Masterbatch Market Size to Reach USD 16.31 Billion in 2028
As Emergen Research reported, increasing Activities Across Building and Construction Industry and Rising Demand for Masterbatch in Consumer Goods are Some Key Factors Driving Industry Demand.
The global masterbatch market size was USD 11.17 Billion in 2020, and market revenue growth is driven to a significant extent by rising demand for improving fuel-efficiency in vehicles, rapid growth in building and construction industry, rising demand for masterbatch in consumer goods applications, and increasing use of polyester fiber in the textile industry globally.
Some major companies included in the report are LyondellBasell Industrial NV, Plastika Kritis SA, Avient Corporation, Tosaf Group, Ampacet Corporation,
Drivers: Increasing demand for masterbatch in food product packaging
Masterbatches find application to impart specific functionalities and properties to plastics such as strength, durability, and better visual appeal for packaging purposes and to prevent food spoilage or damage caused to products and attract customer appeal. BOPET masterbatch is widely used in production of packaging products with enhanced tensile strength, chemical stability, and reflectivity for use in food packaging. BOPP masterbatch film possesses fatigue resistance and high conformability and finds usage in labelling, packaging, and graphics applications. Also, BOPP film delivers excellent moisture resistance, tensile strength, and optical clarity, which are necessary in the food packaging industry.
Restraints: Limitations associated with masterbatch
A key restraint of color masterbatch in production processes of plastics is that it uses more space than pure forms. Also, inadequate coloring pattern dispersion is a significant drawback associated with color masterbatch, as it is provided in premixed composition.
Growth Projections
The global masterbatch market size is expected to reach USD 16.31 Billion in 2028 and register a revenue CAGR of 4.8% over the forecast period, which can be attributed to rapid urbanization and industrialization, and rising emphasis on use of masterbatches in plastic/polymer- based products to create varied hue and special color effects and to differentiate end-products through improved aesthetics.
COVID-19 Direct Impacts
Covid-19 pandemic has a significant impact on the masterbatch industry due to imposed lockdown measures and disruption of supply chain. This has severely affected procurement of raw material for masterbatch production, as well as its supply. A halt in automotive production and construction projects, which are among the leading applications of masterbatch, as well as shutdown or decrease in production in several other industries requiring plastic packaging materials has led to decrease in revenue growth of the market.
Current Trends and Innovations
A key trend prevailing in the market is increase in investment in research and development for incorporating antimicrobial technology masterbatch to provide added benefits to consumers. This coupled with rising disposable income are some key trends observed in the market.
Geographical Outlook
The market in Asia Pacific is expected to register fastest revenue CAGR over forecast period, due to presence of large consumer base of plastic goods, and growth of end-use industries such as construction, textiles, automotive, consumer goods, and packaging. Additionally, revenue from the market in the region is expanding significantly due to increased demand for masterbatches from countries such as India and China and presence of leading market players.
Strategic Initiatives
In August 2018. LyondellBasell, which is a leading market player, made an announcement about the acquisition of A. Schulman, Inc., which is a firm engaged in high-performance plastic composites, compounds, powders, and masterbatches.
Among the product type segments, the black segment contributed a significantly large revenue share in 2020. Black masterbatch offers several benefits such as high jetness, durability facing extreme weather conditions, superior dispersion, electro-static conductive grades, UV protection, and food contact acceptable grades.
Among the polymer segments, the polypropylene segment accounted for largest revenue share in 2020, attributed to increasing use of polypropylene filled masterbatch to decrease manufacturing cost, enhance strength, improve elongation, and enhance printability of packaging materials.
Among the industry vertical segments, automotive segment revenue is expected to expand at the fastest rate over the forecast period, attributable to increasing use of lightweight plastic components and increasing need to reduce manufacturing costs of vehicles.
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