ID: MRFR/CnM/4129-CRR | August, 2018 | Region: Global | 140 pages | Cooked Research Reports
Global Masterbatch Market: Information by Type (Color, White, Black, Additive), Application (Packaging, Consumer Products, Building & Construction, Automobile Industry, Electrical & Electronics), & Region (Asia Pacific, North America) - Forecast till 2023
The high demand for plastics in end-use industries has propelled the need for masterbatch processes. Masterbatches are esters of adipic acid or benzoic acid, mainly used as plasticizers. It consists of an amalgamation of pigments or additives which are encapsulated during a heating process and cut into granular shapes. The emphasis on mass production has created the need for these additives. The global masterbatch market is touted to experience growth at a CAGR close to 5.54% during the assessment period (2018-2023), as per an in-depth market report by Market Research Future (MRFR).
The demand for plastics in the automotive industry owing to its lightweight nature and cost-effective production cost is expected to be the primary driver of the market. The surge witnessed in the packaging industry can also act as a catalyst. The use of masterbatch for coloring of additives can provide new growth opportunities for the market. The shift towards packaging products and improved living standards are factors which can act as favorable tailwinds for the market.
The report covers the latest trends affecting the market to provide the most accurate forecasts and predictions. By correlating the historical data with key market dynamics, our analysts can make highly astute projections. MRFR’s report includes a thorough analysis of the global masterbatch market segmented by type, application, and region. Trends and opportunities are highlighted coupled with the market share of companies as well as their valuation in the market. It analyzes new revenue sources for players and outlines the various strategies implemented by players.
By type, the masterbatch market is segmented into color, white, black, and additive. Major market applications include electrical & electronics, packaging, building & construction, automobile industry, consumer products, and others. These applications employ the use of masterbatch to cater to the various aesthetic demands by consumers.
The segments and sub-segments covered in the report are analyzed with respect to five major regions – North America, Latin America, Europe, Asia Pacific (APAC), and the Middle East & Africa (MEA), with respective country-level market sizing. The definition and advantages of the product “masterbatch” is outlined in the report for a comprehensive understanding of the market. The report discusses the various players involved in the value chain and their contributions to evaluate future opportunities within the market.
Noteworthy players in the masterbatch market include Clariant, A. Schulman, Inc., ALOK, DongGuan HengCai Plastic Pigment Ltd., Plastiblends, PolyOne, POLYPLAST, GCR Group, Astra Polymers, RTP Company, Cabot Corporation, Tosaf, Americhem, Inc., GABRIEL-CHEMIE Group, Plastika Kritis S.A., Ampacet Corporation, Hubron International, and Prayag Polytech. The market is competitive in nature with companies expanding to tier-2 and tier-3 cities to increase their production capacity. Supply agreements, mergers & acquisitions, and new product launches are strategies being deployed by companies to capture a larger market share.
The report offers comprehensive profiles on these market players and assesses their current standing in the market. Company history coupled with annual turnover, profit margins, segmental share, SWOT analysis, growth strategies, new product launches, mergers and acquisitions (M&A) activities, and latest R&D initiatives are discussed in granular detail.
At MRFR, our research analysts conduct a thorough objective analysis of the market when creating market reports by adhering to a rigorous set of standards which allow a truly comprehensive view of the market. Use of primary research strategies such as interviews with top-level decision makers of various leading companies in the relevant market combined with secondary research provides a thorough analysis of past and present trends in a forward-looking manner. Additionally, market size estimation and validation use both top-down & bottom-up approaches to obtain data from the demand and supply-side. Credible resources are employed to assist analysts to understand the nuances of market factors with consistency. Competent data analysts use strong analytical tools to ascertain accurate analysis of very relevant parameters in an effort to provide clients with a conclusive and dependable view of the future.
For the scope of research, the report offers a comprehensive analysis of the global masterbatch market.
Global Masterbatch Market – Summary
Plastics, nowadays, have become an integral part of the global economy due to its far-flung impact. It is difficult to find a single nook or corner which it is yet to penetrate. However, its utility is not the only reason behind it gaining accolades from myriad industries. Its adaptability to different needs gives it the traction, and it only gets better with masterbatch playing the catalyst. The array of colors in which plastics come and percolate different strata is the outcome of masterbatch implementation. A mass-produced product, masterbatch adds colors to otherwise color-neutral plastic, works as additives, reduces health risk, minimizes waste amount, most importantly, it comes in handy in reducing production cost. This can fuel the demand for masterbatches during the forecast period (2018-2023).
The burgeoning automotive industry is experiencing a paradigm shift. Gradual rejection of the traditional components such as aluminum, steel and other metal alloys to gain better fuel efficiency is a trend that industries worldwide are adopting at breakneck speeds. They found a better alternative to engineered plastics. Durable and lightweight, these components have picked the interest of the market players in no time and is subsequently generating a demand for the masterbatch.
The meteoric rise in urbanization and industrialization has transformed lifestyle in an unprecedented way. As its one of the many consequences, the packaging industry is also experiencing a boom that is currently valued at in between USD 400-500 billion. Global production, along with consumption, has also increased substantially which has a continual accelerating effect on the growth of the market.
However, the process of blending highly concentrated color pigment into a resin carrier is cumbersome which requires an internal mixer or a mill. This complexity can slacken the rate of adoption of this technology by various industry.
