The global plastic compounding market is expected to reach a market valuation of USD 69.919 billion by the end of 2023, accelerating with a CAGR of 8.3% from 2023 to 2033. The plastic compounding industry is anticipated to be valued at about USD 155.196 billion by 2033.
Due to its usage in various domestic and industrial structures and its ease of molding, the plastic compounding business is becoming more and more profitable.
Plastic compounders are essential in improving the quality of plastic goods or resin to satisfy the needs of various end-user industries that have increased the demand for plastic compounds in recent years. Plastic compounds include a variety of characteristics, including bio-resorbable levels, flexibility, color, and a tendency to modify other plastic properties based on additive combinations.
Polycarbonate compound offers greater chemical and temperature resistance and good fatigue resistance to plastic before it is used in production. Thus plastic compounding adoption trends have helped PP become a well-liked material for several uses in established and developing countries, expanding the said market.
Better manufacturing procedures and field usage circumstances have augmented the adoption of plastic compounding in several polymer manufacturing industries. Over the anticipated timescale, the plastics industry's development and expansion are expected to parallel boost the market opportunities for plastic compounding.
Plastic filler compounds have made the vehicle lighter overall, contributing to increased vehicle safety. The automobile industry has also reduced energy consumption and improved vehicle performance and fuel economy, indirectly boosting the plastic compounding market opportunities.
Plastic Compounding Industry (From 2018 to 2022):
| Attribute | Details |
|---|---|
| Market HCAGR (From 2018 to 2022) | 2% |
| Market Size - 2018 | USD 59.865 billion |
| Market Size - 2022 | USD 64.8 billion |
Plastic Compounding Industry (From 2023 to 2033):
| Attribute | Details |
|---|---|
| Market CAGR (From 2023 to 2033) | 8.3% |
| Market Size - 2023 | USD 69.919 billion |
| Market Size - 2033 | USD 155.196 billion |
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Until the last few decades, basic plastics were ruling the traditional plastic market owing to their lower cost and ease of production. However, with the advent of plastic molding compounds, the market has greatly shifted towards high-performing polymer compounds.
Several modern trends are poised to propel the plastic compounding market. Key trends and opportunities by 2033 are the growing market for biopolymers, novel retail goods packaging methods, and uses for 3D printing or manufacturing techniques. For various uses, including vehicle interiors, retail goods wrapping, pouches, geotextiles, and containers, including bottles, PVC plastisol compound may be in higher demand from the global plastic compounding business.
The plastic compounding industry is anticipated to develop as natural rubber, wood, metals, glass, and concrete are increasingly replaced by plastic. Both domestic production and vehicle sales have increased due to economic expansion in lower-income and emerging nations. Plastic usage in transportation components is expected to increase significantly over the projected timeframe due to rising sales of personal and commercial vehicles. These developments are anticipated to drive the demand for plastic compounding in the coming days.
Luxury items, consumer electrical & electronics equipment, automobile parts, aircraft, and construction are some of the end-user industries predicted to boost plastic compounding market trends significantly. Consumption of thermoplastics is anticipated to grow rapidly throughout the forecast period because of their general application requirements that may be instrumental in propelling the market growth for plastic compounding.
Possible restraints for the plastic compounding market include increasing concerns about environmental pollution and the need for sustainable solutions. Stringent regulations on single-use plastics, recycling challenges, and a shift towards biodegradable alternatives may limit the growth of traditional plastic compounds.
The fluctuating raw material prices and supply chain disruptions could impact the industry's profitability. The rise of alternative materials like bio-based polymers and the growing preference for recycled plastics might pose a competitive challenge. Furthermore, global economic uncertainties and geopolitical factors could influence investment decisions and hinder market expansion for plastic compounding.
The need for items made from bio-based materials has increased due to the depletion of crude oil supplies and environmental issues caused by using hydrocarbon polymers. Government limits on using polymers made from petrochemicals in many end-use sectors may further encourage the plastic compounding industry’s future trends for producing bio-based polymers.
