ID: MRFR/CnM/1221-HCR | February 2021 | Region: Global | 185 pages
Plastic Additives Market is projected to be worth USD 65.85 billion by 2028, registering a CAGR of 6.12% during the forecast period (2021 - 2028)., The market was valued at USD 46.42 billion in 2021.
Plastic Additives have important industrial applications. It can be considered to be a chemical coating that is applied to plastic or polymer items. The objective is to make these items stronger and look prettier.
The resulting product won’t warp easily even when subjected to very high temperatures. It has more mass and this is important since this is what makes it more durable and lasts longer. Interestingly enough, the process of adding Plastic Adhesives to plastic and polymer items actually makes them weigh less on the scale.
COVID-19 changed the destiny and direction of the world last year. It’s continuing to shape our destiny this year even as the vaccine is being administered to people around the world. Governments last year responded by trying to contain the spread of the virus through temporary lockdowns and quarantines. This adversely affected most industries and markets.
The Plastic Additives Market was no exception. Manufacturers found that raw materials were either hard to come by or were priced at extremely high price points. This was mainly because the manufacturing plants that make plastic additives were forced to either shut down or slow production down considerably. The result was that production costs for those who used plastic adhesives went up dramatically and the end consumer ended up paying more for plastic and/or polymer items.
The COVID-19 pandemic that rocked this world last year and continues to linger on this year made people much more conscious about the ways in which their food items were packaged. They clamored for food to be packaged in containers that were both sterile and hygienic. They also loathed and reluctant to buy foods that were sold loose. They (rightly) felt that their health came first.
The growing awareness of and demand for food that’s packaged in safe containers and packages is offering many opportunities for companies in the Plastic Adhesives Market. They see the huge revenue-generating potential in this market, and they are responding by investing heavily in research and development. The objective is to develop a new generation of more effective and sterile packaging that will keep food safer and fresher for longer. They want to market these plastic adhesive packages at a higher price point. So far, their strategy appears to be working well!
The growing awareness of the negative impact that packaging that contains Plastic Adhesives Market has on the environment is likely to restrain growth a bit.
Perhaps the biggest challenge that companies in the Plastic Adhesives Market face lie in finding ways to make packaging that uses Plastic Adhesives safer and at lower price points while ensuring that it is easy on the environment.
PMC Inc is a major American player in the Plastic Additives Market. It has retained its superior market position by investing heavily in research and development. The result has been the introduction of a new generation of Plastic Adhesives that are more effective at what they are intended to do while being environmentally friendly. These two traits allow them to justify selling this new generation of Plastic Adhesives Market at a higher price point!
The Plastic Additives Market can be segmented into the following based on Type:
The Plastic Additives Market can be segmented into the following based on End-User:
Global Plastic Additives Market Share, by End-Use Industry 2017 (%):
Source: MRFR Analysis
The Plastic Additives Market can be segmented into the following Regions:
The Asia-Pacific region has the largest Plastic Additives Market Share. What accounts for this is the fact that it’s home to India and China. These two nations are heavyweights in terms of population. Approximately 25% of the world’s population lives in India and China.
India and China are home to a large and rapidly growing middle class. These people are increasingly clamoring for food products to be packaged in containers and/or packaging that can keep the food hygienic and fresh. However, these people are also becoming environmentally conscious. They want to buy packaging that they know won’t pollute or harm the environment!
Manufacturers in the Plastic Additives Market are noticing and acting accordingly. They are acting by investing heavily in research and development. This will allow them to come up with a new generation of packaging that uses Plastic Adhesives that are easy on the environment, keeps food fresh, and is safe for humans to be around!
These are some of the reasons why the CAGR for the Asia-Pacific region remains high. It also explains why the global CAGR for the Plastic Additives Market continues to remain healthy. There is also a growing demand for consumer goods in the Asia-Pacific region. Most of these consumer goods use plastic adhesives.
The North American region has the second-largest Plastic Additives Market share of all regions in the world. However, its CAGR is not nearly as high as the CAGR in the Asia-Pacific region is. One reason why is because the Canadian and American economies are not growing nearly as fast as the Indian and Chinese economies are. This would explain a lower CAGR in the North American region.
