Europe Paint Additives Market - Forecast(2022 - 2027)

Report Code: CMR 1369 Report Format: PDF + Excel
Europe Paint Additives Market size is forecast to reach $3,222.2 million by 2025, after growing at a CAGR of 4.4% during the forecast period of 2020-2025, owing to the wide usage of paints in various end-use industries such as transportation, industrial, construction, and more. The demand for Paint additives is on an upsurge in these end-use industries owing to the various advantages that it offers such as increased durability, toughness, dirt-resistance, abrasion resistance, and more. Europe paint additives market is driven by the factor of growing demand for paint additives in the infrastructure industry. Also, increase in the demand for paint additives in the automobile and marine contribute to the market growth.  In addition, the growing demand of eco-friendly additives is anticipated to play a key role in driving the paint additives market in Europe during the forecast period.

Report Coverage

The report: “Europe Paint Additives Market – Forecast (2020-2025)”, by IndustryARC, covers an in-depth analysis of the following segments of the Europe paint additives Industry. 
By Formulation: Water Based, Solvent Based, Powder Based, and Others.
By Additive Type: Wetting and Dispersing Additives, Defoamers, Rheology Modifiers (For Waterborne Paints (Cellulose, Acrylates, Associative Thickeners, Clays, and Others), For Solvent Based Paints (Organoclays, Hydrogenated Castor Oil (HOC), Polyamides, Fumed Silicates, and Others)), Biocides, Surfactants, and Others.
By End Use: Transportation (Automotive (Passenger Vehicles, Commercial Vehicles), Aerospace, Marine, Locomotive), Industrial, Building and Construction (Residential Construction (Independent Homes, Row House, Large Apartment Buildings), Non-Residential Construction (Hospitals, Schools, Hotels, Retail, Banks, Airports, and others), Infrastructure), and Others.
By Country: Germany, U.K., France, Italy, Spain, Russia, Netherlands, and Rest of Europe.

Key Takeaways

  • Germany dominates the Europe paint additives market, owing to the increasing construction and automotive industry in the region. The increasing per capita income coupled with the increasing infrastructural activities is the major factor driving the market growth.
  • Paint additives are largely employed in the transportation sector such as in aerospace, automotive, locomotive, and marine for improving abrasion resistance, increasing durability and toughness, boosting dirt-resistance of paints. 
  • There is an increasing use of additives such as wetting agents, defoamers, dispersants, and rheological modifiers in both residential and tertiary buildings as it enhances the surface properties of architectural paints, which will then boost the paint additives market growth.
  • Due to the COVID-19 outbreak, operations of various industries such as building and construction, and transportation have been heavily affected in various European countries, which are limiting the growth of Europe paint additives market. 

Europe Paint Additives Market Segment Analysis - By Formulation

The water-based segment held the largest share in the Europe paint additives market in 2019. Water-based paint additives modify the properties of paints to enhance viscosity, minimize foam, control shine, control flow, add anti-chipping capability, and allow the paint to be more impact resistant to maximize its performance. Water-based paint formulations improve paint efficiency by applying long-term water repellency to the paint itself. Additively, it also increases the life, value, and efficiency of all latex paints. For long-term, multi-use, environmental protection, and safety, the production of water-based paint additives continues to be aimed at high efficiency in the forecast period. Owing to the performance advantages such as prevention from color fading and water spotting, prevention from mold and mildew problems, and prevention from damage caused by moisture intrusion, water-based paint additives demand is projected to increase during the forecast period.

Europe Paint Additives Market Segment Analysis - By Additive Type

The rheology modifier segment held the largest share in the Europe paint additives market in 2019. The rheological modifiers are essential additives used in different paints to obtain the necessary rheological properties for the specific use. Rheology modifiers effectively eliminate the spattering and dripping of paint during roller or brush application. Also, after application the sag resistance is strengthened by a rapid yet regulated increase in viscosity. Besides, the sedimentation of pigments is also avoided by rheology modifiers during the storage and transportation of paint reliably. Besides achieving the desired viscosity, these additives also help to monitor the consistency of the paint shelf, ease of application and open time/wet edge. In Europe, the applications of rheology modifiers paint additives include protective and marine paints; general industry paints, architectural paints, and can and coil paints. In addition, it also has additional functionalities such as wetting properties and environmental or health advantages such as free formulations of APEOs, VOC, odors and heavy metals. All these factors are driving the rheology modifier market growth during the forecast period.

