Rheological Additives Market Size, Share & Trends Analysis Report By Type (Aqueous Phase Additives, Non-Aqueous Phase Additives), By Nature (Organic, Inorganic), By Application (Paints and Coatings, Cosmetics and Personal Care, Adhesives and Sealants, Pharmaceuticals, Home and I&I Products, Oil and Gas, Construction) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global Rheological Additives Market size was valued at USD 4,909.1 million in 2023. It is estimated to reach USD 8,085.0 million by 2032, growing at a CAGR of 5.7% during the forecast period (2024–2032).

Rheological additives are compounds applied to various materials, particularly fluids, to alter their flow and deformation properties. These additives are essential for managing the viscosity, texture, and overall rheological qualities of various goods in industries, including coatings, adhesives, food, pharmaceuticals, and oil drilling fluids. The goal is frequently to improve the materials' performance, stability, and application qualities. Developing rheology modifiers with film-forming fixative properties has propelled the global rheological additives market forward. Furthermore, leading players' novel product offerings, expanding application areas for rheological additives, and developing end-user industries drive market expansion.

Furthermore, population growth and improved living standards drive worldwide demand for cosmetics. Personal and cosmetic care product volumes are rapidly increasing. As a result, increased demand for rheological additives, combined with expanding end-user industries, is a major factor driving the market.

Market Dynamics

Market Drivers

Growing Demand in the Paints and Coatings Industry

The paint and coatings sector is a significant consumer of rheological additives. These additives improve paint application quality, prevent sagging, and increase coating performance. Rheological additives such as thickeners in water-based paints manage viscosity and improve pigment suspension. This guarantees that the paint sticks effectively to surfaces, gives smooth coverage, and has acceptable flow qualities when applied. Dispersants also aid in keeping pigments stable and avoid settling, resulting in a homogenous mixture. The desire for high-performance coatings in automotive, construction, and industrial applications is a major driver of rheological additives. According to the US Census Bureau, construction spending in the United States is expected to reach USD 2,050.1 billion on a seasonally adjusted basis in November 2023. This represented a 0.4% rise over the revised October estimate of USD 2,042.5 billion. 

As worldwide building, infrastructure development, and automobile manufacturing increase, the demand for sophisticated paints and coatings increases. Rheological additives allow producers to create coatings that meet specific application criteria, improving the completed products' durability, look, and usefulness. The paints and coatings business is expected to expand further, fueled by urbanization, infrastructure developments, and rising consumer demand for aesthetically pleasing and durable finishes. 

Market Restraints

Stringent Environmental Regulation

Stringent environmental restrictions, although promoting sustainability, might complicate the manufacture and application of certain rheological additives. Regulations aimed at decreasing environmental impact may limit or prohibit additives containing compounds considered hazardous to ecosystems or human health. VOCs (volatile organic compounds) can vaporize into the atmosphere. A rheological additive contains volatile organic compounds (VOCs), contributing to air pollution. Environmental restrictions, such as those established by the Environmental Protection Agency (EPA) in the United States or the European Union's REACH rules, may limit VOC emissions. Additives with a high VOC content may be restricted or require reformulation to comply with these standards.

In 2023, Michigan, Ohio, and Canada will implement new VOC standards. Certain items, such as brake cleaners and multi-purpose solvents, will be required to comply with new or reduced VOC levels beginning July 1, 2023. In 2023, Michigan also changed its VOC restrictions. The state expanded the extent of coverage and reduced VOC levels for certain product categories. The revised restrictions took effect on January 1, 2023. The consequence of strict environmental restrictions is twofold. On one side, it promotes developing and using environmentally beneficial rheological additives. Conversely, it presents a difficulty for additives that do not match the required standards, thereby increasing development costs, reformulation efforts, or limiting use.

