Plastic Compounding Market

Plastic Compounding Market Size

[ 170 + Pages Research Report ]  to surpass USD 126.7 billion by 2032 from USD 62.01 billion in 2021 at a CAGR of 6.7% in the coming years, i.e., 2022-32.

Plastic Compounding is a process of forming new plastic materials with enhanced properties. The plastic is melt-blended and is customized with specific additives to achieve the required color, performance, and property. The process includes multiple stages such as determining the ratio of additives, mixing via twin-screw extruders at high speed, melt mixing, and cooling, pellet cutting, and packaging. Materials used in plastic compounding are Polyethylene, Polypropylene, Poly Vinyl Chloride, Polystyrene, Polyethylene Terephthalate, Poly-Butylene Terephthalate, Polyamide, Acrylonitrile Butadiene Styrene, and Others. Plastic compounding is used in different industries such as Packaging, Construction, Automotive, Healthcare, Electronics, and others.

Market Highlights

Plastic Compounding market is expected to project a notable CAGR of 6.7% in 2032.

Increasing deployment of plastic components in place of metals and alloys in automobiles and growing infrastructure developments are promoting the growth of Plastic Compounding Market.

Plastic Compounding Market: Segments

Polypropylene (PP) segment holds the largest market share

Plastic Compounding market is classified on the basis of type into Polyethylene (PE), Polypropylene (PP), Poly Vinyl Chloride (PVC), Polystyrene (PS), Polyethylene Terephthalate (PET), Poly-Butylene Terephthalate (PBT), Polyamide (PA), Acrylonitrile Butadiene Styrene (ABS), and Others. Polypropylene (PP) segment is dominating the market with the largest market share. The growth is attributed to the huge demand in the automotive sector owing to the several properties of Polypropylene which helps in improving the fuel efficiency of vehicles. It has high tensile strength, and high chemical resistance, and is durable in extreme temperatures.

Automotive segment holds the largest market share

Plastic Compounding market is fragmented on the basis of applications in Packaging, Automotive, Construction, Electronics, Healthcare, and Others. Automotive segment holds the largest market share. The growth is attributed to the increasing incorporation of compounded plastic in-vehicle components in place of metal and alloys to increase the efficiency of the vehicles. Rising production of automobiles in developing economies is further contributing to segment growth.

Market Dynamics

Drivers

Growing Application in the Automobile Industry

Manufacturers in the automobile industry are focusing on reducing weight of the vehicles in order to improve fuel efficiency which has induced the demand of compounded plastic components. Increasing deployment of plastic components in place of metals and alloys in automobiles is contributing to market growth. Developing economies such as India and China have emerged as the manufacturing hub of various automobiles and their components which has created a huge demand for plastic compounding in the region. Increasing demand for alternatives of glass, rubber, wood, and other materials is also creating new opportunities for the plastic compounding market.

Rising Infrastructure Developments and Scope in Other Industries

Growing infrastructure developments in many countries have witnessed the rising application of compounded plastics. Consumer awareness about attractive interiors has increased over time which has created huge demand for these materials in interior designs. Growth in construction projects has induced the demand of plastics in windows, pipes, storage tanks, wires and cables, etc. which is boosting the market growth. Furthermore, compounded plastics are widely used in consumer goods and electronics such as hairdryers, razor, heaters, and mixers as they provide safety against electric shock which is propelling the market growth.

Restraint

Fluctuating Prices of Raw Materials and Growing Environmental Concerns

The prices of raw materials needed in the production of compounded plastics are uncertain which is restraining the growth of the market. Moreover, increasing awareness regarding the harmful impacts of plastic use on environment and ban on plastic use by government are impeding the growth of compounded plastics.

Recent Developments

• In May 2022, Ultradur B4335G3 HR HSP which is an all-rounder for reliable protection was launched by BASF SE.
• In January 2019, Next Polymers Ltd. was acquired by Celanese Corporation. Next Polymers Ltd. was one of India’s leading thermoplastics compounders.

Plastic Compounding Market: Key Players

• LyondellBasell Industries NV
• SABIC
• BASF SE
• DuPont
• DOW
• Borealis
• INEOS
• Versalis S.p.A (Eni S.p.A)
• Asahi Kasei Corporation
• Covestro AG
• 3M
• LANXESS AG
• Adell Plastic Inc.
• Celanese Corporation
• Ravago
• Other Prominent Players

Plastic Compounding Market: Regions

Plastic Compounding market is segmented based on regional analysis into five major regions: North America, Latin America, Europe, Asia Pacific and the Middle East and Africa. Asia Pacific is dominating with the largest share in the market and is expected to grow at a significant rate during the forecast period. The growth is attributed to the growing presence of plastic manufacturers, expansion of automotive, packaging, construction, and machinery industries along with favorable business environment. Rapid growth in the population and increasing demand of consumer goods is contributing to the growth in the region.

Impact of Covid-19 on Plastic Compounding Market

The global outbreak of coronavirus has adversely affected the economic growth of several countries. The strict imposition of lockdowns and travel bans have led to the shutdown of many businesses. There has been a huge imbalance in the supply and demand of goods and services. Covid-19 has hampered the procurement of raw materials and has caused a huge disruption in the supply chain management. Plastic Compounding market is negatively affected due to Covid-19 as a result of decline in demand and slowdown in production activities.

Plastic Compounding Market is further segmented by region into:

• North America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United States and Canada
• Latin America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – Mexico, Argentina, Brazil and Rest of Latin America
• Europe Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United Kingdom, France, Germany, Italy, Spain, Belgium, Hungary, Luxembourg, Netherlands, Poland, NORDIC, Russia, Turkey and Rest of Europe
• Asia Pacific Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – India, China, South Korea, Japan, Malaysia, Indonesia, New Zealand, Australia and Rest of APAC
• Middle East and Africa Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – North Africa, Israel, GCC, South Africa and Rest of MENA

Plastic Compounding Market report also contains analysis on:

Plastic Compounding Market Segments:

• By Type 
  • Polyethylene (PE)
  • Polypropylene (PP)
  • Poly Vinyl Chloride (PVC)
  • Polystyrene (PS)
  • Polyethylene Terephthalate (PET)
  • Poly-Butylene Terephthalate (PBT)
  • Polyamide (PA)
  • Acrylonitrile Butadiene Styrene (ABS)
  • Others 
• By Application
  • Packaging
  • Automotive
  • Construction
  • Electronics
  • Healthcare
  • Others 
• Plastic Compounding Market Dynamics
• Plastic Compounding Market Size
• Supply & Demand
• Current Trends/Issues/Challenges
• Competition & Companies Involved in the Market
• Value Chain of the Market
• Market Drivers and Restraints

Plastic Compounding Market Report Scope and Segmentation

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