Plastic Additives Market Expected to Reach $83.8 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Plastic Additives Market," The plastic additives market was valued at $50.6 billion in 2021, and is estimated to reach $83.8 billion by 2031, growing at a CAGR of 5.3% from 2022 to 2031.

The compounds that are introduced to the polymer during the reaction or chemical process are known as plastic additives. These additives aid in the improvement of polymer properties, such as strength, luster, durability, and heat sensitivity. Due to a decline in mineral ore resources, metal equipment has become more expensive, prompting the use of plastics to replace it. The market for additives is being pushed by the low cost of plastic equipment and similar chemical properties of metal. Plastic additives are used to improve the properties of plastics so that desired plastic products can be made. Manufacturers of additives are mostly focused on specialty chemicals used in construction and automobile equipment.

Increase in industrial output and increase in economic activity in emerging economies of Asia-Pacific and South America are expected to drive the global plastic additives market during the forecast period. Due to negative impacts on human health and the environment, regulatory authorities such as the European Commission revised statutes such as the Restriction of Hazardous Substances to regulate and restrict flame retardants, plasticizers, and other additives. Replacement of conventional materials by plastics in several applications, increase in disposable income, and rapid urbanization are all factors that drive the growth of the market.

Furthermore, the rise in expense of natural metal ore shifts the trend away from metal and toward plastics. Plasticizers, with their flexible qualities, provide an ideal platform for the plastic industry in such instances. In addition, rising awareness for the conservation of limited resources & other environmental factors such as forest protection has reduced and replaced wooden products with plastic products. This rise in usage of plastic products has risen the demand for plastic additives, which are used in the manufacturing of end-user plastic products.

The plastic additives market is segmented into type, plastic type, application, and region. Depending on type, the market is categorized into plasticizers, flame retardants, impact modifiers, lubricants, antioxidants, antimicrobials, UV stabilizers, and others. Depending on plastic type, it is fragmented into commodity plastic, engineering plastic and high-performance plastics. As per application, it is classified into packaging, automotive, agriculture, building & construction, consumer goods, electrical & electronics, and others. Region-wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

The global plastic additives market analysis covers in-depth information about the major industry participants. The key players operating and profiled in the report include Albemarle Corporation, BASF SE, Clariant Ltd, Dow chemical co., Evonik Industries AG, Exxon Mobil Corporation, Kaneka Corporation, Lanxess, Nouryon, and Songwon Industrial Co., Ltd. These players have adopted product launch, acquisition, and business expansion as their key strategies to increase their market shares.

The global plastic additives market is analyzed in accordance with the impacts of drivers, restraints, and opportunities. The period studied in this report is 2020–2030. The report includes the study of the market with respect to the growth prospects and restraints based on the regional analysis. The study includes Porter’s five forces analysis of the industry to determine the impact of suppliers, competitors, new entrants, substitutes, and buyers on the market growth.

Key Findings Of The Study:

• On the basis of type, the plasticizers segment emerged as the global leader with around 28.7% of the global market share in 2021, and is anticipated to be the largest markets during the forecast period.
• Depending on plastic type, the high-performance plastics segment registered the highest market share of around 65%, and is projected to maintain the same during the forecast period.
• As per application, the building & construction segment registered the highest market share of around 30%, and is projected to maintain the same during the forecast period.
• Region wise, Asia-Pacific registered the highest market share of more than 50%, and is projected to maintain the same during the forecast period.

IMPACT OF COVID-19 ON PLASTIC ADDITIVES MARKET

• The demand for end-products such as automotive components, plastic construction materials such as pipes & fittings, and consumer goods has declined. However, industrial operations and construction activities are reviving gradually and projected to generate more demand for plastic additives for their end-products during the forecast period.
• On the other side, the increase in the demand for PPE kits manufactured from medical grade plastic to compact the spread of COVID 19 is anticipated to serve as an opportunity for the market to regain its previous momentum.
• The health and safety of workers is a growing concern for the government. Governments from different nations have developed a variety of safety standards to prevent accidents and uncertainty in the industrial sector. End-use industries are required by a number of laws and government guidelines to provide workers with protective gear in particular work environments. Wearing protective gear is required for employees in a variety of professions, including manufacturing, construction, and oil & gas. For instance, according to the 2010 memorandum of the U.S. Occupational Safety and Health Administration (OSHA), it is mandatory for workers in the oil & gas industry to wear heat- and flame-resistant clothing. Therefore, all these factors boost the growth of plastic additives market.
• R&D efforts to enable the use of sterilized additives with antiviral characteristics for polymers have gained momentum as a result of the COVID-19 pandemic. For instance, Sanitized AG, an antimicrobial product manufacturer with headquarters in Switzerland, claims that a number of its product lines are effective against the virus on non-porous surfaces. These products' efficacy was verified by testing done independently in accordance with ISO 21702:2019. These additives are claimed to be effective for polymers employed in health care, food & beverages, transportation, and other essential applications.