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Coating Additives Market Exhibits Higher Growth Prospects up to 2027 | Key Players are Ashland, Arkema, AkzoNobel, BASF SE, Elementis plc., Synthomer Plc., etc.

02-18-2019 09:10 AM CET | Industry, Real Estate & Construction

Press release from: Fact.MR

Coating Additives Market Exhibits Higher Growth Prospects up

Tier 1 Players Hold 45-50% Share, ‘Go-to-Market Strategies’ Remain the Key Focus: The coating additives market remains a consolidated landscape, with relatively high barriers for new entrants. The tier 1 players hold nearly 45-50% revenue share and have a strong focus on scaling up their regional presence. The tier 1 players are adopting go-to-market strategies as a part of their differential strategies to attain competitive benefits. These strategies are key to enhance customer outreach and reaching out to the diverse end-users, yet in an efficient manner. However, the tier 2 players are extensively focused on crafting unique products and commercializing the same at competitive prices for gaining high-profit margins.

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Rheology modifiers are used across multiple industries, notably cosmetics and paints. They are widely used for scaling up system viscosity – and thereby ameliorating crucial aspects such as storage stability and film thicknesses. The demand for rheology additives is witnessing a spike as manufacturers focus on making quality upgrades, such as making fluids less prone to dripping, upgrading their textural profiles, and extending their shelf life.

Flow behavior remains one of the most important and highly-valued features in case of coating compositions, which is immensely taken care of by the rheology additives. With flow behavior of coating compositions having deep-rooted influences on their application and film formation, the demand for rheology additives is foreseen to rev up by a notable margin.

Functional Requirements for Interior and Exterior Architectural Coatings Spur Demand

Performance requirements hold high significance in case of interior as well as exterior architectural paints. These requirements are dynamic and they vary in accordance to the designated areas of application. Architectural coatings make up more than half of the entire coatings market, ranging from wall paints for the interior to decorative coatings for the facade.

The texture and quality demanded of the coating in architectural coatings, however, varies from professional to craftsmanship applications. The importance of additives in accomplishments as such remains undeniable, which is fostering its demand in case of interior and exterior architectural coatings.

Orientation toward Sustainable Practices and Cost Reduction Bolsters Adoption

Sustainability, often perceived as an imprecise term, has a different meaning and importance for different constituencies. In case of the painting and coatings industry, the “cradle to grave” concept is followed in order to determine product sustainability.

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A set of considerations form the essence of this concept, such as minimum energy use for manufacturing, use of renewable raw materials, enhanced waste reduction, and improved product recycle potential. This concept also encourages the influx of new varieties of resins and additives, creating favorable circumstances for the coating additives market.

Furthermore, cost reduction also remains a key area in case of manufacturing ecosystems. It can not only be achieved through raw material savings, but also by reinvigorating the efficiency that is enabled by inclusion of innovative materials, with additives being one of them.

Volatility in Raw Material Prices Prevails as the Key Growth Impediment

Volatility in raw materials remains one of the key factors posing major challenges for manufacturers in the coating additives market space. Several chemicals that are utilized in the manufacturing process of functional additives for coating are fundamentally crude oil derivatives. The oil and gas industry remains one of the principal suppliers for raw materials, such as phenols and aromatic amines, for manufacture of functional additives.

Fluctuations in case of crude oil prices remain have profound influences on the prices of raw materials meant for functional additives manufacture. This volatility of raw material prices affects the costs of functional additives, which poses major challenges for the manufacturers apropos of gaining revenue benefits.

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