Europe Paint Additives Market Segment Analysis - By End-Use Industry

The building and construction segment held the largest share in the Europe paint additives market in 2019 and is growing at a CAGR of 4.40%, owing to the increasing usage of paint additives in the building and construction industries. Buildings are often affected by elements such as UV rays, molds, wind, stains and water penetration, and paint additives are generally used as building exterior protection. The paint additives are largely used to paint four fundamental components i.e. walls, ceilings, metal and wooden surfaces, in residential and non-residential buildings such as independent homes, hospitals, banks, schools, row houses, and more. There is increasing use of paint additives in residential and non-residential buildings owing to its various functional benefits, such as avoiding priming preparation, improved paint flow and levelling, improved paint spray ability, and more. In addition, paint additives prevent coating flaws and improve the surface quality significantly. Some additives even improve the paint adhesion to the painted surface owing to which they are widely used in the building and construction. Thus, the extensive usage and wide application of paint additives in the building and construction industries is anticipated to drive the Europe paint additives market growth in the sector during the forecast period.

Europe Paint Additives Market Segment Analysis - By Country

The Germany country held the largest share in the Europe paint additives market in 2019 up to 23%. The rising building and construction activities and the growing transportation industry in Germany, is driving the demand for paints additives in the country. Germany is also recognized for its outstanding automotive industry and excellence in engineering all over the world. German cars reflect the importance of durability, innovation, safety, and design. According to the German Trade and Invest (GTAI), German automobile manufacturers produced over 16 million vehicles in the year 2019 and also, German passenger car and light commercial vehicle OEM generated foreign market revenue of almost EUR 282.4 billion in 2019, that is a 2% increase over the year 2018. According to the German Trade & Invest, the construction volume of residential buildings in Germany increased from Euro 225 Billion in 2017 to Euro 245 Billion in 2019, and commercial buildings in Germany increased from Euro 116 Billion in 2017 to Euro 125 Billion in 2019. Thus, with the increasing automotive sector in Germany, the market for European paint additives is anticipated to rise in the forecast period.

Europe Paint Additives Market Drivers

Increasing Multifunctional Additives Demand

Most end-user applications currently need coatings with differentiated efficiency, not only during manufacturing but also in the end product as well. Along with the requisite high-performance properties, aesthetic appearance is a significant characteristic for all types of substrates due to which additives are modified to function effectively in solvent-borne, powder-based, and water-borne coatings. In addition, coating manufacturers are focusing on the reformulation of their products due to environmental requirements, which in turn fuels the market for innovative multifunctional additives. Multifunctional additives provide the same performance level as that of individual additives. Employed in paint formulations, multifunctional additives help in achieving the desired durability, gloss, and other properties. Multifunctional additives, along with cost reduction, reduce the overall formulation process. In addition, multifunctional additives help the aqueous system stay in compliance with safety requirements and perform well by reducing the quantity of additives required. Increased demand for multifunctional additives, due to its cost-effectiveness, its ability to simplify the formulation process, and its ability to enable aqueous solutions to retain their performance, is driving the growth of the European paint additives market.

