Additives Market

Market Overview

The global additives market size was valued at USD 1, 55,421 million in 2021 and is anticipated to generate USD 2, 43,183 million by 2030. The market is projected to grow at a CAGR of 5.1% during the forecast period (2022–2030).

An active chemical that is added to a product to improve characteristics such as performance, texture, efficiency, shelf life, and productivity is known as an additive. There is an ample supply of plastic additives, food additives, construction additives, lubricant additives, fuel additives, coating additives, and agrochemical additives on the market today. 

In addition, specialty additives such as stabilizers epoxidized soya bean oil (ESO), and phosphorus-based flame retardant additives are utilized in end-use industries such as agriculture, healthcare, pharmaceuticals, and packaging films. These industries are examples of end-users of additives.

Market Dynamics

Global Additives Market Drivers

• Increased Use of Lightweight Automotive Materials Soaring Global Market

The need for personal and commercial automobiles has increased as the population has grown. According to research published by the International Energy Agency, the global demand for vehicles is growing at a rate of 4% each year. The increased demand has made the car business more competitive, with manufacturers looking for ways to cut costs and introduce vehicles at significantly lower prices. The significant properties of plastic additives, such as high strength, durability, impact resistance, flame resistance, lightweight, and other characteristics, make it an ideal material for producing various automobile parts, such as bumpers, roof rails, consoles, and other components. 

The demand for additives market is likely to rise as the vehicle sector expands. The automobile industry in nations like China, India, and others has seen a rise in the sales of fuel-efficient vehicles. Due to the usage of additives in lowering overall vehicle weight and thus improving mileage, the additives industry is expected to develop significantly. Plastic-based additives, for example, such as AddWorks (by Clariant AG) and Irga Surf (by BASF SE), have reported increased sales in the automotive industry in 2020. 

• Expanding Food and Packaging Industries Surging Market Growth

The demand for packaged food and beverage goods has increased as people become more aware of hygiene and organic food options. According to a survey, the packaged food and beverage industry has introduced roughly 3,500 new food products globally in the last year. Individuals appreciate these pre-packaged food and beverage items because of their freshness, sanitation, taste, and other characteristics. Food additives such as monosodium glutamate (MSG), high fructose corn syrup, guar gum, sodium nitrite, and others are used to meet these requirements. This is predicted to be one of the significant drivers of additive growth in the food and beverage industry. 

Additives are utilized to comply with food safety rules and standards, making the use of additives more linear across the food and beverage industry's major players. For example, the government of Latin America's implementation of the Codex Alimentarius Standards and Guidelines for Food Additives has improved additive performance in the food and beverage industries. The additives market growth is predicted to increase significantly in the packaged food and beverage industry due to this. 

• Industrialization on the Rise in Emerging Economies Boosting Growth

Industrialization is accelerating in emerging economies such as China, India, and others. Plastic manufacturing, building, energy (power plants), agrochemicals, and other industries are all contributing significantly to the economy's growth. According to the United Nations Industrial Development Organization (UNIDO), developing economies like China and India have experienced a 30 percent increase in industrial output. Additives are used in various industrial processes, including 3D printing, lubrication, coating, antifoam, emulsification, and others. These additives can be used as dispersants, detergents, pressure retarders, viscosity reducers, and anti-wear agents, making them ideal for various industrial applications. 

As a result, increased industrialization may result in a considerable increase in demand for additives. Furthermore, as public awareness of environmental pollution and the need for sustainable energy grows, so makes the demand for low-emission gasoline. Fuel additives such as fuel injector cleaners and octane boosters for fuel conditioning can help meet lower emission standards. This is expected to enhance the demand for additives in the energy industry during the projected period.

