Plastic Additive Market size is forecast to reach $60.5 billion by 2026, after growing at a CAGR of 5.1% during 2021-2026. Plastic additives are ingredients that are added in the polymers to improve the strength, durability, heat sensitivity, to enhance process-ability, and appearance of the polymer. Due to increase in demand for electric vehicles especially in the APAC region, is boosting the demand for the plastic additive market as they are used in automobile components. Furthermore, increase in population have boosted the demand for residential building and need for consumer durable goods further drive the growth of plastic additives market size. Whereas, owing to the stringent environment norms, there is a growing demand of conventional and biodegradable plastics in several industrial applications, which in turn also drive the growth of plastic additive market share during the forecasted period.
Plastic Additive Market Segment Analysis – By Type
Plasticizer segment dominated the global plastic additives market with a share of more than 30% in 2020. The surging uses of plasticizers across various industry verticals like electronics, medical, packaging, and automotive applications further drive the market growth. Plasticizers are unique types of additives. For instance, without plasticizers, PVC would have been extremely fragile and brittle. In addition, Plasticizer makes plastics elastic, extensible, and flexible. Besides, the surging uses of plasticizers in the building and construction sector further contribute to the growth of this market. According to the Oxford Economics report, the global construction industry is expected to reach an estimate of $17.5 trillion by 2030, in which United States, China, and India taking a major share. Thus, the growth in the construction sector globally also contribute to the growth of this market.
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Plastic Additive Market Segment Analysis – By Plastic Type
Polypropylene segment held the largest share of more than 40% in the plastic additives market in 2020. PP is a rigid and crystalline thermoplastic that is widely used to produce battery cases, cleaning products, bleaches, consumer goods, and medical devices. In addition, surging uses of PP as a raw material for manufacturing Personal Protective Equipment (PPE) as a safety kit to avoid COVID – 19 transmission further propels the market growth. Besides, the Packaging industries is also drive the markets growth owing to the growing uses of polypropylene to produce containers and lids for food and beverages, chemicals as well as industrial and household products. Thus, the growing demand of PP products also contribute to the market growth.
Plastic Additive Market Segment Analysis – By End User
Packaging Industry held the largest share of more than 35% in the plastic additives market in 2020. The changing lifestyle of consumers, the growing e-commerce sector, and rising population drive the market growth. For instance, according to a report published by United Nation Conference on Trade and Development (UNCTAD), the global e-commerce sales estimated to hit $25.6 trillion in 2018 which was an increase of 8% from 2017, again in 2019 the total e-commerce sale was $29 trillion. Additionally, According to ASSOCHAM, around 120 million Indian are expected to adopt online shopping by 2020. Moreover, according to the Associated Chamber of Commerce and Industry of India (ASSOCHAM) report, the packaging industry in India is forecasted to value USD 72.6 billion by 2020. Thus, the growth in the e-commerce sector and packaging industry will positively affect the plastic additives market growth.
Plastic Additive Market Segment Analysis – By Geography
Asia-Pacific region held the largest share of more than 45% in the plastic additives market followed by the Europe and North America region in 2020. The developing construction industry, increasing demand for electrical and electronics products, and growing demand for e-buses will significantly drive plastic additives market growth in this region. India, China, and Japan are the major contributors to the regional market owing to the significant presence of leading end-use industries such as packaging, consumer goods, and building & construction further drive the market of plastic additives in the region.
Plastic Additive Market Drivers
Replacement of Conventional Plastic with Eco Friendly Plastic
Growing awareness about the impact of chemicals on the environment and ecosystem has propelled the demand for eco-friendly plastic. Moreover, the stringent regulation regarding plastic uses from the Europe and North America region further pushed the manufacturers to develop environmentally friendly additives such as starch, bioaugmentation, and Pro-oxidant for plastic products. These additives are safe and pose less or no threat to the environment and boosting the growth of the global plastic additives market. Besides. Germany, Italy and the UK are the major countries has major focus on the producing and using eco-friendly plastic or biodegradable plastic. Moreover, eco-friendly additives are easy to manufacture and cost-efficient, which is also a prominent factor for the growth of the market.
