Plastic Compounding Market (By Application: Electronics& Electrical, Automotive, Packaging, Building & Construction, Industrial Machinery, Optical Media, Consumer Goods, Medical Devices; By Product: TPO, PVC, PP, Polyethylene, TPV, Polystyrene, PBT, Polycarbonate, ABS, PET, Polyamide; By Source: Fossil-based, Bio-based, Recycled) - Global Market Size, Trends Analysis, Segment Forecasts, Regional Outlook 2023 - 2032

The global plastic compounding market size estimated for USD 65.26 billion in 2022 and it is expected to hit around USD 116.55 billion by 2032, expanding growth at a CAGR of 5.7% from 2023 to 2032.

Plastic Compounding Market Size 2023 to 2032

Ket Takeaway

  • The thermoplastic polymers segment is growing at a CAGR of 4.9% over the forecast period.
  • The consumer goods segment will account 26% revenue share by 2030. 
  • Asia Pacific region is expected to grow at a CAGR of around 6.4% CAGR from 2022 to 2030.
  • The Europe market accounted 22.6% revenue share in 2021.

Growth Factors

Plastic compounding is a process of transubstantiating the characteristics of introductory plastics and thermoplastics using an admixture of plastics and complements. Plastic compounds have higher physical properties such as conductivity, wide range of flame retardancy, are light weight and wear resistance. These properties increase their demand in various buildings, automotive, and construction, packaging and electrical & electronics and therefore boosting the growth of the global plastic compounding market.

Rising consumption from downstream sectors including construction, automotive, electronic, electrical and packaging are flourishing the growth of plastic compounding market. The demand for plastic is constantly growing inseveral industrial applications as it offers many advantages such as easy molding and ability to form preferred shape.Further, spurring use in the infrastructure area is one of the prominent influencing factors for the growth of plastic compounding market globally.

Environmental concerns and diminishing crude oil reserves due to practice of petrochemical polymers have triggered the requirement of bio-based products. Government limitations on consumption of polymers extracted from petrochemicals in many end use industries is anticipated to incentivize production of bio-based polymers. Bioplastic resin suppliers are increasing the raw material supply in anticipation of strong demand. Plastic additive producers are escalating capability to cater the rising demands of global plastic compounding markets.

Future of Plastic compounding Market

Increase in disposable income of individualities and rapid industrialization across the arising economies similar as China and India, have fueled the demand for vehicles. Growth in increase in demand for electric vehicles and light weight vehicles production are some of the major drivers of this market. Asia-Pacific is the leading manufacturer of electronic and electrical bias. Over the once many times, there has been a surge in demand for electrical and electronic bias across the region due to advancements in technology and R&D in the electrical & electronic market. Numerous leading electronic element manufacturers have set their shops in India, China, Indonesia, and South Korea. This is anticipated to drive the growth of the plastic compounding market.

COVID-19 Impact Analysis:

  • The outbreak of Covid-19 has affected the prices of raw material of plastic compounding. Furthermore, crude oil prices slummed due to the global pandemic recently. 
  • Slowdowns or pause in production in the industries of manufacturing & a decline in demand, and further limitation in supply & travel are resulting in the drop of crude oil prices. 
  • Therefore, the providers of raw material who can store crude oil in the present situation are likely generating a substantial profit margin.

Application Insights

The automotive segment dominated the market with a revenue share of 25.8% in 2022.

Conventionally, construction sector has been a chief consumer of plastics for multiple applications including insulation, pipe fittings, masonry equipment and materials. Plastic compounds can bereformed as per their necessities. For example, flame retardant additives are mixed to polyvinyl chloride compounds in order to form a very vital facet of building materials. Polyurethane compounding is employed in order to achieve insulation function for buildings. The polystyrene and polypropylene compounding are commonly utilized in the construction sector as it has features such as economical nature, inherent strength and stress-free recyclability. The architects, builders, and service consultants are continuously seeking ways to augment energy efficiency in buildings. Overall, plastic compounding is gaining acceptance due to prerequisite for enhanced energy efficient buildings and rushing energy prices.

