Americas Paint Additives Market

Americas paint additives market size is forecast to reach US$4.1 billion by 2027, after growing at a CAGR of 4.8% during the year 2022-2027. Incorporation of additives in paints and coatings provides various benefits such as enhanced durability, corrosion-resistance, abrasion-resistance, improved paint flow and levelling, and more. Thus, additives are essential to paints and coatings. The demand for paints and coatings directly affects the demand for paint additives. Growing levels of volatile organic compounds (VOCs) from conventional coatings are a cause of concern. Therefore, most governments regulate paints and coatings. To comply with regulations, manufacturers are focusing on developing eco-friendly products such as Zero VOC paints, nano-coatings, and so on. The growing demand for high performance paints and coatings and the rising investments for the development of infrastructure are the major factors driving the Americas paint additives market.

COVID-19 Impact

During the COVID-19 pandemic, there was a sudden decline in the growth of many end-use industries in Americas which widely use paint additives, which affected the growth of the Americas paint additives market. For instance, according to the Business and Institutional Furniture Manufacturer's Association (BIFMA), the North American office furniture size decreased from US$16.61 billion in 2019 to US$14.63 billion in 2020, a decrease of 11.9%. The Chilean Chamber of Construction (CCHC) reported that construction activity followed a 12 percent decline in 2020. Since, during the pandemic, the paint additives market saw a decrease in its demand in America, the market revenue of the Americas paint additives market significantly decreased in 2020.

Report Coverage

The "Americas Paint Additives Market Report - Forecast (2021-2026)", by IndustryARC, covers an in-depth analysis of the following segments of the Americas paint additives industry.

• By Formulation: Water Based, Solvent Based, Powder Based, and Others

• By Additive Type: Wetting and Dispersing Additives (Polymeric Agents, Conventional Agents, and Others), Defoamers (Non-Siloxane Polymeric, Siloxane, Mineral Oil, Vegetable Oil, and Others), Rheology Modifiers [For Waterborne Paints (Cellulose, Acrylates, Associative Thickeners, Clays, and Others), and For Solvent Based Paints (Organoclays, Hydrogenated Castor Oil (HCO), Polyamides, Fumed Silicates, and Others)], Biocides, Anti-Foaming, Surfactants, and Others

• By End-Use Industry: Transportation (Automotive, Aerospace, Marine, and Locomotive), Industrial, Building and Construction (Residential Construction, Non-Residential Construction, Infrastructure), Wood & Furniture, and Others

• By Geography: North America (USA, Canada, and Mexico), and South America (Brazil, Argentina, Colombia, Chile, and Rest of South America)

Key Takeaways

North America dominates the Americas paint additives market, owing to the increasing construction and automotive sector in the country. The increasing per capita income and evolving lifestyle of individuals coupled with the rising population are the major factors expanding the construction and automotive sector in North America.

Americas paint additives market is driven by the growing demand for paint additives in the construction industry. Also, the increase in the demand for paint additives from other industries such as automotive, marine, aerospace, and wood and furniture contribute to the market growth. Major companies in this region increased their investment owing to rise in the demand for paint additives from various end use industries.

The growing focus on sustainability in the chemical industry is strengthening the demand for eco-friendly paint additives. The rising demand for bio-based additives is primarily driven by climate awareness and technological innovation, is acting as a major opportunity for the Americas paint additives market.

Americas Paint Additives Market Segment Analysis - By Formulation

The water based segment held the largest share in the Americas paint additives market in 2021 and is estimated to grow at a CAGR of 5.6% by revenue during the forecast period 2022-2027. Paint additives modify the properties of paints to enhance viscosity, minimize foam, control shine, control flow, provide long-term water repellence, add anti-chipping capability, and allow the paint to be more impact resistant by maximizing its performance, owing to which paint additives are often utilized in water-based formulations. Furthermore, owing to the performance advantages such as prevention from colour fading, water spots, mould, mildew, and moisture intrusion problems, paint additives are vital in water-based paints used in the construction and automobile sector, which is another facet driving the market growth. Thus, the aforementioned pros associated with the incorporation of paint additives in water-based paints, are set to aid in its market growth during the forecast era. In July 2020, Evonik Operations GmbH has introduced an entire portfolio of additives that make formulation work easier for paint formulators. The newly developed TEGO Foamex 9, a mineral-oil-based defoamer with long-term efficacy and good coating compatibility, is one of the highlights. In May 2021, TEGO Humectant 7005 was included in the Evonik Operations GmbH additives collection. Such developments related to paint additives for water-based formulations are further bolstering the segmental growth of water-based formulations.

