Plastic Additives Market Analysis

Global Plastic Additives Market Overview

The  Plastic Additives Market Size was valued at USD 51.01 Billion in 2022 the plastics additives industry is projected to grow from USD 52.45 Billion in 2023 to USD 83.8 Billion by 2030, exhibiting a compound annual growth rate (CAGR) of 5.3% during the forecast period (2024 - 2032). Plastic additives are chemicals that are used to modify, process, or polymerize the end-use properties of polymers. These are added in polymers to improve the durability, heat sensitivity, and strength of these products. They are widely used as various function types, including stabilizers, processing aids, modifiers, flame retardants, and plasticizers in various industrial applications. Strict regulations implemented by the European Commission to control and regulate flame retardants, and other additives on account of their adverse effects on the environment and human health will augment the global market size.

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

Plastic Additives Market Trends

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  Increasing Adoption of Plastics by Various End-Use Industries to Drive Growth.

  
  

Plastic is one of the most widely used materials in several end-use industries, including automotive, aerospace and defense, packaging, chemical, construction, general manufacturing, and electronics. The increasing adoption of polymers is attributed to their exceptional properties such as strength, reliability, flexibility, and the ability to withstand pressure and heat, which is driving the demand for their derivatives. This product is cheaper compared to conventional materials such as wood, metals, and composites and is therefore replacing them. This, in turn, is expected to impact the market positively. 

Additionally, Plastic is lightweight and is therefore employed in the automotive sector. When different types of additives are added to these materials, they can serve in other application areas. For instance, flame-retardant additives are employed when it is used in construction, aerospace, and fire-fighting applications. In contrast, phthalate-free additives are used to make medical and food-grade polymers.

UBQ Materials, a company based in Saudi Arabia, added three new materials and two additives to its portfolio in 2024. The process involves breaking down waste streams into natural components before reconstituting them as fresh substances. Some 70%–80% of UBQ’s feedstock is broken down into particulate constructs; the remaining 20%–30% are mixed plastics that melt and bond with the matrix, creating a thermoplastic material that is highly recyclable.

Plastic Additives Market Segment Insights

Plastic Additives Type Insights

The  Plastic Additives Market segmentation, based on Type, includes plasticizers, flame retardants, stabilizers, impact modifiers, and others. The plasticizers segment accounted for a major share in 2020 as they reduce the viscosity of polymer materials and increase the flexibility of the polymers. The plasticity of polymers is altered for different requirements of different application areas. They facilitate the handling of raw materials during the manufacturing process and also alter the frictional coefficient according to the desired application. Most commonly used products are based on esters of polycarboxylic acids with aliphatic or branched alcohols of moderate-length chains. Ester plasticizers are chosen according to the evaluation based on cost and performance, toxicity, non-volatility, processability, and compatibility with the host material. However, around 90% of all plasticizers are used for the production of flexible PVC. The increasing demand for flexible PVC polymer is expected to boost the segment. 

Plastic Additives END-USE Insights

Based on END-USE, the  Plastic Additives Market segmentation includes packaging, construction, automotive, consumer goods, and others based on end-use. The packaging segment is expected to gain the largest share during the forecast period. Different types of products require different types of materials for packaging. A wide range of plastic materials is available in the market, including transparent, food-grade, medical-grade, opaque, porous, moisture-resistant, heat-resistant, and others. Plastic is one of the most cost-effective alternatives for other packaging materials such as metals and alloys. Moreover, convenience food is experiencing surging demand attributed to the hectic lifestyles in urban areas. The increasing demand for plastic packaging from food & beverages, medical, pharmaceutical, and other industries is anticipated to drive the market.

In January 2022, Omya AG signed an agreement with Songwon Industrial Co., Ltd to provide marketing and sales support, customer service as well as logistics for all PVC additives provided by Songwon throughout the Latin American region.

Figure 2:  Plastic Additives Market, by Type, 2023 & 2030 (USD Billion)

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

Plastic Additives Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. Asia Pacific is anticipated to hold a key position in the market share due to the many manufacturers in the region. China is one of the largest producers of plastics and polymers, accounting for nearly 30% of global production. The country is a leading producer of cheap and lightweight consumer goods. Currently, plastic is one of the key materials used for packaging, and Asia Pacific is experiencing a boost in the packaging sector. The rapid increase in the e-commerce sector is promoting the growth of the regional packaging industry, which in turn is fueling the regional market growth. Additionally, rising disposable incomes lead consumers to spend considerably on home décor, decorative items, and furniture, which has boosted the furniture market in India and China. The increasing demand for Chinese goods worldwide is expected to surge the local plastic industry.

