Masterbatch Market Trends

Global Masterbatch Market Overview

Masterbatch Market Size was valued at USD 7.38 billion in 2023. The Masterbatch industry is projected to grow from USD 7.75 billion in 2024 to USD 11.07 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 4.60% during the forecast period (2024 - 2032). The primary force behind the growth of the Masterbatch market worldwide is Increasing Demand For Plastics In Automotive Industry and Surging Demand From The Rapidly Growing Packaging Industry. Further, sustainable masterbatch creates opportunities for market growth are expected to provide a lucrative opportunity to the market players over the forecast duration.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Masterbatch Market Trends

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  Surging demand from the rapidly growing packaging industry to fuel the Masterbatch market

  
  

Color masterbatch is widely utilized in the packaging industry to cater to the diverse color requirements of packaging products such as bottles, packages, and boxes. Packaging plays a vital role in safeguarding and transporting goods, serving various sectors, including retail, industrial, and institutional. The rising global trade, economic development, evolving consumer lifestyles, and liberalization have heightened the need for enhanced protection and handling of goods. Plastics, being versatile and compliant with regulatory standards, are extensively employed as packaging materials. Plastics offer the flexibility to be moulded, extruded, blown, and cast into various forms, such as films, sheets, foams, and pellets. They also contribute to the visual appeal of packaging by facilitating the incorporation of desired colors, shapes, sizes, utility features, printing capabilities, weight management, and protective properties. As plastics continue to dominate the packaging industry, the demand for color masterbatch is increasing. Additionally, the growing significance of color in marketing and branding activities further drives the growth of the color masterbatch market. The packaging industry exhibits substantial demand for both standard, specialty, and customized color solutions.

Masterbatches are widely used in various packaging applications, including rigid packaging (such as RIBC and blow-molded containers) and flexible packaging (such as food packaging films, FIBC, and FMCG packaging). The plastic packaging industry has experienced significant growth due to the shift towards new retail formats. Increased sales rates in organized retail have driven the demand for attractive, innovative packaging. Among the growing segments in the retail sector, food and beverages play a prominent role. Plastic packaging is preferred in this sector as it enhances food quality and prolongs shelf life. Packaged food is projected to expand rapidly. Pharmaceuticals also heavily rely on packaging, and the industry is expected to grow at a double-digit rate. Packaging is crucial for drug delivery systems, ensuring compliance with regulations and protecting patients. Plastics are increasingly utilized in pharmaceutical packaging due to their desirable properties. With expertise in food, beverage, pharmaceutical, home, and personal care packaging, plastic packaging is rapidly expanding. Masterbatch, which adds color and functionality to plastics, is widely applied in the food packaging segment. This process accelerates the degradation of plastic products, which otherwise take years to degrade naturally, while also providing an appealing colour. Masterbatch is an effective and efficient method for adding functional and visual characteristics to plastic packaging. This is anticipated to drive the packaging industry and contribute to market growth.

White masterbatches play a crucial role in enhancing the properties of plastic objects due to their numerous advantages. These masterbatches offer several benefits, including high-quality finished products, ease of use, excellent dispersion, outstanding colour performance, and suitability for food packaging.

August 2022- LyondellBasell collaborated with Röchling Medical, part of Röchling Group have announced a step forward towards their ambition to advance the circular economy. The companies created eye drop containers made by Röchling Medical using CirculenRenew polymers. LyondellBasell CirculenRenew polymers offer a variety of polypropylene (PP) and polyethylene (HDPE and LDPE) grades that are equivalent to virgin resin quality.

April 2023- Avient Corporation has announced the expansion of its fiber color library and laboratory spinning capabilities at its facility in Gaziantep, Turkey. Situated in close proximity to key carpet and carpet yarn manufacturers, the site specializes in the development and production of color solutions for the textile industry. This expansion will enhance Avient's ability to serve its customers in the region by offering a wider range of color options and advanced spinning capabilities for textile applications.

