Plastic Compounding Market Analysis

Global Plastic Compounding Market Overview

Plastic Compounding Market Size was valued at USD 70272.6 million in 2023. The Plastic Compounding industry is projected to grow from USD 75458.72 million in 2024 to USD 1,33,379.5 million by 2032, exhibiting a compound annual growth rate (CAGR) of 7.38% during the forecast period (2024 - 2032). Compounding plastics is the process of combining different materials to create plastic formulations with specific properties and characteristics. By adding fillers, reinforcements, additives, and other components to the plastic matrix, plastic compounding aims to improve the functionality, performance, and look of the underlying polymer. The selection of the base polymer, which might be polyethylene (PE), polypropylene (PP), polyvinyl chloride (PVC), polystyrene (PS), or polyethylene terephthalate (PET), is the first stage in the plastic compounding process. Every polymer is unique and has qualities and traits that make it appropriate for a variety of uses. In order to improve particular qualities, additives are added during the compounding process after the base polymer has been chosen. Plastic compounds are appealing to manufacturers because they can provide creative solutions and increase the sustainability of their goods. Another industry seeing an increase in demand for plastic-compound End-Use Products is electronics. It is essential to have lightweight, high-performance materials since electronic gadgets are becoming more and more sophisticated and smaller. Plastic compounds are perfect for a variety of electronic components and housings because of their excellent electrical and thermal insulation qualities. The need for plastic compounded materials is anticipated to increase in tandem with the ongoing evolution and expansion of the electronics sector.

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

Plastic Compounding Market Trends

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  RISING DEMAND FOR PLASTIC COMPOUNDED MATERIALS IN VARIOUS INDUSTRIES TO BOOST MARKET GROWTH

  
  

The growing demand for plastic compounded End-Use Products across many industries is driving a significant upswing in the plastic compounding market. This increase can be ascribed to the remarkable qualities and adaptability that plastic compounds provide, which make them essential in a variety of applications. This increasing demand has been largely driven by the automobile, construction, consumer goods, electronics, and packaging industries. The need for strong, lightweight materials in the automotive industry has propelled the expansion of the plastic compounding market. Plastic compounds can reduce vehicle weight, increase fuel efficiency, and improve overall performance, making them an appealing substitute for conventional components like metal and glass. The need for plastic compounded materials is further increased by the usage of these compounds in electrical systems, exteriors, under-the-hood applications, and interior components. A further significant factor driving the plastic compounding market's growth is the building sector. In construction, plastic compounds are widely used in materials for flooring, roofing, insulation, piping, and fittings. In the building industry, plastic compounds are favored due to their advantages in terms of weather resistance, durability, affordability, and convenience of installation. The requirement for plastic compounded materials to fulfill the various needs of the construction industry is increasing because of the growing global building activity. Consumer goods makers are also using plastic compounds more frequently to improve the looks and quality of their End-Use Products. These materials provide exceptional design flexibility, enabling the creation of complex forms and eye-catching colors—both essential for producing aesthetically pleasing consumer goods. Toys, sporting goods, furniture, and household appliances are just a few of the consumer End-Use Products that require plastic compounds.

In May 2024, today Cabot Corporation (NYSE: CBT) announced that they have launched their new universal circular black masterbatches, REPLASBLAK®, which are made from certified sustainable material. These two products are the first of their kind in the industry as they are universal circular black masterbatches and contain International Sustainability & Carbon Certification (ISCC PLUS) certified content. The new REPLASBLAK universal circular black masterbatches have been formulated with EVOLVE® Sustainable Solutions, allowing Cabot to maintain the plastics industry’s performance levels, quality, and reliability while addressing certified circular solutions on a large scale. Advanced sustainable solutions are supporting a circular economy and decreasing greenhouse gas emissions to transition globally toward a lower carbon future.

DEVELOPMENT OF NEW SUSTAINABLE PLASTIC COMPOUNDED MATERIALS TO DRIVE THE MARKET DEMAND

The Plastic Compounding Market is poised for substantial growth, propelled primarily by the development and adoption of new sustainable plastic compounded materials. Eco-friendly plastic substitutes are in high demand as environmental responsibility and sustainability become more and more of a global priority. Sustainable plastic composite materials are becoming increasingly important in addressing the environmental issues related to conventional plastics. These materials are frequently produced from recycled plastics or bio-based sources. These materials can decrease plastic waste, drastically lower carbon emissions, and promote a more responsible and circular economy. A primary motivation for the creation of sustainable plastic composite materials is the pressing requirement to reduce plastic pollution and its detrimental effects on the environment. The environmental endurance of conventional plastics is well-known since it contributes to contamination in rivers, landfills, and oceans. As a result, producers are putting more effort into developing biodegradable or compostable sustainable plastic components, which will prevent them from remaining in the environment and causing pollution. The market for plastic compounding is expanding as a result of this move toward biodegradable plastics.

