Plastic Additives Market

Increasing Adoption of Plastics by Various End-Use Industries to Drive Growth.

Plastic is one of the most widely used materials in several end-use industries, including automotive, aerospace and defense, packaging, chemical, construction, general manufacturing, and electronics. The increasing adoption of polymers is attributed to their exceptional properties such as strength, reliability, flexibility, and the ability to withstand pressure and heat, which is driving the demand for their derivatives. This product is cheaper compared to conventional materials such as wood, metals, and composites and is therefore replacing them. This, in turn, is expected to impact the market positively. 

Additionally, Plastic is lightweight and is therefore employed in the automotive sector. When different types of additives are added to these materials, they can serve in other application areas. For instance, flame-retardant additives are employed when it is used in construction, aerospace, and fire-fighting applications. In contrast, phthalate-free additives are used to make medical and food-grade polymers.UBQ Materials, a company based in Saudi Arabia, added three new materials and two additives to its portfolio in 2024. The process involves breaking down waste streams into natural components before reconstituting them as fresh substances.

Some 70%–80% of UBQ’s feedstock is broken down into particulate constructs; the remaining 20%–30% are mixed plastics that melt and bond with the matrix, creating a thermoplastic material that is highly recyclable.

Evonik Industries AG presented its most recent viable strategies for the polymers and foam industries at K 2022 in Dusseldorf, Germany, in October 2022. This also included INFINAM PA, which was displayed as an improved grade of PA-12 powders with CO2 emissions reduced considerably for fused deposition-type technologies used in 3D printing.

September 2022: VALERAS was presented by BASF as part of its range of plastic additives. Delivering sustainable benefits through additives, technical solutions and services, such as accelerating transition processes towards circularity or zero-emission plastics is also combined with other initiatives like antioxidants and light stabilizers.

The Global Plastic Additives Market Industry experiences a surge in demand for lightweight materials across various sectors, including automotive and aerospace. Manufacturers increasingly seek to reduce vehicle weight to enhance fuel efficiency and lower emissions. For instance, the incorporation of plastic additives in composites allows for the production of lighter components without compromising strength. This trend is projected to contribute significantly to the market, with the industry valued at 59.6 USD Billion in 2024. As companies strive to meet regulatory standards and consumer preferences for sustainability, the demand for innovative plastic additives is likely to grow.

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. Asia Pacific is anticipated to hold a key position in the market share due to the many manufacturers in the region. China is one of the largest producers of plastics and polymers, accounting for nearly 30% of global production. The country is a leading producer of cheap and lightweight consumer goods. Currently, plastic is one of the key materials used for packaging, and Asia Pacific is experiencing a boost in the packaging sector.

The rapid increase in the e-commerce sector is promoting the growth of the regional packaging industry, which in turn is fueling the regional market growth. Additionally, rising disposable incomes lead consumers to spend considerably on home décor, decorative items, and furniture, which has boosted the furniture market in India and China. The increasing demand for Chinese goods worldwide is expected to surge the local plastic industry.

Figure 3:  PLASTIC ADDITIVES MARKET SHARE BY REGION 2023 (%)

Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

North America accounts for a significant share of the global market owing to the increasing adoption of plastics and polymers in the packaging, construction, aerospace & defense, food & beverages, general manufacturing, and automobile industries. High investments in the aerospace & defense sector for developing enhanced materials are expected to serve as an opportunity for the market in this region. Additionally, stringent regulations imposed by the Environmental Protection Agency (EPA) regarding the degradability of polymers and plastics have increased R&D spending by players to develop additives that can accelerate the degradability of plastic.

This is anticipated to impact regional plastic additive consumption positively.

Europe is a major automotive manufacturing region with highly developed production technologies. The increasing adoption of lightweight parts in making automotive components to increase the efficiency of vehicles is expected to boost the regional market. Increasing R&D for developing non-toxic plastic products is expected to boost the local market. Strict rules imposed by the European Union (EU) regarding the use of phthalates in food and medical applications are expected to act as an opportunity for developing new and enhanced polymer additives.

Additionally, rising consumer awareness regarding the emergence of various diseases and viruses has significantly increased the use of medical devices and instruments. The increasing demand for such instruments in the European healthcare sector will potentially fuel market growth.

Major market players are spending a lot of money on R&D to increase their product lines, which will help the Plastic Additives market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Plastic Additives industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.

The major market players are investing a lot of money in R&D to expand their product lines, which will spur further market growth for Plastic Additives. With significant market development like new product releases, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations, market participants are also undertaking various strategic activities to expand their global presence. To grow and thrive in a market climate that is becoming more competitive and growing, competitors in the Plastic Additives industry must offer affordable products.

Manufacturing locally to cut operating costs is one of the main business tactics manufacturers use in the global Plastic Additives industry to benefit customers and expand the market sector. The Plastic Additives market has recently given medicine some of the most important advantages. Major Plastic Additives market players, including BASF SE (Germany), SONGWON (South Korea), Clariant AG (Switzerland), Evonik Industries AG (Germany), and others, are attempting to increase market demand by funding R&D initiatives.

BASF is a company that provides petrochemicals, intermediates, performance materials, monomers, dispersions and pigments, performance chemicals, catalysts, coatings, and care chemicals. It conducts its operations through six business segments: Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition and Care, and Agricultural Solutions.

Also, SONGWON is a manufacturer and supplier of polymer stabilizers. Its products include antioxidants, metal deactivators, dispersions, monomers, PVC stabilizers, plasticizers, metal soaps, catalysts, polyols, absorbent polymers, and more. The company caters to agriculture, automotive, construction, textile, and other industries.In the 2023 year, BASF launched Irganox®1010 BMBcert™ and Irganox®1076 FD BMBcert™, its first biomass balance solutions for plastic additives. These products have been certified by TUV Nord according to ISCC PLUS mass balance standards. The company claims it enables more renewable feedstocks to be used by its customers as they work towards their sustainability targets.