Market Opportunities

Growing Demand for Bio-Based and Sustainable Additives

The growing awareness of environmental sustainability and the need for greener alternatives provide substantial potential for developing and implementing bio-based and sustainable rheological additives. Moreover, Formulating thickeners from renewable resources, such as plant-based polymers or biopolymers, meets the demand for bio-based solutions. Bacterial fermentation techniques produce xanthan gum, a typical bio-based thickener. It is commonly utilized in various industries, including food, cosmetics, and pharmaceuticals. For example, the United States Food and Drug Administration (FDA) has recognized xanthan gum for direct human ingestion as safe under the Code of Federal Regulations (CFR) 21.

However, the regulatory agency has established guidelines for employing xanthan gum in food items. Also, rheological additives from renewable resources, such as starch or cellulose, can be used as bio-based thickeners in various applications. As the focus on sustainability grows, the market for bio-based and sustainable rheological additives will likely develop. To capitalize on this potential, manufacturers can develop unique formulations, partner with renewable material sources, and highlight the eco-friendliness of their products. Strategic investments in research and development for long-term solutions will be a major driver of success in the rheological additives market.

Regional Analysis

North America Dominates the Global Market

The global rheological additives market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

North America is the most significant global rheological additives market shareholder and is estimated to grow at a CAGR of 5.8% over the forecast period. According to Wikipedia, North America's nominal GDP in 2023 is predicted to be USD 30.11 trillion, with a purchasing power parity (PPP) of USD 31.74 trillion. The automobile industry in the United States is one of the world's largest; total sales of new automobiles in the United States in 2023 were 15.5 million, a 12.4% rise over 2022. This represents the highest sales since 2019, when 16.96 million vehicles were sold. The growing number of vehicles in the region is expected to increase demand for rheological additives, which control and enhance paint properties, prevent splatter during painting, provide a glossy and premium finish, and balance paint durability and consistency.

Additionally, the building industry in the United States has experienced considerable expansion in recent years. In November 2023, construction spending in the United States rose by 0.4% monthly to a seasonally adjusted annual rate of USD 2,050.1 billion. This is 11.3% greater than the USD 1,842.2 billion forecast from November 2022. For example, the continuing development of the LaGuardia airport in Queens, New York, is expected to cost USD 8 billion and be completed by 2022. Over the last few years, North America has seen economic volatility due to the United States' stringent trade rules on the import of Chinese goods, which have negatively impacted regional macroeconomic growth. This increases foreign direct investment in Mexico while also improving the country's economic scheme. Mexico's efforts to expand its manufacturing capacity during the trade war have paid off handsomely. These factors point to the region's rheological additives market having significant growth potential during the forecast period. 

Asia-Pacific is anticipated to exhibit a CAGR of 5.9% over the forecast period. The tremendous industrial boom in Asia Pacific has fueled the rise of the rheology modifiers market in recent years, and this trend is likely to continue over the next five years. Domestic and international investment in critical areas such as mining, manufacturing, energy, and construction has gradually increased during the last decade. According to the International Monetary Fund (IMF), China's GDP growth rate in 2023 is expected to be 5.4%. In November 2023, the IMF upgraded its 2023 GDP growth prediction from 5% to 5.4%, noting a robust rebound from COVID-19. However, the IMF forecasts the world's second-largest economy to slow in 2024, with a predicted growth rate of 4.6%, resulting in increased industrial activity and the need for rheology modifiers in the country.

Furthermore, India's GDP has expanded moderately over the last ten years. The country has seen tremendous investment in key financial areas such as construction, cement, personal care, and energy. The forecast for India's economy has been optimistic. The Indian government is focusing on the manufacturing sector by liberalizing regulations and providing extra incentives like low-cost land and speedy approvals from all relevant authorities. As a result, the entire economy is experiencing unprecedented growth. The region's need for rheology modifiers will increase during the projection period.

The European rheological additives market is an essential and dynamic sector of the bulk chemicals industry. With its well-established industrial base and strong environmental standards, Europe influences the need for rheological additives in various applications. Regulatory initiatives supporting low-VOC (volatile organic compound) formulations drive the European market for aqueous coatings. This has resulted in a greater use of rheological additives designed for water-based systems.

