Plastic Compounding Industry Overview
The global plastic compounding market size was valued at USD 60.35 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 7.4% from 2022 to 2030.
Increasing substitution of natural rubber, wood, metals, glass, and concrete for plastic is expected to fuel the market growth. The demand for plastic is rising due to its use in various industrial applications on account of its ability to form desired shapes and easy molding.
Plastic fittings are considered to be very easy to install as compared to metal or wood fittings. These fittings are available in a wide range of color combinations, which adds to their aesthetic appeal. Moreover, plastic fittings can be sealed very tightly, thus creating a barrier for external unwanted factors like dust or water. The properties of plastic compounds can drive the market in the coming years. 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.
Gather more insights about the market drivers, restrains and growth of the Global Plastic Compounding Market
Polyethylene terephthalate (PET) is expected to be one of the fastest-growing segments in the U.S. plastics market due to its high demand from the packaging sector. PET is mostly used in the production of bottles and holds a significant market share in the plastics industry. Most PET processors in the U.S. are increasingly focusing on implementing Good Manufacturing Practices (GMPs) in an attempt to optimally utilize available resources, conserve resources, and increase production efficiency. These initiatives are further expected to drive the market for PET over the forecast period.
There is a diverse range of products available, depending on the additives and fillers integrated while processing the polymers including 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 emerged as the second-largest market in 2021 owing to the high demand from the automotive, 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 local demand. Moreover, the country supplies Polyethylene Terephthalate (PET), Polyvinyl Chloride (PVC), and other products to neighboring countries due to the high quality and large production base. The country is also recycling a significant amount of waste plastic into various products, such as fibers, sheets, and film. 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 for accessing all the parts of the plastics industry value chain swiftly.
Future supply and demand changes are also expected to keep the prices of plastics very volatile. Most raw materials are produced through downstream processes of petrochemicals. Volatility in crude oil prices is due to political instability, supply and demand imbalances, and seasonal variations. Additionally, the market is highly integrated from raw material procurement to distribution channels. Major companies have established supply partnerships to reduce overall production costs. Such factors are anticipated to have a large 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 the production of bio-based polymers. Polymers derived through bio-based sources such as Polylactic Acid (PLA), Polybutylene Succinate (PBS), and Polyhydroxyalanote (PHA) show remarkable biodegradability that their petrochemical-derived counterparts lack. These products are widely accepted in biomedical and agricultural applications.
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- Plastic Market - The global plastic market size was valued at USD 593.00 billion in 2021. It is expected to expand at a compound annual growth rate (CAGR) of 3.7% from 2022 to 2030. The increasing plastic consumption in the construction, automotive, and electrical electronics industries is projected to support market growth during 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)
- Acrylonitrile Butadiene Styrene (ABS)
- Plastic Compounding Application Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2028)
- Building Construction
- Electrical Electronics
- Consumer Goods
- Industrial Machinery
- Medical Devices
- Optical Media
- Plastic Compounding Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2028)
- North America
- Asia Pacific
- Latin America
- Middle East Africa (MEA)
Market Share Insights
- October 2021: Dow, Inc. announced investment programs to advance circular plastics. These advancements will help prevent plastic waste, reduce greenhouse gas emissions, and provide recycled plastics that showcase similar properties as virgin plastics.
Key Companies profiled:
Some prominent players in the global plastic compounding market include:
- BASF SE
- LyondellBasell Industries N.V.
- Dow, Inc.
- RTP Company, Inc.
- SE Specialty Polymers, LLC
- Covestro AG
- Kraton Polymers, Inc.
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