Additives market seen reaching $212.7 billion by 2028

The global additives market is expanding on demand from lightweight automotive materials, food packaging and industrial growth in emerging economies. Allied Market Research projects the market will rise from $150 billion in 2020 to $212.7 billion by 2028.

Why it matters: - The additives market sits at the center of major manufacturing and consumer goods supply chains. - Growth in automotive lightweighting and food packaging is helping drive demand across plastics, food, coating and other additive categories. - The market’s expansion also signals rising demand for performance, shelf-life and product-quality improvements in packaged goods and industrial applications.

What happened: - Allied Market Research said the global additives market was valued at $150.0 billion in 2020 and is projected to reach $212.7 billion by 2028. - The forecast implies a compound annual growth rate of 4.6% from 2021 to 2028. - The report covers additives by product type and end use, including packaging, food and beverages, building and construction, chemical, automotive, aerospace and animal husbandry. - The source also listed major market players including Clariant AG, BASF SE, Evonik Industries AG, Dow Inc., Eastman Chemical Company, Milliken Chemical, BioCote Limited, PolyOne Corporation, Sanitized AG and Lanxess AG. - More information is available in the sample pages of the research overview. - Additional report details are available through the purchase options page.

The details: - The food additives segment accounted for more than one-third of global market revenue in 2020. - Food additives are used to improve freshness, taste, texture and shelf life, and to help prevent oxidation and support food safety. - The food additives segment is expected to keep its lead through 2028. - The plastic additives segment is projected to grow fastest, with a CAGR of 5.3% during the forecast period. - Rising use of lightweight plastic components in vehicle interiors and exteriors is pushing automakers to adopt more advanced plastic additives. - The food and beverages segment was the largest end-use industry in 2020, contributing more than one-third of the global additives market. - Additives help food manufacturers preserve quality and improve flavor, appearance and texture. - The packaging segment is forecast to grow fastest, at a CAGR of 5.9% through 2028. - In packaging, additives help prevent condensation, improve hygiene and extend shelf life. - Asia-Pacific held the largest market share in 2020, followed by North America. - Asia-Pacific is expected to post the fastest CAGR at 5.3%, supported by industrialization, manufacturing growth and use in coatings, pigments, thickeners and defoamers for marine and shipbuilding applications.

Between the lines: - The forecast suggests additives demand is being pulled by both consumer-facing products and industrial manufacturing. - Regulatory pressure on some chemical additives remains a restraint, which could favor suppliers that can offer compliant and higher-performance formulations. - The strongest growth appears to be in segments tied to lightweight materials and packaging, where additives directly improve functionality and cost efficiency.

What's next: - Demand is expected to keep rising through 2028 as food packaging expands and automakers increase use of lightweight materials. - Growth in emerging economies should continue to widen the market across multiple end uses. - Suppliers focused on plastic and packaging additives are positioned to benefit from the fastest-growing segments.

The bottom line: - The additives market is growing steadily, with food, packaging and automotive applications setting the pace.