Plastic compounding is a manufacturing process of transforming the characteristics of basic plastics & thermoplastics using a mixture of plastics & additives. The blends are usually dosed automatically via feeders or hoppers with set-points. They have superior physical properties such as wide range of conductivity, flame retardancy, wear resistance, and light weight. The process has lowered the carbon emissions and increased fuel efficiency & performance of vehicles in the automotive industry. The plastic compounding are extensively used in industries for instance automotive, industry, electrical and electronics, medical and others.
According to study, “Global Plastic Compounding Market: Information by Product (Polypropylene, Polyethylene, Polyvinyl Chloride, Polyethylene Terephthalate, and Others), Application (Automotive, Electrical & Electronics, Building & Construction), Region-Forecast till 2023” the key companies operating in the global plastic compounding market are Asahi Kasei Corporation, Borealis AG, SABIC, INEOS, Covestro AG, Mitsui Chemicals Inc., SO.F.TER S.r.l, LyondellBasell Industries Holdings BV, Versalis S.p.A (Eni S.p.A), Sojitz Corp., 3M, Mexichem SAB de CV, Lanxess AG, Celanese Corp., BASF SE, Hillenbrand Inc., DowDuPont. The plastic compounding market is moderately fragmented & highly competitive. Key companies are concentrating on growth strategies, for instance merger & acquisition activities, in order to support their product portfolio and boost market share. Ongoing research & development (R&D) activities among these players intending to improvement the behavioral properties of plastic compounds are predicted to drive the market in the near future.
Based on type, plastic compounding market is segmented into additives and polymer/copolymers. Additives include anti-oxidants, reinforcement agents, UV stabilizers, colorants and others (thermo-stabilizer, laser-marking, flame-retardant, anti-microbial, anti-foaming agents, anti-static, oxygen scavenger, anti-block, CO2 barrier agents, metal deactivators). Based on product type, market is segmented into polyethylene, thermoplastic vulcanizates, polypropylene, poly vinyl chloride, polystyrene, thermoplastic polyolefins, polycarbonate, polyethylene, acrylonitrile butadiene styrene, polybutylene terephthalate, polyamide and others. In addition, based on application, market is segmented into automotive, electrical & electronics, construction, industrial machinery, packaging, optical media, consumer goods, medical devices and others. The packaging segment dominates the market due to increase in demand from food & beverages and consumer goods industry.
The plastic compounding market is driven by rise in demand for light & innovative materials in the packaging industry, followed by increase in plastic consumption in the automotive industry, rise in construction industry, surge in infrastructure development, rise in environmental concerns, rapid industrialization & increase in disposable income, replacement for glass & metals and growth of key end-use industries. However, harmful impact of VOCs present in the coating and volatility in raw material prices may impact the market. Moreover, growth in use of recycled plastic in various end-use industries is a major trend for market. Furthermore, rise in use of bio-based plastic in various end-use applications is a key trend for market.
Based on geography, the Asian-Pacific region holds major share in plastic compounding market owing to high rate of adoption of plastic compounds in electrical & electronics and automotive application in the region. The European and North-American regions are anticipated to witness significant growth rate due to growth in advancement in R&D activities among universities over the forecast period. It is projected that the market will be reached at rapid pace as a result of surge in demand for frozen food products during the forecast period.
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Ankur Gupta, Head Marketing & Communications