Americas Paint Additives Market Segment Analysis - By Additive Type

The rheology modifiers segment held the largest share in the Americas paint additives market in 2021 and is forecasted to grow at a CAGR of 5.1% by revenue during the forecast period 2022-2027. One class of chemical additives that plays a key role in the development of high-performance paints is rheology modifiers. Rheology modifiers are essential for application properties as they can affect processing, and colour performance by thickening or altering the rheology of paints. Rheology modifiers effectively eliminate the spattering and dripping of paint during roller or brush application. Also, after application, the sag resistance is strengthened by a rapid yet regulated increase in viscosity. Besides, the sedimentation of pigments is also avoided by rheology modifiers during the storage and transportation of paint reliably. These additives also help to monitor the consistency of the paint shelf, ease of application, and open time/wet edge. Due to this, its market is significantly growing over the forecast period. Furthermore, it also has additional functionalities such as wetting properties and environmental or health advantages such as free formulations of APEOs, VOC, odours, and heavy metals, owing to which it is often used in protective and marine paints, general industrial paints, architectural paints, and can and coil paints.

Americas Paint Additives Market Segment Analysis - By End-Use Industry

The building and construction segment held the largest share in the Americas paint additives market in 2021 and is forecasted to grow at a CAGR of 5.2% by revenue during the forecast period 2022-2027. Paint additives are often used in the paint and coatings industry, which are extensively applied on the interior and exterior walls of residential buildings such as independent homes, row houses, and more as it enhances the features of paints while modifying the rheology properties. Paints increase the aesthetic value and beautify the construction site, owing to which independent homes are always painted. And paint additives are often a basic component of paints as it imparts additional characteristics and qualities to the paint. The construction sector is flourishing in the American European countries as the governments are investing heavily in this sector as it is a perfect fiscal stimulus for the economy. In February 2022, the Brazilian government invested R$3.5 billion (US$0.2 billion) in the construction of canals and dams. According to the Government of Canada, engineering and construction activities rose 1.0% in November 2021, the largest monthly gain since April. Repair construction was up 0.5%, as both the residential and non-residential segments contributed to the gain. Buildings are often affected by elements such as UV rays, molds, wind, stains, and water penetration, and paint additives are often used as building exterior protection. Thus, with the expanding building and construction sector, the demand for paint additives will also gradually increase in the sector during the forecast period.

Americas Paint Additives Market Segment Analysis - By Geography

North America held the largest share in the Americas paint additives market in 2021 up to 82.2% by revenue. In the North America region, the building & construction, automotive, and aerospace industry are expanding at a lucrative rate. For illustration, according to U.S. Census Bureau, United States residential construction was at a seasonally adjusted annual rate of US$829.4 billion in January, 1.3 percent above the revised December estimate of US$819.0 billion. The United States non-residential construction was at a seasonally adjusted annual rate of US$497.2 billion in January, 1.8 % above the revised December estimate of US$488.2 billion. According to the International Organization of Motor Vehicle Manufacturers, the production of light commercial vehicles in Mexico increased from 2,072,699 units in 2020 to 2,271,034 units in 2021, an increase of 10% compared to the previous year. According to Boeing Commercial Market Outlook (2021-2040), North America will require 9,160 new airplane deliveries over the period 2021-2040. Thus, with the expanding building & construction, automotive, and aerospace industry in the North American region, the demand for architectural and industrial paint will rise, which is further anticipated to substantially drive the American paint additives market growth in North America over the forecast period.

Americas Paint Additives Market Drivers

Growing Demand for High-performance Paints and Coatings

High-performance paints and coatings are commonly used in environments where excellent corrosion resistance, exterior durability, and chemical durability features are required to protect the surface and mitigate wear. Several high-performance paints and coatings include additives with antimicrobial agents that inhibit the growth of microbes. The sales of such products have picked up momentum owing to the pandemic. High-performance paints and coatings contain ingredients including pigments, binders, and additives that offer enhanced film integrity, making them more resistant to cracking, blistering, and peeling over time. Additives are essential for the formulation, production, and application of high-performance paints and coatings as they control a wide range of product properties, such as enhanced surface appearance and integrity, elimination of film defects, ensuring optimum color strength and uniformity, improved storage stability and appearance of the final product, thus offering extended protection. High-performance paints and coatings stand up to heavier wear, harsher conditions, and more demanding requirements compared to conventional coatings. Today's products are not just meant for industries but can also be used on commercial and residential buildings. Additives can help high-performance paints and coatings meet the most stringent VOC regulations and enabling their use in green buildings. For instance, Air Products Inc. has launched three surfactants that help to lower the minimum film forming temperature which ultimately results in lowered VOC content. Surfynol AD01 and Surfynol 107L are alkane diol-based surfactants that combine good substrate wetting with strong anti-foaming properties. Dynol 360 is a hydroxyl thio-ether-based super wetter that is biodegradable and zero-VOC. The three new surfactants are suitable for all water-based paints and coating formulations. As the formulation of high-performance paints and coatings requires higher volume of additives, the growing demand for high-performance paints and coatings acts as a driver for the paint additives market.

