Formulation Additives Market

Formulation Additives Market Outlook (2023–2033)

The global formulation additives market is forecasted to expand at a high-value CAGR of 6.9% during the forecast period (2023 to 2033). As such, global demand for formulation additives is expected to reach a valuation of US$ 41 billion by 2033, up from US$ 20.9 billion in 2023.

Increased demand for various formulation additives from numerous consumer sectors and rapid industrialization are estimated to drive growth opportunities in the global industry in both developing and developed countries. Further, the growing population of developing nations is also predicted to result in increased renovation and building operations, which will stimulate the sales growth of formulation additives over the coming years.

Formulation additives, especially architectural coatings as well as building materials, have wide applicability due to improved product standards, which are expected to propel their demand. Moreover, coating additives also find diverse applications in the present time.

Formulation additives are defined as substances that are generally added in smaller portions to different formulations that include coatings, adhesives, and others to improve one or many properties of materials. They are also applied to improve performance and better the processing properties and characteristics of materials. Defoamers, rheology modifiers, and dispersing agents are some prominent types of formulation additives.

Better pigment dispersion, plasticizing, anti-settling, leveling, substrate wetting, and slip are provided by formulation additives. Their increasing use in diverse industries, such as furniture, printing and packaging, electronics, automotive, construction, and paints and coatings are estimated to drive sales opportunities in the global market in the coming years.

Paints and coatings are used at a significant rate across a majority of industries, which further generates growth opportunities in the target market. Architectural coatings contain chemicals for the protection of components and building structures. In addition, rising demand for formulation additives from the transportation sector is also projected to drive market growth.

Construction activities are expanding at a significant rate due to rapid urbanization across countries around the world which is propelling demand for formulation additive products. High discretionary incomes along with changing lifestyles of consumers are also predicted to contribute to increased construction activities that bolster sales of formulation additives.

Increasing production and sales of cars around the world are predicted to bolster demand for formulation additives over the forecast period. In recent years, consumers around the world are demanding electric gadgets including, smartphones, gaming devices, and laptops which is further anticipated to fuel demand for formulation additives.

On the flip side, fluctuations in the prices of raw materials, the need to adhere to various safety regulations, and the rising cost of quality control are projected to hinder growth opportunities in the studied market.

Report Attributes	Details
Formulation Additives Market Size (2023)	US$ 20.9 Billion
Anticipated Market Value (2033)	US$ 41 Billion
Estimated Market Growth Rate (2023–2033)	6.9% CAGR
Germany Market Growth Rate (2023–2033)	5.2% CAGR
Canada Market Growth Rate (2023–2033)	5.8% CAGR
Key Companies Profiled	Afcona Additives Trio San Nopco Patcham FZC Lehmann&Voss&Co. Harmony Additives Elementis Cytec (Solvay)

What is the Future of the Global Formulation Additives Market?

“Growing Demand Leading to Increasing Investments in Production of Formulation Additives”

Improved commitments by the manufacturers of formulation additives to deliver cost-effective solutions without any compromise with product quality are anticipated to fuel demand opportunities in the global industry. This trend is predicted to generate growth in the market with expanded use of formulation additives by different sectors such as oil & gas, food & beverages, furniture & flooring, and others.

Rising expenditures by key players in research and development operations and technological advances are expected to create new opportunities for industry players. Moreover, expanded strategic deals and alliances by prominent players with a vision to grow their market share is estimated to generate a certain degree of development in businesses.

“Rising Use of Formulation Additives in Construction Sector”

Formulation additives are used at an increased rate for construction and reconstruction activities. They offer numerous advantages, such as anti-settling, better pigment dispersion, plasticizing, substrate wetting, and improved slip characteristics. The additives are used across the construction industry for multiple applications including, architectural coatings, building materials, and others.

Formulation additives are also applied to optimize foam control and improve dispersion properties, which, in turn, are estimated to drive their sales in the construction industry. Consumers are giving preference to attractive commercial spaces and homes which is leading to rising demand for formulation additives in the construction industry.

These abovementioned factors are projected to stimulate demand for formulation additives to enhance the structures of buildings and to reduce the requirement for maintenance frequently.

What Constraints are Pulling Down Demand for Formulation Additives?

“Requirements for Increased Investments”

To get a competitive edge in the global market, manufacturers are forced constantly to supply cost-effective and high-performance products. These producers spend at an increased rate to meet market requirements so that they can remain successful in the global industry. So, these financial factors further result in an economical imbalance in the respective firms that can directly impact expansion opportunities in the market.

