Coating additives play a pivotal role in enhancing the performance and properties of coatings, making them more durable, versatile, and environmentally friendly. Consumption of coating additives is driven by its high demand in end-use industries such as wood & furniture, transportation, architectural, industrial and others. Driven by robust consumption in China, India, Japan, and South Korea, Asia Pacific dominated the global coating additives market in 2022.
The coating additives market is broadly categorised by type, function, formulation, and application. By type, the market is bifurcated into acrylic, urethane, metallic, fluoropolymers and others. Acrylic dominated the coating additives market in 2022, followed by urethane and metallic. Demand for fluoropolymers type is projected to grow at the fastest rate during the forecast period 2023-2032. Rheology modifiers dominated the coating additives demand by function in 2022. Rheology modifiers help control the flow and consistency of coatings, ensuring they effectively adhere to surfaces.
In terms of demand by formulation, water-borne dominate the market, and is poised to retain its position over the forecast period. Water-borne formulations are favoured for their environmental friendliness and low levels of volatile organic compounds (VOCs). Water-borne coating additives are followed by powder-based formulations. These formulations have gained traction lately, driven by key players' strategies and investments in expanding production capacities and technological innovation. For instance, PPG announced the allocation of USD 2.7 Million to expand its production capacity of powder coatings at its facility in Sumaré, Brazil. The expansion includes fresh powder coating distribution system to facilitate the use of sustainable product with improved durability and recyclability.
One of the most notable trends shaping the coating additives market is the shift away from solvent-based formulations. This has led to the demand of solvent-borne formulations contracting globally. Producers in both North America and Europe have significantly reduced the consumption of solvent-based formulations. Contrarily, substantial amounts of solvent-based formulations are still in use in the Asia Pacific region.
Despite the promising prospects of the coating additives market, it faces challenges such as raw material price volatility and environmental concerns related to wastewater discharge regulations. These challenges underscore the importance of innovation in developing sustainable, cost-effective coating solutions.
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