Enjoy complimentary customisation on priority with our Enterprise License!
The functional additives market size is estimated to grow at a CAGR of 5.49% between 2023 and 2028. The market size is forecast to increase by USD 1,298.84 million. The growth of the market depends on several factors such as the rising online and internet sales of functional additives, the growing demand for functional additives from the pharmaceutical industry, and the growing demand for functional additives from the packaging industry.
This functional additives market report extensively covers market segmentation by application (foods and beverages, pharmaceutical and healthcare, personal care and cosmetics, and others), type (oxygen scavengers, UV stabilizers, antistatic agents, antimicrobial additives, and others), and geography (APAC, North America, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2018 - 2022.
For More Highlights About this Report, Download Free Sample in a Minute
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Rising online and internet sales of functional additives is the key factor driving market growth. The evolution of the global market for functional additives in retail packaging has been driven by the increasing popularity of Internet trading and e-shopping, as well as the growing demand for doorstep delivery. The rise in the consumption of food and beverages owing to online internet sales is expected to drive the food packaging market. This will drive the demand for functional additives.
Moreover, the increasing purchasing power parity, dual-income families, and a decrease in domestic slack time in APAC are expected to drive the demand for food, beverages, and cosmetics. With the increasing number of customer-friendly e-commerce applications and portals, the online retail trade will be a major driver, and thus, the market will witness growth in the global functional additives market during the forecast period.
Growing demand for reverse logistics in packaging is the primary trend shaping market growth. The packaging for foods is typically done with plastic wrappers or containers. The non-biodegradable nature of plastics increases sustainability concerns. Reverse logistics is a method by which the materials flow back from customers to the manufacturers for reuse. The reverse movement of material in the supply chain system for cost reduction and profitability and to support sustainability is expected to drive the global packaging market for food and beverages.
Furthermore, the 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. Hence, due to such advancements and supporting programs, the global functional additives market is expected to witness growth during this forecast period.
Volatile raw material prices of functional additives is a challenge that affects market growth. Crude oil contains a number of chemicals that are used in the production of functional additives. One of the main suppliers of raw materials, such as phenols and aromatic amines, is the oil and gas sector. These raw materials are mainly produced from petroleum fraction downstream products.
Moreover, fluxes in the prices of crude oil have a severe effect on the prices of raw materials, which affects the costs of functional additives. The fluctuating price and non-availability of raw materials could also have an adverse effect on the cost and operations of market players, which can impede the growth of the market during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Functional Additives Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The foods and beverages segment is estimated to witness significant growth during the forecast period. Functional additives are used in the food sector to improve the packaging performance shelf life and processability of the products. Additionally, the food sector is often under scrutiny to comply with regulations set by the US Food and Drug Administration (FDA) and the European Union. Functional additives even reach under the indirect additives category of the US FDA, as various additives may encounter food as a part of either packaging or processing equipment. However, they are not intended to be added directly to food products.
Get a glance at the market contribution of various segments Download the PDF Sample
The foods and beverages segment was the largest segment and was valued at USD 1,389.16 million in 2018. In the beverages sector, bottles and cans are expected to account for a large share of the global beverage packaging market. The packaging segment includes plastic, glass, metal, and paperboard. Alcoholic beverages, non-alcoholic beverages, and dairy products are the key application areas of the global beverage packaging market. The growing population and increasing income levels in developing economies, such as China and India, are expected to drive the global functional additives market during the forecast period.
For more insights on the market share of various regions Download PDF Sample now!
APAC is estimated to contribute 61% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The APAC region is anticipated to witness a high demand for functional additives due to an upsurge in the consumption of foods and beverages, pharmaceuticals, and consumer goods. The increasing population in India and China is expected to drive the demand for flexible packaging, especially for foods and beverages.
Moreover, investments in the packaging industry, especially in China, India, Japan, Indonesia, and Thailand, are expected to drive the functional additives market in the region. Some established players are likely to enter strategic alliances with the local players of APAC to consolidate the market share; hence, the regional functional additives market is witnessed to grow positively during this forecast period.
The outbreak of COVID-19 in 2020 had a negative impact on the functional additives market in the APAC region. However, in 2021, the initiation of large-scale vaccination drives?lifted the lockdown and travel restrictions, which led to the resumption of supply chain activities. Key functional additives market players in APAC are adopting strategies such as mergers and acquisitions to recover from the negative effects of the pandemic. Thus, such factors are expected to lead to the growth of the functional additives market in APAC during the forecast period.
The functional additives market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Functional Additives Market Scope |
|
Report Coverage |
Details |
Page number |
188 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.49% |
Market growth 2024-2028 |
USD 1,298.84 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.66 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 61% |
Key countries |
US, China, India, Japan, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ADEKA Corp., Akzo Nobel NV, Altana AG, Amcor Plc, Arkema Group, Avient Corp., BASF SE, Clariant International Ltd., Dow Chemical Co., DuPont de Nemours Inc., Dynea AS, Evonik Industries AG, Lanxess AG, Milliken and Co., RPM International Inc., Sabo Spa, SI Group Inc., Solvay SA, Songwon Industrial Co. Ltd., and The Sherwin Williams Co. |
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 the forecast period. |
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. |
We can help! Our analysts can customize this market research report to meet your requirements.
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.