ID: MRFR/CnM/4118-CR | 110 Pages | Author: Chitranshi Jaiswal | November 2022
The global additive masterbatch market is projected to witness significant growth during the review period, exhibiting a CAGR of 6.35%. The market was estimated to be USD 2,128.09 million in 2021 and is expected to reach a value of USD 3,789.42 million by the end of the forecast period (2022-2030).
An additive masterbatch is a granular concentrate used to modify thermoplastics. Additive masterbatches are made up of a polymer-specific carrier resin and one or more additives. There are many different types of additives, including antimicrobial, antioxidant, and flame retardant additives. Plastics deteriorate primarily due to oxidation and thermal ageing. Oxidation can also cause a loss of mechanical properties such as impact resistance, elongation, and tensile strength. Antioxidant masterbatches are developed to prevent thermo-oxidative breakdown during the manufacturing, drying, and processing of plastics, as well as during final use. They are particularly well suited for use in PP, LDPE, and HDPE. Whereas flame retardant additive masterbatch works by preventing oxygen on the surface.
The ongoing COVID-19 pandemic has contributed to a worldwide conversation about personal cleanliness and health significance. Whether in packaging, textiles, industrial, or medical applications, there has been a dramatic rise in the demand for a virus-free environment.
Concentrated masterbatches consist of pigments and/or additives that have been melted into a carrier resin, cooled, and granulated. As part of the plastics manufacturing process, masterbatches allow the processor to color the raw polymer inexpensively. As a result of severe supply difficulties in recent years due to, among other things, storms and the COVID-19 epidemic, many sectors of the business are working to shorten supply chains that were particularly sensitive to disruption. 90% of healthcare, engineering, construction, and infrastructure firms plan to regionalize in the next three years. A shorter supply chain, where playrs are vertically integrated in the market is more secure or one where players having partnered with multiple similar operators in different nodes of the supply chain, to ensure regular sales, can assist in increasing profits through proactive risk management and optimization.
Even if disruptions to the supply chain will inevitably occur, there is still cause for optimism if lessons are learned from the past. Covid-19, for instance, visually represented the dangers lurking within cost-effective, lean supply chains. The significance of improving supply-chain resilience was also highlighted. During the pandemic, companies that could monitor and map their suppliers efficiently had a clear picture of how the crisis was impacting their supply chains. As a result, businesses had time to get ready for the disruption. In some cases, it appears that persons were able to escape experiencing any negative consequences.
High demand for additive masterbatch in packaging industry : Additives masterbatch are the products added to the plastics which adds color and other fundamental properties to end products which enhances its properties. In the packaging industry, producers use masterbatch as the main source to produce packages to save production costs and increase productivity. Plastic manufactures combine calcium carbonate masterbatch, color masterbatch and other additives to transparent and white primary plastic or recycled plastic. Addition of different additives masterbatch in plastic production is based on the purpose of the end use product, like color masterbatch is added to the packaging to make it more eye-catching, more vibrant, and more durable in harsh weather conditions.
Additionally, antimicrobial additives masterbatch are being increasingly used in the plastics industry as they provide improved protection against harmful bacteria, biofilm, fungi, staining, malodors, and mold without affecting the structural and physical properties of the product, while also enhancing the product shelf life. Hence due to extensive properties possessed by additive masterbatch in packaging industry boosting the demand for plastic packaging films, which, in turn, bolsters the masterbatch demand, which means it will impact the growth of additive masterbatch shortly
Industrial sectors in emerging economies are expanding rapidly: The global additive masterbatch market is anticipated to be driven by rapid industrialization in developing nations like India, Indonesia, Brazil, Mexico, and many other developing countries. The market in these nations is developing as a result of their recent, exponential economic growth. Manufacturing industries in countries like China, India, South Korea, Indonesia, Thailand, Taiwan, Mexico, Brazil, and Argentina have seen significant expansion. Over the years, in these nations, industries have seen substantial growth in the automotive, packaging, chemicals, building & construction, textiles, consumer goods, and pharmaceutical sectors. Among this packaging sector is emerging the largest market share of the overall market with 39.75% in 2021. Make in India is one of the major national campaigns of the Government of India constructed to facilitate investment, foster innovation, enhance skill development, protect intellectual property, and build best in class manufacturing infrastructure in the country. The country has boosted its production in packaging industry which resulted growth of 35% per year over the last three years. Also, revenues for these companies have grown 12% per year. This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too which is also impacting additive masterbatch market in the country.
Fluctuation in raw material prices: The raw materials used in the production of masterbatches include polymer resin, calcium carbonate, titanium dioxide, carbon black, etc., composition for adding fillers and particularly pigment to polymers, having up to 85%, by weight, of at least one filler being carbon black, titanium dioxide or ultramarine blue, up to 25%, by weight, of at least one viscosity modifier. To obtain desirable properties to the masterbatch and the thermoplastic polymer that will incorporate the masterbatch, carbon black has been utilized as a black pigment. Of which polymer and carbon black are mostly derived from crude oil. Thus, the prices of these raw materials are as fluctuating as the prices of crude oil. In 2022, increase in crude oil prices affecting the prices of carrier resin for additive masterbatch like polypropylene as base material used for production of polypropylene is crude oil which affects the raw material prices of the additive masterbatch industry. Hence fluctuation in prices of crude oil is directly proportional to the additive masterbatch market.