“Limited Opportunities for New Market Entrants”

Demand for some additional formulations has been taken up by prominent companies, whose product lines are growing continuously while making it impossible for new and small players to expand their business. Thus, limited opportunities for new players can restrict the expansion of the global market.

Why Does Asia Pacific Dominate Global Formulation Additives Sales?

“Easy Availability of Raw Materials in Asia Pacific”

Asia Pacific has been estimated to hold a dominating position in the global market while retaining more than 40% of the total market share. The easy availability of raw materials to fabricate formulation additives is predicted to increase their production in the region.

Owing to low manufacturing costs in India, China, and South Korea, the Asia Pacific zone holds large prospects for market expansion. In addition, fewer restrictions related to the manufacturing and application of formulation additives in the region are also expected to generate growth opportunities for industry players. The requirements for formulation additives are increasing rapidly in the construction industry with expanded architecture and building activities across developing nations such as India and Brazil.

Rapid urbanization across developing economies is also fueling the demand for formulation additives in Asia Pacific.

Country-wise Insights

Why is Japan a Key Consumer of Formulation Additives?

“Fast-paced Industrialization in Construction Industry Fueling Demand for Formulation Additives”

The sales of formulation additives in Japan are estimated to progress at a CAGR of 4.2% through 2033 because of their high demand in different end-use industries. Further, fast-paced industrialization is also anticipated to bolster demand for formulation additives across the construction industry.

Will the U.S. Provide Lucrative Opportunities for Manufacturers of Formulation Additives?

“Growing Use of Formulation Additives in Different End-use Industries”

Increasing use of formulation additives in different end-use industries, for instance, construction, electronics, and automotive is projected to fuel their demand in the U.S. market. The demand for formulation additives in the U.S. was more than US$ 4.8 billion in 2022.

Moreover, the growth outlook of the market in Canada is expected to expand at a CAGR of 5.8 % from 2023 to 2033.

Which are the Growth-Driving Factors in the Market in Germany?

“Increasing Production of Automotive Parts Propelling Demand for Formulation Additives”

The market in Germany is forecasted to expand at a CAGR of 5.2% during the forecast period from 2023 to 2033. The demand for formulation additives is predicted to increase because of high production as well as sales of automotive parts there.

Category-wise Insights

Why are Rheology Modifiers Set to Remain Highly Attractive?

“Increasing Use of Rheology Modifiers in Paints & Coatings”

The formulation additives market is segmented into dispersing agents, rheology modifiers, defoamers, and others, based on type. The rheology modifiers segment is projected to hold a dominating position in the industry with a significant share of more than 34%. Rheology agents are used for paints, inks, and coatings as they can control the formulation and finish.

Rheology modifications can change the flow actions of different paints and coatings. They are also used to enhance the consistency and color distribution of different paints and coatings. Thus, the sales of rheology modifiers are estimated to increase based on their growing use in the paints and coating industry.

Which End-use Application of Formulation Additives is Estimated to Bring in High Revenue Streams?

“Diverse Applications of Formulation Additives in Construction Industry”

Based on end use, the global market has been classified into construction, transportation, furniture & flooring, food & beverages, industrial, oil & gas, and others. The construction industry is anticipated to hold a prominent share of the market in the forecast period. Formulation additives are generally used in the construction industry for multiple applications, such as architectural coatings and building materials to optimize foam control, ensure better wetting, and improve dispersing properties.

Growing standards of living along with consumer preferences for attractive commercial spaces and homes are driving demand for formulation additives in the construction industry. They help to reduce the requirement for frequent maintenance and improve the structures of buildings.

Competitive Landscape

Demand for formulation additives is increasing owing to their growing use across different end-use industries. Key players in the market are taking efforts to improve the processing qualities and properties of products that are used in formulation additives. They are also focusing on the supply chain management of formulation additives to improve their share in the market. Product demand often rises across the industry of coating and paints, which is estimated to stimulate opportunities for new entrants.

Key suppliers of formulation additives are Afcona Additives, Trio, San Nopco, Patcham FZC, Lehmann&Voss&Co., Harmony Additives, Elementis, and Cytec (Solvay). These market players are the ones catering to the local supply and cross-border shipments of formulation additives.

New developments and the latest pricing trends in the market for formulation additives have been listed in this new research report by Fact.MR.

Segmentation of Formulation Additives Industry Research

• By Type :

  • Dispersing Agents
  • Rheology Modifiers
  • Defoamers
  • Others

• By Application :

  • Construction
  • Transportation
  • Furniture & Flooring
  • Food & Beverages
  • Industrial
  • Oil & Gas
  • Others

• By Region :

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa