Research predicts the global paint additives market to expand in 2022. Business leaders within the paint and coatings industry should be aware of the various factors influencing this market growth. Certain aspects, including global action on sustainability and increased infrastructure spending, will have significant implications for the entire market in the years ahead.
Paint Additives Market Growth Overview
Researchers expect the global paint additives market to maintain a CAGR of 5.9% between 2020 and 2027, growing from $8.3 billion to $12.7 billion. Market growth is occurring worldwide, although there are hotspots in the United States and Asia-Pacific. The COVID-19 pandemic interrupted development in major applications, but professionals expect the market to maintain its projected expansion as industrial activity returns to normal.
Multifunctional additives and rheology control agent additives are experiencing the most growth within the market. In fact, as of 2019, rheology control agents held the largest market share. Experts hypothesize the increasing adoption of multifunctional additives is due to the greater simplicity of using one rather than multiple. This is especially helpful in high-efficiency industries catching up from pandemic-era delays, such as the U.S. housing construction industry.
Architectural applications held the largest market share in the global paint additives market in 2019. Work on many construction sites worldwide had to go on hold temporarily during the height of the COVID-19 pandemic. Still, analysts expect architecture and construction to be crucial drivers in market growth in 2022 and onward.
Causes of Growth in the Paint Additives Market
There are numerous drivers behind the growth in the global paint additives market. Geographic regions and industry niches will have unique growth drivers, but studies can identify few for the worldwide market.
The COVID-19 pandemic has undoubtedly impacted the paint and coatings industry, but perhaps not in the ways that many would at first assume. Growth and demand in certain niches and worldwide government action also significantly influence market expansion.
1. Construction and Architecture
It is no secret that paint, coatings and additives are essential in construction and architecture. These industries have long been among the most prominent applications for paint and coatings products. Increased spending on infrastructure and housing in key markets worldwide will be a significant growth factor in 2022 and through the end of the decade.
The Biden administration passed a $1 trillion bipartisan infrastructure bill in late 2021. This federal investment could spark a wave of increased spending on construction over the next several years, bringing in significant revenue for the paint and coatings industry. Government spending on renewable power infrastructure and electric vehicles may also increase demand for additives.
Similarly, leaders in the paint industry should pay attention to the residential market. Demand for housing construction is high. Over 1.7 million new residential projects were started in the U.S. in April of 2022 alone. Carpenters will need paints, coatings and the necessary additives for millions of projects around the country through the rest of the decade.
2. Transitioning Away From Solvents
One clear trend in the paint additives market was the shift away from solvent-based paints and coatings. This trend is a significant positive force for the paint additives market.
There are various reasons that this transition is occurring, but the growing importance of sustainability initiatives plays a key role. There is no ignoring the switch to water-based paints and coatings, between consumer demand and increasing government action. The entire industry is adapting, but this change also contributes to the growth in the paint additives market.
Studies reported in 2021 revealed that a significant percentage of consumers are willing to pay more for green products. About 85% of consumers reported increasing sustainable purchasing. This is a vital figure to take note of because of the growing importance of the DIY home improvement market for sales of paint additives. People shopping for paints and coatings today are more likely to be looking for something water-based and less harmful to the environment.
At the same time, nations are implementing more environmental regulations that influence what can and cannot be in paints used on new construction projects. For example, China began banning solvent-based paints in major cities in 2018. The specific method of painting or coating has an impact as well, such as the application tools used and whether painters utilize dry or wet processes. Some green building regulations require wet application processes only.
3. COVID-19 Demand Shifts
The COVID-19 pandemic certainly significantly impacted activity in the paint additives market and virtually every other industry on the planet. However, other factors have increased demand since the pandemic began to subside, which will make for a smooth recovery. Nonetheless, a few key shifts are worth noting that may positively influence growth in the paint additives market in 2022 and beyond.
The DIY home improvement retail market hit $538 billion in 2021. An estimated 60% of people started a project between March 2020 and June 2021. Other industries that contribute to the paint additives market may have faded somewhat due to the pandemic. Still, millions of people worldwide began buying paints, coatings, additives and other DIY home improvement supplies.
The housing market boom appearing during the COVID-19 pandemic was not a fluke. Growing calls for new homes will likely increase the demand for paint additives. The pandemic sparked a housing bubble due to increased remote work and the freedom it gave to those living in cities. However, experts have pointed out that a significant portion of the surging demand for houses comes from millennials, the largest generation to date, who are all just arriving at prime homebuying age.
There are not enough homes to meet demand at the beginning of the 2020s, hence the high prices. Construction companies will need to build new houses to catch up, resulting in consistent demand for paints, coatings and related supplies for the next several years. In fact, industry leaders are considering construction-grade 3D printing as a potential solution to the housing shortage.
With all these factors in mind, many may be wondering how they can take advantage of the overall growth occurring in the paint additives market. These takeaways indicate some critical areas to tap into. For example, businesses can tailor marketing for additives to be more inclusive of people taking part in the DIY revolution. Smaller portions and convenient access in hardware stores may help additives businesses reach this market.
Strengthening relationships and investing resources in additives made for the housing market is also a good idea, particularly for sustainable and water-based products. In the same vein, developing multifunctional additives may help appeal to sustainability-focused projects. Multifunctional additives can make for a cleaner, simpler product. This also makes it easier for construction companies to report on environmental factors, including the components used in their paints and coatings.
Joining in the Paint Additives Market Growth
The paint additives market will continue to expand in the next few years. This growth is incredible, especially given the setback the global economy has experienced during the COVID-19 pandemic. Businesses and investors can join in the benefits of this expansion by focusing their efforts and resources on key niches, such as the DIY and construction markets.