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The functional additives market share is expected to increase by USD 973.33 million from 2020 to 2025, and the market's growth momentum will accelerate at a CAGR of 4.79%.
This functional additives market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers functional additives market segmentations by type (oxygen scavengers, uv stabilizers, antistatic agents, antimicrobial additives, and others) and geography (APAC, North America, Europe, South America, and MEA). The functional additives market report also offers information on several market vendors, including ADEKA Corp., ALTANA AG, Amcor Plc, Avient Corp., BASF SE, Clariant International Ltd., DuPont de Nemours Inc., Milliken and Co., Sabo Spa, and Solvay SA among others.
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Based on our research output, there has been a neutral impact on the market growth during and post COVID-19 era. The growing demand from packaging industry is notably driving the functional additives market growth, although factors such as volatility in raw material prices may impede market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the functional additives industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Key Functional Additives Market Driver
The growing demand from packaging industry are one of the key factors driving the growth of the global functional additives market. Packing materials are generally used to contain the product, increase its shelf life, preserve product quality, and hassle-free transportation and distribution. Ideal packing material should extensively prevent food deterioration. Packaging is an effective tool for brand awareness and has a positive impact on market growth. Moreover, the flexible packaging is made of flexible or easily yielding materials that can readily change in shape when it is filled or closed. It can be made of foil, paper, plastic film, or a combination of any of these. Manufacturers and retailers prefer flexible packaging because of its lightweight property, which reduces transportation costs and makes it easily recyclable. In 2020, the food and beverage industry accounted for more than half of the global demand for flexible packaging. The growing trend of the consumption of easy-to-cook meals, food products, and beverages is expected to drive the demand for functional additives. However, the growing population, demand for consumer goods, and increasing purchasing power parity in developing economies are expected to drive the demand for functional additives for sophisticated packaging applications.
Key Functional Additives Market Trend
The growing demand for reverse logistics in packaging will fuel the global functional additives market growth. The food and beverages industry is one of the main sources of packaging waste. The packaging for foods is commonly done with plastic wrappers or containers. The non-biodegradable nature of plastics raises sustainability concerns. Moreover, the reverse logistics is a process by which the materials flow back from consumers to the manufacturers for reuse. The reverse movement of material in the supply chain system for cost reduction, profitability, and support sustainability is expected to drive the global packaging market for food and beverages. For instance, used PET bottles are either remanufactured or used as regrind in PET to produce new bottles. In the US, the government supports programs such as the California Redemption Value (CRV) program. This is expected to drive the demand for functional additives, owing to their use in packaging applications. Such factors will increase the market growth during the forecast period.
Key Functional Additives Market Challenge
The volatility in raw material prices is a major challenge for the global functional additives market growth. Several chemicals that are used in the manufacturing of functional additives are derived from crude oil. The oil and gas industry is one of the principal suppliers of raw materials such as phenols and aromatic amines. These raw materials are mainly produced from petroleum fraction downstream products. Fluctuations in the prices of crude oil have a severe effect on the prices of raw materials, which affects the costs of functional additives. According to the US EIA, global crude oil price declined to $64 per barrel by the end of 2019 from the average of $71 per barrel in the previous year. This is due to the increase in the production from the US and the Organization of the Petroleum Exporting Countries (OPEC), owing to the horizontal drilling and improved hydraulic fractioning techniques. The price and non-availability of raw materials could also have an adverse effect on the cost and operations of vendors of the global functional additives market.
This functional additives market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2021-2025.
Technavio categorizes the global functional additives market as a part of the global specialty chemicals market, which is a subset of the global chemicals market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the functional additives market during the forecast period.
The report analyzes the market's competitive landscape and offers information on several market vendors, including:
This statistical study of the functional additives market encompasses successful business strategies deployed by the key vendors. The functional additives market is fragmented and the vendors are deploying organic and inorganic growth strategies to compete in the market.
To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
The functional additives market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.
Our report provides extensive information on the value chain analysis for the functional additives market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.
The value chain of the global chemicals market includes the following core components:
The report has further elucidated on other innovative approaches being followed by manufacturers to ensure a sustainable market presence.
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61% of the market's growth will originate from APAC during the forecast period. China, India, and Japan are the key markets for functional additives market in APAC. Market growth in this region will be faster than the growth of the market in regions.
The growing demand from packaging industry will facilitate the functional additives market growth in APAC over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.
COVID Impact and Recovery Analysis
In 2020, the outbreak of COVID -19 severely affected several countries in the region, such as China, India, Nepal, Pakistan, South Korea, Malaysia, Sri Lanka, and the Philippines. As a result, various companies and manufacturing units experienced production scarcity, which, in turn, hampered the growth of the regional market in 2020. However, factors such as the resumption of industrial activities at the end of 2020 led to a rise in the demand for functional additives in the region. In addition, the rapid growth of the pharmaceutical industry in the region is expected to fuel the demand for packaging solutions, which, in turn, is expected to foster the growth of the regional market during the forecast period.
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The functional additives market share growth by the Oxygen scavengers segment will be significant during the forecast period. Oxygen scavengers are used to limit or reduce the amount of oxygen available for deteriorative reactions, as it can lead to the reduced functionality of the product. For foods and beverages and pharmaceutical products, deteriorative reactions cause nutritional loss, lipid oxidation, changes in flavor and aroma, microbial spoilage, and alteration of texture.
This report provides an accurate prediction of the contribution of all the segments to the growth of the functional additives market size and actionable market insights on post COVID-19 impact on each segment.
Coating Additives market - The market share is expected to increase by USD 3.56 billion from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 6.55%.
Paints and Coatings Additives market - The market share is expected to increase by USD 2.87 billion from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 5.68%.
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Functional Additives Market Scope |
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Report Coverage |
Details |
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Page number |
120 |
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Base year |
2020 |
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Forecast period |
2021-2025 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 4.79% |
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Market growth 2021-2025 |
$ 973.33 million |
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Market structure |
Fragmented |
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YoY growth (%) |
3.92 |
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Regional analysis |
APAC, North America, Europe, South America, and MEA |
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Performing market contribution |
APAC at 61% |
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Key consumer countries |
China, US, India, Germany, and Japan |
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Competitive landscape |
Leading companies, Competitive strategies, Consumer engagement scope |
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Key companies profiled |
ADEKA Corp., ALTANA AG, Amcor Plc, Avient Corp., BASF SE, Clariant International Ltd., DuPont de Nemours Inc., Milliken and Co., Sabo Spa, and Solvay SA |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Five Forces Analysis
5 Market Segmentation by Type
6 Customer landscape
7 Geographic Landscape
8 Drivers, Challenges, and Trends
9 Vendor Landscape
10 Vendor Analysis
11 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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