Polymer Resources Ltd., a Farmington, Connecticut-based compounder of engineering resins, introduced its growing portfolio of sustainable materials this February. This portfolio now includes four commodity-grade resin types but will add several flame-retardant formulations listed by global independent safety sciences company Underwriters Laboratories (UL) until midyear. All grades in this range have at least 50% recycled content, which facilitates carbon footprint reduction and meets consumer demands for recycled material-containing products, according to the firm. It is one element of the brand’s sustainability plan, which, besides decreasing fossil-driven energy use, emissions, and landfill waste, enhances both health and safety within and outside an organization.

EXPANDING INDUSTRIALIZATION IN EMERGING MARKETS TO SURGE MARKET GROWTH

The growing wave of industrialization in emerging nations is the main driver of the impending significant rise in the plastic compounding market. There is a growing need across multiple industries for plastic compounded materials due to the fast industrialization of countries in regions like Asia, Latin America, and parts of Africa. Plastic compounds are essential to industrial processes due to their adaptability, affordability, and variety of uses; as a result, the plastic compounding market is leading this industrial revolution. Emerging markets are pushing the need for plastic compounded materials to previously unheard-of heights, with a focus on consumer goods, packaging, automobile End-Use Production, infrastructure development, and more. The growing automobile sector is one of the main factors propelling the plastic compounding market in emerging regions. The demand for cars is rising significantly as a result of urbanization and rising disposable incomes. For automobile components, plastic compounds are a preferred option because of their simplicity of manufacture, durability, and lightweight. These components are essential for lowering a car's overall weight, increasing fuel economy, and fulfilling strict pollution regulations. The need for plastic compounded materials is rising significantly as emerging nations seek to fulfill the demands of their expanding populations by continuing to increase their car manufacturing.

Plastic Compounding Market Segment Insights

Plastic Compounding by Raw Material Insights

The Plastic Compounding Market segmentation, based on Raw Material has been segmented as Polyvinyl Chloride (PVC), Polyethylene (PE), Polypropylene (PP), Polystyrene (PS) and Other Materials. Polypropylene is further classified into GFRP, CFRP, Other PP Mix. Among these, the Polypropylene (PP) segment is projected to dominate the Plastic Compounding Market revenue through the projected period. Polypropylene (PP) is a thermoplastic polymer that is widely used in a variety of industries due to its unique properties, including lightweight, durable, impact resistant, chemical resistant, heat resistant, easy to process and recyclable. PP is also widely used in electrical and electronic devices, such as computers, televisions, and smartphones, for its insulating and flame-retardant properties. It also finds applications in a variety of furniture applications, such as outdoor furniture, lawn furniture, and children's furniture, for its durability, weather resistance, and ease of cleaning.

Plastic Compounding by End Use Product Insights

Based on End Use Product, the Plastic Compounding Market is segmented as White Goods, Electrical and Electronics, Furniture, Automotive Small Appliances. White Goods is further segmented into Washing Machine, Refrigerators and Other White Goods. Furniture is further divided into Indoor and Outdoor. Automotive is again classified into Exterior Parts, Interior Parts, Panels, Airducts and Filters and Other Parts. Among these, segments Automotive segment dominated base year market and is also projected to dominate the Plastic Compounding Market revenue through the projected period. Plastics play a significant role in the automotive industry due to their versatility, lightweight nature, and ability to meet various functional and aesthetic requirements. Different types of plastics, including PVC, PE, PP, PS, and others, are used for specific automotive interior parts, exterior parts, panels, air ducts, and filters. In this detailed description, we'll explore the properties and applications of these plastics in the context of automotive manufacturing.

Plastic Compounding Regional Insights

Based on Region, the Plastic Compounding market is segmented into North America, Europe, Asia-Pacific, Middle East & Africa, and Latin America. The Asia-Pacific Plastic Compounding market held the maximum market share and is also expected to account for a significant revenue share during the forecast period. Strong economic growth in the region is driving demand for plastic End-Use Products, Rising consumer awareness of environmental issues is creating opportunities for sustainable plastic End-Use Products. Furthermore, increasing urbanization is leading to a growing middle class with more disposable is further contributing towards accelerating the market growth in the region.

