The global plastic compounding market was valued at $448.3 million in 2022, and is projected to reach $781.3 million by 2032, growing at a CAGR of 5.7% from 2023 to 2032.
Plastic compounding is a process of transforming the characteristics of basic plastics and thermoplastics using a mixture of plastics and additives. Plastic compounds have superior physical properties such as wide range of conductivity, flame retardancy, wear resistance, and are light weight. These properties increase their demand in various automotive, building and construction, packaging and electrical & electronics and thus boosting the growth of the global plastic compounding market.
Growing population across the globe, rise in disposable income, and increase in consumer demand for packaged food have enhanced the packaging sector. For instance, according to a report published by the National Investment Promotion and Facilitation Agency, the packaging industry was worth over $917 billion in 2019 and is expected to reach $1.05 trillion by 2024, growing at a CAGR of 2.8%. Plastic compound products are used for making plastic containers, plastic wraps, films, and other products. Furthermore, an increase in awareness regarding hygienic and safe packaged foods has enhanced the demand for plastic compounds in the growing packaging industry. In addition, cost effective and associated chemical and mechanical properties of plastic compounds have enhanced manufacturers purchasing power for plastic compounds. This factor has escalated the demand for plastic compounds in the growing packaging industry during the forecast period.
Plastic pollution is becoming one of the most pressing environmental issues these days, owing to its disposal, decomposition, toxic chemical constituents, and other factors. Several countries such as Taiwan, Bangladesh, the UK, and China have made efforts to ban the use of various plastic compounds polystyrene, epoxy, and other products. This has set back the key manufacturers from producing plastic compounds. Furthermore, the manufacturing process of plastic compounds involves the release of several toxic chemical constituents that damages the immune system of humans. This act as one of the restraining factors in the plastic compounds market. In addition, fluctuating prices of raw crude oil, petrochemical feedstock, natural resources, and others have hampered market growth. These factors restrain consumers from purchasing plastic compounds-based products; thus, hampering the growth of the plastic compounds market.
Factors such as increasing disposable income, technological upgrades, and spurring a rise in original equipment manufacturers (OEMs) have led the automotive sector to witness significant growth. For instance, according to a report published by India Brands Equity Foundation, domestic automobile production increased by a compound annual growth rate (CAGR) of 2.36% from 2016 to 20 with 26.36 million vehicles being manufactured in India in 2020. Plastic compounds possess excellent significant properties such as high mechanical strength, thermal resistance, chemical resistance, non-toxic, non-polluting, and corrosion resistance which makes them best suited for automotive applications. Compounded plastics are used for dashboard panels, door trims, and interior upholstery, offering durability and aesthetic appeal. Engine parts, bumpers, and other exterior components often utilize reinforced plastic compounds for strength and impact resistance. These factors together are anticipated to foster the growth of the composites market during the forecast period.
The plastic compounding market is segmented on the basis of polymer type, end use, and region. By polymer type, it is categorized into polypropylene (PP), polyethylene (PE), polyvinyl chloride (PVC), polystyrene (PS) and expanded polystyrene (EPS), polyethylene terephthalate (PET), polyurethane (PU), acrylonitrile butadiene styrene (ABS), and other polymers. On the basis of end use industry, it is divided into automotive, building & construction, packaging, electrical & electronics, medical, and others. Region-wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.
Plastic compounding is a process of transforming the characteristics of basic plastics and thermoplastics using a mixture of plastics and additives. Plastic compounds have superior physical properties such as wide range of conductivity, flame retardancy, wear resistance, and are light weight. These properties increase their demand in various automotive, building and construction, packaging and electrical & electronics and thus boosting the growth of the global plastic compounding market.
Growing population across the globe, rise in disposable income, and increase in consumer demand for packaged food have enhanced the packaging sector. For instance, according to a report published by the National Investment Promotion and Facilitation Agency, the packaging industry was worth over $917 billion in 2019 and is expected to reach $1.05 trillion by 2024, growing at a CAGR of 2.8%. Plastic compound products are used for making plastic containers, plastic wraps, films, and other products. Furthermore, an increase in awareness regarding hygienic and safe packaged foods has enhanced the demand for plastic compounds in the growing packaging industry. In addition, cost effective and associated chemical and mechanical properties of plastic compounds have enhanced manufacturers purchasing power for plastic compounds. This factor has escalated the demand for plastic compounds in the growing packaging industry during the forecast period.
