Plastic Compounds Market by Product (PVC, PP, PE, PS, PA, PC, PET, PU, ABS), Source, End-use Industry (Automotive, Packaging, Electrical & Electronics, Building & Construction, Consumer Goods, Medical), and Region - Global Forecast to 2029
Updated on : October 10, 2024
Plastic Compounds Market
The global plastic compounds market is valued at USD 70.8 billion in 2024 and is projected to reach USD 97.3 billion by 2029, growing at 6.6% cagr from 2024 to 2029. Plastic compounds refer to mixtures of plastic and various chemicals and materials known as additives, which are incorporated during the compounding stage to enhance the properties of the final product. These additives, which can include stabilizers, plasticizers, and dyes, help improve the lifespan, workability, or appearance of the plastic item. Plastic compounds have a wide range of end-uses across various industries due to their versatility, durability, and ability to be molded into different shapes and forms. These industries include automotive, building & construction, electrical & electronics, packaging, consumer goods, medical, and others. Over the past few years, the plastic compounds market has witnessed high growth. Plastic compounds exhibit exceptional durability and resistance to environmental factors like adverse weather conditions, rot, and corrosion. They can withstand harsh conditions and do not degrade easily, reducing maintenance needs and increasing the lifespan of structures.
Attractive Opportunities in the Plastic Compounds Market
Note: e-estimated p-projected.
Source: Expert Interviews, Secondary Sources, and MarketsandMarkets Analysis
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Plastic Compounds Market Dynamics
Driver: Increasing demand in packaging and building & construction industries
The packaging and building, & construction industries are seeing increasing demand for plastic compounds for various applications. In the packaging sector, the increased need for containers for food and beverages, and caps for various products has driven the demand for durable, flexible and cost-effective plastic compounds. In the building & construction industry, plastic compounds are widely used for insulators, pipe fittings, and other construction materials due to their affordability, strength, and versatility. The trend towards energy-efficient construction practices has further boosted the demand for plastic compounds in this industry. Overall, the adaptability and diverse properties of plastic compounds have made them indispensable in meeting the evolving needs of the packaging, and building, & construction industries, driving the growth of the global plastic compounds market.
Restraint: Volatility in raw material prices
The prices of key raw materials used in plastic compounds are heavily dependent on the volatility of crude oil and natural gas prices, The price of crude oil directly impacts the plastic compound market as it influences the cost of key raw materials used in plastic compounds. When the price of crude oil rises, the cost of producing these raw materials increases, leading to higher production costs for plastic compounds. For example, if the price of crude oil spikes due to geopolitical tensions or supply disruptions, the cost of producing polyethylene, a common material in plastic compounds, will also increase. This rise in raw material costs can put pressure on plastic compound manufacturers to either absorb the increased costs or pass them on to consumers, affecting the overall pricing and profitability of the plastic compound market.
Opportunities: Advancements in additive manufacturing
Advancements in additive manufacturing present significant opportunities for the plastic compounds market. Additive manufacturing, also known as 3D printing, is revolutionizing the manufacturing industry by enabling the creation of components without the need for traditional dies or tooling. This technology is widely used in prototyping, bridge production, and short-run production, offering flexibility and cost-effectiveness in manufacturing processes. The continuous improvement in the mechanical strength of plastic parts manufactured through additive manufacturing enhances their performance and durability, opening new possibilities for the application of plastic compounds in various industries. As additive manufacturing techniques evolve and become more sophisticated, they create opportunities for the plastic compounds market to develop specialized products tailored to specific requirements, such as improved impact resistance, thermal stability, and esthetic appeal.
Challenges: Plastic waste management crisis
Plastic management poses a critical challenge for the plastic compound market due to the global accumulation of plastic waste and its environmental impact. The mismanagement of plastic waste, especially post-consumer single-use items, is leading to severe environmental consequences worldwide. The uncontrolled disposal of plastic waste is encroaching on ecosystems, causing long-lasting pollution due to the inert nature of plastics. The lack of comprehensive plastic waste regulation and recycling infrastructure compounds the issue, resulting in plastic waste leakage into the environment as litter. This crisis highlights the urgent need for effective plastic waste management strategies, recycling initiatives, and the adoption of circular economy approaches to mitigate the environmental impact of plastic waste.