When compared to their petroleum-based competitors, polymers generated by plastic compounding industries from bio-based materials like polybutylene succinate (PBS), polylactic acid (PLA), and polyhydroxyalkanoate (PHA) exhibit outstanding biocompatibility. These goods are frequently used for agricultural and medicinal purposes and have immensely supplemented the plastic compounding market key trends.
Continuous advancements in catalysis techniques aimed at improving the performance, adaptability, and production of PE resins may present profitable prospects for the global market growth for plastic compounding from several end-use verticals.
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| Attributes | Details |
|---|---|
| United States Market Share - 2023 | 22.5% |
| Australia Market Share - 2023 | 1% |
According to the global market study report on plastic compounding, North America is the second-largest regional market for its end products. In both countries, the United States and Canada, substantial construction sector growth is anticipated to boost the adoption of plastic compounding throughout the projected period.
The infrastructure sector is anticipated to benefit from government rules that assist the revival of the housing industry. Throughout the forecast period, the United States plastic compounding industry is likely to benefit along with reconstruction efforts in the United States and adjoining countries as well.
Recent trade restrictions over aluminum and steel imports from China have provided the necessary impetus for the plastic-compounding market growth in the country.
| Attributes | Details |
|---|---|
| Japan Market Share - 2023 | 3.1% |
| China Market CAGR (From 2023 to 2033) | 8.7% |
| India Market CAGR (From 2023 to 2033) | 7.6% |
In 2023, Asia Pacific led the target market and generated more than 40% of the revenue covered by the market statistics report. Due to increased sales of plastic molding compounds by rapidly expanding industries, Asia Pacific economies held the significant regional market size for plastic compounding globally. In rapidly industrializing nations like China and India, the expansion of domestic and commercial building projects is positively accelerating the Asia Pacific market.
Chinese plastic compounding manufacturers serve a huge pool of medium-sized businesses instead of major end-use organizations like automakers and large industries. The regional plastic compounding market in the country is fueled by the fact that Asia Pacific is one of the considerable users and manufacturers of PVC compound for wire and cable used in its huge telecommunication network.
| Attributes | Details |
|---|---|
| Germany Market Share - 2023 | 11.8% |
| United Kingdom Market CAGR (From 2023 to 2033) | 4.1% |
The European plastic compounding business refers to the industry producing compounded plastics in Europe. Compounding combines different polymers, additives, and fillers to enhance the properties of plastics, such as strength, durability, and flame retardancy. The market encompasses various sectors, including automotive, packaging, construction, electrical and electronics, and consumer goods.
Europe has a well-established plastic compounding industry driven by stringent regulations, technological advancements, and growing demand for lightweight and sustainable materials. The market is characterized by multinational and regional players offering various customized solutions to meet diverse industry requirements.
Recent advancements in automotive, electronic, and electrical component manufacturing facilities are opening up plastic-compounding market opportunities and prospects in Latin America and Middle East countries. With a few favorable opportunities in Central and Eastern European nations, this region's plastic compounding market share is predicted to remain a saturated market.
| Segment | Product Type |
|---|---|
| Segment Name | Polypropylene |
| Segment Share | 26.30% |
According to the plastic compounding business in 2023, the polypropylene segment held the top spot and contributed 26.3% of worldwide earnings.
These compounds have a high fracture toughness and workability, making them widely employed in vehicle industries. Polypropylene compounds are anticipated to see significant growth thanks to rising public investment in Asia, the Middle East, and Latin America, as well as relatively flexible regulatory restrictions on the use of plastics in construction.
