The global plastic compounding market size is expected to reach USD 112.08 billion by 2030, according to a report by Grand View Research, Inc. It is expected to expand at a CAGR of 7.4% from 2022 to 2030. The construction and vehicle industries are expected to encourage demand for interiors, exteriors, and under-the-hood components. Plastic compounding is used in automotive under-hood components, building interiors and exteriors in construction and infrastructure, and the electrical and electronics industry, which is anticipated to boost market growth.
Plastic Compounding Market Report Highlights
- Polypropylene (PP) is the most consumed plastic compounding product. It held the largest revenue share of over 25.0% in 2021. Its production has increased due to growing demand from the packaging and medical device industries all over the globe
- Polyethylene compounds find widespread application in the building and construction segment. Rapid urbanization and industrialization, especially in emerging economies such as China and India, coupled with the rising infrastructure development activities in the Middle East, are expected to fuel the growth of the construction industry
- Volatility in crude oil prices can be attributed to political instability, supply-demand imbalances, and seasonal variations. The volatility in crude oil prices can negatively impact the market growth
- Major plastic compounding companies have been acquiring their own compounding plants, rather than establishing plants, to strengthen their position in the global landscape. In February 2022, BASF SE acquired Solvay’s PA66 business as a part of a takeover. The products acquired under the takeover include different grades of polyamide (PA) and polyphthalamide (PPA), which will be traded across Europe
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Plastics compounding is the process of taking basic raw plastic material and mixing and/or blending polymers and additives to achieve color, property, and performance requirements. Polyethylene and polypropylene are the two most commonly used base polymers in the plastic mixing or blending process, other materials are polyvinyl chloride, polystyrene and expanded polystyrene, polyethylene terephthalate, polyurethane, acrylonitrile butadiene styrene (ABS), nylon and other polymers. Plastic compounding involves an intricate process with multiple stages. These may include determining additives ratio, high-speed mixing via twin-screw extruders, melt mixing, and cooling, all before final pellet cutting and packaging. A range of materials can be used.
Polyethylene Terephthalate (PET) is a plastic used to make bottle containers for packaged water and fizzy beverages. PET is considered a safe, durable, flexible, non-toxic, lightweight, and 100% recyclable raw material. As a result, it has acquired wide acceptance, which is expected to propel the expansion of the market over the forecast period.
In 2021, Asia Pacific was the top revenue source for the PET compound market. The regional usage of PET compound is expected to be driven by rising demand for beverages, particularly carbonated drinks and nutritional drinks. The expansion in population, changing lifestyles, and the emergence of local beverage makers all contribute to this trend. The presence of a large pool of contract bottlers in the Asia Pacific will also have an impact on the variety of packaging industries.
Plastics have always been used extensively in the construction sector, with products ranging from pipe fittings and insulation to construction materials and equipment. Plastic compounds are adjusted to meet their specific needs. For instance, flame retardant chemicals are added to Polyvinyl Chloride (PVC) components and are an essential part of building materials.
Plastic Compounding Market Insights By Region
Asia Pacific dominated the market. The growth is favored by the economic environment and the emergence of plastic manufacturers. It is the largest producer and consumer of automobiles, consumer goods, and packaging materials that paved a way for the regional market growth. Most of the producers are involved in roughly one of the segments of the plastics industry value chain. Rapid infrastructure development in the U.S. and Mexico is predicted to augment product demand in the forecast period. Government regulations supporting the recovery of the housing sector are predicted to positively impact the construction market. Reconstruction activities in the U.S., coupled with infrastructure development in Canada and Mexico as a result of rapid industrialization, are expected to boost the market growth in North America over the forecast period. Europe is likely to remain a saturated market. Various federal level agencies and others such as the European Chemicals Agency (ECHA) and the European Commission have characterized stringent environmental regulations in Europe with regard to the production and consumption of the materials. These regulatory policies however challenging might they be for growth, are in a way expected to aid industrial development as they tend to push manufacturers to optimize processes and develop sustainable technologies and products.
Competitive Analysis By Major Companies
The global market is highly fragmented. Companies are rapidly expanding their production capabilities to consolidate their market position. The industry has witnessed significant capacity expansions in China with the emergence of standalone independent compounders. Unlike major end-use corporations such as automotive manufacturers and Original Equipment Manufacturers (OEMs) who establish strategic agreements with compounders or extend their capabilities towards compounding, Chinese compounders cater to a large pool of medium enterprises. Some prominent players in the global plastic compounding market include:
- BASF SE
- LyondellBasell Industries Holdings B.V.
- Dow, Inc.
- DuPont
- SABIC
- RTP Company
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Plastic Compounding Market Segmentation
Grand View Research has segmented the global plastic compounding market based on product, application, and region:
- Plastic Compounding Product Outlook (Volume, Kilotons, Revenue, USD Million, 2019 – 2030)
- Plastic Compounding Application Outlook (Volume, Kilotons, Revenue, USD Million, 2019 – 2030)
- Plastic Compounding Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2019 – 2030)
- List of Key Players in Plastic Compounding Market
Research Methodology
We employ a comprehensive and iterative research methodology focused on minimizing deviance in order to provide the most accurate estimates and forecasts possible. We utilize a combination of bottom-up and top-down approaches for segmenting and estimating quantitative aspects of the market. Data is continuously filtered to ensure that only validated and authenticated sources are considered. In addition, data is also mined from a host of reports in our repository, as well as a number of reputed paid databases. Our market estimates and forecasts are derived through simulation models. A unique model is created and customized for each study. Gathered information for market dynamics, technology landscape, application development, and pricing trends are fed into the model and analyzed simultaneously.
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About Grand View Research
Grand View Research provides syndicated as well as customized research reports and consulting services on 46 industries across 25 major countries worldwide. This U.S. based market research and consulting company is registered in California and headquartered in San Francisco. Comprising over 425 analysts and consultants, the company adds 1200+ market research reports to its extensive database each year. Supported by an interactive market intelligence platform, the team at Grand View Research guides Fortune 500 companies and prominent academic institutes in comprehending the global and regional business environment and carefully identifying future opportunities.
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