Masterbatch Market Segment Insights

Masterbatch by Resins Insights

based on resins the Masterbatch Market is further classified into Polypropylene (PP), Low-Density Polyethylene (LDPE) & Linear Low-Density Polyethylene (LLDPE), High-Density Polyethylene (HDPE), Polyvinyl Chloride (PVC), Polystyrene (PS), and Others. The other segment dominated the Masterbatch Market with a value of USD 1,630.53 million in 2022 and is expected to grow with a CAGR of 4.42% during the forecast period. Other resins used for masterbatch production, depending on the specific application and desired properties of the final plastic product are Polyethylene Terephthalate (PET) are used with PET-based plastics to introduce color, enhance clarity, and improve the mechanical properties of the material, Polypropylene Random Copolymer (PP-R) are employed with PP-R-based plastics in applications such as pipes and fittings. They enhance color, UV resistance, and mechanical properties, making the plastic suitable for plumbing and other related applications.

March 2023- Ampacet has introduced the Biax4ce portfolio, a range of masterbatch solutions specifically designed for oriented mono-material PE film applications. These solutions support the circular economy by enabling the recycling and reuse of plastic films. The Biax4ce portfolio offers various benefits, including improved film performance, enhanced mechanical properties, and increased processability.

June 2023- Ampacet has introduced a new polymer processing aid (PPA) formulation that is free of PFAS (per- and polyfluoroalkyl substances). This PPA offers enhanced performance in plastic processing without relying on fluoro-based additives. By utilizing a non-fluoro-based formulation, Ampacet provides a sustainable and environmentally friendly solution for improving the processing of polymers.

Masterbatch by Type Insights

Based on types, the Masterbatch Market has been divided into white, black, color, additive and others. The white segment dominated the masterbatch market and accounted for the largest share of 30.68% in 2022; the segment was valued at USD 2,246.19 million in 2022. White masterbatch is a type of masterbatch that contains a high concentration of white pigment, typically titanium dioxide (TiO2), dispersed in a carrier resin. It is used to add opacity and whiteness to plastic products during the manufacturing process. White masterbatch is commonly used in applications where a pure white color is desired, such as in packaging films, containers, and various other plastic products.

July 2022- Avient Corp. has introduced two new offerings. The first is the postconsumer recycled (PCR) Color Prediction Service, which is designed for polyolefins and polyethylene terephthalate (PET) resins. The service helps predict the color outcomes of recycled plastics, enabling more accurate and efficient color matching in the production process. The second offering is the Cesa Nox A4R Additives for Recycling, a range of polyolefin antioxidants. These additives are specifically designed to enhance the recycling process of polyolefins, improving their stability and performance during reprocessing.

Masterbatch by End-use Industry Insights

Based on end-use industries, the Masterbatch Market has been divided into Packaging, Consumer Goods, Building & Construction, Agriculture, Automotive, and Others. The packaging segment dominated the masterbatch market and accounted for the largest share of 38.28% in 2022; the segment was valued at USD 2,802.63 million in 2022. Masterbatch finds wide application in the packaging industry, enhancing the functionality and visual appeal of various packaging materials. Color masterbatch adds vibrant hues to packaging, helping with branding and consumer attraction. UV stabilizer masterbatch prolongs the shelf life of packaged goods by safeguarding against harmful UV rays. It’s diverse applications of masterbatch make it an indispensable component in the creation of high-quality and efficient packaging solutions.

July 2022- Avient Corp. has introduced two new offerings. The first is the postconsumer recycled (PCR) Color Prediction Service, which is designed for polyolefins and polyethylene terephthalate (PET) resins. The service helps predict the color outcomes of recycled plastics, enabling more accurate and efficient color matching in the production process. The second offering is the Cesa Nox A4R Additives for Recycling, a range of polyolefin antioxidants. These additives are specifically designed to enhance the recycling process of polyolefins, improving their stability and performance during reprocessing.

October 2022- Clariant launches new additives to support plastics sustainable evolution. New developments give applications greater resilience to support longer use and reuse on the path to circularity. Plus, solve production challenges while achieving better efficiency and lower carbon footprint during compounding and processing (Hall 8a Booth J11).