Growing Demand for Durable and Wear Resistant Product from Various Industries

Globally, large investments are being made in the development of metals products for infrastructure and vehicles, energy production and machinery, building materials, and even consumer products. These investments are fueled by the need to develop metals that are robust, strong, and wear-resistant during their use. Paint additives provide various properties such as enhanced appearance, durability, anti-corrosiveness, and so on. Therefore, the demand for paint additives has increased, as industries want to safeguard the huge investments they make in terms of money, property, and safety of workers. In addition, the growing automotive, along with the wood and furniture industry, presents significant opportunities for the paint additives market. According to OICA, the production of light commercial vehicles has increased from 2,249,348 in 2018 to 2,254,153 in 2019, an increase of 0.2% in Europe due to rising per capita income of the individuals, which further led to the massive demand for advanced paints and coatings. Furthermore, according to the European Federation of Furniture Manufacturers (UEA) statistics, EU Member States manufacture 28% of furniture sold worldwide. High-performance paint additives are also used in furniture to extend their life. The growing furniture industry would lead to an increase in demand for paints and coatings to boost the quality and shelf life of the wood used to make furniture.  Thus, in turn, driving the paint additives market.

Europe Paint Additives Market Challenges

Stringent Regulations to Reduce Carbon Footprint and VOC Emissions

Increasing levels of emission of hazardous air pollutants (HAPs) and volatile organic compounds (VOCs) from conventional coatings give rise to concerns regarding environmental degradation. Therefore, governments in most European countries are restricting the use of toxic and environment-degrading coatings. Regulatory bodies such as the European Environment Agency (EEA) mandate restriction of the content of volatile organic compounds (VOCs) in coatings. In January 2018, the EU published the German version of DIN EN 16516, a test standard that uniformly regulates the emission measurement of construction products including coatings. Regulations such as Directive 2004/42/CE, Directive 1999/13/EC, and so on regulate volatile organic compounds (VOC) in paints, varnishes, and vehicle refinishing products. Therefore, the enactment of stricter laws and regulations to curb air pollution caused due to hazardous emissions may hinder the market of paint additives in Europe during the forecast period.

COVID-19 Impact on The Europe Paint additives Market

The COVID-19 pandemic is affecting operations of various industries including automotive, as European government have issued “stay at home guidance” i.e., lockdown. The production of automobiles has been disruptively stopped, contributing to a major loss in the total automotive sectors in the European countries. For instance, according to the European Automobile Manufacturers Association, in June 2020, demand for new commercial vehicle across the EU remained weak (-20.3%), while France recorded a modest increase (+2.2%). With the decrease in automotive production, the demand for paint has significantly fallen. And as paint additives are extensively used in these industries, the declining operations of these industries are directly limiting the European paint additives market growth.

Market Landscape 

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Europe paint additives market. In 2019, the market of Europe paint additives has been consolidated by the top five players accounting for 42% of the share. Major players in the Europe paint additives market are Nouryon Chemicals B.V., Arkema S.A., BASF SE, Evonik Industries AG, Ashland Global Holdings Inc., The Dow Chemical Company, Elements PLC, Angus Chemical Company, Atlanta AG, and Eastman Chemical Company.

Acquisitions/Technology Launches

  • In October 2020, Ardian, has acquired a 50-percent ownership stake in ANGUS Chemical Company from Golden Gate Capital at a total enterprise value of approximately $2.25 billion.  
  • In March 2020, the specialty chemicals group ALTANA acquired varnish specialist Schmid Rhyner AG, which was previously part of the Swiss Conzzeta Group. 
  • In November 2019, Ashland launched two new highly effective foam control agents for the water-based industrial coatings market. Drewplus* L- 3500 and L-3510 foam control agents are the new standard in controlling macro – and micro foam in high shear spray applied coatings, providing and excellent balance between activity and compatibility.

