Press release
Plastic Compounding Market is estimated to exhibit a moderate expansion at 4% CAGR, in terms of volume, during the forecast period 2017 to 2025
The global plastic compounding market is estimated to exhibit a moderate expansion at 4% CAGR, in terms of volume, during the forecast period 2017 to 2025, according to a recent analysis by Persistence Market Research (PMR). Global sales of plastic compounds are projected to reach nearly 300,000,000 tons in 2017; by 2025 this number is further anticipated to account for around 500,000,000 tons.Demand for plastics is witnessing an immense surge in the consumer goods and food packaging sector, playing an indispensable role in safe transit of products. Flexible packaging accounts for a major group of materials including plastic films, foil, papers, vegetable fibers, and cloths that are capable of being used for making wrappings, sacks, and sealed as well as unsealed bags.
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plastic compounding market
Plastic compounds are also utilized in electronics and electrical industries, to manufacture parts of integrated circuits, resistors, and semiconductors. Rise in technological advancements in electronic devices and gadgets have been influencing growth of the electronics and electrical sectors, thereby fuelling adoption of plastic compounds.
In addition, factors such as growing industrialization in developing economies, coupled with soaring demand for infrastructure development, Olefins, and light-weight automobiles are further estimated to augment growth of the plastic compounding market.
However, the costs of plastic compound have been exhibiting a significant rise on the back of fluctuating chemical prices, coupled with high substitution potential of its bio-based counterparts.
The governments and environmental agencies have been imposing stringent regulations pertaining to recycling norms of plastics, application scope, and quantity of utilization, which in turn have been impeding the production as well as consumption of plastic compounds across industrial sectors. These factors are estimated to inhibit growth of the market.
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Polymers/copolymers will continue to be sought-after among products in the global plastic compounding market, with sales estimated to surpass 300,000 tons by 2025-end. However, sales of additives will continue to register a comparatively higher CAGR than sales of polymers/copolymers through 2025, in terms of volume. Among additives, colorants will continue to account for largest volume sales during the forecast period.
In terms of volume, automotive application of plastic compounds will remain dominant in the market. Volume sales of plastic compounds in healthcare application will witness the fastest expansion through 2025. In addition, packaging will remain the second largest application of plastic compounds. However, demand for plastic compounds in textile application will remain sluggish over the forecast period.
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Asia Pacific (APAC) will continue to be the most lucrative region in the global plastic compounding market, with sales pegged to surpass 250,000 tons by 2025-end. Volume sales of plastic compounds in APAC will register the highest CAGR through 2025, followed by Latin America. In addition, Europe will remain the second-largest market for plastic compounds, in terms of volume. The plastic compounding market in Middle East & Africa (MEA) is projected to exhibit a moderate expansion in terms of volume through 2025.
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