by Plastic additives are chemical compounds that are added to plastics to improve or enhance their resistance to degradation by environmental factors, corrosion, fire, and heat. Commonly used plastic additives include flame retardants, antioxidants, and plasticizers. Flame retardants are added to plastics to inhibit ignition and reduce flammability. Antioxidants are used to prevent oxidation in plastics and extend their lifespan. Plasticizers are blending agents used to increase the flexibility, workability, or plasticity of plastics. Major applications of plastics additives include construction, packaging, automotive and transportation. The global plastic additives market is driven by growth of plastic industry as plastics are used extensively in various end-use industries due to their favorable properties such as high durability, lightweight, and resistance to corrosion.
The global 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 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Growth in plastic industry is one of the major drivers of plastic additives market. Rapid urbanization and industrialization in emerging economies are fueling demand for plastics in various applications such as packaging, construction, automotive, and consumer goods. Plastics are replacing traditional materials in many end-use industries owing to their favorable properties. According to Plastics Industry Association, global plastics production reached around 360 million metric tons in 2018 and is expected to reach 520 million metric tons by 2030. Growing plastic production will boost demand for plastic additives during the forecast period.
Another key driver for the market is rising penetration of plastic additives in packaging industry. Plastic additives such as antioxidants and UV stabilizers are used to protect packaging materials from damages caused by heat, light and oxidation. Growing e-commerce industry is propelling demand for plastic packaging which in turn is fueling consumption of plastic additives. Increasing public awareness regarding health and hygiene is also pushing demand for plastic food packaging.
Segment Analysis
The plastic additives market can be segmented by type into plasticizers, stabilizers, flame retardants, impact modifiers, and others. Among these, the plasticizers segment accounted for the largest market share in 2022 owing to increase in demand for polyvinyl chloride (PVC). Plasticizers help to increase the flexibility and workability of PVC and other plastics. The flame retardants segment is expected to grow at the highest CAGR during the forecast period due to stringent fire safety regulations mandating the use of flame retardants in certain plastic applications.
PEST Analysis
- Political: Stringent regulations regarding plastic packaging and disposal in many countries are prompting companies to use environmentally sustainable plastic additives.
- Economic: Growth of the automotive, construction and packaging industries coupled with rising disposable incomes is boosting the demand for plastics and thereby plastic additives.
- Social: Increasing awareness about ill effects of certain toxic plastic additives is propelling research on bio-based and biodegradable additives.
- Technological: Advancements in nanotechnology allow development of innovative plastic additive formulations that can enhance plastic properties while using lower additive concentrations.Key Takeaways
The global plastic additives market is expected to witness high growth over the forecast period supported by increasing plastic consumption worldwide. The global 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 to 2030.
Regional analysis
The Asia Pacific region is expected to continue dominating the market during the forecast period owing to rapid industrialization and infrastructure growth projects underway in major economies. China, in particular, accounts for over half of the global plastic production and demand.
Key players
Key players operating in the plastic additives market are BASF SE, Songwon Industrial Co., Ltd., Clariant AG, and Evonik Industries AG. BASF SE offers a wide range of plastic additives across segments like plasticizers, antioxidants and processing aids. Songwon Industrial Co., Ltd. is a leading producer of stabilizer additive solutions.