Product Insights

Polypropylene (PP) segment holds the major share 33% in 2022, as it's extensively used in automotive operations. Plastic composites are light in weight and are replacing metal factors in automotive. To reduce the weight of the vehicles. These results in lower carbon emigrations and increase in energy effectiveness and performance of the vehicles. This factor is anticipated to increase the use of plastic in automotive operations. In addition, properties similar as good fatigue resistance, being light weight, and better temperature & chemical resistance are anticipated to increase the demand for polypropylene and therefore, likely to drive the growth of this market in future.

Polypropylene is an outstanding packaging material as it provides lightweight and economical packaging. Additionally, polypropylene packaging can endure an extensive temperature range from microwave to freezing temperature. Both, polystyrene and polypropylene compounding can be employed for packaging. This fact supports the growth of polypropylene compounding segments growth in the market.

Regional Insights

Asia Pacific accounted largest revenue share of 45% in 2022, owing to rise in its demand from arising operation sectors including construction, electrical & electronics, and automotive. In the construction sector, the adding demand for plastic composites is owing to rise in its use in floorings, sequestration accoutrements, storehouse tanks, performance safety windows, doors, pipes, and lines. Growth in domestic and marketable systems in developing economies similar as India and China, is boosting infrastructural development. Expansion of automotive and electronic and electrical element manufacturing shops across Asia-Pacific is anticipated to give economic openings in the market.

Asia Pacific appeared as the prime market for plastic compounding products on account of cost-effective environment and the advent of plastic manufacturers in the region. Asia Pacific is the leading producer of electrical and electronic devices. Since last couple of years, there has been tremendous escalation in demand for electrical and electronic devices in this region on account of technological enhancements and improved R&D in the electronic and electrical sector. Numerous prominent electronic component industrialists have set up facilities in Indonesia,India, South Korea and China. This is indirectly projected to spur the sale of plastic compounding in this region.

Escalating industrialization and augmented in disposable income across the emergent nations like India and China have triggered the need for automobiles. Stimulating production of light weight vehicles and upsurge in demand for electric vehicles are few other influencers of the growth of the market. Europe has also appeared as rapidly growing market for plastic compounding. Germany, France, Russia and UK, are the some of the key revenue generating markets in this region.

Global Plastic Compounding Market 2020 to 2027

Key Companies & Market Share Insights

Backward integration is one of the foremost industry-wide drifts in the compounding business that is also happening in other facets of the plastics sector. By backward integration, a manufacturer can moderate the amount of operations in the production chain. Large processors like the notion of straight in-line compounding in their plants, wherein they purchase neat resin, put it straight into the compounding system, and then right away transfer the compounded resin to its processing or extrusion machinery.

Forthcoming demand and supply variations are also anticipated to retain prices of plastics very unstable. Most raw materials are created via downstream processes of petrochemicals. Instability in price crude oil caused due to demand and supply discrepancies, and seasonal deviations and political instability. Furthermore, the global market is extremely integrated from raw material procurement to distribution channels. Chief corporations have recognized supply agreement to cut overall cost of production. Such influences are anticipated to have great effect on plastic compounding prices.

The foremost key companies functioning in the global plastic compounding market are BASF SE, Kingfa Sci. and Tech. Co., Ltd., Asahi Kasei Corporation, Covestro AG, LyondellBasell Industries Holdings B.V., Celanese Corporation, Polyone Corporation, DowDuPont Inc., SABIC, and Solvay SA. These chief manufacturers are implementing multiple approaches like business development, acquisition and partnership to remain strong in the worldwide market competition. Some of the other market participants contributing the market growth include, Adell Plastics, Inc, Sojitz Corporation, Polyvisions Inc., Mexichem Specialty Compounds Inc., and Coperion GmbH. Some of the significant players in the plastic compounding market include:

  • BASF SE,
  • Asahi Kasei Plastics
  • The Dow Chemical Company
  • LyondellBasell Industries N.V.
  • Covestro (Bayer Material Science)

