Plastic Compounding Global Market Report 2024

The plastic compounding market has grown strongly in recent years. It will grow from $674.38 billion in 2023 to $727.57 billion in 2024 at a compound annual growth rate (CAGR) of 7.9%. The expansion witnessed in the historical period can be attributed to several factors the growth within various end-use industries, the substitution of traditional materials, a heightened emphasis on lightweight materials, increasing consumer preference for sustainable products, and the significant expansion observed within the packaging industry.

The plastic compounding market is expected to see strong growth in the next few years. It will grow to $947.31 billion in 2028 at a compound annual growth rate (CAGR) of 6.8%. Anticipated growth in the upcoming period is expected to stem from several key drivers the implementation of circular economy initiatives, the increasing adoption of electric vehicles, a pronounced focus on bio-based plastics, the ongoing urbanization and infrastructure development, advancements in polymer science, and the imposition of stricter regulations concerning plastic usage.

The upsurge in both commercial and residential construction projects is poised to drive the plastic compounding market's growth trajectory. These projects encompass the development of structures for business activities and private living, respectively. Plastic compounding plays a pivotal role in fortifying plastic materials used in these projects, providing essential properties such as strength, durability, flexibility, flame retardancy, UV resistance, and color stability. For instance, US construction starts surged by 5.9% to $747 billion in 2021, with residential construction marking a notable 14.5% growth. Similarly, Canadian commercial and residential construction starts climbed by 6.5% to C$91.8 billion ($67.68 Billion) in the same year. The UK witnessed a rise of 4% in the construction of 49,470 more homes, with an 18% spike in London house building, reaching 14,530 in 2021. This surge in construction projects is instrumental in propelling the plastic compounding market forward.

The increasing appetite for electronic devices is poised to significantly impact the demand for plastic compounding solutions. Electronic devices encompass a wide array of gadgets powered by electricity or electronic systems, requiring materials tailored for specific needs such as heat resistance and electrical insulation. Plastic compounding enables the creation of smaller, durable components that bolster device performance and safeguard against environmental factors. Notably, in May 2023, Japan's total electronic equipment production hit $52,36,535 million (¥771,457 million), with consumer electronics production escalating to $2,178,430 million (¥32,099 million) from $1,714,724 million (¥25,268 million) in May 2022. This burgeoning demand for electronic devices continues to be a driving force behind the surge in the plastic compounding market.

Technological advancements stand out as a pivotal trend reshaping the landscape of the plastic compounding market. Leading companies in this sector are ardently focusing on pioneering technologies to fortify their market positions. For instance, Lummus Technology LLC. introduced Novolen Pure polypropylene (PP) technology in November 2022, a groundbreaking grade range of polymers ideal for automotive, medical, and food packaging materials. This innovation, leveraging a unique non-phthalate manufacturing approach, not only enhances product quality but also yields substantial energy savings through an enhanced hydrogen reaction with the catalyst.

Market leaders within the plastic compounding arena are vigorously innovating plastic formulations to cater to diverse industry requirements, emphasizing improved performance, sustainability, and functionality. Evonik Industries AG, in May 2023, unveiled a range of additives under the brand TEGO Cycle, aimed at enhancing processes and final quality of recycled plastics. These additives, fostering energy conservation during mechanical recycling while elevating polymer quality, signify a pivotal stride towards transforming the plastics value chain into a more circular and sustainable model.

In October 2022, Aurora Plastics LLC, a renowned US-based manufacturer specializing in custom plastics and polymers, finalized a merger with Enviroplas Inc., the culmination of which took place for an undisclosed sum. This strategic amalgamation is strategically geared towards enriching the customer experience by presenting an extended product portfolio alongside unparalleled customer service. The merger amplifies the combined expertise in engineered polymers, PVC compounds, thermoplastic elastomers, and a diverse range of specialty compounds, culminating in an all-encompassing suite of offerings for consumers. Enviroplas Inc., known for its specialty engineering resin compounds, contributes substantially to this comprehensive offering following this merger.

Major companies operating in the plastic compounding market report are Adell Plastics Inc., Asahi Kasei Corporation, Celanese Corporation, DuPont de Nemours Inc., Solvay SA, Saudi Basic Industries Corporation (SABIC), LyondellBasell Industries Holdings B.V., Dow Inc., RTP Company, Avient Corporation, Polyvisions Inc., Kingfa Science & Technology Co. Ltd., Kraton Corporation, Kuraray Co. Ltd., Polykemi AB, Citadel Plastics, DSM N.V., Arkema Group, Sumitomo Bakelite Co. Ltd., Nova Polymers Inc., Europlas (PVCu) Ltd., US Plastics Recovery, A. Schulman Inc., Teknor Apex Company, Cabot Corporation, Tosaf Group, Mexichem Specialty Compounds Ltd., Ravago Manufacturing Americas, Plastics Color Corporation, AmeriLux International LLC, Astra Polymers Compounding Co. Ltd.

Asia-Pacific was the largest region in the plastic compounding market in 2023. North America is expected to be the fastest-growing region in the global plastic compounding market during the forecast period. The regions covered in the plastic compounding market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the plastic compounding market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary products involved in plastic compounding encompass a range of materials such as polyethylene (PE), polypropylene (PP), polyvinyl chloride (PVC), polystyrene (PS), polyethylene terephthalate (PET), polybutylene terephthalate (PBT), polyamide (PA), polycarbonate (PC), acrylonitrile butadiene styrene (ABS), among others. Polyethylene (PE) is a thermoplastic homopolymer structured from numerous repeating ethane monomers. Sourced from fossil-based, bio-based, and recycled materials, PE finds extensive use across diverse applications such as automotive and transportation, infrastructure and construction, electrical and electronics, packaging, consumer goods, industrial machinery, and more.

The plastic compounding market research report provides plastic compounding market statistics, including plastic compounding industry global market size, regional shares, competitors with a plastic compounding market share, detailed plastic compounding market segments, market trends and opportunities, and any further data you may need to thrive in the plastic compounding industry. This plastic compounding market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The plastic compounding market consists of revenues earned by entities by providing feedstock testing, masterbatch creation, and prework testing, compounding and in-process testing, post-blending, and final quality control testing. The market value includes the value of related goods sold by the service provider or included within the service offering. The plastic compounding market also includes sales of polyurethane, nylon, polyphenylene oxide, and acetyl which are used in providing plastic compounding. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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