Plastic pollution is becoming one of the most pressing environmental issues these days, owing to its disposal, decomposition, toxic chemical constituents, and other factors. Several countries such as Taiwan, Bangladesh, the UK, and China have made efforts to ban the use of various plastic compounds polystyrene, epoxy, and other products. This has set back the key manufacturers from producing plastic compounds. Furthermore, the manufacturing process of plastic compounds involves the release of several toxic chemical constituents that damages the immune system of humans. This act as one of the restraining factors in the plastic compounds market. In addition, fluctuating prices of raw crude oil, petrochemical feedstock, natural resources, and others have hampered market growth. These factors restrain consumers from purchasing plastic compounds-based products; thus, hampering the growth of the plastic compounds market.
Factors such as increasing disposable income, technological upgrades, and spurring a rise in original equipment manufacturers (OEMs) have led the automotive sector to witness significant growth. For instance, according to a report published by India Brands Equity Foundation, domestic automobile production increased by a compound annual growth rate (CAGR) of 2.36% from 2016 to 20 with 26.36 million vehicles being manufactured in India in 2020. Plastic compounds possess excellent significant properties such as high mechanical strength, thermal resistance, chemical resistance, non-toxic, non-polluting, and corrosion resistance which makes them best suited for automotive applications. Compounded plastics are used for dashboard panels, door trims, and interior upholstery, offering durability and aesthetic appeal. Engine parts, bumpers, and other exterior components often utilize reinforced plastic compounds for strength and impact resistance. These factors together are anticipated to foster the growth of the composites market during the forecast period.
The plastic compounding market is segmented on the basis of polymer type, end use, and region. By polymer type, it is categorized into polypropylene (PP), polyethylene (PE), polyvinyl chloride (PVC), polystyrene (PS) and expanded polystyrene (EPS), polyethylene terephthalate (PET), polyurethane (PU), acrylonitrile butadiene styrene (ABS), and other polymers. On the basis of end use industry, it is divided into automotive, building & construction, packaging, electrical & electronics, medical, and others. Region-wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the plastic compounding market analysis from 2022 to 2032 to identify the prevailing plastic compounding market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the plastic compounding market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global plastic compounding market trends, key players, market segments, application areas, and market growth strategies.
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- Product Life Cycles
- Senario Analysis & Growth Trend Comparision
- Supply Chain Analysis & Vendor Margins
- Upcoming/New Entrant by Regions
- Pain Point Analysis
- Regulatory Guidelines
- Historic market data
- Import Export Analysis/Data
- Market share analysis of players at global/region/country level
- Per Capita Consumption Trends
- Product Consumption Analysis
Key Market Segments
By Polymer Type
- Polypropylene
- Polyethylene
- Polyvinyl Chloride
- Polystyrene and Expanded Polystyrene
- Polyethylene Terephthalate
- Polyurethane
- Acrylonitrile Butadiene Styrene
- Other Polymers
By End Use
- Packaging
- Building and Construction
- Automotive
- Electrical and Electronics
- Medical
- Others
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- UK
- France
- Spain
- Italy
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- South Korea
- Australia
- Rest of Asia-Pacific
- LAMEA
- Brazil
- South Africa,
- Saudi Arabia
- Rest of LAMEA
- Key Market Players
- Covestro AG.
- Solvay
- SABIC
- Asahi Kasei Corporation
- Celanese Corporation
- BASF SE
- Avient Corporation.
- Kingfa Science & Technology (India) Limited
- DuPont
- LyondellBasell Industries Holdings B.V.
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Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: PLASTIC COMPOUNDING MARKET, BY POLYMER TYPE
CHAPTER 5: PLASTIC COMPOUNDING MARKET, BY END USE
CHAPTER 6: PLASTIC COMPOUNDING MARKET, BY REGION
CHAPTER 7: COMPETITIVE LANDSCAPE
CHAPTER 8: COMPANY PROFILES
List of Tables
List of Figures
Executive Summary
According to the report, the plastic compounding market was valued at $448.3 million in 2022, and is estimated to reach $781.3 million by 2032, growing at a CAGR of 5.7% from 2023 to 2032.Plastic compounding is a process in the plastics industry where various ingredients and additives are combined to create a customized plastic material with specific properties. This process involves blending polymer compounds (such as polyethylene, polypropylene, and PVC) with various additives, fillers, reinforcements, and colorants to achieve the desired characteristics, such as strength, flexibility, flame resistance, UV resistance, color, and more. Plastic compounding allows manufacturers to tailor plastics to meet specific performance criteria, making it a critical part of various industries, including automotive, construction, packaging, and consumer goods.
The growing population and increase in the use of plastic in daily life have led the plastic production sector to witness significant growth where plastic compounds is widely used during plastic production due to its mechanical and chemical capabilities. In addition, plastic compounds is added to compound scrap during the palletization or granulation process of plastic. Furthermore, data published by ISO in March 2022 shows that plastic production is expected to double by 2040 and will increase by 2.5 times by 2050.
