by The plastic additives market is estimated to be valued at US$ 45.94 Bn in 2023 and is expected to exhibit a CAGR of 5.6% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Plastic additives are chemicals added to plastics to enhance desired properties. They include plasticizers, antioxidants, UV stabilizers, flame retardants and others. Plastic additives help to improve plastic properties like durability, toughness and heat resistance. They enable use of plastics in wide range of applications like packaging, construction, automotive and electronics. Plasticizers are majorly used additives to make plastics soft and flexible for applications including wire and cable insulations and medical tubing.
Market Dynamics:
The growth of the construction industry drives demand for plastic additives market. Plastic additives enhances properties of plastics used in building and construction materials like pipes, wall panels, roofing and others. According to United Nations, world urban population is expected to grow by 60% till 2030 which will boost construction activities globally.
Second major driver is increasing automobile production. Plastic additives improves properties of engineering plastics used in vehicles. As per International Organization of Motor Vehicle Manufacturers, around 95 million vehicles were produced in 2019 and production is expected to rise in coming years increasing consumption of plastic additives in automotive sector.
Segment Analysis
The plastic additives market is segmented as plasticizers, flame retardants, antioxidants, impact modifiers, antimicrobials agents, and other additives. The plasticizers segment currently dominates the market and is expected to continue its dominance over the forecast period. Plasticizers are widely used in PVC applications like wires & cables, pipes & fittings, and artificial leather. Rise in infrastructure development activities that require PVC has boosted demand for plasticizers.
PEST Analysis
- Political: Regulations regarding use of toxic additives may impact demand. For example, restrictions on phthalate plasticizers.
- Economic: Global economic growth coupled rising disposable incomes boosts purchase of packaged foods, consumer goods using plastics.
- Social: Growing health & environment concerns increase preference for sustainable and eco-friendly plastic products.
- Technological: Advancements in additive manufacturing allow development of specialized additives with tailored properties.
Key Takeaways
The global plastic additives market is expected to witness high growth, exhibiting CAGR of 5.6% over the forecast period, due to increasing infrastructure development activity. The Asia Pacific dominates the market with China, India being the fastest growing markets due to rising construction activities and growth in automotive production. Key players operating in the plastic additives market include BASF SE, Songwon Industrial Co., Ltd., Clariant AG, and Evonik Industries AG.
The plastic additives market in Asia Pacific is expected to witness highest growth, growing at a CAGR of over 6%, owing to increasing construction activities and rapid industrialization in major countries like China and India. China dominates the Asia Pacific plastic additives market and is expected to continue dominating during the forecast period attributable to presence of a wide manufacturing base.
Key players operating in the plastic additives market include BASF SE, Songwon Industrial Co., Ltd., Clariant AG, and Evonik Industries AG. BASF is one of the prominent players providing plastic additives solutions. The company offers a wide range product portfolio including plasticizers, stabilizers, and flame retardants for applications in packaging, construction, automotive, and consumer goods. Clariant AG is another leading player focusing on development of bio-based and sustainable plastic additives.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
