The global Plastic Compounding market is expected to develop usd 112.08 billion by 2030, at a compound annual increase in price (CAGR) of 7.4% throughout the forecast period.
.jpg "The Global Plastic Compounding Market 2020-2030 (USD Billion)")
The global plastic compounding market surpassed USD 43.70 billion in 2019 and is expected to grow with a CAGR of 6.5% from 2019 to 2025. Prevalent use of plastic compounding owing to its increased usage in various industrial applications are contributing factors driving the global plastic compounding market.
Plastic compounding requires a complicated procedure of various phases, such as calculation of the ratio of additives, high-speed mixing by twin-screw extruders, melting and cooling, before final pellet cutting and packing. A wide range of products is available, based on the additives and fillers added during the manufacturing of polymer, including plastic antioxidants, manufacturing aids, dyes, wear-resistant, blowing agents, lubricants, fillers and reinforcements, antistatic agents, slip / anti-slip additives agents, anti-blocking agents, flame retardants, light stabilizers, impact inhibitors, and cross-linking agents.
Plastic compounding is a manufacturing procedure that requires the mixing of plastics with other additives to change their chemical, physical, visual and electrical characteristics. The compounding of plastics transforms the base resin to the desired plastic shape, which is more functional, efficient and uniform. The use of additives, agents and special chemical materials, such as an anti-abrasion additive and some others, depending on the field of use, leads greatly to increasing the efficiency of the substance in compliance with its composition.
Continuous advances in fuel commodity and demand in end-user sectors such as automobile, aerospace, manufacturing, construction, electrical and electronics. For eg, in January 2016, Archer Daniels Midland (ADM) and DuPont Industrial Biosciences announced the method for developing furan dicarboxylic methyl ester (FDME) from fructose derived from corn starch. Bio-based FDME can substitute petroleum-based products in many high-performance, recycled product applications in sectors such as the packaging and textile sectors.
Bioplastics is a revolutionary and evolving industry market, marked by new partnerships and synergies between the biotechnological, pharmaceutical, automotive and agricultural industries. Such modern materials include cellulose, starch and other products derived from microbial fermentation processes. Bioplastics have potential growth prospects in the end-user market, such as food & beverage processing, agriculture, and pharmaceuticals. Long-term sustainability has always been a priority for industry players, so turning to bio-based plastic compounding has certainly opened up new growth opportunities for the parent market.
Plastic Compounding Market Scope
| Metrics | Details |
| Base Year | 2023 |
| Historic Data | 2018-2022 |
| Forecast Period | 2024-2030 |
| Study Period | 2018-2030 |
| Forecast Unit | Value (USD) |
| Revenue forecast in 2030 | usd 112.08 billion |
| Growth Rate | CAGR of 7.4 % during 2020-2030 |
| Segment Covered | Product, By Application, By Material Type, By End User, Regions |
| Regions Covered | North America, Europe, Asia Pacific, South America, Middle East and Africa |
| Key Players Profiled | RTP Company, S&E Specialty Polymers, LLC (Aurora Plastics), Asahi Kasei Corporation, Covestro AG, Washington Penn, Eurostar Engineering Plastics (EEP), KURARAY CO., LTD., TEIJIN LIMITED |
Key Segment Of The Plastic Compounding Market
Product (USD Billion)
• 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
Application, (USD Billion)
• Automotive
• Building & Construction
• Electrical & Electronics
• Packaging
• Consumer Goods
• Industrial Machinery
• Medical Devices
• Optical Media
• Others
Regional Overview, (USD Billion)
North America
• US
• Canada
Europe
• Germany
• France
• UK
• Rest of Europe
Asia Pacific
• China
• India
• Japan
• Rest of Asia Pacific
South America
• Mexico
• Brazil
• Rest of South America
Middle East and South Africa
Frequently Asked Questions (FAQ) :
the plastic compounding market is growing at a CAGR of 7.4 % during the forecast period.
The Global plastic compounding Market is Segmented on the basis of Application,Product,Regions.
North America dominated the market for plastic compounding market and accounted for the largest revenue share
Increased product penetration is due to its numerous and varied uses in the automobile, electrical and electronics and construction industries. The incorporation of composite plastics in the building field, especially in the production of safety walls, insulation materials, flooring, doors, storage tanks, pipes, and cables, would have an optimistic outlook for the scale of the industry. The increasing importance of bioplastics with an enhanced surface finish for vehicle interior and exterior applications would further increase market share.
The plastic compounding market is regulated by environmental agencies and international organizations that constantly develop and update recycling norms, application scope & utilization quantity along with environmental policies. Non-biodegradability and carcinogenic nature of certain products have been under continuous evaluation from regulatory bodies. This factor is anticipated to restrict industry expansion over the forecast timeframe.
Growing residential and industrial developments in developed countries, combined with increasing economic conditions, have a positive effect on product acceptance over the forecast period. In addition, increasing customer perception of beautiful interiors is increasing the market for interior design for such fabrics. Escalating building spending is expected to fuel the demand for plastic compounding during the forecast period. For instance, the US construction spending increased dramatically from USD 800 billion in 2012 to USD 1.100 billion in 2016.
Segmentation of the global plastic compounding includes product, application and region. On the basis of product segment, polypropylene held a major share of 32.2% of the total market share of the market in 2018. The polypropylene is used mainly in automotive applications due to high impact resistance and serviceability. The growth in Asian and Latin America economies have powered demand in the automotive industry, in both purchases as well as domestic production.
Considering the ever-increasing production of cars, along with regulatory changes forcing manufacturers to reduce vehicle weight and improve fuel efficiency; the use of plastics in automotive applications will increase significantly over the forecast period. This has a good fatigue resistance and a low chemical and temperature resistance. These factors have made PP popular for numerous applications in both developed and emerging economies.
By application, the automotive sector is expected to lead the product category over the forecast period. Increased incorporation of plastics as opposed to metals and alloys into automotive parts was a crucial factor in the development of the market. In recent years, there has been a substantial rise in automobile demand, primarily led by the development of the industry and the industrial environment of emerging markets. China, India, and Brazil are the fastest-growing economies and are also the main automotive manufacturing hubs. This pattern is expected to persist in the future, thereby boosting demand for compound plastics.
The global plastic compounding market is increasing its demand in the regions North America, Europe, Asia Pacific, Latin America and the Middle East & Africa. However, Asia Pacific is expected to witness the highest growth in the plastic compounding market during the forecast period.
.png "Global Plastic Compounding Market Share by Region (2019)")
Asia Pacific (APAC) emerged as the biggest country favored by the global climate and the rise of plastic producers in 2018. The rising manufacturing sector is led by demand from the automobile, heavy machinery, transportation, packaging and electrical and electronics industries in the area. It is the largest producer and buyer of vehicles, consumer goods and packaging materials that paved the way for regional business development. Some manufacturers are interested in roughly one of the divisions of the supply chain of the plastics industry. APAC is also one of the major buyers and suppliers of electrical and electronic goods, such as appliances and cables, among others, which further drive global demand.
Growing construction investment in Asia, the Middle East, and Latin America are expected to provide growth opportunities for PVC compounds in view of relatively weak regulatory action in the presence of plastics in building materials. Recent developments in the production of PVC from bio-based products, such as the newly launched Dow Chemical Ecolibrium plasticizer, have had a favorable effect on the growth of PVC compounds over the projected timeframe.