Plastic Compounding Market Is Expected To Grow At A Compound Annual Growth Rate (CAGR) Of 5.5% Over The Forecast Period

 Plastic Compounding Industry Overview

 

The global plastic compounding market size was valued at USD 61.4 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 5.5% over the forecast period.

 

Increasing substitution for glass, metals, wood, natural rubber, and man-made materials, such as concrete, is anticipated to drive the growth. The demand for plastic is rising owing to its various industrial applications due to benefits, such as easy molding and the ability to form the desired shape. Plastic compounding involves an elaborate process with various stages, such as determining additives ratio, high-speed mixing via twin-screw extruders, melt mixing, and cooling, before final pellet cutting and packaging. There is a diverse range of products available, depending on the additives and fillers integrated while processing the polymers.

 

These include antioxidants, processing aids, colorants, wear-resistant, blowing agents, lubricants, fillers and reinforcements, antistatic agents, slip/anti-slip agents, anti-block agents, flame retardants, light stabilizers, impact modifiers, and cross-linking agents. Europe is the second-largest regional market owing to the high product demand from the automotive sector, followed by electrical and electronics, and construction sectors. Germany was the leading plastic producer in Europe in 2020. The country is self-sufficient in plastic production with an adequate number of plants and production capacity required to fulfill the local demand.

 

Gather more insights about the market drivers, restrains and growth of the Global Plastic Compounding Market

 

Moreover, the country supplies Polyethylene Terephthalate (PET), Polyvinyl Chloride (PVC), and other products to neighboring countries due to the large production base. The country is also recycling a significant amount of waste plastic into various products, such as fibers, sheets, and films. Germany is setting the international standards as a key plastic industry located in Europe, with the country’s leading-edge network of chemical parks, industrial infrastructure, and unique cluster concept providing industry players access to all the parts of the plastics industry value chain swiftly.

 

Future supply and demand changes are expected to keep prices of plastics very volatile. Most raw materials are produced through downstream processes of petrochemicals. Volatility in crude oil prices is mainly due to political instability, supply & demand imbalances, and seasonal variations. In addition, the market is highly integrated from raw material procurement to distribution channels. Major companies have established supply partnerships to reduce the overall production costs. Such factors are anticipated to have a major impact on the prices of plastic compounding.

 

The depleting crude oil reserves and environmental concerns due to the usage of petrochemical polymers have propelled the demand for bio-based products. Government restrictions on the consumption of polymers derived from petrochemicals in different end-use industries are expected to further incentivize 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 widely used in biomedical and agricultural applications.

 

Furthermore, the global COVID-19 pandemic has severely affected the manufacturing industries, which, in turn, is anticipated to limit the growth of the global plastic compounding market.

 

Browse through Grand View Research's Plastics, Polymers & Resins Industry Research Reports.

 

• Plastic Market - The global plastic market size was valued at USD 579.7 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 3.4% from 2021 to 2028. Increasing plastic consumption in the construction, automotive, and electrical & electronics industries is projected to support market growth over the forecast period.
• Europe Plastic Compounding Market - The Europe plastic compounding market size was valued at USD 12.5 billion in 2018 and is driven by increasing application in automotive and consumer appliances manufacturing. Polyurethane is most widely used as foam cushioning material in seats and insulation panels in automotive manufacturing.

 

Plastic Compounding Market Segmentation

 

Grand View Research has segmented the global plastic compounding market report on the basis of product, application, and region:

 

• Plastic Compounding Product Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2028)
  • Polyethylene (PE)
  • Polypropylene (PP)
  • Thermoplastic Vulcanizates (TPV)
  • Thermoplastic Polyolefins (TPO)
  • Poly Vinyl Chloride (PVC)
  • Polystyrene (PS)
  • Polyethylene Terephthalate (PET)
  • Polybutylene Terephthalate (PBT)
  • Polyamide
  • Polycarbonate
  • Acrylonitrile Butadiene Styrene (ABS)
  • Others
• Plastic Compounding Application Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2028)
  • Automotive
  • Building & Construction
  • Electrical & Electronics
  • Packaging
  • Consumer Goods
  • Industrial Machinery
  • Medical Devices
  • Optical Media
  • Others
• Plastic Compounding Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2028)
  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa (MEA)

 

Market Share Insights

• April 2020: Covestro donated 30,000 pieces of high-quality and ready-to-use Polycarbonate (PC) films for making high-quality face shields to Siriraj Piyamaharajkarun Hospital in Thailand. 
• May 2019 – BASF has increased the production capacity of its plastic compounding plant in Altamira, Mexico. With the increase in production capacity by 15 KT per annum, the company will provide engineering plastics product line including, Ultradur (PBT: polybutylene terephthalate), and Ultramid (PA: polyamide).
• January 2019 – Celanese Corporation announced the acquisition of Next Polymers Ltd., one of India’s leading thermoplastics compounder.

 

Key Companies profiled:

 

Some prominent players in the global plastic compounding market include:

• BASF SE
• LyondellBasell Industries N.V.
• Dow, Inc.
• DuPont
• RTP Company, Inc.
• S&E Specialty Polymers, LLC
• Covestro AG
• Kraton Polymers, Inc.

 

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