Plastic Compounding Key Market Players & Competitive Insights

Key market players are emphasizing significantly on R&D for increasing their product offerings, which will further help the Plastic Compounding Market to grow considerably. Market players are adopting several business development strategies such as acquisitions, mergers, collaborations, and partnerships to enhance their market presence and acquire a larger customer base. To survive in the competitive market, industry players must provide cost effective products.

The Plastic Compounding market is very competitive with market players trying to develop unique and innovative products and solutions, which could render the competitors’ offerings obsolete. The competitive environment is likely to grow further owing to rising technological advancements. Some of the key players operating in the Plastic Compounding Market are Asahi Kasei Corporation, BASF SE, Celanese Corporation, Clariant International Ltd, Exxon Mobil Corporation, LyondellBasell, RTP Company, SABIC, Teknor Apex . To increase their global reach and client base, key firms are concentrating on acquisitions and product innovation.

Asahi Kasei Corporation: Asahi Kasei Corporation is a multinational Japanese conglomerate with headquarters in Tokyo, Japan. With a broad range of goods and services in the chemical, fiber, electronics, healthcare, and construction industries, it is among the top chemical and materials firms in the world. In 1931, Asahi Kasei was established as a rayon fabric company. Because of its strong emphasis on innovation and technology development, the company has continued to grow and diversify over the years. With operations in more than 20 countries and more than 48,000 workers, Asahi Kasei is a multinational corporation today. Numerous industries, including consumer goods, automotive, aerospace, electronics, construction, and healthcare, employ its goods and services.

BASF SE: BASF SE is a chemical manufacturer. It produces, distributes, and sells chemicals, plastics, agricultural End-Use Products, and performance End-Use Products. It offers solvents, adhesives, surfactants, fuel additives, electronic compounds, pigments, fungicides, paints, food additives, and herbicides. The company serves numerous industries, such as construction, furniture and wood, agriculture, paints and coatings, electronics and electrical, home care, automotive, nutrition, and chemicals. BASF conducts R&D in collaboration with global clients, scientists, and partners. The business operates through a global network of manufacturing facilities. It is present in North America, Europe, the Middle East, Africa, South America, and the Asia-Pacific.

Key Companies in the Plastic Compounding Market includes.

• Asahi Kasei Corporation (Japan)


• BASF SE (Germany)


• Celanese Corporation (US)


• Clariant International Ltd (Switzerland)


• Exxon Mobil Corporation (US)


• LyondellBasell (US)


• RTP Company (US)


• SABIC(Saudi Arabia)


• Teknor Apex (US)

Plastic Compounding Industry Developments

2023: Asahi Kasei Plastics North America Inc. will make a $5.5 million investment to add new End-Use Production and laboratory compounding lines along with additional peripheral equipment. A representative for the company told Plastics today that the addition of two Coperion ZSK 70-mm twin-screw extruders would result in a 30% increase in overall capacity. The End-Use Production line will be installed in the fall and should be ready by December, while the new lab line will be operational by September. Growing demand for its engineering plastics, Xyron polyphenylene ether (PPE) and Leona polyamide (PA) 66 and 66+6I, is the driving force behind the expansion.

2023: Shanghai, China, will soon have compounding capabilities for BASF's certified biodegradable biopolymer ecovio. With the newly created capacity, BASF will be able to serve its clients in the Asia-Pacific area better and help them adjust to the constant changes in laws and regulations more quickly.

Plastic Compounding Market Segmentation

Plastic Compounding Raw Material Outlook

• Polyvinyl Chloride (PVC)


• Polyethylene (PE)


• Polypropylene (PP)


• GFRP


• CFRP


• Other PP Mix


• Polystyrene (PS)


• Other Materials

Plastic Compounding End Use Product Outlook

• White Goods


• Washing Machine


• Refrigerators


• Other White Goods


• Electrical and Electronics


• Furniture


• Indoor


• Outdoor


• Automotive


• Exterior Parts


• Interior Parts


• Panels


• Airducts and Filters


• Other Parts


• Small Appliances

Plastic Compounding Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • K.
  
  
  • France
  
  
  • Italy
  
  
  • Spain
  
  
  • Russia
  
  
  • Rest of Europe
  
  
  
  


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


• Latin America
  
  
  
  • Brazil
  
  
  • Mexico
  
  
  • Argentina
  
  
  • Rest of Latin America
  
  
  
  


• Middle East & Africa
  
  
  
  • GCC
  
  
  • South Africa
  
  
  • Rest of Middle East & Africa