In addition, government initiative for plastic recycling and reuse leads to enhancing the plastic compounds market. These factors are expected to act as one of the key factors responsible for the growth of the plastic compounds market. Furthermore, plastic production has become one of the major industries in the U.S., and it is expected to grow during the forecast period., For instance, according to an article published by Plastic Industry Association in September 2022, the U.S. plastics industry accounted for an estimated $432 billion in 2022 and reached $549.5 billion in 2021. This is anticipated to act as one of the key drivers which are responsible for the growth of the plastic compounds market in the plastic industry.
Plastic pollution is becoming one of the most pressing environmental issues these days, owing to its disposal, decomposition, toxic chemical constituents, and other factors. Several countries such as Taiwan, Bangladesh, the UK, and China have made efforts to ban the use of various plastic compounds polystyrene, epoxy, and other products. This has set back the key manufacturers from producing plastic compounds. Furthermore, the manufacturing process of plastic compounds involves the release of several toxic chemical constituents that damages the immune system of humans. This act as one of the restraining factors in the plastic compounds market. In addition, fluctuating prices of raw crude oil, petrochemical feedstock, natural resources, and others have hampered market growth. These factors restrain consumers from purchasing plastic compounds-based products; thus, hampering the growth of the plastic compounds market.
Factors such as increasing disposable income, technological upgrades, and spurring a rise in original equipment manufacturers (OEMs) have led the automotive sector to witness significant growth. For instance, according to a report published by India Brands Equity Foundation, domestic automobile production increased by a compound annual growth rate (CAGR) of 2.36% from 2016 to 20 with 26.36 million vehicles being manufactured in India in 2020. Plastic compounds possess excellent significant properties such as high mechanical strength, thermal resistance, chemical resistance, non-toxic, non-polluting, and corrosion resistance which makes them best suited for automotive applications. Compounded plastics are used for dashboard panels, door trims, and interior upholstery, offering durability and aesthetic appeal. Engine parts, bumpers, and other exterior components often utilize reinforced plastic compounds for strength and impact resistance. These factors together are anticipated to foster the growth of the composites market during the forecast period.
The plastic compounding market is segmented on the basis of polymer type, end use, and region. By polymer type, it is categorized into polypropylene (PP), polyethylene (PE), polyvinyl chloride (PVC), polystyrene (PS) and expanded polystyrene (EPS), polyethylene terephthalate (PET), polyurethane (PU), acrylonitrile butadiene styrene (ABS), and other polymers. On the basis of end use industry, it is divided into automotive, building & construction, packaging, electrical & electronics, medical, and others. Region-wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA. The growth drivers, restraints, and opportunities are explained in the report to better understand the market dynamics. This report further highlights the key areas of investment. In addition, it includes Porter’s five forces analysis to understand the competitive scenario of the industry and role of each stakeholder. The report features strategies adopted by key market players to maintain their foothold in the market. Furthermore, it highlights the competitive landscape of key players to increase their market share and sustain intense competition in the industry.
The report covers the strategies adopted by key players in the market to sustain the competitive environment and increase their market share. The key players operating in the global Plastic compounding market include Asahi Kasei Corporation, BASF SE, Celanese Corporation, Covestro AG, DowDuPont Inc., Kingfa Sci. and Tech. Co., Ltd., LyondellBasell Industries Holdings B.V., Polyone Corporation, SABIC, and Solvay SA. In addition, the market drivers, restraints, and opportunities are explained in the report.
Key Findings:
On the basis of polymer type, the polypropylene segment is expected to grow at a high CAGR, in terms of revenue, during the forecast period.Depending on end use, the packaging segment is expected to grow at a CAGR of 5.7%, in terms of revenue, during the forecast period.
Region wise, Asia-Pacific garnered a share of morethan 45% in 2022 in terms of revenue.
Companies Mentioned
- Covestro AG.
- Solvay
- SABIC
- Asahi Kasei Corporation
- Celanese Corporation
- BASF SE
- Avient Corporation.
- Kingfa Science & Technology (India) Limited
- DuPont
- LyondellBasell Industries Holdings B.V.
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 353 |
| Published | October 2023 |
| Forecast Period | 2022 - 2032 |
| Estimated Market Value ( USD | $ 448.3 million |
| Forecasted Market Value ( USD | $ 781.3 million |
| Compound Annual Growth Rate | 5.7% |
| Regions Covered | Global |
| No. of Companies Mentioned | 10 |
