Rheology Modifiers Market Size, Share & Trends Analysis Report By Type (Organic, Inorganic), By Distribution Channel (Direct, Indirect), By End-use (Paints & Coatings, Oil & Gas), By Region, And Segment Forecasts, 2024 - 2030

Rheology Modifiers Market Size & Trends

The global rheology modifiers market size was estimated at USD 8.24 billion in 2023 and is expected to grow at a CAGR of 4.2% from 2024 to 2030. Growing demand for the product from paints & coatings and personal care & cosmetics coupled with a surge in shale gas exploration and crude oil production is anticipated to contribute to the market growth in the near future.

Rheology is the direct relationship between the stress and strain of the substance. It assists in understanding the mechanical behavior of the substances with the surfaces. For several applications in key sectors, such as paints, food and beverage, pharmaceuticals, inks, cosmetics, oil, and coatings, viscosity is a vital rheological parameter.

Rheology modifiers are additives utilized in most industries to manage behaviors like shear thickening or thinning and to change the viscosity magnitude. These vital ingredients can assist in ease of application, control texture, shelf stability, and processability, and help attain the proper viscosity. Growing utilization of rheology modifiers, including K-carrageenan, arginine, laponite, and xanthan gum, to name a few, is predicted to drive market growth over the forecast period.

Market Concentration & Characteristics

The market is fragmented owing to the high availability of organic and inorganic rheology modifier producers, with key players obtaining less than 80% of the market's share. Market leaders are heavily investing in research and development activities to expand their product portfolio and gain a higher share of the market.

In this highly competitive market, the players must offer cost-effective solutions to sustain themselves in the long term. The industry participants are also undertaking strategic initiatives such as contractual agreements, novel product launches, collaboration, and investments to expand their footprint globally.

End Use Insights

Paints & coatings dominated the market with a revenue share of 35.7% in 2023. This is attributable to the increasing usage of the products to control the flow behavior and viscosity of the paints, prevent pigments from settling, and augment the overall appearance and performance of coatings. The surge in the application of paints & coatings in commercial and residential construction, especially in developing economies, is anticipated to trigger the product demand for the paints & coatings formulations.

Personal care and cosmetics emerged as the fastest-growing segment, owing to the inclusion of rheology modifiers as thickeners in the formulation of skin care creams, makeup, toiletry products, and foundation. Developing nations such as China, India, and Russia offer high potential for foreign companies that offer superior quality compared to local producers.

Distribution Channel Insights

Indirect channel dominated the market with a revenue share of 58.9% in 2023. This is attributed to the preference of end users for retailers, wholesalers, and exporters. The widespread availability of rheology modifiers in the industry and the high penetration of end users have prompted manufacturers to sell their products through indirect channels.

The direct channel is anticipated to witness high demand in the near future due to a surge in local production and supply. The direct supply of the modifiers to the consumers has resulted in lower prices and higher demand on a regional level, which is further estimated to contribute to the direct supply of the product over the forecast period.

Type Insights

The organic type dominated the market with a revenue share of 62.3% in 2023. This is attributed to diversity in terms of availability and chemistry compared to the inorganic type. The product's environmentally friendly nature and high performance have been attributed to its demand over the past decade.

Inorganic rheology modifiers are mineral-based materials, including silica, clay, and talc, among other minerals. These types of modifiers are known for their shear-thinning and thixotropic behavior. The inorganic types are widely preferred in drilling fluids, paints & coatings, and formulation of personal care products.

Regional Insights

U.S. Rheology Modifiers Market Trends

The U.S. emerged as the leading consumer in the North America region. The country is considered to be an investment hub by international players due to the presence of natural resource reserves in the country. The manufacturers in the U.S. are engaged in expansions and technological advances to cater to the product demand from end use industries such as pharmaceuticals and personal care & cosmetics industry.

Asia Pacific Rheology Modifiers Market Trends

Asia Pacific dominated the market with a revenue share of 34.8% in 2023. The growing infrastructural projects and population in the region, followed by high investments in oil & gas, construction, and power generation industry, have contributed to the market growth. In addition, the growing consumer demand for enhancing sensory experience from the personal care & cosmetics industry is expected to boost the market growth in the Asia Pacific region, especially in China, India, South Korea, and Japan, to name a few.

