Abstract
Changes in Paint Formulation Require Greater Use of Rheology Modifiers
With the introduction of the European Union (EU) directive in 2004 limiting the emissions of
volatile organic compounds (VOCs) in paints and coatings, paint technologies in Europe have been
shifting from conventional solvent-borne systems towards lower or zero VOC technologies. These
include water-borne, high solids and solvent-free systems. This move spells good news for suppliers
of rheology modifiers, which form a critical part of such emerging technologies. Rheology modifiers
play an important role in influencing certain key properties of these technologies -- for instance,
vertical flow, levelling, and sagging, spattering and sedimentation tendency. The key challenge for
suppliers, therefore, is likely to be in developing high-performing products that meet the differing
requirements of the new paint technologies.
This Frost & Sullivan research service examines the European market for rheology modifiers in
paint and covers all its major types: cellulosics, synthetics, clays, waxes and silicas. It analyses
each market segment in detail, focusing on key market dynamics and providing unit and revenue
forecasts till 2011. It also discusses pricing trends and the competitive structure of the market.
The study provides a special focus on the potential impact of the VOC legislation on the product mix
in this market.
Positive Economic Development Drives the Market
Although the economic downturn in Europe (2001-2003) impacted the growth of several industries
including paints and coatings, the recovery that began in the third quarter of 2003 and gathered
pace in 2004 indicates a positive outlook for this industry.
"Certain key segments such as architectural and water-borne industrial coatings -- which
generate maximum demand for rheology modifiers -- continued to experience reasonable growth despite
the downturn," notes Frost & Sullivan Research Analyst Vinayak Rao. "This helped drive
the market for rheology modifiers." Encouragingly, many rheology modifier manufacturers
registered moderate growth in 2004 and expect this trend to continue for the next two to three
years.
Enlarged EU Creates Opportunities for Suppliers of Rheology Modifiers for Paints
With the inclusion of some eastern European countries in the EU, opportunities for suppliers of
rheology modifiers have increased significantly. This is due to the spurt in construction activity
and the resulting demand for paint in some of these countries -- for instance, Latvia, Lithuania,
and Estonia -- as a result of the gradually reviving European economy.
In 2004, the economy of the enlarged EU improved by around 2.3 per cent while total construction
activity in central and eastern Europe rose by 7.4 percent, a strong improvement over the negative
figures of 2002. "Building activity is expected to continue increasing over the forecast period
(2005-2011), boosting the consumption of paints and coatings, and thereby driving sales of rheology
modifiers," says Rao. | 
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