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 polymers, including antioxidants, manufacturing aids, dyes, wear-resistant, blowing agents, lubricants, fillers and reinforcements, antistatic agents, slip / anti-slip 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.
Key Segments of the Global Plastic Compounding Market
Product Overview, 2015-2025 (USD Million) (Kilo Tons)
Application Overview, 2015-2025 (USD Million) (Kilo Tons)
- Electrical and Electronics
Regional Overview, 2015-2025 (USD Million) (Kilo Tons)
- North America
- United Kingdom
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Latin America
- Rest of Latin America
- Middle East & Africa
Reasons for the study
- Key factors affecting market dynamics
- Rising demand for plastic compounding, majorly in the industrial sector
- Environmental regulations against the use of plastic compounding
- High R&D costs associated with developing bioplastics is a major restraint for the plastic compounding market
What does the report include?
- The study on the global plastic compounding market includes qualitative insights such as drivers, restraints, challenges and opportunities
- Additionally, the market has been evaluated using the Porter’s Five Forces analysis
- The study covers qualitative and quantitative analysis of the market segmented on the basis of product, application. Moreover, the study on plastic compounding market provides similar information for the key geographies.
- Actual market sizes and forecasts have been provided for all the above-mentioned segments
- The study includes the profiles of key players operating in the market with a significant global and/or regional presence
Who should buy this report?
- The report on the global plastic compounding market is suitable for all the players across the value chain including raw material suppliers, distributors, suppliers and end-use industries
- Venture capitalists and investors looking for more information on the future outlook of the global plastic compounding market
- Consultants, analysts, researchers, and academicians looking for insights shaping the global plastic compounding market
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.
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.