Market Overview/Outlook (2022 to 2030)
The global paint additives market was valued at USD 9.10 Billion in 2022 and is projected to reach USD 12.07 Billion by 2030, registering a CAGR of 4.1% for the forecast period 2023-2030.
Market Definition
Paint additives are chemicals that enhance the appearance, performance, and characteristics of the paint. Paint additives are low-level ingredients that supply paint properties such as good flow, deforming, and mildew resistance. These chemicals are also used to boost the production process and improve the quality and usability of the paint. During the manufacturing process, the additives are combined with paint which enhances the performance and efficacy of the coating. Paint additives also help increase the thickness and volume of the paint. Paint additives allow easy application of the paint maintain drips and enhance coverage. Additives also play a major role in improving the longevity of the paint during storage by avoiding the formation of a film on the paint surface. Additives also decrease the dripping during application by preventing the settling of heavy particles at the bottom of the paint.
The expanding construction industry plays a vital role in driving the paint additives market towards growth due to the increased construction projects with the rising population and extensive uses of the paints in buildings and other structures. Also, the rising environmental regulations on VOC emissions help accelerate the paint additives market.
Market Size:
The global paint additives market was valued at USD 9.10 Billion in 2022 and is projected to reach USD 12.07 Billion by 2030, registering a CAGR of 4.1% for the forecast period 2023-2030.
Market Definition
Paint additives are chemicals that enhance the appearance, performance, and characteristics of the paint. Paint additives are low-level ingredients that supply paint properties such as good flow, deforming, and mildew resistance. These chemicals are also used to boost the production process and improve the quality and usability of the paint. During the manufacturing process, the additives are combined with paint which enhances the performance and efficacy of the coating. Paint additives also help increase the thickness and volume of the paint. Paint additives allow easy application of the paint maintain drips and enhance coverage. Additives also play a major role in improving the longevity of the paint during storage by avoiding the formation of a film on the paint surface. Additives also decrease the dripping during application by preventing the settling of heavy particles at the bottom of the paint.
The expanding construction industry plays a vital role in driving the paint additives market towards growth due to the increased construction projects with the rising population and extensive uses of the paints in buildings and other structures. Also, the rising environmental regulations on VOC emissions help accelerate the paint additives market.
Market Size:
- 2022: USD 9.10 billion
- 2030: USD 12.07 billion
- CAGR (2023-2030): 4.1%
Paint Additives Market Dynamics:
Drivers:
Expansion of the construction industry is surging the growth of the paint additives market:
The rise in the construction industry is increasing the demand for paint additives market. Paint additives improve the durability of the coatings by enhancing protection from factors such as moisture, weather, and abrasion. As durability is a key factor in the construction industry, the use of paint additives rises in construction. Paints and coatings are extensively utilized to decorate and safeguard buildings and infrastructure. As these chemicals play a vital role in enhancing the features and performance of paints and coatings they are used in high amounts increasing their demand. Also, the growing renovation projects help the paints additive market to boom by providing coatings that can stick well to the substrate and supply protection against wear and tear. Additionally, the rising urbanization due to the migration of the rural population towards urban cities for employment also helps the paint additive market to boost as the construction projects also rise in the area to provide shelter to the population. By 2030, more than 40% of the population is expected to live in urban India which is 33% today, creating a demand for 25 Mn additional mid-end and affordable units. Thus, the expanding construction industry, growing urbanization, and rising renovation projects help accelerate the paint additives market.
Growing environmental regulations are accelerating the market growth of paint additives:
Rising environmental regulations relating to the emissions of volatile organic compounds are driving the market growth of the paint additives market. Many countries have implemented stringent regulations to reduce or eliminate the emissions of volatile organic compounds (VOC) from paints and coatings. VOCs are dangerous chemicals including carbon substances that are released in the atmosphere by vaporizing at room temperature. Through the off-gassing process, these VOC chemicals enter into the air and impart harmful effects. VOCs also support smog formation and lead to adverse health effects. Paint additives play a vital role in formulating low-VOC and water-based paints to comply with the regulations. Also, encouragement for the utilization of water-based paints due to their lesser VOC content and decreased environmental impact over solvent-based paints have contributed to the application of paint additives. Thus, increasing environmental regulations for the reduction of VOC emissions boosts the market demand for paint additives.