1. Europe Paint Additives Market - Market Overview
    1.1 Definitions and Scope
2. Europe Paint Additives Market- Executive Summary
    2.1 Market Revenue, Market Size and Key Trends by Company
    2.2 Key Trends by Formulation
    2.3 Key Trends by Additive Type
    2.4 Key Trends by End Use
    2.5 Key Trends by Country
3. Europe Paint Additives Market- Landscape
    3.1 Comparative analysis 
        3.1.1 Market Share Analysis - Top Companies
        3.1.2 Product Benchmarking - Top Companies
        3.1.3 Top 5 Financials Analysis
        3.1.4 Patent Analysis- Top Companies
        3.1.5 Pricing Analysis
4. Europe Paint Additives Market - Startup companies Scenario Premium Premium
    4.1 Top startup company Analysis by
        4.1.1 Investment
        4.1.2 Revenue
        4.1.3 Market Shares
        4.1.4 Market Size and Application Analysis
        4.1.5 Venture Capital and Funding Scenario
5. Europe Paint Additives Market– Industry Market Entry Scenario Premium Premium
    5.1 Regulatory Framework Overview
    5.2 New Business and Ease of Doing business index
    5.3 Case studies of successful ventures
    5.4 Customer Analysis - Top companies
6. Europe Paint Additives Market- Market Forces
    6.1 Market Drivers
    6.2 Market Constraints
    6.3 Market Opportunities
    6.4 Porters five force model
        6.4.1 Bargaining power of suppliers
        6.4.2 Bargaining powers of customers
        6.4.3 Threat of new entrants
        6.4.4 Rivalry among existing players
        6.4.5 Threat of substitutes 
7. Europe Paint Additives Market -Strategic analysis
    7.1 Value chain analysis
    7.2 Opportunities analysis
    7.3 Market life cycle
    7.4 Suppliers and distributors Analysis
8. Europe Paint Additives Market– By Formulation (Market Size - $Million/KT)
    8.1 Water Based
    8.2 Solvent Based
    8.3 Powder Based
    8.4 Others
9. Europe Paint Additives Market– By Additive Type (Market Size - $Million/KT)
    9.1 Wetting and Dispersing Additives
    9.2 Defoamers
    9.3 Rheology Modifiers
        9.3.1 For Waterborne Paints
       Methyl Cellulose
       Hydroxy Ethyl Cellulose (HEC)
       Carboxy Methyl Cellulose (CMC)
       Hydroxy Propyl Cellulose (HPC)
       Hydrophobically Modified HEC
   Associative Thickeners
        9.3.2 For Solvent Based Paints
   Hydrogenated Castor Oil (HCO)
   Fumed Silicates
    9.4 Biocides
    9.5 Surfactants
    9.6 Others
10. Europe Paint Additives Market– By End Use (Market Size - $Million/KT)
    10.1 Transportation
        10.1.1 Automotive
   Passenger Vehicles
   Commercial Vehicles
        10.1.2 Aerospace
        10.1.3 Marine
        10.1.4 Locomotive
    10.2 Industrial
    10.3 Building and Construction
        10.3.1 Residential Construction
   Independent Homes
   Row Houses
   Large Apartment Buildings
        10.3.2 Non-Residential Construction
        10.3.3 Infrastructure
    10.4 Others
11. Europe Paint Additives Market - By Country (Market Size - $Million/KT)
    11.1 Germany
    11.2 U.K.
    11.3 France
    11.4 Italy
    11.5 Spain
    11.6 Russia
    11.7 Netherlands
    11.8 Rest of Europe
12. Europe Paint Additives Market- Entropy
    12.1 New Product Launches
    12.2 M&A’s, Collaborations, JVs and Partnerships
13. Market Share Analysis Premium
    13.1 Market Share by Country- Top companies
    13.2 Market Share by Region- Top companies
    13.3 Market Share by type of Product / Product category- Top companies
    13.4 Market Share at global level- Top companies
    13.5 Best Practices for companies
14. Europe Paint Additives Market- List of Key Companies by Country Premium
15. Europe Paint Additives Market Company Analysis
    15.1 Market Share, Company Revenue, Products, M&A, Developments
    15.2 Company 1
    15.3 Company 2
    15.4 Company 3
    15.5 Company 4
    15.6 Company 5
    15.7 Company 6
    15.8 Company 7
    15.9 Company 8
    15.10 Company 9
    15.11 Company 10 and more
"*Financials would be provided on a best efforts basis for private companies"