Type-based, the market segmentation includes color, white, black, and additive. The outstanding ability to disperse color equally on the final plastic product in contrast to that of the powdered form pure colorants made the color type the most popular among the manufacturers. The market is expected to remain so in the foreseeable future with the sub-segment growing at the fastest rate.
Application-wise, the market comprises packaging, consumer products, building & construction, automobile industry, electrical & electronics, and others. The packaging segment is currently steering the market ahead owing to the exigent demand generated by innumerable industries. It is currently estimated to scale to a market valuation of USD 4,631.06 million by 2023. However, the automotive industry is not staying idle and gaining enough momentum to surpass the rest in terms of CAGR in coming years.
Regional analysis of the masterbatch market includes five key regions namely Asia Pacific (APAC), North America, Europe, Latin America (LATAM), and Middle East & Africa (MEA).
The APAC is currently leading the market due to the rising consumer awareness and favorable government policies that are assisting manufacturers in increasing the production. India, China, Malaysia, and South Korea are the biggest contributors in this region. By 2023, the market valuation can go up to USD 4,782.10 million. The region is closely followed by North America, with the U.S. setting the regional trends. The country has a propulsive infrastructure that makes it an industrial powerhouse. Diverse sectors such as automotive, packaging, and building & construction are making significant innovative contributions to assist the global markets to grow by leaps and bounds. As a consequence, the masterbatch market is also skyrocketing. Europe has Germany, France, Italy, Russia, and the U.K., to give the market a robust cornerstone to lay the bricks for the industry in the coming years. However, the same kind of cascading effect cannot be expected from the LATAM and the MEA region. The growth will be much slower but a steadier one in these regions.
The market is buzzing with innovations and improvements in production techniques. For instance, Cabot is vying for a strong European presence with its black masterbatch production unit in Pepinster, Belgium seeing the green light.
Clariant, on the other hand, is eyeing for a firm grasp over the MEA market with their production site in Yanbu, Saudi Arabia. Mergers and acquisitions are also playing an integral part in making the market a competitive one. PolyOne acquiring IQAP Masterbatch Group S.L. of Spain can be taken as exemplary. Tosaf USA Inc. in North Carolina has started their masterbatch venture in 2018 which indicates that the market is open to new entrants.
The major players contributing to the market are Clariant, PolyOne, Plastika Kritis S.A., A. Schulman, Inc., Plastiblends, POLYPLAST, GABRIEL-CHEMIE Group, Ampacet Corporation, Americhem, Inc., Astra Polymers, ALOK, Hubron International, Prayag Polytech, Cabot Corporation, DongGuan HengCai Plastic Pigment Ltd., GCR Group, Tosaf, RTP, and others.
Global Masterbatch Market: Competitive Landscape
The prominent players operating in the global masterbatch market are A. Schulman, Inc., Cabot Corporation, Clarian, PolyOne, Plastic Kristi S.A., Apace Corporation, Aleichem, Inc., Astra Polymers, ALOK, Hebron International, GABRIEL-CHEMIE Group, Praying Polytechnic, Dongguan Hengan Plastic Pigment Ltd., Plastiblends, POLYPLAST, GCR Group, Tosaf, and RTP Company.
Cabot Corporation, Clariant, A. Schulman, Inc, PolyOne, and Tosaf collectively account for the majority market share. The global masterbatch market is characterized by healthy competition among the leading market players due to the vast potential for growth. The market comprises a significant number of tier-1 and tier-2 companies, along with several small and medium-scale players. The major market players are adopting various business tactics including mergers & acquisitions, capacity expansions, new product launches, and supply agreements to attain a substantial market share and earn sizeable revenue during the review period.
Cabot Corporation is a leading specialty and performance materials company. In April 2018, the company started a new production line of black masterbatch at its manufacturing facility in Pepinster, Belgium, to strengthen its presence in Europe. The company acquired Tech Blend, a leading North American producer of black masterbatch, for around USD 64 million, in November 2017. The acquisition helped Cabot Corporation strengthen its black masterbatch portfolio and expand its global footprint.
Clariant is a leading specialty chemicals producer. It operates through four business segments—care chemicals, catalysis, natural resources, and plastics and coatings. The company is focused on product innovation through R&D. In January 2018, it opened a new state-of-the-art masterbatch production site in Yanbu, Saudi Arabia to strengthen its position in the Middle East & Africa and to expand its white masterbatch portfolio.
PolyOne produces thermoplastic compounds. The company offers specialized polymer materials, services, and solutions throughout North America, in the US, Mexico, Canada, and in Europe, South America, and Asia. The company is focused on four core components—specialization, globalization, commercial excellence, and operational excellence. In 2018, PolyOne acquired the Spanish IQAP Masterbatch Group S.L.; this acquisition is expected to enable the company to build a technical and broad solutions portfolio and strengthen its position in the European market.
Tosaf is an Israeli manufacturer and seller of high-quality additives, compounds, and color masterbatches for the plastics industry. The company aims to expand its presence across the globe by opening new production lines in North America and Europe. Moreover, the company is strengthening its product portfolio through new product launches. Tosaf USA Inc. started operations at its newly constructed plant in North Carolina, US, in 2018. This plant produces color masterbatches and will serve the rising demand for masterbatches across North America. Moreover, in March 2018, Tosaf launched a new anti-fog masterbatch, AF7380PE. This masterbatch is suitable for a wide range of production processes such as laminated polyethylene films and multi-layer co-ex barrier films.