The global plastic additives market is projected to grow at a CAGR of 4.97% to reach a value of US$63.391 billion by 2027, from US$45.143 billion in 2020.
The penetration of plastics is increasing as they are being used in the majority of consumer products. There are additives available such as bio-stabilizers, antioxidants, and flame retardants, among others, which are added to plastics to give them enhanced properties. In conjunction, there is a burgeoning demand for plastic products with enhanced properties in various end-user industries, such as the packaging industry, automotive industry, and construction industry, among others. Thus, the rising demand for plastic across various end-use industries is a major driver of the plastic additives market. However, the stringent regulations by international government bodies and organizations, such as the Environmental Protection Agency (EPA), regarding the unlawful and improper disposal of waste plastics and additive materials by end-user industries, is a factor that is acting as a restraint to the growth of the plastic additives market.
Market players are increasingly involved and participating in the market competition through product launches to boost the adoption of plastic additives to cater to the rapidly advancing industries.
For example, in February 2020, Sumitomo Chemical Co., Ltd. announced that they had successfully developed a new grade of polyether sulfone (PES), a type of thermoplastic material. The launch of these products is specifically done to cater to the aerospace industry, which requires stiff, lightweight, and strong materials that can handle rapid temperature changes and can withstand exposure to chemicals, among other essential properties. In 2019, Clariant launched two new products to their Vita line at K 2019 (a fair for the plastics and rubber industry). One of the products was the new “Licocare RBW 360 TP Vita” plastic additive which is a multifunctional additive, that provides properties such as nucleation and lubrication in engineering plastics, typically polyamides.
The market for plasticizers to growing at a notable pace
The Biostabilizers segment accounted for a considerable market share in the market. The usage of bio-stabilizers can prevent the degradation of plastic whilst allowing it to retain its physical properties. This is increasingly important as the end product must be of good quality so the function it needs to perform is not impaired. In conjunction, the usage of plasticizers is increasing, as the plasticizers can aid the plastics in achieving optimum flexibility and durability to the plastic material and lead to an increase in the improvement of the compound processing characteristics.
Polyethylene to hold a significant market share
Plastic is a widely used material in the production and packaging of a variety of goods such as intermediate goods as well as finished goods. Although some industries do not use plastic materials in their products, it is used in packaging, construction, transportation, and some other industries. The most commonly used and preferred type of plastic material is polyethylene. High-density polythene (HDPE) and low-density polythene (LDPE) are the two types of plastics that are used on account of they provide optimum strength and are non-leaching.
Construction Industry to contribute significantly to the plastic additives market growth
Growing construction activities across the globe are fueling the market growth of plastic additives across this sector. In the construction industry, the main factor that is fueling the market growth is the extensive usage in the retrofitting and renovation of homes along with the rising construction of new houses. The automotive industry is estimated to grow at a significant CAGR during the forecast period on the account of the increasing adoption in the automotive industry for various applications. Automakers are increasingly using plastics to make cars safer and fuel-efficient. In addition, the vehicles are being made more lightweight with the help of these solutions, to reduce carbon emissions and to help facilitate the proper contouring and design of the interior. According to the American Chemistry Council, the overall plastics used in vehicles these days make up 50 percent of the volume of new cars but only 10 percent of the weight.
APAC is one of the major markets
Geographically, the Asia Pacific region is one of the major markets for plastic additives manufacturers owing to the well-developed and flourishing automotive sector in countries such as India and China. In addition, the growing number of construction activities in the Asia Pacific region is contributing to the region’s market growth. North America also holds a decent market share owing to the presence of major packaging solution providers in the region, supported by augmenting demand from the food and beverage and pharmaceutical sectors in countries such as the US, which require stringent packing solutions to protect the quality of the end product.
During the pandemic, most chemical raw materials manufacturers and suppliers had to momentarily stop their operations due to strict rules imposed by governments all over the world. It affected the supply and manufacturing process of raw materials and products in the global additives market. Furthermore, the supply of raw materials for plastic additives was disrupted causing a slowdown in the global plastic additives market. On the other hand, the rising demand for PPE kits for medical usages such as treatment, prevention, and many more, served as an opportunity for market growth.
|Market Size Value in 2020||US$45.143 billion|
|Market Size Value in 2027||US$63.391 billion|
|Growth Rate||CAGR of 4.97% from 2020 to 2027|
|Forecast Unit (Value)||USD Billion|
|Segments Covered||Type, Plastic Type, End-User Industry, And Geography|
|Regions Covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies Covered||BASF SE, Arkema, Dow, LANXESS, ADEKA CORPORATION, Wacker Chemie AG, Clariant, SABO S.p.A, Exxon Mobil Corporation, BioSphere Plastic LLC, Evonik Industries AG|
|Customization Scope||Free report customization with purchase|
Frequently Asked Questions (FAQs)
Q1. What will be the plastic additives market size by 2027?
A1. The global plastic additives market is projected to reach a market size of US$63.391 billion by 2027.
Q2. What is the size of the global plastic additives market?
A2. Plastic Additives Market was valued at US$45.143 billion in 2020.
Q3. What are the growth prospects for the plastic additives market?
A3. The plastic additives market is projected to grow at a CAGR of 4.97% during the forecast period.
Q4. Which region holds the maximum market share of the plastic additives market?
A4. The Asia Pacific region is one of the major markets for plastic additives manufacturers owing to the well-developed and flourishing automotive sector in countries such as India and China.
Q5. What factors are anticipated to drive the plastic additives market growth?
A5. The rising demand for plastic across various end-use industries is a major driver of the plastic additives market.
Exxon Mobil Corporation
BioSphere Plastic LLC
Evonik Industries AG
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