ID: MRFR/CnM/4129-CR | 140 Pages | Author: Priya Nagrale | February 2021
The CAGR for the Masterbatch Market Size is expected to be 6.6% in 2028. The masterbatch market value is expected to be USD 15.81 billion. Masterbatch is used in secondary or end-user industries. Some of these include packaging, building and construction, consumer goods, automotive, and agriculture.
Masterbatch has many applications and uses because it makes the items that it’s used on more functional. For example, it gives these items a smooth and hard surface finish. This can protect them from the environment.
COVID-19 has changed the destiny of the world. The Black Death did the same thing in the 14th century. In fact, COVID-19 is to the 21st century what yesenia persistis was to the 14th - a dangerous virus/pathogen. COVID-19 was capable of making many people extremely ill. It even claimed more than a few lives. Governments realized this early on and that’s why they imposed quarantines and lockdowns. These did not last long because they had limited effect.
Many companies suffered because of this since they were forced to either shut down temporarily or dramatically scale back production. The companies in the global masterbatch market were no exception. They were forced to shut down or scale back production dramatically. The result was that the supply of masterbatch shrunk dramatically and suddenly. This drove the cost of producing secondary goods up dramatically.
More and more companies in end-user industries are choosing to substitute plastic for metal when they manufacture their goods. This is one main factor that’s driving masterbatch market growth. More European companies also want to manufacture items that need masterbatch. This is also expected to drive growth in the masterbatch market.
The fact that masterbatch makes the surfaces of many items look prettier and protects them in many end-user industries is also driving growth. People are also spending more on consumer goods like makeup and personal care items that have nice-looking packaging. Masterbatch is needed to make this attractive packaging.
The rise of ecommerce in light of the pandemic also was a major factor that drove growth in the masterbatch market. E-commerce companies have to use attractive packaging for their goods if they want repeat business. They choose to use that packaging that uses masterbatch.
Many companies in the masterbatch market are aware that consumers around the world are increasingly becoming concerned with the state of the environment. They see that there’s lots of money to be made if they can use environmentally friendly masterbatch. That’s why they’re investing heavily in research and development to come up with a masterbatch that composts naturally without harming the environment with dangerous and harsh chemicals.
Biodegradable masterbatch tends to be made out of soybeans, wood pulp, castor, plant seeds, and corn. This type of masterbatch tends to be used to package various goods.
Also, masterbatch tends to be lightweight. This is important in the automotive industry because it wants to make and sell lighter cars that are more efficient and have greater gas mileage. Masterbatch allows them to make these types of cars. Emerging nations have seen a huge increase in demand for motor vehicles, especially ones that use masterbatch. These nations are India, China, and Japan.
China is a country that has companies that copy lower quality versions of the goods that companies in other companies make and then sell them for cheap. Masterbatch is no exception. It’s the fact that developing countries like China are selling cheap masterbatch that is holding back growth for those companies that make masterbatch that is actually worth using.
These companies (those in developing nations) can overcome the high barriers to entry and flood the market with inferior and sub-standard masterbatch. The global masterbatch market is fragmented and disorganized. Therefore, companies that actually know what they’re doing in terms of making masterbatch end up struggling to meet growing domestic demand. This gives companies in developing countries to flood the market with what is essentially cheap junk!
Also, high-quality masterbatch tends to be expensive. This is another restraint for the global masterbatch market.
Most masterbatch (even the high-quality stuff) tends to use polymers that are made out of petroleum. This presents a quandary for the manufacturers since petroleum-based products tend to harm the environment when they do biodegrade. For example, they can leach harmful chemicals into the ground and drinking water. These companies face a real challenge when it comes to figuring out how to make a masterbatch that doesn’t have a petroleum base. They need to do this because the United States and the European Union have high standards and strict rules regarding the production of these types of products.
It’s not uncommon for masterbatch to never decompose. This is a real problem that its manufacturers will have to overcome because many countries, including those in the European Union, are banning the manufacture and usage of these types of plastics.
The CAGR for the masterbatch market value is expected to be 6.6% in 2028. The market is expected to be worth USD 15.81 billion. This is largely attributed to the fact that masterbatch is an excellent coloring agent for most plastics.
