The global Plastic Additives Market is estimated to be valued at US$ 45.94 Bn or Mn 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 Overview:
Plastic additives are substances added to plastics to enhance their properties or performance. Plastic additives provide protection against UV light degradation, heat, UV stability, stain resistance and optimize processing during molding or extrusion.
Market key trends:
One of the major trends in the plastic additives market is the increasing demand for biodegradable and bio-based plastic additives. Strict regulations regarding usage of conventional plastic additives and growing environmental concerns are forcing manufacturers to develop sustainable alternatives. Biodegradable plastic additives such as nanocellulose, polylactic acid and polyhydroxyalkanoates are gaining popularity as they enhance mechanical and barrier properties of plastics and reduce dependence on petroleum-based plastic additives. These biomass-derived additives are expected to substitute various conventional plasticizers, antioxidants, fillers and others in the coming years.
SWOT Analysis
- Strength: Plastic additives enhance the performance of plastics. They improve properties such as durability, heat resistance and weatherability.
- Weakness: Stringent regulations regarding the use of certain plastic additives. High R&D costs associated with developing innovative additives.
- Opportunity: Growing demand for plastic products from end-use industries like packaging, construction and automotive. Increasing focus on bio-based and recyclable plastic additives.
- Threats: Availability of substitutes like metal, paper, glass. Volatility in raw material prices.
Key Takeaways
The global plastic additives market is expected to witness high growth, exhibiting CAGR of 5.6% over the forecast period, due to increasing demand from the packaging industry. Plastic additives are widely used to manufacture flexible packaging products.
Regional analysis: Asia Pacific dominated the global plastic additives market in 2020 and is projected to grow at the highest CAGR during the forecast period. This can be attributed to the surge in the production of plastic and the growth of end-use industries in China, India, and other Asian countries.
Key players operating in the plastic additives market are BASF SE, Songwon Industrial Co., Ltd., Clariant AG, and Evonik Industries AG. These companies are focusing on capacity expansion and new product development through heavy investments in R&D activities. For instance, BASF is building a new production plant for plastic additives in Zhanjiang, China to cater to the growing demand in Asia Pacific.
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