Restraint in the Paint Additives Market
Fluctuating raw material prices may hamper the growth of the paint additives market:
Changing prices of raw materials may decline the market growth of the paint additives. Fluctuating prices of raw materials cause high or unanticipated production costs for the manufacturers of the paint additives. Raw materials such as silicones, acrylate, and urethane have fluctuating prices due to the volatile petrochemical prices and a high disparity in the supply and demand concerning profitability, and pricing which may restrain the paint additives market. High prices of the key raw materials increase the manufacturing cost of the paint additives making it expensive which may hamper the profit margins and may also decrease the utilization of the paint additives in the market. Also, construction companies and manufacturers of paint may find it difficult to budget for their projects when they face unpredictable price changes. Hence, the volatility in the prices of raw materials makes it expensive declining the market growth of the paint additives
Challenges in the Paint Additives Market
Technological advancement poses a challenge to the paint additives market:
The advancing technology for the establishment of effective paint additives fosters the need for investment in research and development by manufacturers to stay in touch with the current trends. Staying tuned with the innovation may be expensive and challenging for some smaller companies due to a lack of sufficient resources. Additionally, advances in technology also lead to the development of new materials which also need testing and various approvals. Coping with these regulatory obligations also requires lots of time and becomes costly. Also, sometimes advanced technologies pose environmental concerns, thus, coping with these environmental concerns to ensure the sustainability of the new technology also becomes a challenge. Thus, staying in touch with innovation, meeting regulatory needs, and ensuring sustainability becomes challenging for the paint additives market.
Opportunities in the Paint Additives Industry
Establishment of environment-friendly paints:
Consumers have become aware of the environmental impact of paints. Consumers are asking for products with fewer volatile organic compounds and less carbon footprint in order to reduce their harmful effects on the environment and human health. Also, the government has implemented stringent regulations on the utilization of VOCs and other dangerous chemicals in paints. Manufacturers have also understood the necessity of sustainability and corporate responsibility. Advances in technology have made it possible to formulate paints that are environment-friendly without losing their performance. Thus, the growing consumer awareness regarding VOC emissions and increased recognition among the government and manufacturers is creating an opportunity to establish eco-friendly paints.
Segment Analysis of the Paint Additives Market
The paint additives market is segmented by product type, formulation, application, and region.
By Product Type
The rheology modification segment held the largest market share in 2022:
The rheology modification segment dominated the paint additive market in 2022. Rheology modifier additives are the key element in paints and coatings and are utilized in various types of paints such as solvent-based, water-based, and powder coatings. Rheology modification additives play a crucial role in administrating the flow, paint consistency, and viscosity, making it desirable for a wide range of applications. It has its applications generally in adjusting the flow behavior of the coatings and paints and managing the characteristics and properties of fluid products. Rheology modifiers also support regulating the viscosity of paint to get the suitable application method, such as spraying, rolling, or brushing.
Additionally, biocides in paints are added to stop the development of microorganisms such as fungi, bacteria, and others. This property of biocides adds to the increased shelf life of the paint. Biocides improve the durability of the product by avoiding degradation by microbial movement. Due to the importance of biocides in enhancing durability and longevity, it is preferred by manufacturers in paints.
By Formulation
The water-based paint segment was the leading segment in 2022:
The water-based paint held the largest market share in 2022. The water-based paints have low VOC content and decreased emissions of harmful chemicals. Environmental regulations leading to increasingly stringent regulations promote the use of water-based paints. Water-based paints are favourable for use on wooden objects and other furniture which allows the wood to contract and expand without cracking. Water-based paints are less toxic, release fewer fumes during application, and have a milder odor in contrast to solvent-based paints. Thus, the less harmful impact of water-based paints on the environment significantly increases its demand in the market.
Moreover, solvent-based paints are extensively utilized on various surfaces such as concrete, metal, plastic, and many more. They generally have applications in industrial coatings, and automotive coatings, where durability and protection are the key aspects. Solvent-based paints provide protection from numerous environmental factors such as chemicals, and moisture, thus, due to their superior performance characteristics it is widely used paint.
By Application
In 2022, the architecture segment dominated the global market:
The architectural segment was the leading segment in 2022 owing to the increasing number of residential and commercial buildings in the urban cities due to the migration of the rural population towards employment facilities in urban cities. The architecture segment faces a high demand for paints due to the new construction projects, renovation projects, and frequent maintenance which subsequently increase the utilization of the paint additives in paints and coatings. The architectural segment includes offices, residential homes, hospitals, schools, and other structures. These large number of structures in the architectural segment that need paints also contribute towards the growth of the segment in the paint additive market.
The automotive segment is expected to grow at a robust rate during the forecast period from 2023 to 2030. As the automotive industry is expanding at a significant pace, the demand for paints and coatings also increases. The necessity of various coatings for aesthetic purposes and weather protection is driving the growth of paint additives in the automotive industry. Also, the rising trend of repair and refurbishing of old vehicles is anticipated to make the automotive segment lead in the coming years.
