The global plastic additives market is expected to record a positive CAGR of over 6% during the forecast period (2022-2030) and is expected to reach approximately US$ 80 billion by 2030.
Several industrial applications utilize different types of plastic additives such as stabilizers, processing aids, modifiers, flame retardants, and plasticizers. One of the key reasons for the high adoption of plastic additives is strict rules being introduced by the European Commission to control and regulate the use of chemicals and materials like plastics, due to their negative effects on the environment and human health. Additives modify the substance's characteristics to introduce new features to plastic material. These aid in improving the cleanliness or safety of plastics, therefore, supporting the agenda.
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Key Growth Drivers
Numerous industries, including construction, consumer goods, packaging, and automotive, have started to increasingly adopt plastic additives. A turnaround in these important market categories and the rising demand for additives in polymers for applications in these segments are predicted to have a significant role in driving growth in the market size for plastic additives.
- According to the ODI organization, the automobile sector will consume 76 million tons (Mt) of plastics by 2050, nearly three times as much as it did in 2015 (27 Mt). This in turn is expected to impact the adoption of plastic additives in the automotive industry.
- According to UN research, around 55% of the world's population already lives in urban areas in 2022 and is projected to rise to 68% by 2050. Urban population expansion increases demand for the automobile and transportation industries, which in turn raises the demand for plastic materials.
- In August 2022, at K 2022, Clariant proposed plastic additive solutions as the automotive industry works to safely increase battery range and charging performance, significant material reuse and recycling, and reduce carbon footprint.
Moreover, the demand for small, compact residential buildings is expanding along with urbanization. Plastic is utilized in residential buildings for a variety of functions, including insulation, wiring & cables, electrical switches, and water pipes, and is, therefore, pushing up the demand for plastic additives to alter the strength and longevity of plastics.
According to teriin.org, the majority of plastic garbage is produced by households, primarily in the form of water and soft drink bottles. The market is currently subject to several new laws, some of which are projected to have a detrimental impact on sales of plastic additives. Restrictions on different plastic additives, including specific types of flame retardants and plasticizers, have been backed by several scientific investigations. For instance, the types of indirect additives used in food contact substances are governed by the Code of Federal Regulations (CFR), Title 21, Part 177, which was created by the USA FDA.
- To control the maximum allowable additive quantities used in food processing and packaging applications; these regulations were devised. Volatile raw material costs and strict environmental restrictions for producing plasticizers, UV stabilizers, and other additives are characteristics of the worldwide sector.
The global market has been severely impacted by COVID-19. The production and supply of goods and raw materials have been impacted by various government restrictions. Due to the outbreak, the majority of China's chemical industries were temporarily shut down. The primary market for these additives and their raw materials is China, which is expected to have a significant impact on the worldwide market.
During the lockdown, the raw material supply was disrupted, which had an impact on the production of these additives and derivatives. However, the resurgence of manufacturing and construction, as well as the increased demand for PPE kits to stop the spread of COVID-19, have supported the market and is expected to positively impact the growth in coming years.
Key Trends by Market Segment
By Type: Plasticizers type segment held the largest share of the Global Plastic Additives Market in 2021.
- Demand for plasticizers is increasing mainly due to their increasing adoption in high-volume flexible PVC products. According to plasticseurope.org, the world produced 367 million tons of plastic in 2020, an increase of 32 million tons over 2016. Polyvinyl chloride, or PVC, which is the fourth most prevalent plastic in the world, received 10% of this total. PVC is frequently used in the manufacture of toys, cables, packaging, flooring, and other items.
According to National Center for Biotechnology Information, about 90% of plasticizers are used for PVC applications, making them the most common plastic additive for enhancing flexibility and processing ease.
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By Plastic Type: High-performance polymers plastic type segment held the largest market share in the Global Plastic Additives Market in 2021.
- High-performance polymers can function at temperatures as high as 300°C, having an advantage over commercially available high-temperature polymers including modified high-performance thermoplastics and heat-resistant compounds.
- The segment's revenue growth is expected to be further fueled by their superior ability to withstand high temperatures compared to other polymers across a variety of end-use industries, such as oil and gas, nuclear, aerospace, and chemicals.
By Application: The packaging application segment held the largest market share in the Global Plastic Additives Market in 2021.