Based on product, polyvinyl chloride (PVC) is the second-largest growing segment in the plastic compounds market.
Polyvinyl chloride (PVC or vinyl) is a high-strength thermoplastic material widely used in various applications, including pipes, medical devices, and wire & cable insulation. It is produced by polymerizing vinyl chloride monomer (VCM), which is manufactured from the chlorination of ethylene and pyrolysis of ethylene dichloride (EDC). The material's electrical properties, durability, flame retardancy, cost-performance ratio, mechanical properties, and chemical resistance make it a preferred choice for many long-life and outdoor products. Additives such as plasticizers, heat stabilizers, fillers, and lubricants are used to enhance the properties of PVC, including its softness, thermal stability, stiffness, impact performance, color, opacity, and conductivity.
Based on source, recycled is the second-largest segment in the plastic compounds market.
Recycled plastic compounds offer a sustainable alternative to virgin plastic, reducing the environmental impact of plastic pollution and conserving natural resources. These compounds are created by reprocessing and reusing post-consumer or post-industrial plastic waste through a process involving collection, sorting, washing, shredding, identification, separation, and extrusion. Recycled plastic compounds can be tailored to meet specific color, property, and performance requirements by adding various additives during the compounding process. Additives used in recycled plastic compounds play a vital role in enhancing their properties and ensuring their suitability for various applications.
Based on end-use industry, packaging is the largest segment in the plastic compounds market.
Packaging is an indispensable process for preserving and transporting goods. It caters to various sectors such as retail, institutional, and industrial. Changing consumer lifestyles due to increasing disposable incomes have increased the use of plastic compounds in packaging products. Airtight plastic packaging is an indispensable part of modern life, preserving and protecting goods and ensuring that they are transported safely. The demand for plastic products, such as bottles, caps & closures, films & special films, transport crates, containers & drums, is expected to increase during the forecast period.
Asia Pacific is expected to be the largest market during the forecast period.
The Asia Pacific region has emerged as a leader in the global plastic compounds market due to several compelling factors. Firstly, rapid urbanization, economic growth, and increasing infrastructure development in countries like China, India, and Japan have propelled the demand for plastic compounds. The presence of populous countries, such as China and India, has benefited the plastic compounds market, owing to the increasing demand for high-quality medical, automotive, consumer, and electronic products. Additionally, favourable government initiatives, supportive regulatory frameworks, and a robust manufacturing ecosystem further contribute to the region's dominance in the plastic compounds market, making it a key hub for production, consumption, and export of plastic compounds materials and products.
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Plastic Compounds Market Players
The plastic compounds market is dominated by a few major players that have a wide regional presence. The key players in the plastic compounds market are BASF SE (Germany), The Dow Chemical Company (US), LyondellBasell Industries Holdings B.V. (Netherlands), SABIC (Saudi Arabia), Asahi Kasei Corporation (Japan), Covestro AG (Germany), Arkema (France), RTP Company (US), and Westlake Corporation (US). In the last few years, the companies have adopted growth strategies such as product launches, investments, acquisitions, and expansions to capture a larger share of the plastic compounds market.
Plastic Compounds Market Report Scope
|
Report Metric |
Details |
|
Years considered for the study |
2020-2029 |
|
Base Year |
2023 |
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Forecast period |
2024–2029 |
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Units considered |
Value (USD Million), Volume (Kiloton) |
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Segments |
Product, Source, End-use Industry, and Region |
|
Regions |
Asia Pacific, North America, Europe, Middle East & Africa, and South America |
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Companies |
BASF SE (Germany), The Dow Chemical Company (US), LyondellBasell Industries Holdings B.V. (Netherlands), SABIC (Saudi Arabia), Asahi Kasei Corporation (Japan), Covestro AG (Germany), Arkema (France), RTP Company (US), and Westlake Corporation (US) |
This report categorizes the global plastic compounds market based on product, source, end-use industry, and region.
