Plastic Additives Market Forecasts to 2028 – Global Analysis By Plastic (Engineering Plastic, High Performance Plastics, Commodity Plastics), Type (Flame Retardants, Impact Modifiers, UV Stabilizers), Function, Application, and By Geography

Plastic Additives Market Forecasts to 2028 – Global Analysis By Plastic (Engineering Plastic, High Performance Plastics, Commodity Plastics), Type (Flame Retardants, Impact Modifiers, UV Stabilizers), Function, Application, and By Geography

According to Stratistics MRC, the Global Plastic Additives Market is accounted for $48.97 billion in 2022 and is expected to reach $75.16 billion by 2028 growing at a CAGR of 7.4% during the forecast period. Plastic additives are chemicals added in a polymer to modify its properties. The polymers used in plastics are combined with monomeric units and are not in their pure form, but are harmless. The objective is to improve the processing characteristics and properties of plastics and to enhance performance. These monomers are known as plastic additives and can be classified as reinforcing fibres, coupling agents, stabilizers, colorants, fillers, processing aids, flame retardants, peroxides and antistatic agents. Plastic additives enable safe handling of the plastic during the manufacture of finished products. The stabilizing plastic additives are halogen stabilizers, ultraviolet absorbers, antioxidants and biological preservatives. Also, there are processing aids such as lubricants and flow controls.

The plastics are widely used in various industrial sectors including construction, packaging, automotive, electronics, textiles, household items, and toys, with the current global production reaching over 350 million tons per year (t/yr). In 2020, 400 million tons of plastic were produced. If global trends on plastic demand continue, it is estimated that by 2050 annual global plastic production will reach over 1,100 million tones.

Market Dynamics:

Driver:

Rising demand for ecofriendly additives

Increasing attentiveness about the impact of chemicals over the atmosphere and ecosystem has propelled the demand for ecofriendly products. This demand has inspired the manufacturers of market to develop new environmental friendly additives. These additives are safe and cause less or no threat to the environment. Due to such factors consumers are also interested in using ecofriendly plastic additives. Moreover, ecofriendly additives are easy to manufacture and cost efficient, it is also a prominent driver that is more sale of the product in global plastic additives market.

Restraint:

Stringent government regulations governing plastic industry

Numerous latest rules and proposed bans on usage of petroleum-based plastics are predictable to change the sales of plastic additives. Various scientific studies supported limitations on different types of plastic additives. The two states in the U.S., California and Maine implemented bans on products that contain more than 1% of pentaBDE or octaBDE with effect from the summer. Such kinds of rigid guidelines are restraining the use of high-value flame retardants, from being used in the U.S. and Europe. These flame retardants are expected to be phased out from the market.

Opportunity:

Cost effectiveness and commercialization of plastic

The plastic is of reusable property is measured to be cost effective. The used plastics are recycled to form new formulations for various applications. Main companies have quoted that plastic additives are way of more cost effective when compared with other alternative materials. The major players in the business are severely functioning on the research and development of less toxic or non-toxic plastic products. The government is implementing to commercialize the plastic product that promotes their applications in several areas such as healthcare, automobile, and construction.

Threat:

Staggering plastic pollution levels worldwide

The plastic additives market growth is to be repressed owing the unmanageable level of plastic contamination facing the world at this time. According to the UN Environment Program (UNEP), nearly 300 million tons of plastic waste is generated annually. A team of researchers led by the University of Leeds in the UK estimates that 1.3 billion tons of plastic will be dumped on land and in the oceans. The researchers point out that even if immediate measures are put in place, 710 million tons of plastic waste will still be discarded into the oceans and on lands worldwide. This may spread a dark shadow on the implementation of plastic additives in various end-use industries. These industries are firmly utilizing materials that are eco-friendly and biodegradable, in response to growing consumer awareness about sustainable development.

Covid-19 Impact

The COVID-19 occurrence has affected economy and industries in different countries due to lockdowns, travel bans, and business shutdowns. The wake of the pandemic impeded the growth rate of a variety of industries, resulted in a significant drop in the plastic additives market as well. Therefore, it hampered the growth of the overall plastic additives market. On the other side, the market witnessed several growth opportunities in medical and food segment. These two sectors witnessed a major jump in provisions of revenue, which also propelled the plastic additives market forward. Furthermore, the pandemic reduces investment and delays ongoing initiatives in all countries around the world.

The plasticizers segment is expected to be the largest during the forecast period

Plasticizers segment accounted for significant market share during the forecast period. The plastic additive market as it is extensively used to process polymers and is less expensive than other additives. They are usually combined with PVC or other polymers to impart unique physical and technological properties for use in various applications such as cable jacketing, floor & wall coverings, and coating fabrics. The surging uses of plasticizers across various industry verticals like electronics, medical, packaging, and automotive applications further drive the market growth. Additionally, the surging uses of plasticizers in the building and construction sector further contribute to the growth of this market.

