Impact Modifier Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Impact Modifier Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The impact modifier market was valued at USD 3651 million in 2021, and it is expected to register a CAGR of more than 6.25% globally during the forecast period (2022-2027).

The impact of the COVID-19 pandemic was negative as the major end-user industries of the market were shut, such as construction and automotive. However, the market has now reached pre-pandemic levels and is expected to grow steadily during the forecast period.

• The growing demand from the PVC segment and packaging industry has been driving the market growth.
• The technological advancements in impact modifiers for rubber and sustainable bioplastic packaging are expected to provide opportunities for the impact modifier market over the next five years.
• Asia-Pacific dominated the market across the world, with the largest consumption in countries such as China and India.

• The PVC segment stands to be the dominating segment, owing to its widespread consumption in various end-user industries, such as consumer goods, packaging, automotive, and construction.
• The impact modifier is used as additives in these polymer resins to enhance toughness and flexibility to meet the physical properties of rigid components. It also increases the durability and impact resistance of molded and extruded plastics, especially those subject to impact forces or cold weather service.
• The application of impact modifiers comes with several beneficial characteristics, such as superior weatherability, flammability, processability, and optical and tensile properties.
• The growth of the segment is mainly attributed to its easy availability and low cost, as well as the increasing applicability of PVC among varied end-user industries, such as packaging, construction, automotive, and consumer goods.
• Based on the aforementioned factors, the polyvinyl chloride (PVC) segment is expected to dominate the market.

• The Asia-Pacific region stands to be the largest and fastest-growing market on account of the increasing demand for polymer products in various end-user industries in major economies such as China, India, and Japan.
• The impact modifier is widely used in packaging applications, owing to its ability to offer an ideal balance between crease-whitening resistance and clarity for packaging applications. A fast increment in the use of plastic packaging in different end-use enterprises is expected to drive the demand for impact modifiers.
• Increasing demand for pharmaceutical and food and beverage packaging is bolstering the growth of the packaging industry, which, in turn, is supporting the growth of the market. Countries like China, India, Japan, Indonesia, and Vietnam possess established pharmaceutical and food packaging industries in the region.
• Plastics are used to manufacture interior and exterior parts of automobiles, such as door panels, instrument panels, consoles, pillars, door panel skin, window seals, and body side cladding. Growing awareness regarding energy efficiency, lightweight, and popularity of electric vehicles is anticipated to boost the market growth.
• Asia is the largest producer and consumer of plastics across the world. Moreover, the region manufactures approximately 50% of the world's automotive, with established manufacturing facilities in China, Japan, India, South Korea, and Thailand.
• Simple and easy accessibility of plastic is probably going to add to the development of the section. In addition, expanding uses of plastic items in different enterprises are foreseen to support the market growth for impact modifiers.
• Hence, based on such market trends, the Asia-Pacific region is expected to dominate the market.

The impact modifier market is fragmented in nature, with a few major players dominating a significant portion of the market. Some of the major companies (in no particular order) are Mitsubishi Chemical Corporation, Akdeniz Kimya, Arkema Group, Addivant, and Dow.

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