Plastic Compounding Market is projected to be worth USD 985,743.6 million by 2028, registering a CAGR of 6.75% during the forecast period (2021 - 2028).
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.
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.
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.
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.
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.
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.
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.
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.
The noteworthy contenders in the Plastic Compounding Market are:
September 2021- Microsoft and Sabic are working together to produce Microsoft’s first consumer electronic product. The Ocean Plastic Mouse by Microsoft possesses an external shell comprised of 20% recycled ocean plastic. Ocean plastic refers to the plastic that a third party has qualified as recycled from any ocean or ocean-feeding waterways or where it washed ashore from these locations. Ocean plastic varies from ocean-bound plastic in that ocean-bound plastic is recovered from ocean-feeding waterways, inland areas, and shorelines within a 30-mile radius of the ocean.
October 2021- Polykemi Group AB, a Sweden-based company, announced the investment of approximately USD12 million to develop its plastic compounding plant in the United States. The investment in the facility in Gastonia, NC, is the biggest single investment in the company’s history, and it places the ground for the company’s future growth in North America. The 50,000 sq.ft. The inflatable facility up to 100,000 sq. ft. will primarily be equipped with two production lines and the projected production launch is during the second quarter of 2022. The company started distributing its products in the North American region in 2014 in partnership with compounder Omni Plastics, Evansville, Indiana.
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.
Royal DSM has decided to expand its production capacity by establishing a plant at Indiana, U.S., in 2020. The plant includes state-of-the-art technologies which can manufacture products and components compliant with the latest policies.
|Market Size||2030 : USD 985,743.6 million|
|CAGR||CAGR of 6.75% (2020-2030 )|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Product, Application|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||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|
|Key Market Opportunities||Growing Use Of Recycled Plastic In Various End-Use Industries|
|Key Market Drivers||
The global plastic compounding market is projected to reach approximately USD 985,743.6 million by 2028.
Plastic compounding materials are extensively consumed in industries such as automotive, electrical & electronics, and building & construction.
Continually rising global population.
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.
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.