Saudi Arabia Paint Additives Market Research Report: Forecast (2024-2030)

Market Definition

Paint additives are primarily used to impart additional characteristics and qualities in paints. Additional dosage of additives in the right order and at the right time may bring gigantic changes in paint properties, such as better appearance and durability of coatings, that would help eliminate all sorts of problems associated with the application of paint. These paint additives bring many benefits, such as meager growth of mildew, improved adhesion, enhanced flow properties, and enhanced odor and antibacterial properties for paints.

Market Insights & Analysis: Saudi Arabia Paint Additives Market (2024-30):

The Saudi Arabia Paint Additives Market size is estimated to grow at a CAGR of around 4.02% during the forecast period, i.e., 2024-30. In 2024, the Saudi Arabian paint additives market size was estimated to be around USD 131 million. The growth of the market can be attributed to the prevailing construction activities within the country. The growing paint demand from the real estate sector in Saudi Arabia is majorly contributing towards driving up demands for paints and paint additives. The companies manufacturing paint and coatings in the market have gradually been expanding their production capacities to accommodate growing demand from the construction industry.

With increasing urbanization, the establishment of residential buildings is on the rise, driven by consumers moving to new cities demanding residential infrastructure to live in. As a result, builders and construction industrialists are increasingly establishing various apartments, villas, and other residency buildings to incorporate these exceeding consumers in the cities. For Instance, in 2023, around 5,200 construction projects were ongoing in Saudi Arabia with a major share accounting for residential construction.

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With the increasing construction of residential buildings in the country, the demand for construction materials such as paints along paint additives has been surging significantly in Saudi Arabia. The additives play a critical role in ensuring the durability and resistance of paint to outdoor harsh climate conditions, creating demand among paint manufacturers. Moreover, consumers demanding different finishes and aesthetic textures further create the demand for paint additives, thereby surging market growth.

Additionally, the increasing construction activities, rising middle-class population, and propelling purchasing power of consumers in the country have been creating the demand for furniture and wooden artifacts for home decoration. The younger generation makes up a significant part of the population, and with the trend of moving into new homes and apartments which have been gradually increasing the demand for modern furniture options that reflect their lifestyles and tastes. In addition to that, an influx of expatriates, together with the development of the tourism sector has been further increasing the demand for high-quality furniture quickly in both residential and hospitality sectors.

With the increasing demand, the manufacturing of furniture in the Kingdom has been surging significantly. The increasing focus of manufacturers on producing furniture with good quality, up to international standards, has made the industry more dependent on advanced paint and coating technologies. Paint additives are essential to upgrade such coating properties concerning adhesion, durability, wear, and scratch resistance, important for long-life designed furniture, which is creating the demand for paint additives in Saudi Arabia propelling the growth of the Saudi Arabia Paint Additives Market.

Saudi Arabia Paint Additives Market Driver:

Escalating Hospitality Construction in the Country Propelling Paint Additives Demand- The increasing tourism trend in Saudi Arabia is leading to the surging establishment of hospitality buildings like hotels, restaurants, resorts, and luxury outdoor entertainment centers. The government of the nation is excessively focusing on the tourism sector to diversify its economy as well as to attract a great influx of tourists. Moreover, the trend of eating out and staycation in the country is also generating the demand and establishment of hospitality infrastructure. The megaprojects like the Red Sea Project and NEOM, within the major towns like Riyadh and Jeddah are the prominent examples of hospitality establishments across the nation. For Instance:

• In 2022, the Saudi government announced the Aseer Development Project, an ambitious program to develop Saudi's mountainous Aseer region as one of the world's top tourist destinations, with over 10 million visitors targeted for 2030.

Increasing hospitality projects and construction works have created a huge demand for aesthetic and eye-catching infrastructure materials, thus raising the demand for aesthetic and durable paints. The growth in the hospitality sector leads to growing demand for sophisticated paint and coating solutions that enhance both the functionality and appearance of the property in a high-profile property. Paint additives play a key role in achieving great finishes such as anti-microbial properties, UV resistance against strong sun rays, and durability which helps in maintaining the look and feel of the surface over time. Specialized additives that support custom finishes, such as high-gloss and textured coatings, are thus necessary in creating luxurious and unique environments, surging their adoption in hospitality construction and driving the growth of the Saudi Arabian Paint Additives Market.

Saudi Arabia Paint Additives Market Opportunity:

Rising Investments in Oil & Gas Infrastructure Development Leading to Paint Additives Demand- As the oil and gas sector has been growing and developing in the country, construction and infrastructure development of new oil and gas refineries and plants are increasing. As part of its Vision 2030, the government plans to embark on efforts to expand and modernize oil and gas infrastructure, ensuring that, as a country, Saudi Arabia remains ahead in the world, or closer to the top of the world's chain, for energy supply. It is leading to the establishment of refineries, petrochemical plants, and oil-enhanced recovery facilities, among others which require huge capital for construction and infrastructure development. For instance,

• In 2023, Aramco announced an investment of around USD45-55 billion to reach 13 million barrels per day by 2027.

