According to a new report published by Allied Market Research, titled, "Additives Market by Product Type and End Use: Global Opportunity Analysis and Industry Forecast, 2021–2028," the global additives market was valued at $150.0 billion in 2020, and is projected to reach $212.7 billion by 2028, growing at a CAGR of 4.6% from 2021 to 2028.
Additive is a substances that is added to improve properties such as performance, durability, efficiency, shelf life, and productivity. Additives such as stabilizers, epoxidized soyabean oil (ESO), and phosphorus-based flame retardant additives are specialty additives that are used in end-use industries such as agriculture, healthcare & pharmaceuticals, and packaging films.
Lubricants such as highly refined base oils and oils from renewable resources tend to degrade its performance under the influence of heat, air, light, and moisture. Thus, the use of lubricant additives such as antioxidants helps to delay aging and enhances their performance. In addition, sulfur-containing additives are used in applications such as metalworking processes and gear &bearing lubrication, owing to their ability to prevent cold welding of metal surfaces under high pressure. These factors are predicted to augment the demand for additives during the forecast period. Moving machine parts generate friction, which, in turn, leads to energy loss. Reduction of friction is an utmost important factor taking environmental protection and cost efficiency into consideration. Moreover, friction should be high and constant during transmission of power in clutches. Thus, the use of lubricant additives helps to meet these specific requirements, which contributes toward the growth of the global market.
However, extended use of food additives pose health-related issues such as digestive disorders, nervous disorders, respiratory disorders, and skin problems, which is predicted to hamper the market growth. For instance, according to a study conducted by the Current Opinion in Allergy and Clinical Immunology, people sensitive to eczema tend to develop allergic reaction due to extended use of food additives and additive such as monosodium glutamate (MSG) sulfites, food colorings, and artificial sweetener triggers allergic reactions.
Additives act as active ingredients in improving the internal and external nutritional occupancy, shelf life, chemical stability, and other specific characteristics in the healthcare sector. For instance, dibasic sodium phosphate (dehydrate) additive is used in Pfizer's COVID-19 vaccine to maintain the chemical stability and pH of the vaccine. Thus, the use of additives in the pharmaceutical sector is anticipated to create lucrative opportunities for the growth of the additives market in the coming future.
The global additives market is segmented on the basis of product type, end use, and region.
Depending on the product type, the global additives market is segmented into plastic, food, construction, lubricant, fuel, coating, agrochemical, medicated feed and others. The food additives segment dominated the global market in terms of revenue in 2020, with over one-third of the total share in 2020. This is attributed to the fact that properties such as flexural strength, modulus, heat distortion, and performance modification can be enhanced using plastic additives.
On the basis of end use, the global additives market is segmented into packaging, food & beverages, building & construction, chemical, automotive, aerospace, animal husbandry and others. The food & beverages segment dominated the global market, with over one-third of the total share in 2020, as additives widely utilized in packaging materials function as antioxidants, anti-microbial, light stabilizers, oxygen scavengers/absorbers, and flavor & odor controllers.
Region wise, the additives market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The Asia-Pacific additives market size is projected to grow at the highest CAGR during the forecast period and accounted for a major additives market share in 2020.
Key players operating in the global additives market include BASF SE, Clariant AG, Dow Inc., Evonik Industries AG, Lanxess AG, Eastman Chemical Company, Milliken Chemical, PolyOne Corporation, Sanitized AG, and BioCote Limited.
COVID-19 is an infectious disease that originated in Hubei province of the Wuhan city in China in late December. However, the global additives market saw a positive effect due to the COVID-19 pandemic. There are several challenges put forward by COVID-19 pandemic, however, according to the International Food Additives Council (IFAC), food additives are gaining importance in the food sector, owing to their capability of maintaining safety and quality of foods in the home pantry. According to a report by the Food Ingredients First, there has been a rise in kitchen staple products such as rice, flours, lentils, grains, and bakery ingredients. Food additives help to extend product shelf life and allow consumers to stock up on food products without trepidation of instantaneous expiration. Major key players in the global market are launching innovative additives to tackle the spread of coronavirus. Automotive manufacturers are further preferring incorporation of additives during manufacturing of interiors to curb the spread of virus in cabin.
Key findings of the study
- The plastic additives segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 5.3% from 2021 to 2028.
- The packaging segment is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 5.9% from 2021 to 2028
- Asia-Pacific garnered the highest share of 38.3% in 2020, and is estimated to display the highest growth rate, in terms of revenue, registering a CAGR of 5.3% from 2021 to 2028.