Avient is a major American player in the masterbatch market. It has managed to become an industry leader by creating a sustainable competitive advantage through substantial investments in research and development.
The global masterbatch market can be grouped into the following sub-categories by type:
The color sub-segment will have the highest CAGR at 7%. This segment is projected to be worth USD 4,980.3 million in 2025. Color masterbatch also has the highest market share in the masterbatch market.
Color masterbatch looks nicer and is easier to handle than the powder variants. This explains why it’s the material of choice to use when making various types of plastics.
Many packaging manufacturers want to make packaging that has nice shapes and colors and catchy prints. They tend to find that this makes their products sell better and faster.
White masterbatch comprised 25% of the entire global masterbatch market.
The Asia-Pacific region had the highest regional masterbatch market share at 39.1%. What accounted for this was the fact that the packaging market grew at a respectable pace in this region. Many Asian nations, especially India and China, passed stricter rules and regulations regarding the automotive industry. This also encouraged growth in the masterbatch market.
The masterbatch market growth rate in the Asia-Pacific region is estimated to be 7%. China has the largest market share in 2018. Its growth rate in terms of the masterbatch market is expected to be 7.5%.
Masterbatch is becoming diverse in the Asia-Pacific region. For example, it tends to be made out of low-density polyethylene, linear low-density polyethylene, and high-density polyethylene.
The European Union has the world’s second-largest masterbatch market. The European Union is composed of these nations: Italy, Germany, UK, France, and Russia. Germany is one of the world’s largest manufacturers of masterbatch. The companies in Germany are investing heavily in production facilities for masterbatch.
The North American region has a strong growth rate in the masterbatch market. The CAGR in this region is 6%. The market is expected to be worth USD 3,000 million in 2025. The United States and Canada are highly industrialized. They also have relatively high purchasing power and high consumer consumption. There is a lot of construction activity in these nations as well.
There is a lot of competition in the global masterbatch market. The reason being that the market is fragmented and lucrative. The higher barriers to entry don’t discourage many companies from entering the industry. Companies find that they have to invest heavily in research and development to develop and market newer generations of masterbatch with more innovative applications. The newer generations of masterbatch tend to be superior in quality.
They also have to merge with and acquire other successful companies and enter into strategic partnerships with other successful companies in order to remain financially viable.
Aviant is a major American company. It has managed to retain its superior position by creating a sustainable competitive advantage through research and development. This allowed it to market exclusive products that justified it charging a higher price point.
The CAGR for the masterbatch market is 6.6% in 2028. The market is expected to be worth USD 15.81 billion in 2028. The Asia-Pacific region has the highest growth rate and market share because of the growing middle classes there.
|Market Size||2028: USD 15.81 Billion|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Type, Application and Region|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||DongGuan HengCai Plastic Pigment Ltd (China), POLYPLAST (Germany), Clariant (Switzerland), PolyOne (US), RTP Company (US), Ampacet corporation (US), Schulman Inc (US), Astra Polymers (Saudi Arabia), ALOK (India), Plastika Kritis SA (Greece), Americhem Inc (US), Prayag Polytech (India), Cabot Corporation (US), Hubron International (UK), GCR Group (Spain), Tosaf (Israel), Plastiblends (India), GABRIEL-CHEMIE Group (Austria)|
|Key Market Opportunities||Preference for Lightweight Plastics in Automotive to Offer Opportunities|
|Key Market Drivers||E-Commerce to Emerge as a Key Growth Booster|
A mix of intensively concentrated pigments and additives that’s used to color plastic
Masterbatch Market is expected to reach a valuation of USD 15.81 Billion by 2028.
DongGuan HengCai Plastic Pigment Ltd (China), POLYPLAST (Germany), Clariant (Switzerland), PolyOne (US), RTP Company (US), Ampacet corporation (US), Schulman Inc (US), Astra Polymers (Saudi Arabia), ALOK (India), Plastika Kritis SA (Greece)
Masterbatch Market is expected to exhibit a solid 6.6% CAGR over the forecast period from 2022-2028
The key restraint on the Masterbatch Market is the high cost and complexity of producing masterbatches.
The growing demand for high-performance plastics from the automotive, packaging, and consumer goods industries is likely to be the major driver for the global masterbatch market.
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