On the basis of product, the plastic compounds market has been segmented as follows:
- Polyvinyl Chloride
- Polypropylene
- Polyethylene
- Polycarbonate
- Polystyrene
- Polyamide
- Polyethylene Terephthalate
- Polyurethane
- Acrylonitrile Butadiene Styrene
- Others
On the basis of source, the plastic compounds market has been segmented as follows:
- Fossil-based
- Bio-based
- Recycled
On the basis of end-use industry, the plastic compounds market has been segmented as follows:
- Automotive
- Passenger Cars
- Commercial Vehicles
- Packaging
- Electrical & Electronics
- Building & Construction
- Residential
- Commercial
- Industrial
- Consumer Goods
- Medical
- Others
On the basis of region, the plastic compounds market has been segmented as follows:
- Asia Pacific
- Europe
- North America
- Middle East & Africa
- South America
Recent Developments
- In February 2024, Arkema increased its global manufacturing capacity for Pebax elastomers by 40% at its Serquigny plant in France.
- In December 2023, Asahi Kasei Corporation obtained the prestigious international sustainability certification ISCC plus1 for a range of additional products like TPE, PVDC, PPE, PA, and styrene.
- In May 2023, SABIC, a renowned global player in the chemical industry, introduced the innovative LNP™ ELCRIN WF0051iQ compound. This cutting-edge compound offers thin-wall properties and non-brominated/non-chlorinated flame retardancy (FR), catering to the evolving needs of the market.
- In July 2023, LyondellBasell Industries Holdings acquired Mepol Group, a producer of recycled, high-performance technical compounds situated in Italy and Poland. Mepol S.r.l., along with its subsidiaries Polar S.r.l. and Industrial Technology Investments Poland Sp.z.o.o, will now operate as part of LyondellBasell Industries Holding’s Advanced Polymer Solutions (APS) business division.
- In July 2022, BASF SE and THOR GmbH leveraged their combined expertise in non-halogenated flame-retardant additives to offer customers a comprehensive solution. This collaboration aims to enhance the sustainability and performance of specific plastic compounds, while also helping customers meet stringent fire safety requirements.
Frequently Asked Questions (FAQ):
What are the factors influencing the growth of the plastic compounds market?
The growth of the plastic compounds market is influenced by factors such as the increasing demand in in packaging and building & construction industries, and rising adoption of recyclable plastic compounds.
Which are the key applications driving the plastic compounds market?
The key end-use industries driving the demand for plastic compounds are packaging, building & construction, and automotive.
Who are the major manufacturers?
Major manufacturers include BASF SE (Germany), The Dow Chemical Company (US), LyondellBasell Industries Holdings B.V. (Netherlands), SABIC (Saudi Arabia), Asahi Kasei Corporation (Japan), Covestro AG (Germany), Arkema (France), RTP Company (US), and Westlake Corporation (US).
What will be the growth prospects of the plastic compounds market?
The plastic compounds market is expected to witness robust growth due to rising demand from packaging and automotive industries.
What will be the growth prospects of the plastic compounds market in terms of CAGR in the next five years?
The CAGR of the market will be in between 6-7% in the next five years. .
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The study involved four major activities in estimating the market size of the plastic compounds market. Exhaustive secondary research was done to collect information on the market, the peer market, and the parent market. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the complete market size. Thereafter, the market breakdown and data triangulation procedures were used to estimate the market size of the segments and subsegments.
Secondary Research
In the secondary research process, various secondary sources have been referred to for identifying and collecting information for this study. These secondary sources include annual reports, press releases, investor presentations of companies, white papers, certified publications, trade directories, certified publications, articles from recognized authors, gold standard and silver standard websites, and databases.
Secondary research has been used to obtain key information about the value chain of the industry, monetary chain of the market, the total pool of key plastic compounds, market classification and segmentation according to industry trends to the bottom-most level, and regional markets. It was also used to obtain information about the key developments from a market-oriented perspective.
Primary Research
The plastic compounds market comprises several stakeholders in the value chain, which include raw material suppliers, manufacturers, and end users. Various primary sources from the supply and demand sides of the plastic compounds market have been interviewed to obtain qualitative and quantitative information. The primary interviewees from the demand side include key opinion leaders in end-use sectors. The primary sources from the supply side include manufacturers, associations, and institutions involved in the plastic compounds industry.
