July 21, 2024

The Plastic Additives Market is driven by rising plastic production and consumption globally

The plastic additives market consists of a wide range of chemical formulations that are added to plastics to enhance desired properties and functionality for various applications. Plastic additives are used to impart properties such as durability, heat resistance, weatherability and UV protection. They play a key role in improving material properties and extending its lifecycle. The growing production and consumption of plastics across industries such as packaging, construction, automotive and consumer goods has augmented the demand for plastic additives over the years. The global plastic additives market accounts for over 20% share of the global chemical industry. The plastic additives market provides formulators and compounders solutions to meet the exact requirements of different plastic applications.

The global Plastic Additives Market is estimated to be valued at US$ 45.94 Bn in 2023 and is expected to exhibit a CAGR of 5.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the key trends driving growth in the plastic additives market is the increasing adoption of biodegradable and bio-based plastic additives. With the growing concerns regarding plastic waste accumulation and harm to the environment, plastic additive manufacturers are focusing on developing bio-based and biodegradable solutions. These environment-friendly plastic additives provide similar properties as conventional plastic additives while ensuring that the end products have minimum environmental impact. Another notable trend is the rising popularity of multifunctional plastic additives. Formulators are investing in R&D to develop additives that can impart multiple benefits simultaneously without compromising on each other. This reduces additive content requirements and provides added advantages.

Porter’s Analysis

  • Threat of new entrants: The plastic additives market has moderate threat of new entrants as there are significant capital requirements and the major players have established brand names. However, new opportunities are emerging with innovation.
  • Bargaining power of buyers: The bargaining power of buyers is moderate to high as there are many manufacturers supplying similar products. Buyers can negotiate on price and quality standards.
  • Bargaining power of suppliers: The bargaining power of suppliers is moderate as there are many raw material suppliers and switching costs are low. However, suppliers of specialty chemicals command higher bargaining power.
  • Threat of new substitutes: The threat of substitutes is moderate as there are no major substitutes for plastic additives currently. However, bio-based and recycled content based substitutes pose a threat in the long run.
  • Competitive rivalry: The plastic additives market has high competitive rivalry among major players like BASF SE, Songwon Industrial Co., Ltd., Clariant AG, and Evonik Industries AG. Competition is based on product differentiation, pricing, quality and customer service.

Key Takeaways

The global plastic additives market is expected to witness high growth. The market size is projected to reach US$ 45.94 Bn by 2024 growing at a CAGR of 5.6% during the forecast period.

Regional analysis: Asia Pacific dominated the plastic additives market in 2019 with a share of over 40% owing to strong growth in China, India and other developing economies. The Asia Pacific region is projected to continue its dominance during the forecast period supported by growth in the end use industries like packaging, automotive and construction. North America and Europe are also projected to offer lucrative opportunities for plastic additive manufacturers supported by stringent regulations towards product development.

Key players: Key players operating in the plastic additives market are BASF SE, Songwon Industrial Co., Ltd., Clariant AG, and Evonik Industries AG. BASF SE is one of the largest players globally with a wide product portfolio including plasticizers, stabilizers and flame retardants. Songwon Industrial Co., Ltd. is a leading global specialty chemical company focusing on plastic additives. Clariant AG and Evonik Industries AG are also major players focusing on providing innovative and sustainable solutions for the plastic additives industry.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it