Formulation additives are used to adjust the qualities of the adhesive formulation, which helps in improving the durability, efficiency, and appearance of the product. They are used in adhesive and sealant applications. The global formulation additives market is growing at a decent pace, due to the increasing use of these additives in number of industries. The major objectives of these additives is to enhance the properties and processing characteristics of materials in which they have been used. Also, the demand of these additives in paints and coatings industry is significantly increasing, further boosting the market growth.
Insight by Type
Based on type, the formulation additives market is segmented into defoamers, rheology modifiers, dispersing agents, and others. Rheology modifiers type segment held the largest share in the overall market. Rheology additives are among the main ingredients of the paint, coatings, and inks, as it helps in controlling the coating application and the final appearance. Rheology modifiers helps in adjusting the flow behavior of paints and coatings, thereby provides improved viscosity, reduce dripping and spattering of paint during the application. Hence, the demand of rheology modifiers are increasing in the paints and coatings industry, resulting in formulation additives market growth.
Insight by End-User
On the basis of end user, the formulation additives market is classified into construction, transportation, oil and gas, industrial, food and beverage, furniture and flooring, and others. Construction industry is the largest consumer of these additives, due to its wide application in the industry such as improve dispersion properties, better wetting, optimize foam control of building materials and architectural coatings, and others. Also, the consumers are preferring attractive homes, as their standard of living is improving with the increasing income, which is boosting the demand of these additives in the construction industry, as they enhance the structure of the building along with reduced maintenance needs.
The main factors driving the formulation additives market growth are the increasing population in the emerging countries, rapid industrialization, increasing demand from end-user industries. The population of emerging countries are increasing at a fast rate, and to meet the housing need of the increasing population, the builders are investing heavily in construction projects. Hence, the growing construction is driving the demand of these additives in building and construction industry.
The increasing pressure on manufacturers to provide the cost-effective and high performance product and increasing raw material prices are identified as the major challenge in the formulation additives market. Various manufacturers are investing heavily in developing a cost effective as well as high performance products for the consumers to stay competitive in the market, as various innovations are taking place in the market by the key players.
The extensive range of formulation additives are available in the market under various brand names. The formulation additives market is captured by the big players, which are consistently improving their product offerings and expanding their product portfolio, which is making it difficult for small player to capture the market.
Asia-Pacific is the largest consumer of these additives and also expected to register the fastest growth in the formulation additives market during the forecast period. This can be attributed to the growing construction and transportation activities in the region, to meet the demand of ever-increasing population. Also, the manufacturing of these additives is increasing in the region, as manufacturers are setting up manufacturing facilities in the region, to take advantage of cheap and easily available labor.
Key players in the formulation additives industry are investing in the strategic locations such as Asia-Pacific to set up the manufacturing units, which can be attributed to the easy availability of cheap raw materials. BASF SE, Eastman Chemical Company, DowDupont Inc., Cabot Corporation, Allnex Technologies, Arkema Group, Evonik Industries, Momentive Performance Materials, Huntsman Corporation, and Akzonobel N.V. are some of the key players offering formulation additives products.