Regional Analysis
Asia Pacific occupies the largest market share in 2022:
Asia Pacific dominated the paint additives market in 2022. The factors propelling the growth of the market in this region are the rising population in the region leading to increased construction projects. Also, the growing utilization of automobiles in the region contributes to the growth of the paint additive market in the region. Increasing urbanization and disposable income also lead to the construction of offices, and residential homes leading to increased demand for paint and subsequently paint additives.
The paint additive market in Europe is expected to grow at a significant pace due to the presence of key automotive companies in the region. The automotive industry widely uses paints and coatings in various applications which also increases the utilization of the paint additives. Additionally, the expansion of the construction industry due to tax relaxations and supportive government policies will help boost the paint additive market in Europe in the upcoming years.
Segmentation Analysis of the Paint Additives Market
By Product Type
Drivers:
Expansion of the construction industry is surging the growth of the paint additives market:
The rise in the construction industry is increasing the demand for paint additives market. Paint additives improve the durability of the coatings by enhancing protection from factors such as moisture, weather, and abrasion. As durability is a key factor in the construction industry, the use of paint additives rises in construction. Paints and coatings are extensively utilized to decorate and safeguard buildings and infrastructure. As these chemicals play a vital role in enhancing the features and performance of paints and coatings they are used in high amounts increasing their demand. Also, the growing renovation projects help the paints additive market to boom by providing coatings that can stick well to the substrate and supply protection against wear and tear. Additionally, the rising urbanization due to the migration of the rural population towards urban cities for employment also helps the paint additive market to boost as the construction projects also rise in the area to provide shelter to the population. By 2030, more than 40% of the population is expected to live in urban India which is 33% today, creating a demand for 25 Mn additional mid-end and affordable units. Thus, the expanding construction industry, growing urbanization, and rising renovation projects help accelerate the paint additives market.
Growing environmental regulations are accelerating the market growth of paint additives:
Rising environmental regulations relating to the emissions of volatile organic compounds are driving the market growth of the paint additives market. Many countries have implemented stringent regulations to reduce or eliminate the emissions of volatile organic compounds (VOC) from paints and coatings. VOCs are dangerous chemicals including carbon substances that are released in the atmosphere by vaporizing at room temperature. Through the off-gassing process, these VOC chemicals enter into the air and impart harmful effects. VOCs also support smog formation and lead to adverse health effects. Paint additives play a vital role in formulating low-VOC and water-based paints to comply with the regulations. Also, encouragement for the utilization of water-based paints due to their lesser VOC content and decreased environmental impact over solvent-based paints have contributed to the application of paint additives. Thus, increasing environmental regulations for the reduction of VOC emissions boosts the market demand for paint additives.
Restraint in the Paint Additives Market
Fluctuating raw material prices may hamper the growth of the paint additives market:
Changing prices of raw materials may decline the market growth of the paint additives. Fluctuating prices of raw materials cause high or unanticipated production costs for the manufacturers of the paint additives. Raw materials such as silicones, acrylate, and urethane have fluctuating prices due to the volatile petrochemical prices and a high disparity in the supply and demand concerning profitability, and pricing which may restrain the paint additives market. High prices of the key raw materials increase the manufacturing cost of the paint additives making it expensive which may hamper the profit margins and may also decrease the utilization of the paint additives in the market. Also, construction companies and manufacturers of paint may find it difficult to budget for their projects when they face unpredictable price changes. Hence, the volatility in the prices of raw materials makes it expensive declining the market growth of the paint additives
Challenges in the Paint Additives Market
Technological advancement poses a challenge to the paint additives market:
The advancing technology for the establishment of effective paint additives fosters the need for investment in research and development by manufacturers to stay in touch with the current trends. Staying tuned with the innovation may be expensive and challenging for some smaller companies due to a lack of sufficient resources. Additionally, advances in technology also lead to the development of new materials which also need testing and various approvals. Coping with these regulatory obligations also requires lots of time and becomes costly. Also, sometimes advanced technologies pose environmental concerns, thus, coping with these environmental concerns to ensure the sustainability of the new technology also becomes a challenge. Thus, staying in touch with innovation, meeting regulatory needs, and ensuring sustainability becomes challenging for the paint additives market.
