Global Plastic Compounding Market by Product (PA, PP, PBT, TPV, PC, TPO, PE, PET, PVC, ABS, PS), by Application (Automotive, Optical Media) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Summary of the Report

Global plastic compounding market value was USD 61.4 billion in 2020. It is projected to grow at a compound annual rate (CAGR of 5.5%) over the forecast period. The market is expected to grow due to the increasing use of plastic compounding materials such as glass, metals and wood. Due to its many industrial uses, the demand for plastic is increasing. The complex process of plastic compounding includes many stages. These include determining the additives ratio, high speed mixing via twin-screwextruders, melt mixture, cooling, and finally, pellet cutting and packaging. The polymer additives and fillers used to make the products can have a wide range of uses.

These include anti-oxidants, colorants and blowing agents. Europe is the second largest regional market due to high product demand from the automobile sector. The electrical and electronic sectors are next, as well as the construction and electrical industries. In 2020, Germany was Europe's largest plastic producer. With sufficient plastic production plants and the production capacity to meet local demand, Germany is self-sufficient.

Due to its large production base, the country also supplies Polyethylene Terephthalate and Polyvinyl Chloride to other countries. A significant amount of plastic waste is being recycled in the country into various products such as sheets, films, fibers, and sheets. Germany is a leading country in Europe for plastic industry. It has a unique cluster concept, a network of chemical parks and industrial infrastructure that allows industry players quick access to all parts of the value chain.

Prices for plastics will remain volatile due to future supply and demand fluctuations. The majority of raw materials are made through downstream processes in petrochemicals. Volatility in crude oils prices is due to political instability and supply & demand imbalances. Seasonal variations are also factors. The market is also highly integrated, from raw material procurement to distribution channels. To reduce production costs, major companies have formed supply partnerships. These factors are expected to have a significant impact on the price of plastic compounding.

Bio-based products are in high demand due to depleting crude oil resources and environmental concerns resulting from the use of petrochemicals polymers. The government's restrictions on the consumption polymers derived from petroleum in different industries will encourage bio-based polymers production. Polymers derived through bio-based sources, such as Polylactic Acid (PLA), Polybutylene Succinate (PBS), and Polyhydroxyalkanoate (PHA), show remarkable biodegradability that their petrochemical-derived counterparts lack. These products are used extensively in agricultural and biomedical applications.

The global COVID-19 pandemic, which has impacted the manufacturing industry, has also slowed the growth of global plastic compounding markets.

Product Insights

The market leader was the Polypropylene segment, which accounted for a more than 30% revenue share in 2020. Because of their durability and ease-of-use, PP compounds are a popular choice for automotive applications. Both in terms of domestic production and vehicle sales, the automotive industry has seen a boom due to the economic development in Asia and Latin America. Due to the growing automotive production and the regulatory trends that require manufacturers to reduce vehicle weight and improve fuel economy, plastics in automotive applications will rise significantly over the forecast period.

The material is resistant to fatigue and can withstand high temperatures and chemicals. These characteristics have made PP a very popular material in many different end-use areas. PVC compounds will benefit from rising construction spending in Asia, Latin America, and the Middle East. This is due to the lack of regulation regarding plastics in building materials. This segment will be supported by the recent trend to develop PVC from bio-based sources.

The Dow Chemical's Ecolibrium plasticizer, which was recently introduced by Dow Chemical, will have a positive impact on PVC compound demand over the forecast period. The slowdown or halt of manufacturing activities to control the spread of coronavirus have led to a decrease in PP consumption and negatively impacted its demand for various applications. Due to restrictions on movement and logistical issues, manufacturers are having difficulties running their production units. This is further impacting product demand.

Application Insights

In 2020, the automotive segment had a greater revenue share than 25%. The segment's growth has been driven by the increasing use of plastics instead of metals and other alloys in its automotive components. The recent increase in automobile production has been driven largely by the development of the industry and the manufacturing landscape of emerging markets. China, India and Brazil are the top-growing countries and the main production centers for automobiles.