Primary interviews were conducted to gather insights such as market statistics, data of revenue collected from the products and services, market breakdowns, market size estimations, market forecasting, and data triangulation. Primary research also helped in understanding the various trends related to product, source, end-use industry, and region. Stakeholders from the demand side, such as CIOs, CTOs, and CSOs were interviewed to understand the buyer’s perspective on the suppliers, products, component providers, and their current usage of plastic compounds and future outlook of their business which will affect the overall market.
The breakdown of profiles of the primary interviewees is illustrated in the figure below:
Note: Tier 1, Tier 2, and Tier 3 companies are classified based on their market revenue in 2023 available in the public domain, product portfolios, and geographical presence.
Other designations include sales representatives, production heads, and technicians.
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
The top-down approach was used to estimate and validate the size of various submarkets for plastic compounds for each region. The research methodology used to estimate the market size included the following steps:
- The key players in the industry have been identified through extensive secondary research.
- The supply chain of the industry has been determined through primary and secondary research.
- The global market was then segmented into five major regions and validated by industry experts.
- All percentage shares, splits, and breakdowns based on product, source, end-use industry, and region were determined using secondary sources and verified through primary sources.
- All possible parameters that affect the markets covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data. This data was consolidated and added with detailed inputs and analysis and presented in this report.
Plastic Compounds Market: Bottum-Up Approach
Source: Secondary Research, Interviews with Experts, and MarketsandMarkets Analysis
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Plastic Compounds Market: Top-Down Approach
Source: Secondary Research, Interviews with Experts, and MarketsandMarkets Analysis
Data Triangulation
After arriving at the total market size from the estimation process plastic compounds above, the overall market has been split into several segments and sub-segments. To complete the overall market engineering process and arrive at the exact statistics for all the segments and sub-segments, the data triangulation and market breakdown procedures have been employed, wherever applicable. The data has been triangulated by studying various factors and trends from both the demand and supply sides. Along with this, the market size has been validated by using both the top-down and bottom-up approaches and primary interviews. Hence, for every data segment, there have been three sources—top-down approach, bottom-up approach, and expert interviews. The data was assumed correct when the values arrived from the three sources matched.
Market Definition
Plastic compounds are materials created by combining multiple polymers and various additives to achieve specific properties and characteristics. The compounding process involves mixing and blending polymers and additives in a molten state to produce a homogeneous blend with desired features. The compounding process enhances the properties of the final plastic product, including durability, strength, UV resistance, or flame retardancy. Common compounding methods include extrusion, co-kneading, and twin-screw mixing. Plastic compounds are tailored to specific applications and can be customized to meet customer requirements. They are widely used in industries like automotive, electronics, construction, and packaging.
Key Stakeholders
- Plastic Compounds Manufacturers
- Plastic Compounds Traders, Distributors, and Suppliers
- Raw Type Suppliers
- Government and Private Research Organizations
- Associations and Industrial Bodies
- R&D Institutions
- Environmental Support Agencies
Report Objectives
- To define, describe, and forecast the size of the plastic compounds market, in terms of value and volume.
- To provide detailed information regarding the major factors (drivers, opportunities, restraints, and challenges) influencing the growth of the market.
- To estimate and forecast the market size based on product, source, end-use industry, and region.
- To forecast the size of the market with respect to major regions, namely, Europe, North America, Asia Pacific, Middle East & Africa, and South America, along with their key countries.
- To strategically analyze micromarkets1 with respect to individual growth trends, prospects, and their contribution to the overall market.
- To analyze opportunities in the market for stakeholders and provide a competitive landscape of market leaders.
- To track and analyze recent developments such as expansions, new product launches, partnerships & agreements, and acquisitions in the market.
- To strategically profile key market players and comprehensively analyze their core competencies.
Available Customizations
Along with the given market data, MarketsandMarkets offers customizations according to the company’s specific needs. The following customization options are available for the report:
Regional Analysis
- Further breakdown of a region with respect to a particular country or additional application
Company Information
- Detailed analysis and profiles of additional market players
Tariff & Regulations
- Regulations and impact on plastic compounds market
Growth opportunities and latent adjacency in Plastic Compounds Market