Plastic Compounding Market Research Report Information By Product (Polypropylene, Polyethylene, Polyvinyl Chloride, Polyethylene Terephthalate, and Others), By Application (Automotive, Electrical & Electronics, and Building & Construction), And By Region (North America, Europe, Asia-Pacific, And Rest Of The World) – Market Forecast Till 2030.

Global Plastic Compounding Market Overview

Plastic compounding market size was valued at USD 584.2 billion in 2021. The plastic compounding industry is projected to grow from USD 623.6 Billion in 2022 to USD 985.15 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 6.75% during the forecast period (2022 - 2030). Increasing number of commercial & residential projects and increasing product application in the automotive sector are the key market drivers enhancing the market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Plastic Compounding Market Trends

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  Increasing demand for plastic compounding from the construction industry to boost the market growth

  
  

In the construction industry, plastics are utilized mainly in the insulation of buildings and infrastructures. They are also used in the manufacturing of various construction products including flooring, performance safety window, doors, cables, and pipes. Ability of compounded plastics to offer properties similar to steel such as strength, texture, and resistance to rust and environmental conditions, has increased their demand from the construction industry. Furthermore, the rising number of commercial & residential projects, coupled with the increasing awareness regarding attractive interiors among consumers, would also create new opportunities for the plastic compounding market to grow positively.

Further, the rising need for low-emission and lightweight vehicles in the automotive industry is expected to drive the market exponentially. Compounded plastics are preferred as the best alternative lightweight material to heavyweight metals or steel, to increase the fuel-efficiency and to lower the fuel emissions. The use of these plastics in automotive parts would increase vehicle efficiency and the life of vehicle components, which has enhanced the plastic compounding market CAGR across the globe in the recent years.

Additionally, rising consumption from downstream sectors including construction, automotive, electronic, electrical and packaging are flourishing the growth of plastic compounding market. The demand for plastic is constantly growing inseveral industrial applications as it offers many advantages such as easy molding and ability to form preferred shape. Increasing use in the infrastructure area is one of the prominent influencing factors for the growth of plastic compounding market ly.

Moreover, environmental concerns and diminishing crude oil reserves due to practice of petrochemical polymers have triggered the requirement of bio-based products. Government limitations on consumption of polymers extracted from petrochemicals in many end use industries is anticipated to incentivize production of bio-based polymers. Bioplastic resin suppliers are increasing the raw material supply in anticipation of strong demand. Plastic additive producers are escalating capability to cater the rising demands of plastic compounding markets.

However, diverse range of products available, depending on the additives and fillers integrated while processing the polymers including antioxidants, processing aids, colorants, wear-resistant, blowing agents, lubricants, fillers and reinforcements, antistatic agents, slip/anti-slip agents, anti-block agents, flame retardants, light stabilizers, impact modifiers, and cross-linking agents enhanced the growth of the plastic compounding market revenue.

Plastic Compounding Market Segment Insights

Plastic Compounding Product Insights

The plastic compounding market segmentation, based on polypropylene, polyethylene, polyvinyl chloride, polyethylene terephthalate, and others. The polypropylene segment held the majority share in 2021 to the plastic compounding market revenue. Its compounds are largely used in automotive applications owing to the high impact resistance and serviceability. However polyethylene terephthalate is the fastest-growing category due to increasing construction spending in Asia, the Middle East, and Latin America is expected to provide growth opportunities for PVC compounds, considering relatively relaxed regulatory intervention regarding the presence of plastics in building materials.

Plastic Compounding Application Insights

The plastic compounding market segmentation, based on application, includes automotive, electrical & electronics, and building & construction. The automotive segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period, 2022-2030. This is due to the increasing incorporation of plastics, as opposed to metals and alloys in automotive components. However, electrical and electronics is the fastest-growing category owing to the emergence of small-scale electrical component manufacturers and electronic goods producers and a versatile manufacturing landscape. Hence, the support from the government, the availability of raw materials, and cheap labor positively impacts the market growth.

Figure 1: Plastic Compounding Market, by Application, 2021 & 2030 (USD Million)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Plastic Compounding Regional Insights

By Region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. Asia-Pacific plastic compounding market accounted for USD 256.46 billion in 2021 and is expected to exhibit a significant CAGR growth during the study period. This is attributed to the growing manufacturing sector shall drive the demand from the automotive, industrial machinery, construction, packaging, and electrical and electronics industries in the region. Moreover, China plastic compounding market held the largest market share, and the India plastic compounding market was the fastest growing market in the Asia-Pacific region.