Increased investments in the oil and gas sector result in new infrastructure construction, including pipelines, buildings, etc. All of these constructions, especially large-scale infrastructure projects, are done using the most advanced construction materials and technologies, among which high-performance coatings and additives are suitable for use under the most severe conditions. The end users have been using paint additives effectively in coating pipelines, and tanks, essentially to maintain the resistance to corrosion, high temperatures, and chemical exposure. Therefore, the government's focus on oil and gas infrastructure growth is leading to the demand for paint additives which is expected to increase paint additives demand, therefore opening further opportunities in the Saudi Arabia Paint Additives Market.

Saudi Arabia Paint Additives Market Challenge:

High Import Dependency for Raw Materials Causing Supply Chain Disruptions in the Saudi Arabia Paint Additives Market - In Saudi Arabia, raw materials used for the production of paint additives in the forms of various pigments, and specialty chemicals come from companies based worldwide leading to instability driven by disrupted global supply chains. The instability in the global supply chain or trade policy modifications lead to delays or scarcity of raw materials which affects the schedule of production and raises the costs of raw materials. This, in turn, results in reduced profit margins for local manufacturers, thereby impeding the manufacturing of paint additives. The procurement of raw materials at higher prices leads to the overall price increase of paint additives, which inhibits their adoption in the country. Additionally, international logistics regulations coupled with the compliance of quality and safety standards in Saudi Arabia increase the operational barriers which potentially impact the consistency and quality of the final products. This, in turn, further leads to the procurement of different quality products at different price ranges posing another barrier to the growth of the Saudi Arabia Paint Additives Market.

Saudi Arabia Paint Additives Market (2024-30): Segmentation Analysis

The Saudi Arabia Paint Additives Market study of MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment & includes predictions for the period 2023–2030 at the country levels. Based on the analysis, the market has been further classified as:

Based on Product:

• Rheology Modifiers
• Biocides
• Anti-Foamers
• Wetting & Dispersion Agents
• Others (Stabilizers, Levelling Agents, etc.)

Out of them all, the rheology modifiers segment accounts for a substantial market share in the overall Saudi Arabia Paint Additives Market. The dominance is influenced by increasing requirements for durable and efficient paints in the construction sector meeting stringent performance standards under severe environmental conditions. The rheology modifiers ensure the control of paint flow and application properties which is a critical factor in extreme climates, high temperatures, and humidity. These modifiers provide for the right viscosity of paints leading to their smooth application and preventing sagging on vertical surfaces which provides uniform coverage even under the most extreme weather conditions of Saudi Arabia. Moreover, rheological modifiers prevent the sedimentation of pigments during the storage & transportation of paints. Sometimes, these additives also act as thickeners and are used widely across the industrial, architectural, & automotive sectors propelling their demand in various sectors. Thus, rheology modifiers are essential in bringing durability and aesthetics for paints into both residential and commercial projects, thereby surging their adoption and propelling their growth in the Saudi Arabia Paint Additives Market.

Based on Formulation:

• Water-Based
• Solvent-Based
• Powder-Based
• Others (UV-curable, High-Solid, etc.)

Of them all, the water-based segment is propelling in the Saudi Arabia Paint Additives market owing to the wide-range applications in furniture, plastic, automobile, wood, & printing ink industries. Water-based paint additives can dry quickly and are easy to apply, which surges their adoption in different industries. Moreover, the water-based paint additives do not emit any Volatile Organic Compounds (VOCs) and hazardous chemicals, which is surging their demand in the country.

With growing global awareness about environmental sustainability, the Saudi government has enacted stricter regulations to cut down on VOC emissions, which is increasing their adoption in the country. The low or zero-VOC content of water-based formulations makes them the preferred system for a manufacturer to comply with these regulations and be part of a contribution to global environmental sustainability propelling their demand in the market. Furthermore, with more Saudi consumers being environment-conscious, they are rapidly turning to paints that are safer for indoor use, particularly in homes and public places like schools and hospitals. Water-based paints, emit fewer odors and are easier to clean, thus appealing to exactly these preferences and experiencing an enhanced demand from consumers, thereby upsurging their demand in the Saudi Arabia Paint Additives Market.

Gain a Competitive Edge with Our Saudi Arabia Paint Additives Tire Market Report

• The Saudi Arabia Paint Additives Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
• This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
• Saudi Arabia Paint Additives Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.

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