Additives Market Size, Share & Trends Analysis Report 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 and Beverages, Building & Construction, Chemical, Automotive, Aerospace, Animal Husbandry, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global additives market size was valued at USD 171.12 billion in 2023. It is expected to reach USD 267.74 billion in 2032, growing at a CAGR of 5.1% over the forecast period (2024-32). The global additives market is driven by the growing demand for processed and convenience foods, which require additives for preservation, flavor enhancement, and texture improvement. Increasing consumer awareness about food safety and quality, coupled with regulatory approvals for food additives, also propel market growth. 

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 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 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 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 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.

Regional Analysis

Based on region, the additives 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 additives 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.

Segmental Analysis

The global additives 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 additives 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.Chemicals called plastic additives are used to alter, treat, or polymerize the properties of polymers that will be put to use. Polymers are added to increase these products' strength, heat sensitivity, and durability. They are frequently used in various industrial applications as stabilizers, processing aids, modifiers, flame retardants, and plasticizers, among other functions.

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. Cement, mortar, and other building materials are frequently strengthened and made to last longer with the help of additives in the construction industry. Compounds called cement additives are used to improve the strength and efficiency of concrete. As an illustration, some construction additives help to conserve natural resources by lowering the amount of water used to make cement. This enhancement makes the product more resistant to exterior damage, more water-repellent, and able to tolerate a wider variety of weather conditions, enabling the construction of more substantial buildings.

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. The fact that lubricants are released into the air as oil mist and microscopic drops, however, has a detrimental effect on the environment. As a result of these adverse effects, the switch from fuel-burning vehicles to electric vehicles—which use less lubricant—is predicted to restrain the expansion of the lubricant additive sector in the years to come.

Fuel additives are substances created to improve the performance and quality of fuels used in automobiles. They boost fuel's octane rating or function as corrosion inhibitors or lubricants, enabling higher compression ratios for improved efficiency and power. Fuel additives can be found in various forms, including liquid, powder, and pills. The global market is anticipated to grow significantly due to the increasing demand for new and enhanced products from the automotive industry and other end-use sectors. Another significant element that is expected to increase the global market is the stringent regulations put in place by government organizations. The market will also profit from favorable government policies and more awareness of the need to reduce carbon emissions.

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.

Recent Developments

• May 2024 - Chemovator, BASF's early-stage investor and business incubator, closed an investment deal in Heartland. Leading producer of natural fiber plastic additives, the Detroit-based firm is the newest member of Chemovator's external-facing Elevate program.
• May 2024 - Researchers at Oak Ridge National Laboratory, part of the Department of Energy, created lubricant additives that shield surrounding vegetation and water turbine machinery. According to DOE, lubricating oil use for engines and industrial machinery amounts to around 2.47 billion gallons annually in the U.S. alone. Of this amount, approximately half ends up in the environment.