Further, the major countries studied in the market report are: The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: PLASTIC COMPOUNDING MARKET SHARE BY REGION 2021 (%) 

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe plastic compounding market accounts for the second-largest market share due to the various federal level agencies and others such as the European Chemicals Agency (ECHA) and the European Commission have characterized stringent environmental regulations in Europe with regard to the production and consumption of the materials. Further, the Germany plastic compounding market held the largest market share, and the UK plastic compounding market was the fastest growing market in the European region

The North America plastic compounding Market is expected to grow at the fastest CAGR from 2022 to 2030. Rapid infrastructure development in the U.S. and Mexico is predicted to augment product demand in the forecast period. Government regulations that support the recovery of the housing sector are predicted to have a positive impact on the construction market. Moreover, US plastic compounding market held the largest market share, and the Canada plastic compounding market was the fastest growing market in the North America region

Plastic Compounding Key Market Players & Competitive Insights

Major market players are spending a lot of money on R&D to increase their product lines, which will help the plastic compounding 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 compounding industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.

One of the primary business strategies adopted by manufacturers in the plastic compounding industry to benefit clients and expand the market sector is to manufacture locally to reduce operating costs. The plastic compounding market major player such as BASF SE, LyondellBasell Industries Holdings B.V., DuPont de Nemours, Inc., and others are working to expand the market demand by investing in research and development activities.

Dow Inc. produces and distributes chemical products. The Company manufactures and supplies chemicals for liquid injection molding, architecture fabrication, leather, textiles, automobiles, rubber consumer goods, and food industries. Dow serves customers worldwide. In October 2021, Dow, Inc. announced investment programs to advance circular plastics. These advancements will help prevent plastic waste, reduce greenhouse gas emissions, and provide recycled plastics that showcase similar properties as virgin plastics. These advancements enable the company to initiate the supply of circular plastics at the start of 2022.

Also, Celanese Corporation, formerly known as Hoechst Celanese, is an American technology and specialty materials company headquartered in Irving, Texas. A Fortune 500 corporation, the company is the world’s leading producer of acetic acid, producing about 1.95 million tonnes per year, representing approximately 25% of production. Celanese is also the world's largest producer of vinyl acetate monomer (VAM). In January 2021, Celanese Corporation, a chemical and specialty materials company, announced a price increase in the overall engineering plastics segment, particularly attributing to the strengthening demand for its products and increase in transportation, energy, and raw material prices. As a result, the company's polyamides and PET prices are likely to rise by about US$ 0.15 to US$ 0.2 per kg.

Key Companies in the Plastic Compounding market includes

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  BASF SE

  
  


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  LyondellBasell Industries Holdings B.V.

  
  


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  Dow, Inc.

  
  


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  DuPont

  
  


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  SABIC

  
  


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  RTP Company

  
  


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  S&E Specialty Polymers, LLC (Aurora Plastics)

  
  


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  Asahi Kasei Corporation

  
  


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  Covestro AG

  
  


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  Washington Penn

  
  


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  Eurostar Engineering Plastics (EEP)

  
  


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  KURARAY CO., LTD.

  
  


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  TEIJIN LIMITED

  
  


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  Evonik Industries AG

  
  


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  Dyneon GmbH & Co KG, among others

  
  

Plastic Compounding Industry Developments

May 2019: BASF has increased the production capacity of its plastic compounding plant in Altamira, Mexico. With the increase in production capacity by 15 KT per annum, the company will provide engineering plastics product line including, Ultradur (PBT: polybutylene terephthalate), and Ultramid (PA: polyamide). This expansion will cater to the increasing demand for engineering plastics and Mexico's growing market.

January 2019: Celanese Corporation announced the acquisition of Next Polymers Ltd., one of India's leading thermoplastics compounder. The acquisition will broaden the company's presence in India due to its ability to deliver high-quality nylon and other engineered materials

Plastic Compounding Market Segmentation

Plastic Compounding Product Outlook

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  Polypropylene

  
  


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  Polyethylene

  
  


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  Polyvinyl Chloride

  
  


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  Polyethylene Terephthalate

  
  


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  Others

  
  

Plastic Compounding Application Outlook

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  Automotive

  
  


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  Electrical & Electronics

  
  


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  Building & Construction

  
  

Plastic Compounding Regional Outlook

• North America




• US


• Canada




• Europe




• Germany


• France


• UK


• Italy


• Spain


• Rest of Europe




• Asia-Pacific




• China


• Japan


• India


• Australia


• South Korea


• Australia


• Rest of Asia-Pacific




• Rest of the World




• Middle East


• Africa


• Latin America