Increasing demand for anti uv additive masterbatch: Anti UV additive masterbatch is basically PE filled with Ultraviolet stabilizer. Harmful UV rays from sun can reduce the quality and life of the plastic products. Thus, UV masterbatches are employed in the plastics industry to guard against the degradation and discoloration of the finished goods caused by sunshine exposure. Life shell of the plastic is generally lowered by sunlight, UV rays heat, and reaction with oxygen. Anti UV additive masterbatch is used to protect plastic and other derivatives from changing colors and properties which are affected by UV rays and keep plastic lifetime longer. This additive masterbatch possesses many features such as it avoids discoloration, crazing and chalking, stabilizes the elongation and mechanical strength, protects against UV-degradation, it improves the processability, composed of amine light stabilizer, imparts weather- ability to product and many more features.
Stringent government regulations:the increasing use of plastic and its derivatives in packaging sector is expanding and boosting the growth of the market. Despite increasing use of plastic in food and beverages, medical devices, household goods, consumer goods for packaging may convert in restraint due to concern of usage of plastic which affects the environment. Also, the hazardous nature of flame retardants likely to affect human health and government can imply limitations on the use of such toxic additives which will hamper the additive masterbatch market in forecast period.
The global additive masterbatch market has been studied for the following regions—North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. Among these, Asia-Pacific dominated the market with a share of 37.1%, accounting for USD 780.83 Million in 2021, and is expected to register the highest CAGR of 7.37% from 2022 to 2030. Europe was the second largest, with a share of 25.4% in 2021, sized at USD 540.88 million, and is projected to exhibit a CAGR of 5.47%.
A sizable automotive industry in the region will likely make Asia-Pacific the largest expanding market for additive masterbatch market globally. The market for additive masterbatch is also anticipated to grow throughout the forecast period due to rising government investments in infrastructure development in developing nations like China and India. Because of the high demand for additive masterbatch for the construction and packaging industry, Europe has been actively monitoring the Asia-Pacific market. The growing demand for the product from various end-use sectors, including building and construction, consumer goods, and automotive, drives the North American market. The Latin America, Middle East & Africa regions show consistent growth during the forecast period. Finally, due to technological developments and the rising demand for automotive in these countries, it is anticipated that the markets in the Middle East and Africa, and Latin America will experience considerable growth over the projection period.
The global additive masterbatch market is characterized by the presence of many regional and local vendors. The market is highly competitive, with all the players competing to gain maximum market share. The increasing additive masterbatch industry demand from the packaging, building & construction sector is the key driver of the market. The vendors compete based on cost, product quality, and the availability of the products according to the geographies. The vendors must provide cost-effective and high-quality additive masterbatch to compete in the market. The competitive scenario is fragmented between the tier-1, tier-2, and tier-3 companies, while tier-1 and tier-2 companies hold over 60% of the global additive masterbatch market share.
The market players' growth depends on the market and economic conditions, government regulations, and industrial development. Thus, the players should focus on expanding the production capacity to meet the demand and enhance their services. LyondellBasell Industries Holdings B.V., Avient Corporation, Plastika Kritis S.A., Plastiblends India Limited, and Dow are the major companies in the market currently competing in terms of quality, price, and availability. These players are primarily focusing on the development of additive masterbatch. Although the international players dominate the market, regional and local players with small market shares also have a moderate presence. The international players with a global presence, with established manufacturing units or sales offices, have strengthened their presence across major regions such as North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa.
The global additive masterbatch market has been segmented into carrier resin, type, application and region. In terms of insights, this report has focused on various levels of analysis such as market dynamics, value chain analysis, Porter's five forces, competitive landscape, and company profiles—all of which comprise and discuss views on the global nickel hydroxide emerging and fast-growing segments, regions, and countries.
Objectives of the Study
|Market Size 2030||USD 3,789.42 million|
|CAGR 2030||6.35% CAGR|
|Historical Data||2019, 2020|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Carrier Resin, Type, Application|
|Geographies Covered||North America ,Europe, Asia-Pacific,South America, Middle East ,Africa|
|Key Vendors||LyondellBasell Industries Holdings B.V., Avient Corporation, Plastika Kritis S.A., Plastiblends India Limited, Dow|
|Key Market Opportunities||• Increasing demand for anti uv additive masterbatch|
|Key Market Drivers||• High demand for additive masterbatch in packaging industry • Industrial sectors in emerging economies are expanding rapidly|
The global additive masterbatch market would register a growth of 6.35%.
Fluctuation in raw material prices
Key Questions Answered
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