Coalescing Agent Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Coalescing Agent market is expected to grow at a CAGR of over 4% during the forecast period. Major factors driving the market studied are rising demand for architectural & industrial coatings and increasing usage in personal care items. On the flipside, strict government regulations to maintain particular standards and unfavorable conditions arising due to the COVID-19 outbreak are hindering the growth of market.

Rising focus on eco-friendly products is expected to offer various opportunities for the growth of market.

By application, paints & coatings segment is expected to dominate the market owing to the high demand in various end-use industries namely construction, automotive, furniture & wood working, and others.

Asia-Pacific region dominated the market across the globe with the largest consumption from countries such as India and China.

Key Market Trends

Increasing Demand from Paints & 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 of coalescing agents in paints and coatings is increasing as they are used as an additive to reduce the complication process by reducing the formulation temperature in formulation of films owing to which paints and coatings have a smooth finish to end products.
• Furthermore, rising demand for paints and coatings in architectural sector for both exterior and interior applications is expected to increase the demand for coalescing agents and will propel its market during the forecast period.
• The paints and coatings sector is projected to grow at a CAGR of over 5% during the forecast period and is expected to reach USD 225 billion globally by the year 2025 which would create lucrative opportunities for the coalescing agent market to boom during the forecast period.
• Owing to all the above-mentioned factors for coalescing agent, its market is expected to grow rapidly over the forecast period.

Asia-Pacific Region to Dominate the Market

• Asia-Pacific region is expected to dominate the market for coalescing agent during the forecast period. In countries like India and China owing to increasing population and growing industrialization & urbanization, the demand for coalescing agent has been increasing in the region.
• The growing demand for coalescing agent in the region is expected to be driven by adhesive & sealants, inks, paints & coatings owing to changing lifestyle and increasing disposable income. In 2019, Asia-Pacific accounted for more than 40% of the global coalescing agent market.
• China and India are the largest consumers of coalescing agent in the region due to their increasing manufacturing output. India is projected to be the fastest growing coalescing agent market. This high growth in India is attributed to the implementation of government initiatives like Make in India and presence of low-cost labor available in the country.
• In April 2019, the government of China invested around USD 73 billion for constructing key transportation projects including highways, railways, airports, waterways and urban rail which would enhance the usage of adhesives & sealants and paints & coatings, and consequently will propel the demand of coalescing agent in the region.
• Additionally, personal care ingredients segment in the region is expected to grow at a CAGR of over 4% during the forecast period which would increase the demand of coalescing agents and would propel its market in the region.
• Some of the major companies operating in Asia-Pacific region are Dow, synthomer plc and BASF SE.
• The aforementioned factors, coupled with government support, are contributing to the increasing demand for coalescing agent during the forecast period.

Competitive Landscape

The coalescing agent market is consolidated with top players accounting for a major share of the market. Major companies in the market include Eastman Chemical Company, Dow, BASF SE, synthomer plc, and Cargill, Incorporated.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support