The packaging segment is expected to have the highest CAGR during the forecast period

The packaging segment leads the market due to change in living standards and globalization, which accelerates the demand for plastic additives. The use of packaging in the food and beverage industry is a contributing factor to the segment's growth. Packaging is the largest application for the plastics industry, accounting for more than one-quarter of total plastics usage. Thus, the development in packaging industry will positively influence the plastic additives market growth.

Region with highest share:

The Asia-Pacific is the largest plastic additives market to grow extensively. The growing population in the region accompany with development of new technologies and products are proposed to make this region an ultimate objective for the growth of the plastic additive market. Asia Pacific is expected to hold a key position in the market share due to lots of manufacturers. Currently, plastic is one of the key materials used for packaging. The increasing procedure of polymers in the developing economies is driving the market for plastic additives in the Asia-Pacific region. With the grow in demand for lighter, cheaper, and more convenient packaging from customers, the packaging sector is set to experience rapid growth, and is expected to improve the plastic additives market.

Region with highest CAGR:

North America is projected to have the highest CAGR over the forecast period due to the growing acceptance of plastics and polymers in the packaging, construction, aerospace & defense, food & beverages, general manufacturing, and automobile industries. High investments in the aerospace & defense sector for developing enhanced materials is expected to serve as an opportunity for the market in this region. Additionally, stringent regulations imposed by the Environmental Protection Agency (EPA) regarding the degradability of polymers and plastics have increased R&D spending by players to develop additives that can accelerate the degradability of plastic. This factor is expected to impact regional plastic additive consumption positively.

Key players in the market

Some of the key players profiled in the Plastic Additives Market include Adeka Corporation, Akzonobel N.V., Albemarle Corporation, Baerlocher Group, BASF SE, Bayer AG, Chemtura Corporation, Clariant AG, Emerald Performance Materials, Evonik Industries AG, Grafe Advanced Polymers GmbH, Kaneka Corporation, Lanxess AG, Milliken & Company, Plastics United Group, Polymers Compounding Co. Ltd., Polyone, Sabo S.P.A., Sakai Chemical Industry Co., Ltd., Songwon Industrial Co. Ltd, The DOW Chemical Company.

Key Developments:

In March 2019: BASF SE has announced that it has launched Plurafac LF RA-P, a rinse aid additive developed for plastic surfaces and plastic dishware in North America. With this new launch BASF will enhance its offering for plastic additive in North America, which will further drive the markets growth.

In October 2019: Songwon Industrial Co., Ltd. has announced it has launched a new family of Flame-Retardant which are functioning agents for plastic additives, which is designed to provide high performance and competitive advantages. With this new launch “SONGWON” will enhance the performance of it offering, which will further drive the markets growth.

In March 2020: Clariant and Floreon announced a collaboration to expand the performance and market potential of biopolymers. By integrating Clariant’s additives with the materials of Floreon, the collaboration targets to open up additional possibilities for manufacturers.

In April 2020: BASF SE signed an agreement with Security Matters to accelerate the progress toward a circular economy for plastics. In this collaboration, Security Matters will contribute its technology to the digital and physical tracking of closed-loop recycling and improve plastic waste sorting and sustainability claims. This partnership will leverage BASF’s expertise in the plastic additives segment, regulatory know-how, and understanding of the value chain.

In January 2021: BASF has launched a portfolio brand name for plastic additives that enable the consumers to meet the sustainability goals. The portfolio will continuously meet customer needs and expand to include additive packages for mechanically recycled plastics.

In January 2021: Songwon Industrial Co. Ltd signed an exclusive distribution agreement for PVC additives in India with Mumbai-based Makwell Plastisizers Pvt Ltd to expand our product availability and increase our level of service to our customers in India.

In February 2021: Lanxess is accelerating its growth course and signed a binding agreement to acquire 100% shares in Emerald Kalama Chemical. The US-based company is a globally leading manufacturer of specialty chemicals, especially for the consumer segment. It is majority-owned by affiliates of the US private equity firm American Securities LLC.

Plastics Covered:
• Engineering Plastic
• High Performance Plastics
• Commodity Plastics

Types Covered:
• Flame Retardants
• Impact Modifiers
• UV Stabilizers
• Plasticizers
• Antifog Additives
• Flow Improvers
• Lubricants
• Pigment Wetting Agents
• Processing Aids
• Slip Additives
• Stabilizers
• Other Types

Functions Covered:
• Processing Aids
• Property Extenders
• Property Modifiers

Applications Covered:
• Automotive
• Construction
• Consumer Goods
• Packaging
• Other Applications

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements