Plastic Compounding Market Research Report- Forecast to 2027

Plastic Compounding Market: Information By Product (Polypropylene, Polyethylene, Polyvinyl Chloride, Polyethylene Terephthalate and Others), By Application (Automotive, Electrical & Electronics, Building & Construction) - Forecast till 2027

ID: MRFR/CnM/3276-CR | August 2018 | Region: Global | 131 pages

Please note that the assessment period of report has been updated from (2017-2023) to 2020-2027. Cordially fill the sample form for updated data.

Market Overview


Global Plastic Compounding Market is predicted to exceed a valuation of USD 7,62,400 Mn by 2023. The international manufacturing sector persists in placing an enormous requirement for polymer mixtures. As mentioned above, a fast expansion in the plastic compounding technology is witnessed as a subsequent upshot of the occurrence. Polymer blends are expected to remain a desirable industrial product as they are finding new application chances. The use of plastic compounding permits the use of polymer variants such as Polyethylene (PE), PVC (Poly Vinyl Chloride), and Polypropylene (PP) in the building of an extensive range of products.


COVID-19 Analysis


The conditions of buyers and sellers are changing significantly in the course of the COVID-19 crisis, which is estimated to have significant rippling effects on a macro level, especially for markets for packaging and medical applications that have coped well through the pandemic. In contrast, transactions into automotive and some durable articles such as appliances have shown strained development. Trends emerged in the pandemic, such as automakers who pivoted to providing and manufacturing ventilators in the pandemic's initial days. It is also noted that companies like LyondellBasell in the third quarter of this year saw a recovery in automotive manufacture, as OEMs resumed assembly lines and produced their vehicle backlogs.


Market Dynamics


Drivers


Increasing Plastic Consumption In The Automotive Industry


The mounting demand for fuel-efficient lightweight automotive components has opened up avenues of plastic compounding market expansion. Governments' initiatives for promoting lightweight automobiles' adoption to curb carbon emissions are expected to influence market proliferation positively.


Replacement For Glass And Metals


The use of the compounding techniques has led to plastic use has appeared as a viable alternative to glass and metal.


Rising Demand For Light And Innovative Materials In The Packaging Industry


Furthermore, the thriving packaging industry plays an essential role in the accelerated revenue generation for market players.


Growth Of Key End-Use Industries


The rise in plastic application in large-scale sectors such as packaging, electronics, and automotive is likely to support the global plastic compounding market's growth.


Restraints


Volatility In Raw Material Prices


The instability in petrochemical costs is anticipated to test the plastic compounding market as the raw materials expended in plastic compounding are predominantly reliant on petrochemicals.


Opportunities


Growing Use Of Recycled Plastic In Various End-Use Industries


The recent trend of using bio-based and recycled plastic observed in the plastic compound market has cemented the mode for advances and product portfolio developments.


Segment Overview


By Product


The polypropylene segment captured a 31.07% share of the global plastic compounding market in 2017. The segment is assessed to record a CAGR of 6.5% throughout the assessment period. The segment's growth is credited to its elevated impact resistance, and useability has powered demand in the automotive sector.


By Application


The automotive segment presently reports for the leading share of the overall market. The tendency is expected to continue in the projected future. The segment is anticipated to flourish at a healthy CAGR of 7.53% throughout the forecast period. Plastic performs an integral role in producing automotive elements, which is expected to hasten the segment's development.


Regional Analysis


APAC Region To Display Formidable Developments


The Asia Pacific reported a 47.6% share of the global market in 2017 and is expected to continue an extremely profitable market in the forecast period. The Asia Pacific is appraised to exhibit a 6.25% CAGR throughout the forecast period. The growth is linked to the upsurge in requirements from the thriving automotive industries. The exponentially growing population is inducing the consolidation of developing markets such as Thailand, India, China, and South Korea to produce prospects for plastic compounding market companies in the region.


Packaging Industry To Add To Attractiveness Of European Regional Market


Europe will hold the next spot globally, covering 20.8% of the plastic compounding market. The market is likely to remain highly lucrative during the projection period striking a CAGR of 5.72%. The development of the packaging industry in the region has an indispensable role in improving plastic compounding market demand.


