by The global Plastic Additives Market is estimated to be valued at US$ 45.94 Bn or Billion in 2023 and is expected to exhibit a CAGR of 5.6% over the forecast period 2023 to 2030, according to a new report published by Coherent Market Insights.
Market Overview:
Plastic additives are used in plastics manufacturing to improve their physical, chemical, and mechanical properties. They are used as plasticizers, stabilizers, antioxidants, flame retardants, and colorants. Plastic additives enhance the durability, strength, and functionality of plastics. Due to their versatility, plastics find widespread applications across diverse end-use industries such as packaging, automotive, electrical & electronics, construction, and agriculture. Plastic additives play a key role in improving the processability and performance of plastics as per their end-use requirements.
Market key trends:
One of the major trends in the plastic additives market is the rising demand for bio-based plastic additives. Stringent environmental regulations regarding the use of conventional petroleum-based plastic additives are prompting manufacturers to develop sustainable and eco-friendly alternatives. Many companies are investing in R&D to produce plasticizers, antioxidants, and other additives from renewable feedstocks such as vegetable oils, sugars, cellulose, and starch. Bio-based additives offer comparable performance to fossil fuel-derived additives along with reduced toxicity. Rapid industrialization and urbanization in emerging economies are also fueling the production and consumption of plastics. Growing plastic waste generation worldwide is another major concern driving manufacturers to explore new methods to enhance the recyclability and reusability of plastics using suitable additives.
Porter’s Analysis
- Threat of new entrants: The threat of new entrants in the plastic additives market is low as it requires huge capital investment to set up manufacturing facilities and establish brand value.
- Bargaining power of buyers: The bargaining power of buyers is moderate due to the presence of many established plastic additive manufacturers. However, buyers can negotiate on pricing and quality of additives.
- Bargaining power of suppliers: The bargaining power of suppliers is low owing to the availability of substitutes and less differentiation in raw materials. Suppliers have to rely on innovation and quality to compete.
- Threat of new substitutes: Threat from substitutes is low as plastic additives have applications across various end-use industries and finding an alternative for additives is difficult.
- Competitive rivalry: The competitive rivalry in the industry is high due to the presence of many international players competing on pricing, quality, and manufacturing technologies.
Key Takeaways
The global plastic additives market is expected to witness high growth, exhibiting CAGR of 5.6% over the forecast period, due to increasing plastic consumption across packaging, automotive, and construction industries.
Regional analysis: The Asia Pacific region dominated the global plastic additives market in 2023, accounting for around 35% of the total share. This is attributed to increasing automotive production and thriving construction industry in China and India. North America is expected to witness fastest growth during the forecast period owing to rising plastic demand from packaging sector in the US and Canada.
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 offers a wide range of plastic additives such as UV stabilizers, antioxidants, flame retardants, etc. Songwon Industrial Co manufactures and supplies plastic, rubber, and food additives globally.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
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