Opportunities in the Paint Additives Industry
Establishment of environment-friendly paints:
Consumers have become aware of the environmental impact of paints. Consumers are asking for products with fewer volatile organic compounds and less carbon footprint in order to reduce their harmful effects on the environment and human health. Also, the government has implemented stringent regulations on the utilization of VOCs and other dangerous chemicals in paints. Manufacturers have also understood the necessity of sustainability and corporate responsibility. Advances in technology have made it possible to formulate paints that are environment-friendly without losing their performance. Thus, the growing consumer awareness regarding VOC emissions and increased recognition among the government and manufacturers is creating an opportunity to establish eco-friendly paints.
Segment Analysis of the Paint Additives Market
The paint additives market is segmented by product type, formulation, application, and region.
By Product Type
The rheology modification segment held the largest market share in 2022:
The rheology modification segment dominated the paint additive market in 2022. Rheology modifier additives are the key element in paints and coatings and are utilized in various types of paints such as solvent-based, water-based, and powder coatings. Rheology modification additives play a crucial role in administrating the flow, paint consistency, and viscosity, making it desirable for a wide range of applications. It has its applications generally in adjusting the flow behavior of the coatings and paints and managing the characteristics and properties of fluid products. Rheology modifiers also support regulating the viscosity of paint to get the suitable application method, such as spraying, rolling, or brushing.
Additionally, biocides in paints are added to stop the development of microorganisms such as fungi, bacteria, and others. This property of biocides adds to the increased shelf life of the paint. Biocides improve the durability of the product by avoiding degradation by microbial movement. Due to the importance of biocides in enhancing durability and longevity, it is preferred by manufacturers in paints.
By Formulation
The water-based paint segment was the leading segment in 2022:
The water-based paint held the largest market share in 2022. The water-based paints have low VOC content and decreased emissions of harmful chemicals. Environmental regulations leading to increasingly stringent regulations promote the use of water-based paints. Water-based paints are favourable for use on wooden objects and other furniture which allows the wood to contract and expand without cracking. Water-based paints are less toxic, release fewer fumes during application, and have a milder odor in contrast to solvent-based paints. Thus, the less harmful impact of water-based paints on the environment significantly increases its demand in the market.
Moreover, solvent-based paints are extensively utilized on various surfaces such as concrete, metal, plastic, and many more. They generally have applications in industrial coatings, and automotive coatings, where durability and protection are the key aspects. Solvent-based paints provide protection from numerous environmental factors such as chemicals, and moisture, thus, due to their superior performance characteristics it is widely used paint.
By Application
In 2022, the architecture segment dominated the global market:
The architectural segment was the leading segment in 2022 owing to the increasing number of residential and commercial buildings in the urban cities due to the migration of the rural population towards employment facilities in urban cities. The architecture segment faces a high demand for paints due to the new construction projects, renovation projects, and frequent maintenance which subsequently increase the utilization of the paint additives in paints and coatings. The architectural segment includes offices, residential homes, hospitals, schools, and other structures. These large number of structures in the architectural segment that need paints also contribute towards the growth of the segment in the paint additive market.
The automotive segment is expected to grow at a robust rate during the forecast period from 2023 to 2030. As the automotive industry is expanding at a significant pace, the demand for paints and coatings also increases. The necessity of various coatings for aesthetic purposes and weather protection is driving the growth of paint additives in the automotive industry. Also, the rising trend of repair and refurbishing of old vehicles is anticipated to make the automotive segment lead in the coming years.
Regional Analysis
Asia Pacific occupies the largest market share in 2022:
Asia Pacific dominated the paint additives market in 2022. The factors propelling the growth of the market in this region are the rising population in the region leading to increased construction projects. Also, the growing utilization of automobiles in the region contributes to the growth of the paint additive market in the region. Increasing urbanization and disposable income also lead to the construction of offices, and residential homes leading to increased demand for paint and subsequently paint additives.
The paint additive market in Europe is expected to grow at a significant pace due to the presence of key automotive companies in the region. The automotive industry widely uses paints and coatings in various applications which also increases the utilization of the paint additives. Additionally, the expansion of the construction industry due to tax relaxations and supportive government policies will help boost the paint additive market in Europe in the upcoming years.
Segmentation Analysis of the Paint Additives Market
By Product Type
- Biocides
- Rheology Modifiers
By Formulation
- Water-Based Paint
- Solvent-Based Paint
By Application
- Industrial
- Architectural
- Automotive
- Wood & Furniture
- Others
Competition Analysis
Key companies profiled in the paint additives market report include Arkema SA, BASF SE, Akzo Nobel NV, BYK-Chemie GmbH, Asahi Glass Co. Ltd., Lonza Group AG, Dow Chemical, Daikin Industries Ltd., Evonik Industries AG, Arch Chemicals, Ashland Global Holdings Inc. and others. These companies are adopting strategies such as facility expansions, mergers, acquisitions, new product launches, and collaborations to gain a competitive edge in the market.