Automobile Demand To Fuel Americas Region


The Americas plastic compounding market is projected to display an impressive growth section booming at a 5.17% CAGR. The factor inspiring revenue collection for market contributors in the region is augmented automotive manufacture connected with increasing demand for lightweight vehicles.


Competitive Landscape


The noteworthy contenders in the Plastic Compounding Market are:



  • LyondellBasell Industries NV,

  • SABIC,

  • Borealis,

  • INEOS,

  • DuPont,

  • BASF SE,

  • Versalis S.p.A (Eni S.p.A),

  • Asahi Kasei Corporation,

  • Covestro AG,

  • F.TER S.r.l,

  • 3M (Dyneon GmbH),

  • LANXESS AG,

  • Total SA


Recent Developments


Dec 2020 Matrix Plastics Ltd, a market frontrunner in the coloring and compounding of plastic and other resources, has declared the founding of a new sub-brand Matrix Medical Plastics. It will operate from a purpose-built facility next to the Matrix Plastics main site, and Matrix Medical Plastics will deliver fully conforming medical compounding services to manufacturers worldwide.


Dec 2020 Borealis has attained a controlling share in DYM Solution Co. Ltd, a South Korean compounder. The acquisition solidifies Borealis' position as an international supplier of wire and cable material solutions. With this investment, Borealis has extended its worldwide wire and cable asset footprint and widened its huge portfolio with complementary products and technologies for rubber, flame retardant, semi-conductive, and silane cross-linkable compounds.


July 2020 Albis Plastic GmbH has accomplished its division into two separate business units. Plastics recycler Wipag and chemicals supplier Krahn Chemie also is a portion of the consortium. Benefits to the new structure include more transparent accountability for results, expenses, and quicker decision-making paths. The firm's resin distribution business will continue to operate as Albis, while its compounding unit will do business as Mocom. Both units are part of the Germany-based Otto Krahn Group.


May 2020 Covestro, a materials producer, and Teknor Apex, the global plastics compounder stated they would closely join forces on compounding thermoplastic polyurethane (TPU) and have engaged in an agreement to this effect. The grouping of Covestro's know-how in TPU resin with Teknor Apex's custom preparation and compounding abilities delivers a convincing value driver for their clientele worldwide. TPU is a tremendously versatile plastic, which Covestro has produced in pure form for many years intended for many industry sectors.


Report Overview


By Product



  • Polypropylene

  • Polyethylene

  • Polyvinyl Chloride

  • Polyethylene Terephthalate

  • Polystyrene

  • Acrylonitrile Butadiene Styrene

  • Polyamide

  • Polycarbonate

  • Thermoplastic Polyolefins

  • Thermoplastic Vulcanizates

  • Polybutylene Terephthalate

  • Others


By Application



  • Automotive

  • Electrical & Electronics

  • Building & Construction

  • Packaging

  • Consumer Goods

  • Industrial Machinery

  • Solar mirror

  • Medical Devices

  • Optical Media

  • Others



Frequently Asked Questions (FAQ) :


The global plastic compounding market is projected to reach approximately USD 7,62,400 MN by 2023.

Plastic compounding materials are extensively consumed in industries such as automotive, electrical & electronics, and building & construction.

Asia Pacific holds the largest share in the global plastic compounding market followed by Europe and North America, respectively.

SABIC, Borealis, LyondellBasell Industries NV, INEOS, DuPont, Versalis S.p.A (Eni S.p.A), BASF SE, Asahi Kasei Corporation, SO.F.TER S.r.l, Covestro AG, 3M (Dyneon GmbH), Total SA, and LANXESS AG, are some of the leading players in the global plastic compounding market.

The global plastic compounding market is projected to catapult from USD 5,36,724.4 million in 2017 to USD 7,62,472.7 million by the end of 2023. Factors such as increasing plastic consumption by the automotive industry, rising demand for light and innovative materials in the packaging industry and growth of key end-use industries will help the market achieve a CAGR of 6.03% over the forecast period of 2017-2023.


