Plastic Compounding Market

Plastic Compounding Market Outlook - 2023

The global plastic compounding market was valued at $565,416.7 million in 2018 and is projected to reach $932,330.5 million by 2026, growing at a CAGR of 6.4% from 2019 to 2026.

Plastic compounding is a process of transforming the characteristics of basic plastics and thermoplastics using a mixture of plastics and additives. Plastic compounds have superior physical properties such as wide range of conductivity, flame retardancy, wear resistance, and are light weight. These properties increase their demand in various automotive, building and construction, packaging and electrical & electronics and thus boosting the growth of the global plastic compounding market.

Plastic compounds are widely used in the electronic and electrical industries for electromagnetic shielding and antistatic applications. In addition, they are replacing metal components in the automotive industry. This has helped in increasing car safety by reducing the total weight of the vehicle. Plastic compounding has also lowered the carbon emissions and increased fuel efficiency and performance of vehicles in the automotive industry which in turn boosts the growth of plastic compounding market.

Rapid industrialization and increase in disposable income of individuals across the emerging economies such as India and China, have fueled the demand for automobiles. Rise in production of light weight vehicles and increase in demand for electric vehicles are some of the major drivers of this market. Asia-Pacific is the leading manufacturer of electronic and electrical devices. Over the past few years, there has been an increase in demand for electronic and electrical devices across the region owing to R&D and technological advancements in the electrical & electronic industry. Many leading electronic component manufacturers have set up plants in India, China, Indonesia, and South Korea. This is expected to drive the growth of the plastic compounding market.

However, factors such as rise in pricing of raw materials used in plastic compounding owing to fluctuating petrochemical as well as crude oil prices and high substitution potential from its bio-based counterparts, are expected to hinder the growth of the plastic compounding market. In addition, ongoing development in catalyst technologies that is focused on increasing the performance, customization, and yield of PE resins, is anticipated to provide lucrative opportunities in this market. 

Plastic compounding market is segmented based on polymer type, end use, and region. Depending on polymer type, the market is classified into polypropylene (PP), polyethylene (PE), polyvinyl chloride (PVC), polystyrene (PS) and expanded polystyrene (EPS), polyethylene terephthalate (PET), polyurethane (PU), acrylonitrile butadiene styrene (ABS), and other polymers. As per end use, it is segregated into automotive, building & construction, packaging, electrical & electronics, medical, and others. Based on region, it is analyzed across North America (U.S., Canada, and Mexico), Europe (Germany, France, Italy, Spain, and rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Malaysia, and rest of Asia-Pacific), and LAMEA (Brazil, South Africa, Saudi Arabia, and rest of LAMEA).

The major key players operating in the plastic compounding industry include Asahi Kasei Corporation, BASF SE, Celanese Corporation, Covestro AG, DowDuPont Inc., Kingfa Sci. and Tech. Co., Ltd., LyondellBasell Industries Holdings B.V., Polyone Corporation, SABIC, and Solvay SA. Other players operating in this market include Mexichem Specialty Compounds Inc., Coperion GmbH, Adell Plastics, Inc, Sojitz Corporation, and Polyvisions Inc. These major key players are adopting different strategies such as acquisition, business expansion, and collaboration to stay competitive in the global market.

Global Plastic Compounding Market, by Region 

Based on region, Asia-Pacific accounts for the major share in the global market, owing to rise in its demand from emerging application sectors including construction, electrical & electronics, and automotive. In the construction sector, the increasing demand for plastic compounds is owing to rise in its use in floorings, insulation materials, storage tanks, performance safety windows, doors, pipes, and cables. Growth in residential and commercial projects in developing economies such as India and China, is boosting infrastructural development. Expansion of automotive and electronic and electrical component manufacturing plants across Asia-Pacific is expected to provide lucrative opportunities in the market.

Global Plastic Compounding Market Size, by Polymer Type

Based on polymer type, the polypropylene (PP) segment holds the major share in the market, as it is widely used in automotive applications. Plastic compounds are light in weight and are replacing metal components in automotive.  to reduce the weight of the automobiles. This results in lower carbon emissions and  increase in fuel efficiency and performance of the vehicles. This factor is expected to increase the use of plastic in automotive applications. In addition, properties such as being light weight, good fatigue resistance, and better chemical and temperature resistance are expected to increase the demand for polypropylene and thus, projected to drive the growth of this market in future.

Global Plastic Compounding Market Size, by End Use

Based on end use, the packaging segment holds the major share in the market, due to increase in demand from consumer goods and food and beverages industry. In addition, rise in demand for ready to eat food, easy convenience, long shelf life, surge in demand for frozen food products, and higher durability while transportation have augmented the growth for plastic compounding industry, which is expected to drive the global market.

Key Benefits for Plastic Compounding Market:

• The plastic compounding market analysis covers in-depth information of major industry participants.
• Plastic compounding market size has been analyzed across all regions.
• Porter’s five forces analysis helps to analyze the potential of buyers & suppliers and the competitive scenario of the industry for strategy building.
• The report outlines the current plastic compounding market trends and future scenario from 2018 to 2026 to understand the prevailing opportunities and potential investment pockets. The forecast period is 2019-2026.
• Major countries in the region have been mapped according to their individual revenue contribution to the regional market.
• The key drivers, restraints, and plastic compounding market growth opportunities and their detailed impact analyses are elucidated in the study.

 Plastic Compounding Market Report Highlights