Global Additive Market Restraints

• Diverse Regulatory Agencies Imposing Regulations Hampering Market Growth 

If a person is exposed to additives at a level that is above a specific threshold, they may get a variety of health problems, including diarrhea, crampy aches, sleeplessness, asthma, and others. According to a study that was published in the International Journal of Pharmaceutical Sciences and Research (IJPSR), the ingestion of food-based additives like monosodium glutamate (MSG) and sulfite can result in symptoms such as headaches, redness of the eyes and skin, nausea, sweating, weakness, and health disorders. These symptoms can be caused by consuming these additives. In light of this fact, several regulatory organizations, such as the European Commission (EU) and the Restriction of Hazardous Substances (RoHS), have developed specific rules for the application of additives. The expansion of the market for additives throughout the forecast period may be hampered due to this.

Global Additive Market Opportunities

• Chemical Stability and pH Modulation to Fuel Market Growth

The rapid expansion of the pharmaceutical industry can be attributed to the extensive research and development efforts within the medical sector. A wide variety of additives, including solubilizing additives, surfactant additives, stabilizing additives, and other parent additives, are used to manufacture medicines to increase their effectiveness against various ailments. These additions perform the function of active components in order to improve the nutritional occupancy both internally and externally, as well as self-life, chemical stability, and other specialized features. 

For example, the chemical stability and pH of Pfizer's COVID-19 vaccination are maintained with the use of an ingredient called dibasic sodium phosphate (dehydrate). For this reason, the application of additives in the pharmaceutical industry should result in the development of profitable chances to expand the additives market in the years to come.

Segmental Analysis

The global additive market share is categorized by product type and end-use.

Based on the types of products, plastic additives, food additives, construction additives, and lubricative additives are the major shareholders in the global additive market. Their market revenues were valued at USD 39,095 million, USD 52,739 million, USD 18,501 million, and USD 15,190 million, respectively, in 2021. The food additives segment is projected to generate USD 81,117 million in 2030 and grow at a CAGR of 4.9% by 2030. It is predicted that the utilization of food additives in the process of improving the flavor and consistency of packaged food items would, in the future, create attractive prospects for the industry. The plastic additives segment is projected to generate USD 64,937 million in 2030 and grow at a CAGR of 5.8% by 2030. The use of plastic additives in a variety of industries, including the automotive industry, the packaging industry, the construction industry, and the consumer goods industry, amongst others, is the most significant player in the global market. 

The construction additives segment is projected to generate USD 27,732 million in 2030 and grow at a CAGR of 4.6% by 2030. The forthcoming mega construction projects are projected to use construction additives, which is anticipated to generate profitable prospects for the market for construction additives. The lubricative additives segment is projected to generate USD 23,665 million in 2030 and grow at a CAGR of 5.0% by 2030. The rise in the expansion of the automotive sector, which is where lubricant additives are utilized extensively, can represent the driving force behind the growth of the additives market for lubricant additives.

Based on the end-uses, food & beverages, packaging, building & construction, and automotive are the major shareholders in the global market. Their market revenues were valued at USD 52,718 million, USD 27,797 million, USD 18,381 million, and USD 16,646 million, respectively, in 2021. The food & beverage segment is projected to generate USD 79,704 million in 2030 and grow at a CAGR of 4.7% by 2030. The rise in demand for functional food items, including ingredients that promote health and wellness, represents a growth opportunity for the global industry. The packaging segment is projected to generate USD 48,582 million in 2030 and grow at a CAGR of 6.4% by 2030. The use of additives aids in hygienic conditions and prevents condensation, and the growing need for smart packaging materials in the food and pharmaceutical industries is expected to drive the global market.

The building & construction segment is projected to generate USD 26,161 million in 2030 and grow at a CAGR of 4.0% by 2030. The global market is being driven by factors such as lowering costs while boosting efficiency and ensuring mixing quality throughout the curation process. The global market for automotive is projected to generate USD 28,604 million in 2030 and grow at a CAGR of 6.2% by 2030. The rise in the number of laws aimed at decreasing carbon emissions and the need for high-quality gasoline is driving the global market forward.

