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The global plastic additives market size is estimated to grow by USD 19.86 billion between 2022 and 2027 and the size of the market is forecast to increase at a CAGR of 6.45%.
The growth of the market depends on several factors, including increasing demand for recycled plastics from the packaging industry, developing countries boosting the demand for plastic additives, and increased demand from the e-commerce market.
This report extensively covers market segmentation by type (modifier, stabilizers, extenders, and processing aids), application (packaging, consumer goods, automotive, electrical and electronics, and others), and geography (APAC, North America, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage.
Increasing demand for recycled plastics from the packaging industry is driving market growth. Due to the growing awareness of healthy living, many industries are embracing eco-friendly and sustainable solutions. This trend has resulted in a surge in demand for recycled plastics, leading to a boom in the plastic additives market worldwide. Recycled plastics are being extensively used by the packaging industry, which is gradually shifting towards their usage to meet the rising expectations of environmentally conscious consumers. In 2018, over 40% of the world's plastic production was consumed by the global packaging industry, making it the largest contributor to annual plastic waste generation.
Unilever Group pledged in January 2017 to make its plastic packaging 100% reusable, recyclable, and compostable by 2025. Recycled plastics are being used in various applications in the packaging industry, such as producing FDA-approved food packaging, plastic bottles, containers, jars, caps, engineered pumps, and sprayers. By utilizing recycled plastics, companies can reduce waste, energy consumption, carbon emissions, and water usage while maintaining quality and performance. Recycled plastics also enhance product protection and extend shelf life. Consequently, the increasing adoption of sustainable alternatives for various applications is expected to fuel the growth of the global recycled plastics market, leading to a significant surge in the consumption of plastic additives in recycled plastics during the forecast period.
The ban on phthalate plasticizers is a major restraint in the market. The specialty chemicals industry heavily relies on plastic additives as its primary source of revenue. Among the different types of plastic additives, plasticizers represent the largest segment of the market. However, due to the recent ban on the use of phthalates, which are commonly used in plasticizers, the growth of the plasticizers market has been hindered. The plastic industry has been instructed to discontinue the use of flexible PVC due to its potential negative impact on the human reproductive system. Consequently, the growing awareness of safety and environmental concerns surrounding phthalates has increased the demand for non-phthalates. Key vendors in the market are now focusing on developing non-phthalate plasticizers that meet the required standards for various applications such as food utensils, containers, packaging, and toys. These non-phthalate plasticizers include adipic acid polyester, trimellitic acid, epoxy ester, benzoic acid series, and adipic acid.
During the forecast period, non-phthalate plasticizers are expected to witness the highest compound annual growth rate (CAGR). Phthalate ester plasticizers, which have traditionally dominated the flexible PVC market, are likely to face stiff competition from newer alternatives of non-phthalate plasticizers. As a result, the growth of the market in question is expected to be hampered during the forecast period.
Increasing demand for bio-based plasticizers is a major trend in the market. Plasticizers, such as phthalates, derived from petrochemicals, play a crucial role in the production of plastics, particularly PVC. Currently, phthalate-based plasticizers dominate the global plasticizer market. However, the increasing stringency of environmental regulations and growing health concerns associated with the use of plasticizers have spurred the demand for bio-plasticizers worldwide. This has resulted in a surge in demand for safe, non-phthalate, biodegradable, and bio-based plasticizers.
The growth of end-user industries in emerging economies, like India and China, is expected to fuel the growth of the bio-plasticizer market in the future. Additionally, the ban on phthalates in food packaging materials, consumer goods, medical devices, and soft toys is another factor propelling the growth of the plasticizers market. Moreover, bio-based plasticizers, such as sebacates and epoxides, are anticipated to experience the highest growth rate during the forecast period, due to their notable properties, including high efficiency, non-toxicity, improved heat stability, and lower volatility. These materials are successfully utilized in a wide range of applications, such as adhesive and sealants, automotive, paints, and coatings, among others.
The market share growth of the modifier segment will be significant during the forecast period. Modifiers are added to plastics to change the physical properties of plastic molds or resins. They are added to improve the plasticity and viscosity of the material. For instance, impact modifiers are added to impart increased toughness and durability to plastic molds. These factors will facilitate segment growth during the forecast period.
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The modifier segment was valued at USD 20.57 billion in 2017 and continue to grow by 2021. Modifiers through the polymerization process are incorporated as additives. Organic peroxides help in increasing polymerization activity at a faster pace, and nucleating agents are used to enhance the physical property of the plastic driving the market growth during the forecast period.
The consumer goods segment is expected to be the fastest-growing application segment of the global plastic additives market during the forecast period. The extensive use of plasticizers, flame retardants, impact modifiers, and impact modifiers and processing aids for toys, child care products, sports, and leisure products, and upholstered furniture, among other consumer goods-related applications, is a major driver of the consumer goods segment growth.
APAC is estimated to contribute 44% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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In terms of value, APAC accounted for the largest revenue share of the global market in 2022. APAC has huge opportunities for the market in various applications. Major end-use markets for plastic additives include remodeling or construction, automotive production, and original equipment manufacturing (OEM). Globally, this region is leading the market in terms of demand, invention, and product development, and quality. The market in APAC is dominated by the development of end-user industries such as construction, automotive, and packaging. Packaging is one of the largest applications of plastic additives.
The outbreak of COVID-19 negatively impacted the growth of the regional market. However, unprecedented growth in the e-commerce industry significantly increased the demand for plastic additives from the consumer goods and agriculture sector. Moreover, the recovering food and beverage and retail industry across the region is further expected to increase the demand for plastic additives from the packaging sector.
Vendors are implementing various strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches, to enhance their presence in the market.
BASF SE - The company offers plastic additives such as Valeras under its chemical segment. Through this segment, the company includes petrochemicals and intermediates divisions. Additionally, through the material segment, the company includes the performance materials division and the monomers division.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The report includes the adoption lifecycle of the market, from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on market penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Plastic Additives Market Customer Landscape
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Plastic Additives Market Scope |
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Report Coverage |
Details |
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Page number |
177 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 6.45% |
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Market growth 2023-2027 |
USD 19.86 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
6.01 |
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Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 44% |
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Key countries |
US, Saudi Arabia, China, Germany, and France |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
ADEKA Corp., Albemarle Corp., Avient Corp., Baerlocher GmbH, Clariant AG, Covestro AG, Dow Inc., Evonik Industries AG, Exxon Mobil Corp., Grafe Advanced Polymers GmbH, Kaneka Corp., Lanxess AG, Milliken and Co., Mitsui Chemicals Inc., Nouryon Chemicals Holding BV, PMC Group Inc., Sabo Spa, Sakai Chemical Industry Co. Ltd., Songwon Industrial Co Ltd, and BASF SE |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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