The Middle East is rapidly expanding due to quickly developing end-user sectors and rising population estimations. Oceania and Latin America account for a sizable market share regarding rheological additive demand.

Segmental Analysis

The global rheological additives market is segmented based on type, nature, application, and region.

The market is further segmented by type into aqueous phase additives and non-aqueous Phase Additives.

Aqueous Phase Additives account for the largest share of the market.

Aqueous Phase Additives

Aqueous phase rheological additives are designed to be soluble and readily dispersible in water-based systems. These additives are widely used in industries where water is the primary solvent or dispersion. Aqueous phase rheological additives are essential in applications such as waterborne coatings, adhesives, and personal care products because they control viscosity, improve stability, and improve formulation performance overall. Aqueous phase rheological additives include water-soluble polymers, associative thickeners, and dispersants. Their compatibility with aqueous systems makes them critical for achieving the appropriate rheological qualities in ecologically friendly compositions.

Non-Aqueous Phase Additives

Non-aqueous phase rheological additives are designed for compatibility with systems where water is not the primary solvent. These additives are designed to work well in non-aqueous settings, such as solvent-based coatings, oil-based drilling fluids, and other formulations in which water is not the dominant phase. Non-aqueous phase rheological additives help to control viscosity, suspend solid particles, and ensure stability in oil-based systems.

Based on nature, the market is sub-segmented into Organic and inorganic.

The organic segment generates the most revenue in the market.

Organic

Organic rheological additives are made from carbon-based chemicals and natural ingredients. These additives are frequently based on organic polymers or modified natural ingredients. Organic rheological additives are noted for their adaptability and compatibility with various compositions. They find use in multiple industries, including paints and coatings, adhesives, cosmetics, and pharmaceuticals. Organic rheological additives include cellulose derivatives, associative thickeners, and modified starches. Organic additives are preferred for their biodegradability and renewable supply, which aligns with the growing need for environmentally friendly and sustainable solutions.

Inorganic

Inorganic rheological additives comprise minerals, metals, or synthesized inorganic substances. These additives offer distinct properties to compositions, frequently giving stability, reinforcement, or suspension of solid particles. Inorganic rheological additives are widely utilized in applications requiring strong temperature resistance, chemical inertness, or specialized physical qualities.

The market can be bifurcated by application into Paints and Coatings, Cosmetics and Personal Care, Adhesives and Sealants, Pharmaceuticals, Home and I&I Products, Oil and Gas, and Construction.

Paints and Coatings are the most common applications of the market

Paints and Coatings

Rheological additives are essential in the paint and coatings business, helping control viscosity, stability, and overall coating performance. Rheological additives based on sepiolite and attapulgite are crucial components in paint composition. They enable more precise control of viscosity and thixotropy, resulting in a more enjoyable application experience and a superior finish. They minimize sagging, improve application qualities, and increase the beauty and durability of painted surfaces.

Cosmetics and Personal Care

In the cosmetics and personal care industries, rheological additives alter formulation texture, stability, and viscosity. They contribute to the sensory properties of creams, lotions, and gels, guaranteeing proper application and user experience.

Impact of covid-19

The COVID-19 outbreak has had a devastating effect on all industry verticals globally. Additionally, according to industry experts, Financial Action Task Force (FATF) has identified the risk of criminal exploiting the unprecedented situation through cybercrime, fundraising for fake charities, and medical scams amid the COVID-19 pandemic. This has surged the adoption of anti-money laundering solutions to mitigate the risk of money laundering. For instance, as per the United Nations 2020, approximately 12% increase in cybercrime reported amid the pandemic COVID-19, further paving the way for the adoption of anti-money laundering solutions among the enterprises.

Recent Developments

• January 2024- BASF Monomers and Xuchuan Chemical further deepened their strategic partnership.
• January 2024- Dow obtained ISCC PLUS certification for PO/PG and Polyol manufacturing in Freeport, Texas.
• January 2024- Lubrizol Advanced Materials announced that three new Lubrizol Engineered Polymers plants earned the International Sustainability and Carbon Certification (ISCC) PLUS certification at the end of 2023.