsh chemicals in commercial and institutional buildings, such as hospitals, schools, universities, and hotel lobbies.

Architectural coatings are also prominent in providing air barriers essential for increasing energy efficiency in building enclosures. Air barriers stop the flow of air through the building, protecting the structure and increasing the efficiency of heating and cooling systems.

How are Rheology Modifiers Stimulating Sales of Coating Additives?

Rheology modifiers are predominantly used in architectural and automotive coatings. They are used to control flow viscosity, which is one of the most essential properties of coating compositions, and amend fundamental aspects such as storage stability, soft-texture, and film thicknesses.

The demand for rheology additives is on the rise as benefits for coating additives are more and coating manufacturers are channelizing their focus towards improving the quality of their coatings. A notable example would be to make coatings highly viscous, improve textural properties, and enhance shelf life.

As the flow behavior of coating compositions has a huge impact on application and film formation, the demand for rheology additives is expected to increase by a remarkable margin. Moreover, architectural coatings, a prominent application of coating additives, require rheology modifiers in formulation of coating additives due to the soaring demand for soft-texture coatings.

How Has COVID-19 Impacted Demand for Coating Additives?

The growing pandemic situation has led to the weakening demand for paints and coatings in construction, automotive, electronics, and white goods. The market can bounce back, but it completely depends on the duration of the lockdown that has been imposed, and also the impact of the COVID-19 virus on the economy.

Although the overall demand of the market is falling, growing consumer acceptance for coating additives, demand for packaging coating additives, and the demand for antimicrobial coating are witnessing a surge in demand in food and healthcare industries.

At the same time, some country's construction projects were essential, as the construction of hospitals in China and Italy, to cater to the sudden increase in demand for hospitals, thus positively impacting the demand for coating additives market.

Competitive Landscape

Key coating additive manufacturers are developing innovative products and are expanding their geographical reach to cater to the growing demand for functional additives. Sales of anti-foaming coating additives, bio-based coatings additives, and fluoropolymer coating additives are also expected to proliferate over the coming years.

Furthermore, they are also entering into a long-term supply contracts with raw material suppliers and end-users to have a strong presence in the worldwide market. Some of the current significant developments in the market include:

• In 2019, Ashland Inc. a specialty chemicals company, added Strodex PK-86NV specialty phosphate ester surfactant to its dynamic product portfolio for waterborne architectural coatings.
• In 2019, BYK-Chemie GmbH (Altana), a specialty chemicals company, announced the expansion of BYK’s specialty chemicals division in Shanghai, China. This expansion enables the company to serve consumers in the fast growing Asian markets.

Coating Additives Market Report Scope

Key Segments in Coating Additives Industry Research

• Product        

  • Acrylic-based Coating Additives
  • Urethane Coating Additives
  • Metallic Coating Additives
  • Fluoropolymer Coating Additives

• Function      

  • Rheology Modifiers
  • Dispersants
  • Foam Control
  • Slip/Rub
  • Wetting Agents
  • Others
    • Anti-Foaming Coating Additives
    • Defoaming Coating Additives

• Formulation

  • Waterborne Coating Additives
  • Solvent-based Coating Additives
  • Powder Coating Additives
  • High Solids Coating Additives
  • UV Cure Coating Additives
  • Others
    • Radiation Curable Coatings
    • Solvent-borne Coatings
    • Solvent Less Coatings

• Application

  • Architectural Coating Additives
  • Automotive Coating Additives
  • Wood & Furniture Coating Additives
  • Industrial Coating Additives