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Despite the low growth rates expected in the paint and coatings industry over the next five years, paint additive suppliers are facing a challenging time. As environmental pressures force the paint industry to investigate the possibilities of more environmentally friendly and less toxic paint formulations, new and improved additives for water‐based, high solid and powder coatings will be sought. Overall the market for paint additives in Western Europe is forecast to increase at an average annual rate of between 3% and 4%, a few percent higher than the expected growth in the paint industry.