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

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

The plastic additives market was valued at more than USD 24,000 million in 2021, and the market is projected to register a CAGR of over 3.5% during the forecast period (2022-2027).

The market was negatively impacted due to the COVID-19 outbreak in 2020. However, the conditions recovered in 2021, which will restore the market's growth trajectory in the forecast period (2022-2027).

• Over the medium term, the replacement of conventional materials by plastics in several applications and increasing demand for plastics due to rapid urbanization and rising purchasing power among consumers are expected to drive the market's growth.
• On the flip side, stringent governmental regulations on plastic usage are restraining the growth of the plastics industry globally, which is directly affecting the plastic additives demand on the global front.
• By plastic type, polypropylene is likely to be the fastest-growing segment among others.
• By geography, Asia-Pacific dominated the market, with the largest consumption coming from countries such as China, India, and Japan.

• Based on its density, polyethylene is found in multiple forms. While linear low-density polyethylene (LLDPE) and low-density polyethylene (LDPE) are highly preferred for electrical insulation and film packaging, high-density polyethylene (HDPE) is used for manufacturing household chemical containers and drums for various kinds of industrial packaging, as well as in the piping industry.
• The low-density PEs have good toughness (ability to deform without breaking) and excellent elongation (ability to stretch), with LDPE stretching up to six times their original length before breaking. This makes them useful for molding and extruding in the shapes of bottles, tanks, sheets, and pipes. Ultra-high-molecular-weight polyethylene (UHMWPE) is used for machinery parts, where a high-wear low-friction material is required.
• In its natural form, PE is clear and goes white and translucent as the crystallinity increases. It is used in stretch films, plastic bags, and plastic bottles. Also, coloring agents can be added.
• The low cost of polyethylene production has encouraged producers to prefer its use over many other types of plastics. Polyethylene offers the lowest softening point of basic packaging plastics. High-density polyethylene has a variety of advantages over other polymers. HDPE offers low cost, easy processing, a good moisture barrier, and the ability to produce an opaque packaging product.

• The Asia-Pacific region dominated the global market share. China is one of the lucrative markets for plastic additives due to low-cost raw materials and labor availability. China is one of the largest producers of plastic materials in the world, accounting for ~30% of global plastics production.
• Packaging is the largest end user for the plastics industry. With the rise in demand for lighter, cheaper, and more convenient packaging from consumers, the packaging sector in China is set to experience rapid growth during the forecast period, which, in turn, is expected to boost the plastic additives market.
• In India, the automotive industry is facing a critical situation and is hard hit by the COVID-19 spread. However, the government's reforms, such as “Aatma Nirbhar Bharat” and “Make in India” programs, are likely to boost the automotive industry.
• The Government of India is pushing huge projects in the next few years. The government’s ‘Housing for All’ initiative aims to build more than 20 million affordable homes for the urban poor by 2022. In the 2021-22 budget, the smart cities mission has been given INR 6,450 crore as against INR 3,400 crore in the 2020-21 revised estimates.
• All the aforementioned factors are expected to drive the demand for plastic additives from various applications in the consumer goods, construction, and automotive industries over the forecast period.

The plastic additives market is fragmented in nature, as the top ten leading players account for only 40% of the market. Major players in the market are BASF SE, ExxonMobil, Evonik Industries, Dow, Deka, and Lanxess, among others.

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