The thermoplastic polymers sub-segment may be led by polyethylene (PE). PE is a crucial component in the packaging sector that has augmented the plastic compounding market opportunities with the rise of e-commerce platforms and online retail businesses. Numerous sectors, including automotive, building, electrical and electronics, and packaging, employ polyethylene compounds extensively. With a sizable market share, the construction sector is the primary end-use vertical for the polyethylene compounds category.
| Segment | Application |
|---|---|
| Segment Name | Automotive |
| Segment Share | 23.30% |
By 2023, the automobile sector may contribute 23.3% of the total market share, as evident from the market survey report obtained by FMI.
This application segment's growth has been significantly influenced by the growing use of plastics in automobile components compared to metals and alloys. China, Japan, and South Korea are all extensive consumers of PVC compounds. Market predictions indicate that this pattern may persist, fueling demand for plastic and resin compounding.
The global plastic compounding market is extremely fragmented, with local firms and SMEs holding over 60% of the market's share. To strengthen their position in the market, plastic compound businesses are quickly growing their manufacturing capacity.
The market is also much interconnected, from the sourcing of raw materials to the distribution networks. Major plastic compounding manufacturers have formed trade alliances to lower production costs.
Prominent Plastic Compounding Manufacturers
Due to the emerging trends in the plastic compounding market, several new players have been established to benefit from it. As per the latest market research report on plastic compounding process adoption, start-ups operating in the sector are investing heavily in the biobased product segment to enhance their brand’s eco-friendly image. Though, most new plastic compounding market enterprises work in one of the strategic supplier sectors for the plastics industry.
Novel Breakthroughs and Advancements
| Company | BASF |
|---|---|
| Strategy | Avient and BASF work together to introduce colored Ultrason to the market for high-performance polymers worldwide. |
| Details | Avient Corporation is working with BASF to market colored grades of Ultrason high-performance polymers. The colored grades are made from Ultrason® polyarylethersulfones (PAES), a high-quality base polymer from BASF, and Colourant Chromatics, a company from Avient, which specializes in high-temperature color formulation for color concentrates and pre-colored solutions. |
| Company | Lyondell Basell Industries Holdings B.V. |
|---|---|
| Strategy | Pryme has secured funding from Infinity Recycling, Invest-NL, and LyondellBasell to accelerate the process of advanced plastic waste recycling. |
| Details | LyondellBasell and Infinity Recycling Invest NL invested in Pryme to speed up the advanced recycling of plastic waste. The partnership aims to create and market a new recycling technology that uses mixed plastic waste as a feedstock for creating new plastics, promoting a more circular and sustainable economy. |
| Company | Lyondell Basell Industries Holdings B.V. |
|---|---|
| Strategy | LyondellBasell declares its intent to purchase Mepol Group. |
| Details | Announcing its decision to purchase the Mepol Group was LyondellBasell. The acquisition and its strategic importance for LyondellBasell, multinational plastics, chemical, and refining firm, are discussed in the article. |
| Company | Dow, Inc. |
|---|---|
| Strategy | Dow and P&G China collaborate to make air capsule e-commerce packaging recyclable. |
| Details | Procter & Gamble China (P&G China) and Dow, a multinational materials science business, have announced a partnership for air capsule e-commerce packaging. The air capsule looks for a practical and effective way to protect goods while reducing unnecessary packaging in e-commerce and promoting recycling. It is made possible by P&G China's innovation and Dow's materials. |
The market is valued at USD 69.9 billion in 2023.
The market’s CAGR from 2023 to 2033 will be 8.3%.
BASF SE, Dow, Inc., and DuPont are key market players.
Rising prices of metal and alloys used in the construction sector to boost the growth.
The market will reach USD 155.1 billion by 2033.
| Market Size (2023) | USD 2.23 billion |
|---|---|
| Market Size (2033) | USD 4.19 billion |
| Market CAGR (2023 to 2033) | 7% |
| Market Valuation (2023) | USD 18.54 billion |
|---|---|
| Market Valuation (2033) | USD 41.53 billion |
| Market CAGR (2023 to 2033) | 8.4% |
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