Plastic additives are chemicals that are added to plastic to enhance its properties during processing or its performance after processing. They are used to improve impact strength, resistance to degradation, fire resistance and various other properties. With the rapidly expanding construction industry, demand for lightweight and durable construction materials is on the rise. This has propelled the use of plastic additives in the manufacturing of construction materials like pipes, wires, cables and panels.
The global Plastic Additives Market is estimated to be valued at US$ 45.94 Bn in 2023 and is expected to exhibit a CAGR of 5.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The increasing construction activity around the world has boosted the demand for plastic additives from the construction industry. Plastic additives improve the durability and strength of plastic materials used in construction like PVC pipes, wires, insulation panels etc. They provide corrosion resistance, flame retardance and improve impact strength of plastics. This makes plastic construction materials suitable for applications in all climatic conditions. The rising infrastructural developments in emerging economies is a major factor driving the consumption of plastic additives in the construction plastic materials.
SWOT Analysis
- Strength: Plastic additives enhances the properties of plastics such as its durability, flexibility and weather resistance. This increases the applications of plastics in various end use industries.
- Weakness: Stringent environmental regulations regarding certain plastic additives may restrict their use. High dependency on petroleum prices for raw material procurement can increase production costs.
- Opportunity: Growth in industries such as packaging, automotive and construction offers opportunities for increased demand of improved and customized plastics. Emerging applications of bioplastics and bio-based plastic additives present new areas of growth.
- Threats: Volatility in raw material prices due to geopolitical issues poses threats. Development of alternative materials to plastics acts as a major threat.
Key Takeaways
The global plastic additives market is expected to witness high growth. The market size for 2024 is estimated to be US$ 45.94 Billion showing significant opportunities over the forecast period of 2023 to 2030.
Regional analysis comprises Asia Pacific dominates the global market and is expected to continue its dominance during the forecast period. This can be attributed to high demand from industries such as packaging, automotive and construction in countries such as China and India. Europe holds the second largest share due to stringent regulations favoring enhanced material properties.
Key players operating in the plastic additives market are BASF SE, Songwon Industrial Co., Ltd., Clariant AG, and Evonik Industries AG. BASF SE is one of the largest players in plastic additives due to its wide product portfolio and global presence. Clariant AG specializes in plastic masterbatches and finished products for various end use industries.
