The global plastic additives market is projected to grow at a CAGR of 4.73% to reach a value of US$63.031 billion by 2025, from US$47.760 billion in 2019. The penetration of plastics is increasing as they are being used in the majority of consumer products. There are additives available such as biostabilizers, 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.
In the graph given above, the data is presented for the total thousands of tons of plastic generated in the United States from the years 2015 to 2017. According to the data provided by American Chemistry Council and the National Association for PET Container Resources, the generation of plastic increased from 34,480 tons in 2015 to 35,570 tons in 2017, which shows the generation of plastic increased by 1,090 tons or by 3.16%. This increase in the plastic generation in the US within two years is attributed to the fact that there is increasing demand from the various end-user industries.
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 the 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 in order to boost the adoption of plastic additives to cater to the growing needs of the rapidly advancing industries. For example, in February 2020, Sumitomo Chemical Co. Ltd. announced that they have successfully developed a new grade of polyethersulfone (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 changes in temperature 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 plastic additives market has been segmented based on type, type of plastic, end-user industry, and geography. By type, the market has been segmented as biostabilizers, antioxidants, antistatic agents, plasticizers, flame-retardants, and others. By type of plastic, the market has been segmented as polyethylene, polyurethanes, polyvinyl chloride (PVC), polyamide, and others. By the end-user industry, the market has been segmented as automotive, construction, packaging, transportation, and others.
The market for Plasticizers to growing at a notable pace
The Biostabilizers segment accounted for a considerable market share in 2019. The usage of biostabilizers is able to 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 are able to 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.
Growing construction activities across the globe are fuelling the market growth of plastic additives across this sector. In the construction industry, the main factor that is fuelling 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 in order to make cars safer and fuel-efficient. In addition, the vehicles are being made more lightweight with the help of these solutions, in order 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 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 regions’ 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 the pharmaceutical sectors in countries such as the US, which require stringent packing solutions in order to protect the quality of the end-product.
|Market size value in 2019||US$47.760 billion|
|Market size value in 2025||US$63.031 billion|
|Growth Rate||CAGR of 4.73% from 2019 to 2025|
|Forecast Unit (Value)||USD Billion|
|Segments covered||Type, Type of Plastic, End-User Industry, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||BASF SE, Arkema, DowDuPont, LANXESS, ADEKA CORPORATION, Wacker Chemie AG, Clariant, SABO S.p.A, Exxon Mobil Corporation, BioSphere Plastic LLC|
|Customization scope||Free report customization with purchase|
Frequently Asked Questions (FAQs)
Q1. What will be the global plastic additives market size by 2025?
A1. The global plastic additives market is projected to reach a market size of US$63.031 billion by 2025.
Q2. What is the size of the global plastic additives market?
A2. Plastic Additives Market was valued at US$47.760 billion in 2019.
Q3. What are the growth prospects for the plastic additives market?
A3. The global plastic additives market is projected to grow at a CAGR of 4.73% 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.
Wacker Chemie AG
Exxon Mobil Corporation
BioSphere Plastic LLC
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