Published Date : 16 May 2023
The global plastic compounding market revenue is propelling at USD 68.87 billion in 2023 and is expected to touch around USD 116.55 billion by 2032, poised to grow at a projected CAGR of 5.7% throughout the projection period 2023 to 2032.
The market for plastic compounding is expanding due to rising consumption from upstream industries including construction, automotive, electronics, and packaging.
The process of compounding plastic involves melting polymers and mixing them with certain additives to modify the material's thermal, physical, aesthetic, and electrical properties.
Compounding plastics is a complex process with several steps. Before final pellet cutting and packing, these processes could involve calculating the additives ratio, high-speed mixing using twin-screw extruders, melt mixing, and cooling. You can utilize a variety of materials. Compounds made of plastic have greater levels of physical characteristics like conductivity, a wide range of flame retardancy, lightweight, and wear resistance. These qualities improve their demand in a variety of industries, including construction, packaging, electrical & electronics, automotive, and architecture, and as a result, the global plastic compounding market is growing.
Due to the disparate expansion across materials and formats, which is considerably fueling the fundamental developments in the packaging sector, the use of plastic compounding technology is anticipated to increase dramatically. These differences are a byproduct of shifting customer habits and market-based product innovation. Also, throughout the forecast period, the use of plastic compounding machinery in these sectors is anticipated to increase due to the growing emphasis on packaging and the usage of packaging materials across end-user industries.
Also, more than 40% of the world's total plastic consumption is accounted for by the packaging industry, which is the largest end-user category for plastic products. Also, customers have shown a growing preference for packaging made of plastic since it is lighter and more comfortable to hold.
Plastic Compounding Market Report Scope:
|Market Revenue in 2023||USD 68.87 Billion|
|Projected Forecast Revenue in 2032||USD 116.55 Billion|
|Growth Rate from 2023 to 2032||CAGR of 5.7%|
|Largest Market||Asia Pacific|
|Forecast Period||2023 to 2032|
|Regions Covered||North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa|
In terms of revenue created by the plastic compounding industry, Asia Pacific was the target market's leader. The economies of Asia and the Pacific area collectively had the highest regional plastic compounding market size internationally due to an increase in sales of plastic molding compound by their quickly growing industries. The growth of residential and commercial construction projects in rapidly industrializing countries like China and India is positively boosting the Asia Pacific plastic compounding industry.
In the global market for plastic compounding, North America accounted for the second-largest market share. The construction industry is expected to have substantial growth in both the United States and Canada over the course of the forecasted period, which will increase the use of plastic compounding. The infrastructure sector is anticipated to benefit from government rules intended to help the housing industry recover. Throughout the projection period, the US plastic compounding industry is expected to prosper alongside reconstruction efforts in the US and nearby countries.
Due to rising consumer spending in the consumer goods, medical, automotive and construction industries as well as the efficient chemical and physical advantages of thermoplastic elastomers in structural applications, the European plastic compounding market is anticipated to expand over the course of the forecast period.
Market Drivers: Wide application needs that would be essential for boosting demand
The expanding market for biopolymers, innovative retail goods packaging techniques, and applications for 3D printing or manufacturing processes are just a few of the contemporary developments that are anticipated to drive the plastic compounding industry. PVC plastisol compound will experience an increase in demand from the worldwide plastic compounding industry for a range of applications, including car interiors, retail goods wrapping, pouches, geotextiles, and containers, including bottles.
As plastic replaces other materials like natural rubber, wood, metal, glass, and concrete more and more, the plastic compounding sector is expected to grow. The economic growth in low-income and emerging countries has led to a rise in local manufacturing and car sales. The end-user sectors that are anticipated to considerably enhance the global plastic compounding market trends include luxury goods, consumer electrical & electronics equipment, car components, aerospace, and construction.
Market Restraints: High cost of raw materials and Covid-19 impacted the market
Due to shifting petrochemical pricing and the great modifiability of their bio-based rivals, the variable raw material prices impede the growth of the worldwide market for plastics compounding. The worldwide market for compounding plastics was also hit by the COVID-19-related economic slump. The pandemic had an impact on the price of raw materials, manufacturing industry output, demand, and supply. The price of crude oil saw a huge decline as a result of the travel restrictions.
Market Opportunities: Green plastics will fuel the demand for bio-based plastic compounding market
There are high-performance bio-plastic grades available on the market. To improve compatibility and solve environmental concerns with polymers, major market participants including NEC Corporation, Clariant International, AMI LLC, and RTP Company have invested in the bio-plastics industry.
Licocare RBW Vita range, Licolub FA 1, and Licowax C are only a few of the bio-based processing and dispersion additives for biopolymers that Clariant International has created.
As a result, producers are being prompted by a rise in consumer demand for eco-friendly plastics to look for sources that have a comparatively less carbon footprint. During the following several years, it is projected that this will further fuel demand for bio-based plastic molecules.
In 2022, the polypropylene (PP) sector will hold the majority of the market share due to its widespread application in automotive operations. Since they are lightweight, plastic composites are replacing metal components in automobiles. Its characteristics are comparable in that it has superior temperature and chemical resistance, is lightweight, and has good fatigue resistance. The usage of plastic in automotive operations is predicted to expand as a result of this issue. And it is projected that this would enhance demand for polypropylene, which will likely fuel this market's future expansion.
With a revenue share in 2022, the automotive sector controlled the market. In the past, the construction industry has been a major user of plastics for a variety of purposes, including insulation, pipe fittings, masonry tools, and materials. The building industry frequently uses polystyrene and polypropylene compounding because of its attributes including affordability, inherent strength, and stress-free recyclability. Building designers, contractors, and service consultants are always looking for methods to improve energy efficiency. Generally, plastic compounding is becoming more popular since it is necessary for more energy-efficient buildings and because energy prices are rising quickly.
Major Key Players:
Segments Covered in the Report:
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