India Rheology Modifiers Market Trends

India rheology modifiers market is anticipated to grow at a notable CAGR, owing to the growth in the additives industry. The focus of the Indian government on higher investments and expenditure has estimated the chemical industry to grow to USD 300 billion by the end of 2025. The growth in additive manufacturing and integration towards natural/synthetic feedstock is anticipated to contribute to the market growth in the near future.

Saudi Arabia Rheology Modifiers Market Trends

Saudi Arabia is a key consumer of rheology modifiers in the Middle East & Africa region, owing to the dominant oil & gas industry. The upcoming investment projects in the country, especially in Riyadh, are anticipated to turn a higher share of their crude oil into chemicals. A joint development agreement by Total and Saudi Aramco for a giant petrochemical complex is scheduled to start in 2024. The investment is an estimate of USD 5 billion; wherein the plant shall provide feedstock to specialty chemicals and petrochemicals plants in Jubail industrial area.

Brazil Rheology Modifiers Market Trends

The use of coatings on public murals and artistic surfaces highlights Brazil government’s efforts for preserving cultural assets. In addition, the country's focus on sustainable and environmentally friendly coatings has contributed to the development of advanced solutions, driving the market's growth and technological innovations.

Key Rheology Modifiers Company Insights

The global rheology modifiers industry is fragmented due to the wide presence of manufacturing across the globe. The players are engaged in mergers and acquisitions and new product launches to dominate the market. For instance, in April 2021, Clariant AG acquired a Switzerland-based company, Polygal AG, to elevate the natural rheology modifiers brand for coatings and personal care applications.

BASF SE, The Dow Chemical Company, Lubrizol Corporation, Clariant, Ashland, Akzo Nobel N.V., and Cargill Incorporated are some of the leading market participants in the market.

• BASF SE: BASF SE offers a broad range of additives for agriculture, automotive & transportation, chemicals, coatings, construction, electronics, energy, cleaning, nutrition, and pharmaceutical industries, to name a few. The company provides rheology modifiers under the “Performance & Formulation Additives” domain for the construction industry    

• Cargill Incorporated: Cargill Incorporated offers numerous products and services to animal nutrition, agriculture, beauty, bioindustrial, food & beverages, industrial, and pharmaceutical, among others. The company offers rheology modifiers under the bioindustrial domain

Elementis Plc., BYK Additives & Instruments, Wacker Chemie AG, and Innospec Inc. are some of the emerging market participants.

• Wacker Chemie AG: Wacker Chemie AG offers numerous products such as amino acids, polysilicon, silicone rubber, polymer dispersions, and fine chemicals, among others. The company provides rheology modifiers for architectural coating applications

• BYK Additives & Instruments: BYK Additives & Instruments is a key provider of specialty chemicals, innovative additives like rheology modifiers, and solutions. The company operates through its production facilities and subsidiaries in the Netherlands, Germany, the U.S., the UK, and China

Recent Developments

• In February 2024, AkzoNobel N.V. completed the expansion of its coatings manufacturing facility in Como, Italy, at a cost of USD 22.7 million. The four new manufacturing lines would produce architectural coatings and automotive primers, increasing the company’s capacity to serve customers across Eastern Europe.

• In February 2023, Cargill Incorporated discovered a novel brand of rheology modifier, “Aristoflex Eco T,” in the market, which provides cosmetic formulators to produce luxurious products without compromising biodegradabilit

Rheology Modifiers Market Report Scope

Global Rheology Modifiers Market Report Segmentation

This report forecasts revenue & volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global rheology modifiers market report based on type, end use, distribution channel, and region:

• Type Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Organic

  • Inorganic

• End Use Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Paints & Coatings

  • Personal Care & Cosmetics

  • Pharmaceuticals

  • Oil & Gas

  • Construction

  • Other End Use

• Distribution Channel Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Direct

  • Indirect

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Mexico

    • Canada

  • Europe

    • Germany

    • UK

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

  • Central & South America

    • Brazil

    • Argentina

  • Middle East and Africa

    • South Africa

    • Saudi Arabia