Masterbatch Regional Insights

Region-wise Masterbatch Market has been divided into North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa. Asia Pacific accounted for the largest market share of 35.68% in 2022, with a market value of USD 2,612.18 million; the region is expected to register a CAGR of 5.98% during the forecast period. Europe was the second-largest market in 2022, valued at USD 1,964.05 million; the market is projected to exhibit the highest CAGR of 5.70%. The Asia Pacific region has emerged as a leading force in the masterbatch market due to a combination of strategic factors that drive its robust growth. One of the primary reasons is the rapid industrialization and urbanization in countries like China, India, and Southeast Asian nations. This industrial expansion has led to a surge in demand for plastics across diverse industries, such as automotive, consumer goods, and packaging.The packaging industry, in particular, has witnessed remarkable growth in the region, driven by rising disposable incomes, urbanization, and changing consumer lifestyles. Masterbatch plays a pivotal role in enhancing the visual appeal and functionality of packaging materials, making it a crucial component for manufacturers seeking innovative and attractive packaging solutions.

February 2023- LyondellBasell and KIRKBI A/S made an agreement to make an investment in APK, which specializes in a unique solvent-based recycling technology for low density polyethylene (LDPE).

October 2022- LyondellBasell and Shakti Plastic Industries, India's largest plastic scrap recycler and waste collection company, have signed a Memorandum of Understanding (MoU) to form a joint venture to build and operate a fully-automated, mechanical recycling plant in India. The plant is intended to process rigid packaging post-consumer waste and produce 50.000 tonnes of recycled polyethylene (PE) and polypropylene (PP) per year, equivalent to the single-use plastic waste produced by 12.5 million citizens.

Masterbatch Key Market Players & Competitive Insights

Major market players are spending a lot of money on R&D to increase their product lines, which will help the Masterbatch Market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, including new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Masterbatch Market industry must offer cost-effective products to expand and survive in an increasingly competitive and rising market environment.

One of the primary business strategies adopted by manufacturers in the global Masterbatch industry to benefit clients and expand the Masterbatch market sector is to manufacture locally to reduce operating costs. The market for Masterbatch is recognized as being extremely competitive and fragmented. The market for Masterbatch offers considerable potential opportunities for domestic and unorganised companies. Some of the key players operating in the Masterbatch Market are LyondellBasell Industries Holdings B.V., Ampacet Corporation, Cabot Corporation, Avient Corporation, Clariant AG, Penn Color Inc, Karina, Tosaf Group, RTP Company , Colorco, Plastika Kritis S.A., Polyplast Müller GmbH, GABRIEL-CHEMIE Group, Hubron International and Fine Organics. To increase their global reach and client base, key firms are concentrating on acquisitions and product innovation.

LyondellBasell Industries NV: engages in the refinery and production of plastic resins and other chemicals. It operates through the following segments: Olefins and Polyolefins-Americas; Olefins and Polyolefins-Europe, Asia, International; Intermediates and Derivatives; Advanced Polymer Solutions; Refining; and Technology. The Olefins and Polyolefins-Americas segment produces and markets olefins and co-products, polyethylene, and polypropylene. The Intermediates and Derivatives segment includes propylene oxide and its derivatives; oxyfuels and related products; and intermediate chemicals. The Advanced Polymer Solutions segment produces and markets compounding and solutions, such as polypropylene compounds, engineered plastics, masterbatches, colors and powders, engineered composites, and advanced polymers. The Refining segment refines heavy, high-sulfur crude oil and other crude oils of varied types and sources. The Technology segment develops chemical and polyolefin process technologies and manufactures and sells polyolefin catalysts.

Cabot Corporation: is a global specialty chemical and performance materials company. The Company operates through two segments: Reinforcement Materials and Performance Chemicals. The Reinforcement Materials segment combines the reinforcing carbons and engineered elastomer composite product lines. Its reinforcing carbons products are used in tires and industrial products. The Performance Chemicals segment is organized into two businesses: The Performance Additives business and Formulated Solutions business. The Performance Additives business combines its specialty carbons, battery materials, fumed metal oxides, and aerogel product lines, and the Formulated Solutions business combines its specialty compounds and inkjet product lines. Its principal products are carbon black, specialty carbons, elastomer composites, inkjet colorants, masterbatches and conductive compounds, fumed silica, and aerogel. The Company also owns Chiba solar farm that generates up to 3,500 megawatt-hours (MWh).

