Special Effect Masterbatches Market Size Expected to Reach $5.3 Billion by 2030

According to a new report published by Allied Market Research, titled, "Special Effect Masterbatches by Effect Type and Application: Global Opportunity Analysis and Industry Forecast, 2020-2030," The global special effect masterbatches market size was valued at $2.9 billion in 2020, and is projected to reach $5.3 billion by 2030, registering a CAGR of 6.2% from 2021 to 2030.

Packaging that comes in contact with food must conform to all the national and international standards. This can be achieved through a broad range of color and additive products, which are sustainable and functional in usage, and at the same time attract the end users to buy the products. Special effects masterbatches can be found in food-related products, such as pre-packaged produce bags, frozen food packaging, snack & chip bags, and meat wraps. Polyethylene is a crucial carrier resin used in the color masterbatches manufacturing process. Polyethylene-related products are commonly used in a wide range of end-use applications, including general plastic films, packaging bags, medical packaging, greenhouse & tunnel films, mulch films, and pipes.

The global plastic packaging market is finding ample opportunities in consumption and development rates within emerging economies across the world. This is especially apparent in East Asia & South Asia where the end-user industries of the global plastic packaging market have taken off at very fast rates because of the increase in consumption of packaged foods. High consumption of special effect masterbatches in the packaging industry is expected to further boost the special effect masterbatches growth throughout the forecast period.    

The special effect masterbatches market is driven by increase in usage by polymer manufacturers in their compounding procedures and expanding the use of special effect masterbatches as a substitute for compounds into engineering polymer markets. There is an increase in the demand for special effect masterbatches because of higher consumption of special effects and colors to distinguish products across different end use applications such as electronic appliances, automotive, packaging, textiles, food & beverages, medicine packaging, and others.

Fluctuation in petrochemical prices, high costs of virgin polymers used while manufacturing or processing engineering plastics, and increase in challenge of finding the right supplier are the key factors expected to restrain the growth of the special effect masterbatches market throughout the forecast period.

On the basis of effects type, the special effect masterbatches market is segmented into appearance effects, material effects and functional effects. The applications covered in the study include packaging, hygiene & baby product, automotive, homecare & household products, consumer appliances, sports & leisure, and other applications. Region-wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA. Presently, Asia-Pacific accounts for the largest share of the market, followed by Europe and North America.

The major companies profiled in this report include Gabriel-chemie AG, Clariant Ag, PolyIOne, RTP, Dk Polymers, Ampacet Corporation, Kandui Industries Pvt Ltd., Minocha Enterprises Pvt. Ltd., Broadway Colours, Frilvam S.P.A. and Micro Poly Colours India. Leading players in the food & beverage industry in North America are focusing on advanced and innovative product packaging by high-end usage of numerous custom colored masterbatches to gain consumer attention for their products. In addition, there is an increase in demand for special effects masterbatches in food packaging in the region with the advent of new packaging technologies such as UV resistant, antioxidant, antimicrobial, and attractive.

Impact Of Covid-19 On The Global Special Effect Masterbatches Market

• Emergence of COVID-19 had a negative impact on the growth of the global special effect masterbatches market during the pandemic period.
• Several steps taken by governments across the globe to curb the spread of the virus through nationwide lockdown. This decision has hampered the production across different industry verticals due to lack of raw material supply & transportation, low presence of labor, and decrease in demand for the use of special effect masterbatches.
• In addition, decline in the growth of several end use applications such as automotive, packaging, and food & beverage industry during the pandemic period has also limited the growth of the special effect masterbatches market during the pandemic period.
• Also, use of special effect masterbatches in the manufacturing of medical packaging and production of medical equipment have provided limited support toward the growth of the special effect masterbatches market during the pandemic period.
• However, the special effect masterbatches market experienced negative growth during the pandemic period.

Key findings of the study

• Region-wise, Asia-Pacific is projected to witness growth at the highest CAGR in terms of revenue during the forecast period.
• As per the special effect masterbatches market analysis, by effect type, the appearance effect segment accounted for the largest share in 2020.
• On the basis of application, the packaging segment was the major share contributor in 2020.