Plastic compounds provider better durability than steel and aluminum and is widely accepted in the automotive manufacturing owing to its lightweight property. Plastic composites help improve fuel efficiency and safety and are more versatile in terms of aesthetic value which makes them the preferred choice for automakers in the production of automotive body exteriors, automotive interiors, chassis, electrical systems, powertrains, fuel systems, and engine components. Moreover, many plastic resins are recyclable. To comply with EPA and EU legislation pertaining to the reduction of carbon and other harmful emissions, automakers are progressively using plastic compounds to produce lightweight automotive parts which stimulate the market growth.


Plastic compounds are used as a replacement for glass and metals in various industrial applications in the aerospace, automotive, construction, and consumer and healthcare goods industry. Other than being lightweight and durable, they can also be molded to form various complex shapes. They provide creep resistance and can maintain structural performance at high temperatures, with higher resistance to corrosion and better surface finish. 


Volatility in the price of raw materials is expected to hinder the growth of the market over the forecast period. Polymers, plastic additives, lubricants, and solvents are used in the plastic compounding process which is subject to regular price fluctuation. Furthermore, these raw materials are produced through downstream processes of petrochemicals. Thus, variations in the price of crude oil and natural gas create inelasticity in demand and supply balance.


The prevailing trend of usage of recycled plastics in various end-use industries provides ample of scope for market expansion. Stringent North American and European regulations pertaining to waste management have prompted multiple manufacturers to utilize scrap plastics. Manufacturers are emphasizing recycling old plastics which also helps them increase overall productivity.


An increasing trend of use of bio-based plastics has in flexible packaging has resulted in the consumption of petrochemical-derived plastics which encourages plastic additive manufacturers to increase production of environment-friendly plastics to meet the demands of the global market.


The global plastic compounding market has been segmented based on product and application. By product, the market has been segmented into polypropylene, polyethylene, polyvinyl chloride, polyethylene terephthalate, polystyrene, acrylonitrile butadiene styrene, polyamide, polycarbonate, thermoplastic Polyolefins, thermoplastic vulcanizates, polybutylene terephthalate, and others. The Polypropylene segment is the leading segment and accounted for 31.07% share in 2017 and is expected to grow at a CAGR of 6.50% over the forecast period. The Polypropylene segment is observing high growth as it is increasingly used in the automotive industry due to its high impact resistance and serviceability. The Polyethylene segment is the second largest product segment and is expected to grow at a CAGR of 5.01% over the forecast period on account of high demand from end-use industries such as packaging, automotive, and pharmaceuticals.


By application, the market has been segmented into Automotive, Electrical & Electronics, Building & Construction, Packaging, Consumer Goods, Industrial Machinery, Medical Devices, Optical Media, and Others. The automotive segment is the leading segment which is estimated to expand at a CAGR of 7.53% over the forecast period. The automotive industry makes use of plastics at a large scale for the production of various automotive components. Moreover, the rise in production of passenger cars and heavy-duty vehicles, especially in Asia and Latin America is expected to provide growth opportunities over the forecast period. The packaging segment is the second largest segment and is expected to register substantial growth over the forecast period on account of escalating demand for packaged, ready to eat food products and beverages.


Regional analysis


The Asia Pacific is the leading market for plastic compounding and is expected to emerge as a prominent hub for the global plastic compounding market and is expected to offer quality growth exposure over the forecast period. The Asia Pacific market was valued at USD 2,55,831 million in 2017 and is expected to expand at a CAGR of 6.25% over the forecast period. The growth of the automotive industry, rising per capita income of consumers, and growing electronics and electrical industry can be attributed for this growth. Additionally, the Asia Pacific region offers the advantages of lower costs of production due to the availability of comparatively cheap labor and easy availability of raw materials in emerging economies of China, South Korea, and Thailand further supports the market growth. Greater regulatory emphasis on reduction of carbon footprints is also encouraging production of lightweight electric vehicles which is fueling the growth of the plastic compounding market. 


Europe accounts for the second largest share of the global plastic compounding market. Europe is projected to grow at a CAGR of 5.72% over the forecast period. The Europe market is growing on account of the growing packaging industry. Moreover, stringent regulations aiming at curbing carbon emissions prompt automakers to produce lightweight vehicles also is a driver of the Europe market. North America market for plastic compounding is also strong and projected to grow ta at CAGR of 5.17% over the forecast period. Increasing automotive production with increasing demand for lightweight vehicles will aid the growth of North America market.