Figure 3:  PLASTIC ADDITIVES MARKET SHARE BY REGION 2023 (%)

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

North America accounts for a significant share of the global market owing to the increasing adoption of plastics and polymers in the packaging, construction, aerospace & defense, food & beverages, general manufacturing, and automobile industries. High investments in the aerospace & defense sector for developing enhanced materials are expected to serve as an opportunity for the market in this region. Additionally, stringent regulations imposed by the Environmental Protection Agency (EPA) regarding the degradability of polymers and plastics have increased R&D spending by players to develop additives that can accelerate the degradability of plastic. This is anticipated to impact regional plastic additive consumption positively.

Europe is a major automotive manufacturing region with highly developed production technologies. The increasing adoption of lightweight parts in making automotive components to increase the efficiency of vehicles is expected to boost the regional market. Increasing R&D for developing non-toxic plastic products is expected to boost the local market. Strict rules imposed by the European Union (EU) regarding the use of phthalates in food and medical applications are expected to act as an opportunity for developing new and enhanced polymer additives. Additionally, rising consumer awareness regarding the emergence of various diseases and viruses has significantly increased the use of medical devices and instruments. The increasing demand for such instruments in the European healthcare sector will potentially fuel market growth.

Plastic Additives 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 Plastic Additives market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Plastic Additives industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.

The major market players are investing a lot of money in R&D to expand their product lines, which will spur further market growth for Plastic Additives. With significant market development like new product releases, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations, market participants are also undertaking various strategic activities to expand their global presence. To grow and thrive in a market climate that is becoming more competitive and growing, competitors in the Plastic Additives industry must offer affordable products.

Manufacturing locally to cut operating costs is one of the main business tactics manufacturers use in the global Plastic Additives industry to benefit customers and expand the market sector. The Plastic Additives market has recently given medicine some of the most important advantages. Major Plastic Additives market players, including BASF SE (Germany), SONGWON (South Korea), Clariant AG (Switzerland), Evonik Industries AG (Germany), and others, are attempting to increase market demand by funding R&D initiatives.

BASF is a company that provides petrochemicals, intermediates, performance materials, monomers, dispersions and pigments, performance chemicals, catalysts, coatings, and care chemicals. It conducts its operations through six business segments: Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition and Care, and Agricultural Solutions.

Also, SONGWON is a manufacturer and supplier of polymer stabilizers. Its products include antioxidants, metal deactivators, dispersions, monomers, PVC stabilizers, plasticizers, metal soaps, catalysts, polyols, absorbent polymers, and more. The company caters to agriculture, automotive, construction, textile, and other industries.

In the 2023 year, BASF launched Irganox®1010 BMBcert™ and Irganox®1076 FD BMBcert™, its first biomass balance solutions for plastic additives. These products have been certified by TUV Nord according to ISCC PLUS mass balance standards. The company claims it enables more renewable feedstocks to be used by its customers as they work towards their sustainability targets.

Key Companies in the Plastic Additives market include

• BASF SE (Germany),


• Clariant AG (Switzerland),


• Evonik Industries AG (Germany),


• SONGWON (South Korea),


• MC Group, Inc. (the U.S),


• Albemarle Corporation (US)


• AkzoNobel NV ( the Netherland),


• Solvay SA (Belgium),


• Chemical Industries (India), and


• Styro Chemical Industries (India)

Plastic Additives Industry Developments

In November 2021, Evonik is planning to introduce its latest range of plasticizer products, which are based on INA (Isononanol) as the key raw material. This launch is expected to bolster the company’s worldwide business in plasticizers (a type of plastic additive), used majorly in flexible PVC items like flooring, roofing membranes, and cables. The products will be developed at the company’s biggest site based in Marl, Germany. The product range expansion will help with business expansion, related to next-generation plasticizers.

In June 2021, BASF launches VALERAS, a sustainable range of plastic additives that is a combination of the firm’s innovative solutions, longtime experience, as well as regulatory support. The launch aims to foster the sustainability of the plastics coupled with the whole polymer value chain. In the coming time, the portfolio should expand to comprise the company’s plastic additive packages for mechanically recycled plastics. VALERAS covers the company’s current plastic additives with benefits like improved durability, energy saving, lower emissions, and fostering biodiversity. 

In 2023, Gerdau Graphene was introduced for the first time graphene-enriched PE additive masterbatch for extruded packaging and other uses.

Plastic Additives Market Segmentation

Plastic Additives Type Outlook

• Plasticizers


• Flame Retardants


• Stabilizers


• Impact Modifiers


• Others

Plastic Additives end-use Outlook

• Packaging


• Construction


• Automotive


• Consumer Goods


• Others

Plastic Additives 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
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America