Snapshot:
Recent Developments
Key companies profiled in the paint additives market report include Arkema SA, BASF SE, Akzo Nobel NV, BYK-Chemie GmbH, Asahi Glass Co. Ltd., Lonza Group AG, Dow Chemical, Daikin Industries Ltd., Evonik Industries AG, Arch Chemicals, Ashland Global Holdings Inc. and others. These companies are adopting strategies such as facility expansions, mergers, acquisitions, new product launches, and collaborations to gain a competitive edge in the market.
Snapshot:
| Attributes | Details |
| Market Size in 2022 | USD 9.10 Billion |
| Market Forecast in 2030 | USD 12.07 Billion |
| Compound Annual Growth Rate (CAGR) | 4.1 % |
| Unit | Revenue (USD Million) and Volume (Kilo Tons) |
| Segmentation | By Product Type, By Formulation, By Application and By Geography |
| By Product Type |
|
| By Formulation |
|
| By Application |
|
| By Region |
|
| Base Year | 2022 |
| Historical Year | 2018-2022 |
| Forecast Year | 2023-2030 |
- September 2022
Arkema acquired Polimeros Especiales in Mexico:
Arkema acquired Polimeros Especiales to strengthen the Group’s offering of solvent-free solutions and its position in the fast-growing region. Polimeros Especiales is a well-established Mexican company producing high-performance waterborne resins for architectural and decorative paints, textiles, pressure-sensitive adhesives, and construction. Polimeros Especiales is helping drive the development of further sustainable innovations together with Arkema’s other key solvent-free technologies, and reinforce its presence in the Americas market.
Arkema acquired Polimeros Especiales to strengthen the Group’s offering of solvent-free solutions and its position in the fast-growing region. Polimeros Especiales is a well-established Mexican company producing high-performance waterborne resins for architectural and decorative paints, textiles, pressure-sensitive adhesives, and construction. Polimeros Especiales is helping drive the development of further sustainable innovations together with Arkema’s other key solvent-free technologies, and reinforce its presence in the Americas market.
- December 2020
Nouryon launched Arquad GS, an innovative, environmentally friendly antimicrobial agent:
Arquad GS enables the formulation of a robust and tintable anti-viral paint. Arquad GS is an innovative anti-virus technology designed to deactivate viruses, such as influenza, that contaminate a paint’s film surface. The environmentally friendly additive helps to partially or fully replace traditional in-can preservatives and anti-microbial agents.
Impact of the COVID-19 Pandemic on the Paint Additives Market:
COVID-19 had a notable impact on the paint additive market. At the initial stage of the pandemic, travel restrictions, and lockdown led to the decline in demand for paints and coatings, including paint additives from the construction industry. The construction projects were stopped due to the lockdown and the unavailability of the laborers. Also, the manufacturing of the paint additives was either slowed down or paused due to insufficient raw material availability for producing paint additives. Additionally, the automobile industry also faced a decline in its manufacturing, and the demand for automobiles was also reduced which further decreased the utilization of paints and coatings affecting the paints additive market.
Post COVID all the production and supply chain activities resumed as the construction projects started and also automobile sector showed steady growth. The renovation projects also showed momentum leading to increased demand for paints and coatings and thus the paint additives.
Arquad GS enables the formulation of a robust and tintable anti-viral paint. Arquad GS is an innovative anti-virus technology designed to deactivate viruses, such as influenza, that contaminate a paint’s film surface. The environmentally friendly additive helps to partially or fully replace traditional in-can preservatives and anti-microbial agents.
Impact of the COVID-19 Pandemic on the Paint Additives Market:
COVID-19 had a notable impact on the paint additive market. At the initial stage of the pandemic, travel restrictions, and lockdown led to the decline in demand for paints and coatings, including paint additives from the construction industry. The construction projects were stopped due to the lockdown and the unavailability of the laborers. Also, the manufacturing of the paint additives was either slowed down or paused due to insufficient raw material availability for producing paint additives. Additionally, the automobile industry also faced a decline in its manufacturing, and the demand for automobiles was also reduced which further decreased the utilization of paints and coatings affecting the paints additive market.
Post COVID all the production and supply chain activities resumed as the construction projects started and also automobile sector showed steady growth. The renovation projects also showed momentum leading to increased demand for paints and coatings and thus the paint additives.
