Market Trends of Coalescing Agent Industry
Increasing Demand from Paints and Coatings Segment
- Coalescing agents are a type of chemical compound used for optimizing the formulation of films of polymer bonds in paints and coatings.
- The demand for coalescing agents in paints and coatings is increasing as they are used as an additive to reduce the complication process by reducing the temperature in the formulation of films, owing to which paints and coatings have a smooth finish to end products.
- Furthermore, the rising demand for paints and coatings in the architectural sector for both exterior and interior applications is expected to increase the demand for coalescing agents. It will likely propel its market during the forecast period.
- As per the American Coatings Association (ACS), with approximately 60% of the total coatings volume in APAC, China is by far the largest coatings manufacturer and user, followed by India with 18% of regional volume, followed by a dramatic drop-off. As a result, the Asia-Pacific region is poised for continued growth through 2024.
- China’s paints and coating industry has outperformed the rest of the world in terms of volume growth over the last 30 years. Rapid urbanization during this time has boosted the domestic architectural coating sector to new heights owing to increasing construction activities.
- According to the National Bureau of Statistics of China, China's construction output peaked in 2022 at a value of about USD 4.11 trillion. As a result, these factors tend to increase the market demand.
- Owing to all the factors mentioned above for coalescing agents, its market is expected to grow rapidly over the forecast period.
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Asia-Pacific Region to Dominate the Market
- Asia-Pacific region is expected to dominate the market for coalescing agents during the forecast period. In countries like India and China, owing to increasing population and growing industrialization & urbanization, the demand for coalescing agents has been increasing in the region.
- The growing demand for coalescing agents in the region is expected to be driven by adhesives & sealants, inks, personal care, paints, and coatings owing to changing lifestyles and increasing disposable income.
- According to L'Oréal, in 2022, the Asia-Pacific region accounted for more than 50% of the world's beauty industry. Thus boosting the market growth from the personal care sector during the forecast period.
- Further, in June 2023, Henkel Adhesive Technologies announced the addition of a new adhesive manufacturing facility in the Yantai chemical industry park in Shandong province, China. The new plant, 'Kunpeng,’ will likely cost approximately CNY 870 million (USD 121.74 million). This, in turn, is expected to support the growth of the market.
- The aforementioned factors are contributing to the increasing demand for coalescing agents during the forecast period.
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