This trend is expected continue for the next few years and will drive the demand for automotive applications. The COVID-19 pandemic, however, has had a significant impact on the production of automobiles as well as disrupted the entire value chain. The automotive market segment will see a decrease in demand and a slowdown or halting of manufacturing activities. In comparison to Western regions, the Asian markets have had a higher industrial output in recent years.

To capitalize on the growth potential, companies based in western markets are increasing their presence in Asia. The favorable tax environment in Asia, which encourages small-scale enterprise development, and the government-driven tax incentives that foreign corporations receive, is expected to boost sales of industrial machinery. These machineries are manufactured by companies that tend to move their business locally. These factors will likely increase the product consumption in industrial machinery over the forecast period.

Regional Insights

Asia Pacific was the largest regional market in 2020. It accounted for more than 44% of global revenue share. This is due to the region's economic growth and the emergence plastic manufacturers. It will continue to be the region's leading market, with the fastest CAGR between 2021 and 2028. The region's growing manufacturing sector will drive product demand in the automotive and industrial machinery, construction, packaging, electrical & electronic sectors. It is the region's largest consumer and producer of automobiles, consumer products, and packaging materials, which has paved the way to regional market growth.

The majority of producers are involved in at least one segment of the value chain for the plastics industry. APAC is also one the largest producers and consumers of electrical & electronics products. This further fuels regional product demand. Europe will likely remain a saturated market, with some positive aspects in Central and Eastern European countries.

Numerous federal-level agencies and other agencies have established stringent regulations regarding the production and consumption materials. These regulations are expected to help industrial development because they encourage manufacturers to optimize their processes and develop sustainable technologies.

Market Share Insights & Key Companies

Globally, the market is fragmented. Small and medium enterprises (SMEs) hold over 60% of the market. To consolidate their market position, companies are expanding their production capabilities quickly. With the rise of independent compounders, China has seen significant industry capacity expansions. Chinese compounders are not like major end-user corporations such as automobile manufacturers or Original Equipment Manufacturers (OEMs), who have strategic agreements with compounders to expand their capabilities towards compounding. Instead, they cater to large numbers of small and medium enterprises. In April 2020, Covestro donated 30,000 PC (Polycarbonate) films of high quality and ready-to use to Siriraj Piyamaharajkarun Hospital, Thailand. The following are some of the most prominent players in global plastic compounding:

• BASF SE

• LyondellBasell Industries N.V.

• Dow, Inc.

• DuPont

• RTP Company, Inc.

• S&E Specialty Polymers, LLC

• Covestro AG

• Kraton Polymers, Inc.

Up Market Research published a new report titled “Plastic Compounding Market research report which is segmented by Product (PA, PP, PBT, TPV, PC, TPO, PE, PET, PVC, ABS, PS), by Application (Automotive, Optical Media), By Players/Companies Kraton Polymers Inc, Covestro AG, LyondellBasell Industries NV, RTP Company Inc, DuPont, BASF SE, S&E Specialty Polymers LLC, Dow Inc”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

Report Scope

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global Plastic Compounding Market Report Segments:

The market is segmented by Product (PA, PP, PBT, TPV, PC, TPO, PE, PET, PVC, ABS, PS), by Application (Automotive, Optical Media).

Plastic Compounding Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the Plastic Compounding Market

Overview of the regional outlook of the Plastic Compounding Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The Plastic Compounding Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of Plastic Compounding Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. PA

                2. PP

                3. PBT

                4. TPV

                5. PC

                6. TPO

                7. PE

                8. PET

                9. PVC

                10. ABS

                11. PS

                1. Automotive

                2. Optical Media

8. Market scenario by region, sub-region, and country.
9. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
10. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
11. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the Plastic Compounding Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

How you may use our products:

• Correctly Positioning New Products
• Market Entry Strategies
• Business Expansion Strategies
• Consumer Insights
• Understanding Competition Scenario
• Product & Brand Management
• Channel & Customer Management
• Identifying Appropriate Advertising Appeals

Reasons to Purchase the Plastic Compounding Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.