After a dynamic to difficult phase since 2020, the paints and coatings market has not yet completely settled, but better times are also on the horizon again for additives. Even if the growth potential is neither safe nor large, there is no longer any sign of lingering uncertainty.

Additive manufacturers have been confronted with various challenges in recent years. As with all raw material suppliers, the mostly global issues have led to significant problems: Material shortages, delays in the supply chain, fluctuating demand due to the Covid-19 pandemic and, last but not least, inflation and price volatility. The development of the global market for paint additives is nevertheless encouraging: according to the market research institute Frost & Sullivan, sales for 2022 were around EUR 9.8 billion. This can be equated with a sales volume of an estimated 2.5 – 3 million tonnes.

Rheological additives account for the largest share with 29 %, followed by biocides with 23.3 %. Sales to the Asia-Pacific economic region are particularly noteworthy, with a share of 38.7 %, while the regions of North and South America and Europe are roughly similar, with around 27 % and 23 % respectively. Frost & Sullivan data show that the three largest companies account for over a quarter of total sales: BASF, Dow Coating Materials and Evonik Industries (listed in in alphabetical order) are these leading market players.

Around 5 % growth in prospect

The most important key figures thus show a significant plus compared to 2020 and a further positive market development is expected in the medium term. Soundarya Gowrishankar, Senior Industry Analyst at Frost & Sullivan, forecasts average growth of 4.9 % per year until 2029. Expectations are not universally shared. Dr Stefan Mößmer, Head of Business Line Paint Additives at Byk, points to weakened demand in the paints and architectural coatings sector: “Here, a 10 % decline in volume has manifested itself for 2023.” But there are reasons for the growth in recent years that justify a positive outlook. They can partly be traced back to general trends and partly lie in the difficulties of recent years.

Sustainability is at the top of the wish list

Additives make up only a small proportion of the formulation (3 – 5 %), but their use is crucial for many sought-after properties. They can contribute to the longevity and better performance of the coating and thus pay directly into the sustainability criterion. Similarly, the use of additives can also reduce energy requirements in the manufacture and application of products. All of the above aspects fall under the same core theme and many manufacturers report similar customer requests from the industry. The paint additives market is focused on developing less toxic and more sustainable chemicals, according to James Rapley, Product Development Engineer at Microban International. Romain Severac, Global Technical Leader at Angus, confirms: “In today’s challenging macroeconomic environment, we see two factors driving the paint additives market. The first is cost and the second is sustainability.” At Byk, the issue is also an integral part of every R&D project, says Mößmer. “Sustainable additive solutions are in high demand among customers.”

Dennis Merk, Business Segment Manager Coatings and Construction Chemicals at Krahn Chemie, has  similar view of the priorities in the market: “The demand for environmentally friendly and sustainable paints and coatings is increasing, which is leading to greater use of additives that reduce the environmental impact. From a different perspective, Monika Lamoratta, Technical Application Manager Paints & Coatings at Lanxess, adds: “Biocides are affected by the fact that their classification makes sustainable use difficult. Despite these difficulties, it is clear that water-based products have a limited lifetime without the use of biocides. Adding them not only extends the durability of the paints themselves, but also the longevity of both interior and exterior paints.”

For Merk, innovation also refers to sustainable or digitally supported business processes in perspective, and he focuses on holism: “Togeth er with suppliers, partners and customers, we are building sustainable supply chains in accordance with the EU Green Deal. That’s why services such as life cycle assessments are already firmly anchored in our corporate strategy.”

Price pressure is felt everywhere

Alongside this, high costs are preoccupying the entire market and driving product development. Rapley highlights: “Cost, environmental concerns, legislation, innovation and product differentiation are the key challenges facing additive manufacturers today.”

This assessment is widely shared. “Paint additives offer unique value and versatility to formulators looking to optimise their formulations and dosage of certain ingredients, which can ultimately help reduce overall costs,” says Severac. Merk concludes: “When massive price pressure is felt even for these ‘high-end’ products, it shows the pressure to act in the market particularly clearly.”

Regulations constrain and drive

Another uncomfortable driver of innovation is the increasing regulation of many products. Lamoratta points out: “The current situation is very critical, as biocides in particular are subject to increasingly stringent regulatory requirements. The big challenge for manufacturers of biocides for the paint and coatings industry lies in the BPR; the Biocidal Products Regulation.” For some additive classes, however, the regulatory requirements also represent an opportunity for suppliers. Mößmer says: “Regulatory issues are a significant driver for product developments. In addition to the fluorine issue, more and more raw materials, which are responsible for excellent pigment adhesion, for example, are classified as SVHC; i.e. ‘substances of very high concern’, which means that additives with different adhesive group technology have to be developed.”

Versatile properties are popular

The increasing demand for smart or functional coatings is another important aspect of development. Additive manufacturers have to meet precisely this demand and thus also for the combination of functionalities with decorative properties. “In addition to sustainable additive solutions, additives for functional or smart coatings with a longer service life are in high demand. Additives that promote scratch and abrasion resistance, matting and similar properties are particularly popular,” emphasises Mößmer.

Severac continues, pointing to additives that combine a variety of properties in one product, such as combining high gloss potential, a pH buffering effect, improved formulation stability and corrosion resistance. He also reports on a project investigating a catalyst in powder coating systems and wall paints as chemical scavengers of indoor air pollutants. “The trend towards functional coatings is something that is definitely influencing our focus.” Rapley agrees, “The trend has a big impact on what we do. Instead of just having a hard and durable coating, the same coating can also be stain resistant, for example. Functionalities like anti-graffiti or antimicrobial protection add value to the coating.”

Even though the amount of use in the overall formulation is small, pressure to innovate, tight budgets and the desire for environmental sustainability (politically mandated or not) have paint and coatings manufacturers looking to additive producers. This is also where forward-looking solutions for the development and improvement of formulations can be found, underlining the high importance of the market. From an economic and technical point of view, one can therefore look optimistically to the future.

Additives: Reading tip

Water-borne systems are leading the way in the coatings industry’s quest for ecologically sound and sustainable solutions. As demands for both environmental compatibility and coating performance continue to rise, additives are playing a crucial role in shaping the future of coatings. They not only protect the environment by reducing the use of organic solvents but also enhance the production process and the performance of coatings and inks.

Additives for Water-borne Coatings is a must-read for formulators looking to master the art of water-borne coating systems. Whether you’re brushing up on the basics or seeking in-depth knowledge, this resource has you covered. Dive into the world of water-borne coatings and stay ahead in the ever-evolving coatings industry.