Europe Plastic Compounding Market Size, Share & Trends Analysis Report By Product (Polyethylene, PET, Polypropylene), By Application (Automotive, Construction, Electrical & Electronics, Packaging), By Country, And Segment Forecasts, 2023 - 2030

Europe Plastic Compounding Market Growth & Trends

The Europe plastic compounding market size is expected to reach USD 22.68 billion by 2030, registering a CAGR of 6.4% during the forecast period, according to a new report by Grand View Research, Inc. Plastic consumption has increased rapidly in automotive and electrical and electronics industries. This can be attributed to regulatory intervention to improve fuel efficiency by reducing vehicle weight, thus reducing carbon emissions. This trend has driven automotive OEMs to adopt plastics as a substitute for metals such as steel and aluminum for fabricating automotive components.

The compounding industry is a key component of the Europe plastics industry. The number of compounders in Central and Eastern Europe is increasing rapidly. Of the total compounding facilities in Europe, only 10% are fully integrated. However, these compounders manage about 50% of the overall demand in the region. Exports from Poland and Hungary have witnessed a significant increase since 2016.

The European market has witnessed a progressive increase in consumption of white goods, especially in the electronics industry. Plastics are used extensively in manufacturing white goods due to its properties such as electrical insulation, heat insulation, lightweight, design flexibility, durability, and energy-efficiency.

They are used in the production of hygienic and attractive knobs, liners, handles, door facings and internal fittings on refrigerators, housings tops, and lids or closures of dishwashers and washing machines. Increasingly aging European population and cost pressures on the healthcare sector have further increased need for electronic innovations.

Europe Plastic Compounding Market Report Highlights

• On the basis of product, the polypropylene segment led the market and accounted for more than 29.0% share of the European revenue in 2022.
• By application, automotive dominated the market in terms of revenue, with a share of over 25.0% in 2022 as need for energy-efficient cars keeps on increasing. Rising demand for lightweight passenger vehicles expected to further augment consumption over the forecast period
• The Germany dominated the market and accounted for over 26.0% share of the European revenue in 2022, owing to presence of a large number of formulator production facilities. With growing awareness of sustainability, the country also leads in the production of recycled PET
• The market for plastic compounding is characterized by a high degree of product innovation as manufacturers are investing heavily to capture the potential market and replace heavier substitutes while maintaining quality standards as per European norms
• Some of the key industry participants are BASF SE, Dow Chemical Co., SABIC, LyondellBasell Industries, and Covestro.

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