Plastics Compounding Market

Global Plastics Compounding Market Size (2024 to 2029)

The Global Plastics Compounding market is expected to grow from USD 80.15 billion in 2024 to USD 110.85 billion in 2029, with a CAGR of 6.7% between 2024 and 2029. 

Current Scenario of the Global Plastics Compounding Market

The plastics compounding market has been rapidly growing in recent times. The increase in consumption of both hard and soft plastic products along with the growing population has fuelled the demand for plastic compounds.

Also, owing to technological breakthroughs and rising research and development in the electrical and electronic industry, there has been a year-on-year surge in usage of electrical and electronic devices in the last few years. In addition, the heightening sale of cars has been stimulated by the swift pace of industrialization and higher disposable income in emerging countries. Coupled with the progressive shift towards lightweight electric vehicles, compact customer electronics and robust demand from consumer goods have elevated the market growth.

MARKET DRIVERS

The rising trend of changing glass, wood, natural rubber, metals, and concrete with plastic is propelling the plastic compounding market growth.

Moreover, the use of plastic is increasing because of its application in several industries as well as its capability to deliver the required size and shape with ease of moulding. Also, its products are regarded as extremely comfortable to deploy against those made from metal or wood. These items are available in diverse color combinations, which further enhances their aesthetic beauty.

Another factor contributing to the expansion of the plastics compounding market is its engagement in different stages like identifying additive proportion, fast blending through twin screw extruders and other synthetic material compounding equipment, melt mixing, and reducing temperature before end pallet cutting and wrapping.

Furthermore, the surge in the infrastructure and construction industry globally after COVID-19, of which North America and India are among the best-performing economies that have the largest number of current ventures under construction. Hence, extensive utilization of plastic elements, consisting of screws, hinges, screws, and bigger construction parts for cabling, flooring, wallpapers, waterproofing and decoration in the growing construction industry is anticipated to boost the market growth over the forecast period.

MARKET RESTRAINTS

The market growth is restricted by the adoption of plastic recycling laws and regulations. Plastic wrappers and single-use trash have been prohibited or taxed in more than 60 countries to lower plastic usage.

 Although as of now there are no rules for primary manufacturing, industry players engaged in the making of input materials for these involving oil & gas organisations may be indirectly affected by regulatory framework worldwide targeting surge in plastic reprocessing and minimizing reliance on fossil fuel and greenhouse gas emissions. However, the increasing acceptance of sustainable substances in the production of plastic goods, components and packing is likely to obstruct the market expansion.

MARKET OPPORTUNITIES

The plastic compounding market is believed to grow significantly due to the expanding demand for biopolymers, new retail product wrapping techniques and the implementation of 3D printing or production methods.

For several use cases, consisting of automotive interiors, merchandise item packing, bags, geotextiles, and boxes. This also involves beverage bottles and PVC flexible compounds may be in greater need in the plastic compounding market.

MARKET CHALLENGES

The Escalating environmental worries and exhausting crude oil resources in the comprehensive usage by petrochemical polymers have resulted in the emergence of bio-based products which are rapidly gaining traction and are more available to satisfy the demand for the application of renewable sources. Manufacturers of these plastic supplements are surging their capacity to meet the heightening need in the plastic compounding markets.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Plastics Compounding Market By Source

The fossil-based segment remains at the top position despite the significant rise in the use of recycled and bio-based sources.

This is because of its broad application based on petrochemicals, which originated from fossil fuels. Additionally, the use of polymers is far easier and more affordable for the producers. Also, the reliance on polymers made from petroleum has risen considerably over time. These derived polymers are a very flexible type of material and they are highly versatile for widespread usage in industries owing to their highly desired abilities, which involve flexibility, resistivity, chemical inertness and strength.

Global Plastics Compounding Market By Product

The Polypropylene (PP) segment is commanding the plastic compounding market and is likely to move forward during the forecast period.

It is frequently used in electrical and electronic gadgets and systems like smartphones, televisions and computers for its heatproofing and flame-retardant abilities. Apart from this, it is also utilised in a broad range of furniture products including outdoor fittings, garden chairs, tables and kid's furniture for its strength, climate resistance, and easy cleaning.

Also, the polyurethane segment captured a notable portion and is expected to drive a steady rate in the coming years. It is an extremely adaptable polymer which provides the generation of both thermosetting and thermoplastic plastics, starting from very soft to hard and stiff. Besides this, the rising acceptance of low-density hard polyurethane for thermal protection or barriers in the walls in fabrication & building projects is projected to boost the segment’s market size in the future.

