Global Plastic Additive Market - 2022-2029
The global plastic additive market reached US$ XX million in 2021 and is expected to reach US$ XX million by 2029, growing at a CAGR of XX% during the forecast period 2022-2029.
Plastic additives are compounds added throughout the production process to improve the material's performance when molded and used. The additives change a polymer's properties to achieve a specific application performance. A plastics additive might be in the form of a liquid, powder, pellet or all three at once.
Plastic additives, when applied correctly, can extend the life of plastics while also making them cleaner and easier to process, all while improving your bottom line. Moreover, the additives help protect polymers in functional use from many elements, such as guarding against extreme weather conditions.
Increased awareness of recycled and sustainable plastic resulted in a surge in demand for plastic additives. However, stringent regulations of government and regulatory bodies governing the plastic industry globally are expected to restraint the market.
Increased awareness of recycled and sustainable plastic resulted in a surge in demand for plastic additive
Plastic has been generated over 8.3 billion metric tonnes, most of which has ended up in landfills or garbage incineration plants. As consumer concerns grow and regulatory requirements become more stringent to decrease plastic waste, the plastics sector is looking to incorporate more recycled polymeric material into all main applications to satisfy sustainability goals.
For instance, major consumer goods businesses such as Coca-Cola, Unilever, PepsiCo and others have set goals for replacing virgin plastic with recycled plastic, with a stated objective of 25% by 2025. Furthermore, businesses recognize that achieving recycling goals will necessitate significant investment. For instance, Nestle has set aside US$ 1,600 million to pay premiums for recycled plastics versus virgin plastics. The company wants to encourage waste management firms and recyclers to grow their operations.
To help meet these targets, chemical corporations promote chemical recycling methods such as depolymerization and pyrolysis, which use additives that break down plastics into a feedstock that can be transformed into new polymers. In addition, recyclers and plastic converters confront quality and performance concerns when processing recovered polymeric material. Specially designed additive packages can improve the characteristics of recycled polymers.
For instance, in September 2021, BASF SE has introduced IrgaCycle, a new line of additive solutions aimed at meeting the growing need for plastics recycling. The IrgaCycle range contains additive solutions that can enhance the percentage of recycled content in numerous end-use such as packaging, automotive & mobility, building and construction and others.
Stringent regulations of government and regulatory bodies governing the plastic industry globally
Plastic additive sales are likely to be impacted by several new rules and proposed limits on the use of petroleum-based plastics. Regulatory authorities such as the European Commission (EU) revised statutes such as the Restriction of Hazardous Substances (RoHS) to regulate and restrict plasticizers, flame retardants and other additives due to detrimental human health and environmental effects.
Furthermore, some scientific investigations have suggested restrictions on specific types of plastic additives, such as flame retardants and plasticizers. With effect from the summer of 2004, the European Union (EU) and two states in U.S., California and Maine, had adopted restrictions on items containing more than 1% of pentaBDE or octaBDE (for specific purposes in Europe). Consequently, these regulatory rules prohibit high-value flame retardants such as brominated and chlorinated flame retardants in the region.
The global plastic additive market was significantly impacted by massive disruption in the chemicals and materials industry supply chain. It weakened company confidence, especially during the first phase. The demand for end-products, including automobile components, plastic construction materials like pipes and fittings and consumer items has decreased, resulting in a decrease in demand for black masterbatch in 2020.
However, industrial operations and building activities are expected to recover gradually, resulting in increased demand for plastic additives for their end-products over the projection period.
Based on type, the global plastic additive market is segmented into plasticizers, stabilizers, impact modifiers, nucleating agents, flame retardants, blowing agents, anti-aging additives and others.
Plasticizers are major functional additives that change the physical properties of PVC and other polymers, resulting in a new universe of flexible, long-lasting final plastic products for high-performance applications. More than 30,000 different compounds have been tested for their plasticizing characteristics during the last 60 years. Only about half of them are currently in commercial use. The most prevalent plasticizers are esters such as azelates, citrates, adipates, benzoates, terephthalates, ortho-phthalates, sebacates and trimellitates.
According to European Plasticisers, 7.5 million tons of plasticizers are consumed globally, with over 1.35 million tons consumed in Europe. Ortho-phthalates are the most extensively used plasticizers due to their great compatibility with PVC. Furthermore, modern plasticizers are comparable and dissimilar, containing a diverse spectrum of chemistries and compounds that deliver great performance in various applications while remaining safe and sustainable. The plasticizers are colorless, odorless liquids that can't be used as colors or fillers.
Based on geography, the global plastic additive market is segmented into North America, Europe, South America, Asia-Pacific and Middle East & Africa.
Asia-Pacific dominates and holds a significant market share of plastic additives due to low-cost raw materials and labor availability. China is one of the most significant plastics additive markets, accounting for 30% of global production. Essential polymers are blended with a complex blend of plastic additives to create all plastic products.
Packaging is the most important end-user of plastics. The demand is rising with the developing packaged and processed food and beverage industry, strengthened by the modern retail and e-commerce sectors. In addition, secondary packaging is also becoming more popular due to e-commerce. Flexible packaging, which is expected to reach US$ 7,000 million by 2024 in the packaging sector, is a key demand driver for plastics in Asia-Pacific.
Thailand boasts one of the region's most established and modern food processing businesses, with over 10,000 processing factories. Food is the country's third-largest industry, accounting for more than 20% of its US$ 505,000 million GDP. Aside from food and beverage, Thailand's government wants to make bioplastics a regional center in Asia-Pacific.
The global plastic additive market is consolidated and competitive with multinational businesses. Major players in the market include BASF SE, Clariant AG, Songwon Industrial Co., Ltd., Albemarle Corporation, Nouryon, Evonik Industries AG, LANXESS AG, Kaneka Corporation, The Dow Chemical Company and Exxon Mobil Corporation, among others. The companies in the market incorporate numerous market strategies to achieve growth in the global plastic additive market; these include mergers, product launches, acquisitions, contributions and collaborations.
Songwon Industrial Co., Ltd.
Overview: Songwon Industrial Co., Ltd. is a global company based in South Korea that primarily manufactures and supplies chemical products. Performance chemicals and industrial chemicals are the company's main products. The company is headquartered in Nam-gu, South Korea.
Product Portfolio: Songwon Industrial Co., Ltd. offers specially engineered plastic stabilizers that protect the polymer throughout processing and assure that the physical features of plastic end products are maintained during usage, extending their life.
In April 2021, Songwon Industrial Co., Ltd. expanded its polymer stabilizer distribution collaboration with Cheminox to encompass Sri Lanka, Bangladesh and Nepal.
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