Increasing Demand for Multi-functional Additives

Although additives amount to a small percentage in the formulation, they are the critical components of paints and coatings. Specific additives are used to achieve the desired durability, gloss, mar resistance, and other critical properties of the final product. Some additives are needed to control the rheology and some, such as dispersants and defoamers, are required to control the properties of the formulation during manufacturing or application processes. By using two more additives, interactions between different additives can result in unwanted secondary effects. However, application of multifunctional additives addresses these challenges. To add-on, multifunctional additives helps in reducing the cost by reducing the amount of raw materials required for the formulation. In addition, the overall manufacturing process can be simplified through the use of multifunctional additives, which can also contribute to reduced costs. On account of the merits of multi-functional additives, several companies have launched multifunctional additives. For instance, Troy Corporation offers a number of multifunctional additives for the paint and coatings industry under its Z line of Performance Additives. Troysol ZLAC is a zero-VOC, APE-free substrate wetting additive that also improves flow and leveling, inter-coat adhesion, and color acceptance. Troysol Z370 is a universal wetting and mar and slip additive. Paint manufacturers are working on the reformulation of their products due to changing environmental requirements. The sustainability trend can also fuel the market growth for innovative multi-functional additives. Therefore, the increasing demand for multi-functional additives is expected to drive the American paint additives market.

Americas Paint Additives Market Challenges

Stringent VOC Emission Regulations

Volatile organic compounds (VOCs) are chemicals found in solvent-based paints and in small quantities in many water-based paints. Once the paint is applied, the VOCs evaporate. Excessive exposure to VOCs can have negative effects on health and the environment. VOCs are dangerous to air quality because when they react with nitrogen oxide under UV radiation, ground-level ozone is formed. The US Environmental Protection Agency (EPA) reports that VOCs often cause eye, nose, and throat irritation, nausea, and can also damage the liver, kidney, and central nervous system. The U.S. EPA regulates VOCs at Federal level in 40 CFR 59, which is the National Volatile Organic Compound Emission Standards for Consumer And Commercial Products. EPA regulates VOCs on the national level, but recently there have been pushes by some states and counties to impose even stricter VOC limits. In May 2019, the California Air Resources Board (CARB) adopted a Suggested Control Measure (SCM) for Architectural and Industrial Maintenance (AIM) coatings. This SCM includes lower VOC limits for 13 categories including exterior/dual stains 100g/l, nonflat coatings 50 g/l, floor coatings 50 g/l and colorants (50 g/l, 600 g/l solvent-based Industrial Maintenance and Wood Coatings colorants). In September 2009, the Canadian Environment Ministry enacted the Canadian Architectural Coatings VOC Regulation which came into effect on 2011. The regulation sets mandatory, maximum allowable VOC concentration limits for 53 categories of architectural coatings and governs any such products manufactured, imported, sold, or offered for sale in all Canadian provinces and territories. Therefore, the stringent laws and regulations pertaining to VOCs may hinder the growth of paint additives.

Americas Paint Additives Industry Outlook

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Americas paint additives market.

Major players in the Americas paint additives market are:

• BASF SE
• Eastman Chemical Company
• Evonik Industries AG
• Dow Inc.
• Arkema Group
• Altana Group
• Clariant AG
• Cabot Corporation
• Ashland Global Holdings Inc.
• Allnex GmbH

Recent Developments

• In December 2021, Ashland funded and approved the plans to construct a new nonionic synthetic associative thickener (NSAT) facility in Calvert City, KY, North America. The expansion reinforces the company's geographic growth strategy for rheology modifiers. The completion and commissioning of the facility is expected in 2024.

• In November 2021, Evonik's Coating Additives Business Line launched three new matting agents ACEMATT OK 390, ACEMATT HK 390, and ACEMATT HK 520. The three new additives based on precipitated silica are characterized by a combination of efficient, ultra-deep matting, high transparency, and fine surface haptics. All three matting agents can be used universally in water and solvent-based systems as well as in pigmented and clear formulations.

• In October 2019, BASF introduced a new silicone wetting agent, Hydropalat WE 3225, which combines excellent substrate wetting with pronounced defoaming performance. It is designed for use in high-end water-based industrial and automotive coatings and especially wood coatings that require excellent wood grain accentuation. Hydropalat WE 3225 was created to fulfil the market demand for a wetting agent that would remove the need for an additional defoamer in a formulation.