Global Plastics Compounding Market By Application

The automotive industry is the biggest end-user of the plastics compounding market and is likely to maintain its command over the estimation period.

The surging necessity for alternative natural materials for lightweight plastics has been a key propellent for the segment’s market share. Further, the enforcement of emission guidelines and automotive weight laws in the industry due to increasing greenhouse gas discharge is forecasted to drive the demand for automobile plastic compounding in the coming years.

Whereas the packaging segment is just behind with a sizeable market share in 2023. The consumption of compounded plastics for packing purposes is due to extensive use in prominent nations like India, the United States, China, Germany and Brazil.

REGIONAL ANALYSIS

Asia Pacific holds a substantial market share of plastics compounding and is believed to advance further during the forecast period.

The expanding automotive sector in the APAC coupled with supportive foreign direct investment rules by governments is expected to promote more funding in Southeast Asian countries. Moreover, among all the nations, Thailand is leading the region’s market share forward. The main production industries like automobiles and electrical & electronics, are predicted to witness healthy progress which in turn is anticipated to have a considerable effect on the growing plastic consumption in the country. Apart from this, Polyethylene Terephthalate (PET) products are extensively popular in the whole region for packing soft beverage bottles and beer bottle boxes. Additionally, polycarbonate is another material highly consumed for baby feeding bottles.

Europe accounts for a notable portion of the plastics compounding market share because of its broad usage within automotive and consumer electronics manufacturing industries.

Especially, polyurethane finds comprehensive applications as foam cushioning material for insulation panels and vehicular seats. In addition, in Europe, the deployment of polymer finds government protection via strict laws about plastic waste disposition passed by the European Union (EU). Simultaneously, domestic governments are starting recycling projects for PE and PET plastic goods. Moreover, the regional market growth is driven by the United Kingdom (U.K.) and is the second-biggest industry, influenced by the automotive sector.

KEY PLAYERS IN THE GLOBAL PLASTICS COMPOUNDING MARKET

S&E Specialty Polymers LLC (U.S.), BASF SE (Germany), RTP Company Inc. (U.S.), LyondellBasell Industries Holdings B.V. (U.S.), Kratom Polymers Inc. (U.S.), DuPont Inc. (U.S.), Dow Inc. (U.S.), Covestro A (Germany), SABIC (Saudi Arabia), Asahi Kasei Corporation (Japan), S&E Specialty Polymers, LLC, Ravago, Washington Penn, Polyvisions, Inc, Eurostar Engineering Plastics, SO.F.TER, KURARAY CO., LTD., Solvay, Arkema, LANXESS, TEIJIN LIMITED are some of the notable companies in the global Plastics Compounding market.

RECENT HAPPENINGS IN THE MARKET

• In June 2024, Borealis announced the deployment in Beringen (Belgium) of recyclate-based polyolefins (rPO) compounding which is a semi-commercial demonstration line. The building and fabrication work are scheduled to begin in 2024, with complete functional status expected by the first half of 2025.
• In May 2024, EcoCortec which is a subsidiary of Cortec Corporation reported the introduction of its advanced compounding activities for VpCI polymers and bio-resins at the Croatian plant in Beli Manastir. This will improve the factory’s self-sustainability and considerably reduce lead times for consumers.

DETAILED SEGMENTATION OF THE GLOBAL PLASTICS COMPOUNDING MARKET INCLUDED IN THIS REPORT

This research report on the global plastics compounding market has been segmented and sub-segmented based on source, product, application, and region.

By Source

• Fossil-based
• Bio-based
• Recycled

By Product

• Polyethylene (PE)
• Polypropylene (PP)
• Thermoplastic Vulcanizates (TPV)
• Thermoplastic Polyolefins (TPO)
• Polyvinyl Chloride (PVC)
• Polystyrene (PS)
• Polyethylene Terephthalate (PET)
• Polybutylene Terephthalate (PBT)
• Polyamide (PA)
• Polycarbonate (PC)
• Polyurethane (PU)
• Polymethyl Methacrylate (PMMA)
• Acrylonitrile Butadiene Styrene (ABS)
• Others

By Application

• Automotive
• Building & construction
• Electrical & electronics
• Packaging
• Consumer goods
• Industrial machinery
• Medical devices
• Optical media
• Aerospace & defense
• Others

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa