Global Plastic Compounding Market Size, Share & Trends Analysis Report By Product, By Source (Fossil-based, Bio-based and Recycled), By Application, By Regional Outlook and Forecast, 2024 - 2031

Global Plastic Compounding Market Size, Share & Trends Analysis Report By Product, By Source (Fossil-based, Bio-based and Recycled), By Application, By Regional Outlook and Forecast, 2024 - 2031

The Global Plastic Compounding Market size is expected to reach $110.4 billion by 2031, rising at a market growth of 7.1% CAGR during the forecast period. In the year 2023, the market attained a volume of 38,687.6 kilo tonnes, experiencing a growth of 23.4% (2020-2023).

Polypropylene compounds are used in many sectors, such as construction, automotive, packaging, consumer products, and electrical appliances. Thus, polypropylene (PP) segment captured 22.1% revenue share in the market 2023. In terms of volume polypropylene (PP) segment attained a volume of 5,402.1 kilo tonnes in the market 2020. The increasing need for economical, long-lasting, and lightweight materials in these industries propels the implementation of polypropylene compounds. Hence, the segment will grow rapidly in the coming years.

The major strategies followed by the market participants are Product Launches as the key developmental strategy to keep pace with the changing demands of end users. For instance, In February 2024Kraton Corporation introduced "SYLVASOLV 1000" biobased oils. The SYLVASOLV 1000 underscores Kraton's ongoing commitment to delivering sustainable, high-performance alternatives to products derived from petroleum. Additionally, this completely biobased oil has the potential to enhance fertilizer coating formulations and facilitate a decreased carbon footprint. Moreover, In January 2024, LyondellBasell Industries Holdings B.V. Introduced Petrothene T3XL7420: A Groundbreaking Polymer Compound for Enhanced Manufacturing Optimization. Petrothene T3XL7420 presents numerous advantages, rendering it a compelling choice for wire manufacturers. These include improved cure kinetics, heightened stiffness facilitating assembly of small gauge wire, and superior barrier performance in comparison to other Petrothene XL variants.

Based on the Analysis presented in the KBV Cardinal matrix; Chevron Phillips Chemical Company LLC is the forerunners in the Market. In October, 2023, Chevron Phillips Chemical Company LLC came into partnership with Danimer Scientific, a biopolymer manufacturer headquartered in Bainbridge, Georgia. Through this partnership, Phillips would delve into the advancement and commercialization of cast extrusion films, blown extrusion films, injection molded parts, and rotational molded parts utilizing Rinnovo polymers fabricated through a loop slurry reactor process. Companies such as Arkema S.A, Lanxess AG and Saudi Basic Industries Corporation (SABIC) are some of the key innovators in Market.

Market Growth Factors

Plastic compounding allows for incorporating recycled materials into new plastic formulations, such as post-consumer or post-industrial plastics. By using recycled content, manufacturers can reduce their reliance on virgin plastics, divert waste from landfills, and lower their products.

Additionally, the growing construction industry worldwide presents a compelling opportunity for expansion in the market. For Example, as per the India Brand Equity Foundation, in conjunction with the initiative. Thus, these factors can help in the growth of the market.

Market Restraining Factors

Plastic compounding is intrinsically linked to the availability and cost of raw materials. Polymers, additives, and fillers constitute the foundational components of compounded plastics, and their prices can be subject to rapid changes driven by market dynamics, supply-demand imbalances, and external factors such as weather events or geopolitical tensions. Therefore, these factors can hamper the growth of the market.

By Product Analysis

On the basis of product, the market is divided into polyethylene (PE), polypropylene (PP), polyvinyl chloride (PVC), polystyrene (PS), polyethylene terephthalate (PET), polycarbonate (PC), polyurethane (PU), polymethyl methacrylate (PMMA), acrylonitrile butadiene styrene (ABS), and others. In 2023, the polyethylene terephthalate (PET) segment witnessed 13.2% revenue share in the market.

By Source Analysis

Based on source, the market is segmented into fossil-based, bio-based, and recycled. In 2023, the bio-based segment garnered 31.2% revenue share in the market. In the terms of volume, the bio-based segment attained a volume of 8,693.2 kilo tonnes I the market 2021. the Growing awareness of environmental issues, including plastic pollution and climate change, has increased demand for sustainable materials.

By Application Analysis

Based on application, the market is segmented into automotive, building & construction, electrical & electronics, packaging, consumer goods, industrial machinery, and others. The automotive segment held 24.4% revenue share in the market in 2023.

By Regional Analysis

By region, the market is segmented into North America, Europe, Asia Pacific, and LAMEA. In 2023, the Europe segment acquired a 27.3% revenue share in the market. In the terms of volume, the Europe region volume of 9,539.1 kilo tonnes in the market 2023.

Market Competition and Attributes

The market thrives on competition, with companies vying for superiority in innovation, cost-effectiveness, and product quality. Customization, pricing strategies, and supply chain efficiency are pivotal battlegrounds. Staying ahead requires adeptness in technological advancements, operational excellence, and market responsiveness. Success hinges on the ability to meet diverse customer demands, spanning automotive, electronics, packaging, and construction sectors, while continually innovating in materials and processes to maintain a competitive edge in an ever-evolving marketplace.

Recent Strategies Deployed in the Market

• Feb-2024: Kraton Corporation introduced "SYLVASOLV 1000" biobased oils. The SYLVASOLV 1000 underscores Kraton's ongoing commitment to delivering sustainable, high-performance alternatives to products derived from petroleum. Additionally, this completely biobased oil has the potential to enhance fertilizer coating formulations and facilitate a decreased carbon footprint.
• Jan-2024: LyondellBasell Industries Holdings B.V. Introduced Petrothene T3XL7420: A Groundbreaking Polymer Compound for Enhanced Manufacturing Optimization. Petrothene T3XL7420 presents numerous advantages, rendering it a compelling choice for wire manufacturers. These include improved cure kinetics, heightened stiffness facilitating assembly of small gauge wire, and superior barrier performance in comparison to other Petrothene XL variants.
• Nov-2023: Arkema expands its range of low-carbon materials designed for high-performance sports equipment. Additionally, Arkema pledges to offer a diverse array of low-carbon solutions to equipment manufacturers.
• Oct-2023: Chevron Phillips Chemical Company LLC came into partnership with Danimer Scientific, a biopolymer manufacturer headquartered in Bainbridge, Georgia. Through this partnership, Phillips would delve into the advancement and commercialization of cast extrusion films, blown extrusion films, injection molded parts, and rotational molded parts utilizing Rinnovo polymers fabricated through a loop slurry reactor process.
• Jul-2022: BASF SE came into partnership with Zhejiang REEF Science and Technology Co., Ltd., an IT Services and IT Consulting company. Through this partnership, BASF SE would create cutting-edge recycled thermoplastic compounds designed for utilization in automotive, packaging, and consumer applications.

List of Key Companies Profiled

• BASF SE
• Saudi Basic Industries Corporation (SABIC)
• Kraton Corporation
• LyondellBasell Industries Holdings B.V.
• DuPont de Nemours, Inc.
• RTP Company, Inc.
• Lanxess AG
• Covestro AG
• Arkema S.A.
• Chevron Phillips Chemical Company LLC

Global Plastic Compounding Market Report Segmentation

By Product (Volume, Kilo Tonnes, USD billion, 2020-2031)

• Polypropylene (PP)
• Polyethylene (PE)
• Polyvinyl Chloride (PVC)
• Polystyrene (PS)
• Polyethylene Terephthalate (PET)
• Polycarbonate (PC)
• Polyurethane (PU)
• Polymethyl Methacrylate (PMMA)
• Acrylonitrile Butadiene Styrene (ABS)
• Others

By Source (Volume, Kilo Tonnes, USD billion, 2020-2031)

• Fossil-based
• Bio-based
• Recycled

By Application (Volume, Kilo Tonnes, USD billion, 2020-2031)

• Automotive
• Building & Construction
• Electrical & Electronics
• Packaging
• Consumer goods
• Industrial Machinery
• Others

By Geography (Volume, Kilo Tonnes, USD billion, 2020-2031)

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• South Korea
• Australia
• Malaysia
• Rest of Asia Pacific
• LAMEA
• Brazil
• Argentina
• UAE
• Saudi Arabia
• South Africa
• Nigeria
• Rest of LAMEA