South & Central America Masterbatch Market Forecast to 2031 - Regional Analysis - by Type, Polymer, and End-use Industry

The South & Central America masterbatch market was valued at US$ 603.58 million in 2023 and is expected to reach US$ 819.88 million by 2031; it is estimated to register a CAGR of 3.9% from 2023 to 2031.

Strategic Initiatives by Key Market Players Fuel South & Central America Masterbatch Market

Masterbatch manufacturers implement various strategic initiatives to maintain competitiveness, meet evolving customer demands, and capitalize on market opportunities. Masterbatch producers invest in research and development to innovate and introduce new products with enhanced properties, functionalities, and sustainable features. The product launches by key market players also include the development of formulations with improved color accuracy, dispersion properties, and specialty additives for specific applications.

In November 2023, Cabot Corporation launched REPLASBLAK, three circular black masterbatches with certified material. The product range includes REPLASBLAK rePE5475 100% circular black masterbatch, REPLASBLAK rePE5265 70% circular black masterbatch, and REPLASBLAK rePE5250 60% circular black masterbatch. In March 2023, Gerdau Graphene launched a graphene-enhanced Poly-G PE-07GM polyethylene masterbatch. The masterbatch is suitable for the production of films, profiles, and sheets formed through the extrusion processes. In 2022, Tosaf Compounds Ltd developed white masterbatches suitable for application in the hard and soft packaging for the food industry and components in the toys and cosmetics industries.

In December 2023, Ampacet Corporation launched ColorMark masterbatch, allowing customers to create permanent lettering and designs in intricate detail on dark plastic surfaces. The developed product is compatible with polypropylene; polystyrene; polycarbonate; polyamide; and other engineered resins used in injection molding, thermoforming, and sheet applications. In October 2023, Ampacet Corporation launched ProVital+ GermsClean, a medical-grade antimicrobial masterbatch.

The developed product protects plastic components in healthcare facilities from the growth of microorganisms by preventing the proliferation of bacteria and fungi multiplication. Thus, rising product launches, innovations, research, and other strategic initiatives by market players are expected to create lucrative opportunities in the masterbatch market during the forecast period.

South & Central America Masterbatch Market Overview

According to the report by the Brazilian Association of Automotive Vehicle Manufacturers, the production of automobiles in Brazil grew by 11.4%, and the sales were increased by 10.9% from February to March 2022. In 2022, Audi AG invested US$ 19.2 million to restart production at its plant in Parana, Brazil, registering a capacity of 4,000 vehicles per year. Several economies in the region are focused on the development of electric vehicle infrastructure. In February 2023, Argentina's Federal Energy Department issued a resolution designed to support the growth of the low-emission vehicle industry.

According to the Association of Automotive Manufacturers, 7,846 units of vehicles powered by alternative energies were patented in Argentina in 2022. Plastics are used in the production of exterior and interior furnishing of vehicles and components such as power trains, hoods, chassis, roofs, and flooring. Masterbatches such as white, black, additive, and filler are widely used in automotive applications. Thus, the growing automotive industry in South & Central America propels the demand for automotive components, which drives the masterbatch market growth in the region.

South & Central America Masterbatch Market Revenue and Forecast to 2031 (US$ Million)

South & Central America Masterbatch Market Segmentation

The South & Central America masterbatch market is categorized into type, polymer, end-use industry, and country.

Based on type, the South & Central America masterbatch market is divided into white, black, additives, color, filler, and others. The white segment held the largest South & Central America masterbatch market share in 2023.

In terms of polymer, the South & Central America masterbatch market is segmented into polyethylene, polypropylene, polyethylene terephthalate, polystyrene, and others. The polyethylene segment held the largest South & Central America masterbatch market share in 2023.

By end-use industry, the South & Central America masterbatch market is divided into building and construction, automotive, packaging, agriculture, electrical and electronics, and others. The packaging segment held the largest South & Central America masterbatch market share in 2023.

By country, the South & Central America masterbatch market is categorized into Brazil, Argentina, Costa Rica, Guatemala, Ecuador, Columbia, and the Rest of South & Central America. Brazil dominated the South & Central America masterbatch market share in 2023.

Avient Corp, Ampacet Corporation, Cabot Corp, LyondellBasell Industries NV, Penn Color Inc, and FRILVAM SPA are some of the leading companies operating in the South & Central America masterbatch market.