- Rise in the adoption of sales from e-commerce platforms, requiring additional packaging is increasing the adoption of plastic additives in packaging materials to make them strong, durable, and eco-friendly.
- The COVID-19 breakout at the start of 2020 led to a large surge in e-commerce rather than the more traditional brick-and-mortar sales as lockdown measures were put in place in several countries to stop the virus' spread. The sector is still experiencing a rise and is estimated to grow in the coming years as well. This poses an opportunity for plastic additives. Also in the time, due to hygiene concerns, the pandemic has caused a resurgence of single-use plastic bags and boxes, favorably affecting the use of plastic packaging in e-commerce and turn positively impacting the plastic additives market.
For instance, the packaging market in India has reached a value of around US$ 72.6 billion by 2020, according to a report by the Associated Chamber of Commerce and Industry of India (ASSOCHAM).
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By Geography: Asia Pacific accounted for the largest market share in 2021 within the total Global Plastic Additives Market.
- The market for plastic additives is predicted to increase rapidly in the region mainly in nations like India, Japan, and China due to rising demand from packaging and automotive industries.
- Due to the significant presence of key manufacturers and end users, China is one of the top consumers of plastic additives. Plastic additives are in great demand as a result of urbanization and the construction industry's rapid growth in the region.
- In India, the demand for plastic additives is being fueled by a surge in foreign direct investment from major foreign companies into India's chemical industrial sector, which is driving up the production of plastics and bioplastics.
According to teriin.org, about 43% of manufactured plastics in India are used for packaging, and the majority are single-use materials.
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Competitive Landscape
The global plastic additives market is highly competitive with ~500 players which include globally diversified players, regional players as well as a large number of country-niche players.
Country niche players hold the largest presence of about 65% of the total competitors, while regional players comprise ~30% of competitors. Some of the major players in the market include BASF SE, The DOW Chemical Company, AkzoNobel, Clariant AG, Nabaltec, Mitsui Chemicals, LANXESS AG, Repi S.r.l., Songwon Industrial Co. Ltd., Albemarle Corporation, Kaneka Corporation, and others.
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Recent Developments Related to Major Players
- In April 2021, BASF has introduced biomass balanced (BMB) plasticizers based on renewable raw materials under designations Hexamoll® DINCH BMB, Palatinol® N BMB, Palatinol® 10-P BMB, and Plastomoll® DOA BMB. These substances are made from vegetable oils or organic waste. Biomass-balanced plasticizers assist conserve fossil resources and have a smaller carbon footprint than traditional ones.
- In April 2021, Songwon Industrial Co., Ltd extended its geographical presence in Bangladesh, Nepal, and Sri Lanka with Cheminox as the authorized distributor for the entire region. Cheminox has been the only distributor of Songwon’s polymer stabilizers in India since 2009. These stabilizers include SONGNOX® antioxidants, SONGSORB® UV absorbers, and SABOSTAB® HALS. With this expansion, Songwon aims for a long-term growth goal with a consistent, high-quality supply of goods and the highest caliber of customer support.
- In February 2021, specialty chemicals manufacturer LANXESS entered a legally binding agreement to purchase 100% of the shares of Emerald Kalama Chemical to accelerate its growth strategy. The USA-based business is a market leader in the production of specialty chemicals, particularly for the consumer market.
Conclusion
The global plastic additives market is expected to showcase positive growth during the forecast period. One of the main trends driving market expansion is the strict government initiatives toward sustainability. Asia Pacific region holds dominance in the market and is also expected to experience an increased growth rate due to the high adoption of plastic additives in the region’s automotive and construction industry. The market is highly competitive with around 500 participants concentrating on expansion strategies through product innovations as well as acquisitions and mergers.
Note: This is an upcoming/planned report, so the figures quoted here for a market size estimate, forecast, growth, segment share, and competitive landscape are based on initial findings and might vary slightly in the actual report. Also, any required customizations can be covered to the best feasible extent for Pre-booking clients, and the report delivered within a maximum of two working weeks.
Ken Research has recently published report titled, Global Plastic Additives Market Size, Segments, Outlook, and Revenue Forecast 2022-2030. In addition, the report also covers market size and forecasts for the four major regions’ plastic additives market. The revenue used to size and forecast the market for each segment is US$ billion.
Market Taxonomy
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| By Geography | North America
Europe
Asia Pacific
LAMEA
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