Key Companies in the Masterbatch Market includes

• LyondellBasell Industries Holdings (B.V.)


• Ampacet Corporation (USA)


• Cabot Corporation (USA)


• Avient Corporation (USA)


• Clariant AG (Switzerland)


• Penn Color Inc (USA)


• Karina (Egypt)


• Tosaf Group (Israel)


• RTP Company (USA)


• Colorco (USA)


• Plastika Kritis S.A. (Greece)


• Polyplast Müller GmbH (Germany)


• GABRIELCHEMIE Group (Austria)


• Hubron International (UK)


• Fine Organics (India)

Masterbatch Industry Developments

April 2023, Ampacet has introduced the SeaGlass Collection, a range of visual enhancements for PET (polyethylene terephthalate) plastic. The SeaGlass Collection offers a variety of unique and captivating colors and effects that can be applied to PET bottles and containers. These enhancements provide an aesthetic appeal reminiscent of sea glass, adding visual interest and differentiation to PET packaging.

November 2022- Cabot Corporation has announced the launch of its LITX 93 series of conductive carbon additives (CCA) for use in lithium-ion batteries. These additives improve conductivity and ease of processability in applications such as electric vehicles (EVs), energy storage, and consumer electronics.

April 2023, Penn Color, Inc. unveiled a state-of-the-art manufacturing facility in the Pluak Daeng Subdistrict of Rayong Province, Thailand. This strategic move represents a substantial expansion of Penn Color's production capabilities and positions them to serve the Asia-Pacific market effectively. Situated in close proximity to key industrial zones and major ports in Thailand, the new factory is strategically located within the Eastern Economic Corridor (EEC).

September 2024: Poddar Pigments Ltd, the first company in India to make Masterbatches, stays ahead of the competition by developing new products and processes. Such a company specializes in the creation of high-class output which includes functional masterbatches for the PP as well as polyester nonwoven fabrics. The company added Polyester Non-woven masterbatches in its product range, which was launched during the NOnwoven Asia Tech Exhibition, exemplifying the strategy of the business in providing various ecological and sustainable models for the textile and plastic industries. The goal of this new Masterbatch launch is to provide solutions to the increasing need for functional nonwoven fabrics that are of high performance and used in healthcare, automotive and home textile industries. Poddar Pigments is unique because it became the first Indian company which produce graduates from the original Indian textiles – special masterbatches for dope-dyeing technologies. Masterbatch is prepared to impose color in the performed good and to increase its performance characteristics additionally. The company has R&D, which consists of pilot scales able to replicate more complex production machinery. These pilot plants help assist Poddar Pigments in product development in-line with their market demand.

September 2024: In this month, Broadway launches GrapheneXcel — its newest graphene reinforced masterbatches. This launch is made possible by a collaboration with the best graphene manufacturers. It allows a UK-based masterbatch expert who’s compliant with ISO quite easily to deliver the many benefits afforded by graphene to a richer clientele within the plastic production market. GrapheneXcel will utilize the unique attributes of graphene composites to enhance the polymer matrix in the construction industry, as well as in automotive, defense, packaging, consumer goods and other sectors. There are noticeable advantages in terms of improved strength and durability, improved barriers, and possibilities for lightweighting of the end product. GrapheneXcel is an additive masterbatch that is tailor-made to specific customer needs. Due to polymer-specific carrier systems, GrapheneXcel offers a range of polymer compatibility viz polyolefins and PET.

Masterbatch Market Segmentation

Masterbatch Resins Outlook

• Polypropylene (PP)


• Polyethylene (PE)


• High-Density Polyethylene (HDPE)


• Polystyrene (PS)


• Polyvinyl Chloride (PVC)


• Other

Masterbatch Type Outlook

• White


• Black


• Color


• Additive


• Others

Masterbatch End-use Industry Outlook

• Packaging


• Consumer Goods


• Building & Construction


• Agriculture


• Automotive


• Others

Masterbatch Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Middle East & Africa
  
  
  
  • Saudi Arabia
  
  
  • UAE
  
  
  • South Africa
  
  
  • Rest of Middle East & Africa
  
  
  
  


• South America
  
  
  
  • Brazil
  
  
  • Argentina
  
  
  • Rest of South America