Developing Urbanization drive the demand for plastic
According to UN report, around 55% of global population resides in urban areas, and is expected to increase to 68% by 2050. The growth in urban population creates demand for automotive and transportation sector, which in turn further drive the demand for plastic materials. In automobiles, the polyamide is used in gears, cams, bearings, and water-proofing, thus creating the demand for the market. Moreover, the growing urbanization also increases demand from small compact residential building. In residential buildings, the plastic material is used across various applications like water pipes, electrical switches, wiring & cables, and insulation purposes. Besides, the growing renewable sector also drive the market growth. As plastic material is used in the manufacturing of light weight and high-performance solar panels and blades for wind turbines. Thus, the durability and lightweight properties of plastic is likely creating a demand for the market.
Plastic Additive Market Challenges
Government Regulation Due to Environmental Concern
An increase in environmental awareness and stringent government regulation on the commercial application of the plastic products are negatively affecting the plastic additives market. Plastic is causing a major environmental concern globally and government are bringing many bans and regulation of plastic use. In addition, the ban imposed by the developed and developing countries to the use of plastic products is also restraining the market growth. For instance, in 2017, the use of phthalates was banned by the Unite States mostly in children toys. Morocco had announced a nationwide ban on the production and use of plastic bags in 2016. The National Green Tribunal (NGT) has announced a ban on disposable plastic like cutlery, bags, and other plastic items amid concern over India’s growing waste. The ban came into effect on January 1, 2017. Thus, all the regulation and plastic ban are hindering the growth of plastic additives market.
The COVID-19 pandemic continues to unfold everyday with severe impact on people, communities, and businesses. The growth in several industries will be impacted significantly while numerous other markets may remain unscathed and show promising growth opportunities. The growing pandemic situation has led to the weakening demand for plastic additives in construction and automotive industries as they are facing a negative growth rate. However, from medical supplies to food packaging, plastics are becoming essential in the effort to stop the spread of the virus. This brings hope for the plastic additives market growth.
Plastic Additive Market Landscape
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Plastic Additive Market report. Major players in the Plastic Additives Market are PMC Group, Inc., E.I. DuPont de Nemours, Solvay SA, ExxonMobil Chemical, Biesterfield Plastic GmbH., Chemtura Corp., Amfine Chemical Corp, BASF SE, Croda International PLC, Songwon Industrial Co. Ltd., Albemarle Corp., Clariant AG, Evonik Industries AG, and Forecast 3D (GKN Powder) among others.
In October 2019 – GKN Powder Metallurgy, the world’s largest producer of metal powder and parts, acquired FORECAST 3D, a leading US specialist in plastic additive manufacturing offering a full range of services from concept to series production. With this acquisition, the GKN Powder to enter into plastic additives business, which will further boost the markets growth.
In March 2019, BASF SE has announced that it has launched Plurafac LF RA-P, a rinse aid additive developed for plastic surfaces and plastic dishware in North America. With this new launch BASF will enhance its offering for plastic additive in North America, which will further drive the markets growth.
In October 2019, Songwon Industrial Co., Ltd. has announced it has launched a new family of Flame-Retardant which are functioning agents for plastic additives, which is designed to provide high performance and competitive advantages. With this new launch “SONGWON” will enhance the performance of it offering, which will further drive the markets growth.
Key Take away
In North America region, the US dominate the market throughout the forecast period due to high demand from the automotive and packaging industries.
Increasing demand for plastics components due to rapid urbanization and rising purchasing power among consumers further boost the markets growth.
The rapid industrialization across the all the economies is one of the key factors driving the growth of the market.
Furthermore, the change in the application of conventional materials for the production of consumer goods and various textiles, agricultural, and medical products will also provide a boost to the market.
Volatile crude oil prices and emergence of COVID-19 acts as a restraining factor to the growth of this market.
Related Reports :
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B. Specialty Plastic Additive Market
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