Regional Analysis

Based on region, the additive market share is segmented into North America, Europe, Asia-Pacific, and LAMEA.

Asia-Pacific to be the Largest Revenue Holder in Global Market

Asia-Pacific is anticipated to hold the largest market share of USD 99,590 million by 2030 at a CAGR of 5.8% during the forecast period. The market in Asia-Pacific was valued at USD 59,957 million in 2021. The Asia-Pacific additives market has been boosted by the growing transportation sector in Japan, particularly the railway sector, as well as the submarines and ship manufacturing sectors in China and India. Using additives in pigments, thickeners, defoamers, and other products for submarine and ship construction may raise additive demand in the Asia-Pacific region. China is the most significant contributor to the market compared to other countries, which was valued at USD 28,840 million in 2021. Japan and India are gradually growing their market with a revenue of USD 8,804 million and USD 7,603 million, respectively, in 2021.

North America is the second contributor to the additive market with revenue of USD 45,645 million in 2021 and is expected to generate USD 72,652 million at a CAGR of 5.3% by 2030. The replacement of traditional materials with plastic products in agriculture, medicine, construction, and other industries where additives play a crucial role in imparting different specialized features to the material could drive market expansion. The US is the primary market in this region, with a revenue of USD 37,490 million in 2021.

The additives market in Europe is expected to witness steady growth with a value of USD 38,478 million in 2021 and is anticipated to generate USD 54,295 million at a CAGR of 3.9% by 2030. The increasing usage of various additions in the rising food and beverage sectors and the development of modern theme-based construction activities and additives for fuel conditioning and emission reduction objectives may lead to a significant expansion in the market. Germany and France have more market revenue compared to UK and Italy. The market revenue of Germany and France were valued at USD 8,318 million and USD 4,537 million, respectively, in 2021.

LAMEA has the lowest market. In 2021, the market revenue was valued at USD 11,340 million, with Brazil being their major contributor. The global market is projected to generate USD 15,726 million at a CAGR of 3.7% by 2030. In the LAMEA area, the use of additives in industries such as food and beverages, emission control, fuel enhancers, and others is a prominent market trend.

Recent Developments

• In June 2022, Evonik and its academic partners delivered eight abstracts outlining their latest research findings in dairy cow nutrition solutions – with a particular focus on the essential amino acid methionine at American Dairy Science Association (ADSA) Annual Meeting 2022. 
• In June 2022, Dow was named a 2022 honoree of The Civic 50by Points of Light, the world's largest organization committed to inspiring, equipping, and engaging people to take action to change their communities and the world.
• In June 2022, Clariant announced first quarter 2022 continuing operations sales of USD 16 million, compared to USD 1032.73 billion in the first quarter of 2021. This corresponded to a robust increase of 30 % in local currency and 26 % in Swiss francs.
• In June 2022, LANXESS and Advent International established a leading global joint venture for high-performance engineering polymers.
• In May 2022, Eastman announced that it had entered into an ASR agreement with Wells Fargo, NA, and Mizuho Markets Americas LLC to repurchase $500 million of Eastman's common stock.
• In May 2022, Milliken made a significant investment in the coating additives laboratory it acquired in 2020 as part of its purchase of Borchers Americas, Inc., in Westlake, Ohio.
• In May 2022, Sanitized AG expanded its Sanitized® Odorex™ portfolio for odor-neutralizing technologies.
• In February 2022, BASF launched a new service offering, RegXcellence, for its plastic additives customers, enabling targeted access to a range of global regulatory support.

Additives Market Segmentation

By Product Type

• Plastic Additives
• Food Additives
• Construction Additives
• Lubricant Additives
• Fuel Additives
• Coating Additives
• Agrochemical Additives
• Medicated Feed Additives
• Others

By End-Use

• Packaging
• Food & Beverages
• Building & Construction
• Chemical
• Automotive
• Aerospace
• Animal Husbandry
• Others

By Region

• North America
• Europe
• Asia Pacific
• LAMEA