Key Developments in the Marketplace:

  • In January 2021, a key player named Celanese Corporation, which is a worldwide chemical and specialty materials firm, declared a rise in price in the whole plastics engineering category, citing increases in energy, transportation, and raw material prices as well as surged demand for its goods. In resultant, the company’s polyamides and PET costs are expected to climb per kg. 
  • In May 2019, a key player named the capacity of the plastic compounding plant based in Altamira was increased by BASF. The company further provided plastics engineering product line among which the capacity of production was increased by 15 KT per year including Ultramid and Ultradur. Therefore, this expansion surged the demand for engineering plastics in the Mexico.

Report Scope of the Plastic Compounding Market

Report Highlights Details
Market Size USD 116.55 Billion by 2032
Growth Rate CAGR of 5.7% from 2023 to 2032
Largest Market Asia Pacific
Fastest Growing Market North America
Base Year 2022
Forecast Period 2023 to 2032
Segments Covered Product, Application, Region
Companies Mentioned BASF SE, Kingfa Sci. and Tech. Co., Ltd., Asahi Kasei Corporation, Covestro AG, LyondellBasell Industries Holdings B.V., Celanese Corporation, Polyone Corporation, DowDuPont Inc., SABIC, and Solvay SA


Segments Covered in the Report

This research report estimates revenue growth at global, regional, and country levels and offers an analysis of present industry trends in every sub-segment from 2020 to 2032. This research study analyzes market thoroughly by classifying global plastic compounding market report on the basis of multiple factors including application, product and region as follows:

By Application

  • Electronics & Electrical
  • Automotive
  • Packaging
  • Building & Construction
  • Industrial Machinery
  • Optical Media
  • Consumer Goods
  • Medical Devices
  • Others

By Product

  • Thermoplastic Polyolefins (TPO)
  • Poly Vinyl Chloride (PVC)
  • Polypropylene (PP)
  • Polyethylene
  • Thermoplastic Vulcanizates (TPV)
  • Polystyrene
  • Polybutylene Terephthalate (PBT)
  • Polycarbonate
  • Acrylonitrile Butadiene Styrene (ABS)
  • Polyethylene (PET)
  • Polyamide
    • PA 6
    • PA 66
    • PA 46
  • Others

By Source

  • Fossil-based
  • Bio-based
  • Recycled

By Regional Outlook

  • North America
    • U.S.
    • Canada
  • Europe
    • U.K.
    • France
    • Germany
    • Italy
  • Asia Pacific
    • China
    • Japan
    • India
  • Latin America
  • Middle East & Africa
    • Saudi Arabia
    • South Africa

Frequently Asked Questions

What is the current size of plastic compounding market?
The global plastic compounding market size was estimated at USD 65.26 billion in 2022 and is anticipated to reach around USD 116.55 billion by 2032.
Which factors are flourishing the growth of plastic compounding market?
Rising consumption from downstream sectors including construction, automotive, electronic, electrical and packaging are flourishing the growth of plastic compounding market.
Why plastic compounding?
Plastic compounding involves blending of plastics with additives in the molten phase. In this process of compounding characteristics and properties are altered to match the specification of particular application.
What will be the CAGR of plastic compounding market?
The global plastic compounding market is growing at a CAGR of around 5.7% from 2023 to 2032.
What was the revenue of packaging application in plastic compounding market?
Packaging captured the largest market by application with a contribution with around 36% revenue share of the total market in 2022.
Which key companies functioning in the global plastic compounding market?
The foremost key companies functioning in the global plastic compounding market are BASF SE, Kingfa Sci. and Tech. Co., Ltd., Asahi Kasei Corporation, Covestro AG, LyondellBasell Industries Holdings B.V., Celanese Corporation, Polyone Corporation, DowDuPont Inc., SABIC, and Solvay SA.
  • Report Code:1015
  • Category:Chemical and Material
  • No. of Pages:150+
  • Format:PDF/PPT/Excel
  • Published:August 2022


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