Competitive Tracking


The top players in the global plastic compounding market comprise of LyondellBasell Industries NV, DowDuPont, INEOS, BASF SE, and SABIC. Other notable players include Borealis, Versalis S.p.A (Eni S.p.A), Covestro AG, 3M (Dyneon GmbH), Total S.A., Asahi Kasei Corporation, SO.F.TER S.r.l, and SO.F.TER S.r.l.

Global Plastic Compounding Market: Competitive Landscape


The prominent players in the global plastic compounding market are LyondellBasell Industries NV, SABIC, Borealis, INEOS, DowDuPont, BASF SE, Versalis S.p.A (Eni S.p.A), Asahi Kasei Corporation, Covestro AG, SO.F.TER S.r.l, 3M (Dyneon GmbH), LANXESS AG, and Total S.A.


LyondellBasell Industries NV, DowDuPont, SABIC, INEOS Olefins & Polyolefins, BASF SE, and Versalis S.p.A (Eni S.p.A) collectively hold the majority share of the European plastic compounding market. The market players are focused on new product launches, product innovation, and strategic initiatives, such as acquisitions and joint ventures, to meet the increasing demand for high-performance plastics in major end-use industries such as automotive, electrical and electronics, and packaging.


DowDuPont, a leading specialty chemicals producer, provides a wide range of polymer products such as LDPE, LLDPE, HDPE, and other polyethylene resins. The company has 534 manufacturing sites and operates through three business segments—material science, specialty products, and agriculture. The company is focused on expanding its production capacity of high-performance plastic on account of the increasing demand from the automotive industry. For instance, in 2018, the company invested around USD 40 million in its compounding facility in China to boost R&D activities and the production of high-performance plastic.


LyondellBasell Industries NV is renowned as one of the largest plastics, chemicals, and refining companies in the world. It operates through five segments—olefins and polyolefins-Americas, olefins and polyolefins-Asia, Europe and international, intermediates and derivatives, and refining and technology. It is the leading manufacturer of polypropylene in Europe and the Americas. The company is focused on new product developments and the expansion of its polyolefins business. In February 2018, the company introduced a new enhanced polypropylene grade under the brand name Moplen HE745T for packaging applications. The new grade offers superior properties such as stiffness and impact performance balance.


INEOS is renowned as a global manufacturer of petrochemicals, specialty chemicals, and oil products. The company has 32 manufacturing sites in six countries globally. The company operates through the olefins and polymers Europe, olefins and polymers North America, and chemical intermediates segments. It produces polyolefins ranging from HDPE, LLDPE, LDPE, and m LLDPE to PP products. The company serves numerous industries such as packaging, construction, automotive, durables, agrochemicals, and pharmaceuticals. In 2017, Ineos Styrolution planned to expand its compounding capacity for acrylonitrile butadiene styrene (ABS) and acrylonitrile styrene acrylate (ASA) by an additional 34,000 tonnes per annum at its Moxi plant in Gujarat, India.


BASF SE is one of the largest chemicals producers in the world. The company operates through five business segments—chemicals, performance products, functional materials and solutions, agricultural solutions, and oil & gas. The company offers a wide range of high-performance plastic and organic pigments to serve the growing demand in major end-use industries such as automotive, electrical and electronics, and packaging. In 2017, the company began operations at its compounding plant in Schwarzheide, Germany, to meet the increasing demand for engineering plastic from end-use industries. With this expansion, the company’s global compounding capacity for polyamide and polybutylene terephthalate has reached to 7,00,000 metric tons per year.


SABIC is a petrochemicals company that manufactures chemicals, fertilizers, plastics, and metals. The company operates through the petrochemicals, specialties, agri-nutrients, and metals segments. It has three technology centers and 12 manufacturing facilities in Europe. In 2018, the company introduced two new LDPE grades under the brand names SABIC LDPE HP0722 NDF and SABIC LDPE HP2022 NDF for cross-linked foaming processes. It also introduced a new portfolio of polypropylene compounds in the market for interior automotive parts. The new grades will provide excellent scratch resistance, good impact performance, and low shrinkage.