The masses in the North American region are richer than their counterparts in the Asia-Pacific region. The North American region also has a larger and stronger middle class than any of the nations in the Asia-Pacific region do. This includes India and China. The middle classes in the North American region (Canada and the United States) have more purchasing power than their Asia-Pacific counterparts do. They also have more political clout and more access to the type of information that would force food manufacturers to use Plastic Adhesives in their packaging to make them safer for human consumption and friendlier for the environment.
The fact that most of the major manufacturers in the Plastics Additives Market are in either America or Canada also explains why this region has the second-largest Plastic Adhesives Market Share of all of the regions in the world. These companies mostly have huge treasuries and coffers which they can draw from to invest heavily in the research and development that would enable them to develop and market a new generation of Plastic Adhesives that were safer for humans to use and the environment. These Plastic Adhesives are much more effective at keeping the items that they are packaging - whether it’s food or clothing - covered and protected. The risk of contamination or destruction because of exposure to the elements is greatly reduced.
The North American region also leads the world in terms of research in polymers and green chemistry. The European Union has the third-largest Plastic Adhesives Market Share of all of the regions in this world. What accounts for this is the fact that its companies invest heavily in research and development like their North American counterparts. Also, like their North American counterparts, the companies in the European Union have access to government funding. Indeed, the governments in both regions actively encourage research and development in terms of producing safer and greener Plastic Adhesives by allocating generous funding towards that end.
The economic heavyweights in the European Union are the Netherlands, Belgium, the United Kingdom, and Germany. These countries also have a large concentration of Plastic Adhesives Market Manufacturers. The CAGR in the Middle East and North African regions may increase substantially (albeit from a very low base) in years to come. This is largely attributed to increased education levels and greater economic growth in this region. Although both have and continue to be amazingly low in this region.
The Plastic Additives Market is very competitive largely because it is very lucrative. Companies find that they can survive by engaging in extensive research and development. This allows them to make more money by marketing more effective plastic adhesives products at higher price points.
Companies also find that merging with and acquiring each other is highly effective in terms of surviving in this competitive market. They find that the resulting company has access to more resources that allows it to do the research and development needed to successfully market more effective plastic adhesives products than the competition. The resulting company also has access to more resources that allows it to enter into new markets with a strong position. The company can also strengthen its position and status in existing markets.
Companies find that they can accomplish the same with strategic partnerships. These are also referred to as joint ventures.
PMC Group is an American company that has managed to sustain its superior position by investing heavily in research and development. This has allowed it to market a new generation of more effective Plastic Additives that are also safer for the environment.
List of Companies:
Growing awareness of the need for safe and sanitary food and subsequent packaging around the world has been a major driver of growth. Interestingly enough the COVID-19 pandemic contributed to some of this.
|Historical Data||2019 & 2020|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||By Type, End-Use Industry and Region|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||BASF SE (Germany),SONGWON (South Korea),Clariant AG (Switzerland),Vonik Industries AG (Germany),MC Group, Inc. (the U.S), Albemarle Corporation (US),AkzoNobel NV ( the Netherland),Solvay SA (Belgium),N. Chemical Industries (India), and Styro Chemical Industries (India)|
|Key Market Opportunities||The growing awareness of and demand for food that’s packaged in safe containers and packages is offering many opportunities|
|Key Market Drivers||The COVID-19 pandemic that rocked this world last year and continues to linger on this year made people much more conscious about the ways in which their food items were packaged.|
Frequently Asked Questions (FAQ) :
The inclination towards safe foods and awareness of loosely sold products are majorly driving the global plastic additives market.
Large scale manufacture of these products can hamper the global plastic additives market.
The APAC region can dominate the global plastic additives market due to demand for packaging.
North America holds the second largest share after APAC in the global plastic additives market.
Styro Chemical Industries, Clariant AG, Solvay SA, BASF SE, AkzoNobel NV, SONGWON, Evonik Industries AG, Albemarle Corporation, PMC Group, Inc., and L. N. Chemical Industries are key players of the global plastic additives market.