The coatings industry has seen significantly impact by stringent emission norms in the recent past. This is compelling manufacturers to shift from conventional coatings to sustainable bio-based coatings. Coating manufacturers have strict VOC emission permits driven by stringent regulations proffered by local and state authorities. In response to these emission regulations, technological advancements give focus to the development of natural additives. This will propel the growth of the global coating additives market. Estimates anticipate it will surpass US $9 billion mark by 2029, states the insightful report.
Key Takeaways of the Coating Additives Market
- Report states that preference for water-based coatings over solvent-based coatings by consumers, makes water based coatings a leading formulation. This accounts for around 60% of the global market share
- Acrylic-based and urethane-based coatings are showing promise, accounting for around half of the global demand for coating additives
- According to the report, fluoropolymer coating additives are anticipated to witness an exponential growth of around 6% throughout the forecast period. This is on the back of an increasing requirement for high-temperature resistant and corrosion resistant additives
- Wetting agent and foam control segments are high-growth segments among all primary functions of coating additives. They are also likely to create a collective incremental opportunity of around US$ 1.5 Bn by 2029
- Demand for architectural coatings would increase by as much as 1.5X over the next decade. This is due to the rapid infrastructural growth in emerging nations.
- Regulatory policies highly affect the coating additives market in the North America and Europe regions. The result is in a moderate growth of around 4% in these regions till 2029.
- The expecatation is that East Asia, on the back of China, will maintain its front-running position throughout the forecast period, accounting for over 30% of the global share in the coating additives market
- Top 5 players in the coating additives market hold around 45-50% share of the global coating additives market
- To gain prominence in the competitive market, manufacturers such as Elementis plc and AkzoNobel Specialty Chemicals (Nouryon) have included natural coating additives in their product portfolios.
“Coating additives manufacturers are focusing on expanding their product portfolios by adding sustainable and multifunctional additives, which are anticipated to witness high demand in the foreseeable future,” says an analyst.
Prominent Stakeholders Are Taming Manufacturing Complexity Through R&D Centered Around Bio-Friendly Additives
The study opines that a handful of market players have consilidated the coating additives market. This accounts for more than 40% share in the market. The critical strategy of manufacturers is expansion of production facilities for sustainable and VOC exempted coating additives, especially in matured markets such as Europe and North America. Here government regulations are stricter leading to slow growth in demand for conventional coating additives. In order to remain relevant in the coating additives market, manufacturers have invested in extensive R&D activities to meet the requirements for low VOC content and product innovation, mainly centered towards bio-based, environment-friendly coating additives.
