Plastic Compounding Market Globally with Excellent CAGR of 4.8% by 2029, Share, Trends, Demand, and Revenue Growth Outlook

The global plastic compounding market is expected to gain significant growth in the forecast period of 2022 to 2029. Data Bridge Market Research analyses that the market is growing with a CAGR of 4.8% in the forecast period of 2022 to 2029.

The major restraints that may negatively impact the global plastic compounding market are fluctuations or volatility in raw materials prices and high substitution potential from its bio-based counterparts. Shifting preference for bio-based and recycled plastics is expected to provide an opportunity in the global plastic compounding market. However, stringent regulations imposed on the use of plastic are projected to challenge the global plastic compounding market growth. The global plastic compounding market report provides details of market share, new developments, and the impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, products approvals, strategic decisions, product launches, geographic expansions, and technological innovations in the market. To understand the analysis and the market scenario, contact us for an Analyst Brief; our team will help you create a revenue impact solution to achieve your desired goal.

Market Definition

Plastic compounds are widely used in the electronic and electrical industries for electromagnetic shielding and antistatic applications. In addition, they are replacing metal components in the automotive industry. This has helped in increasing car safety by reducing the total weight of the vehicle. Plastic compounding has also lowered the carbon emissions and increased fuel efficiency and performance of vehicles in the automotive industry, which in turn boosts the growth of the plastics compounding market.

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Some of the prominent participants operating in the global plastic compounding market are DuPont, BASF SE, Dow, Arkema, KURARAY CO., LTD., Adell Plastic Inc., Asahi Kasei Corporation, RTP Company, Ravago, LyondellBasell Industries Holdings B.V (A Subsidiary of LyondellBasell), KRATON CORPORATION. (A Subsidiary of DL Chemical Co., Ltd.), PolyVisions, Akro-Plastic GmbH, Aurora Plastics LLC, Exxon Mobil Corporation, DSM, SABIC, Sojitz Corporation, Celanese Corporation, HEXPOL AB, Covestro AG, LG Chem, Eni, LANXESS, INEOS, among others.

Global Plastic Compounding Market Dynamics
Drivers
Increase in demand for plastic compounding in infrastructure development
The growing number of residential and commercial projects in developing countries is boosting infrastructural development as consumer awareness regarding attractive interiors increases, increasing the demand for these materials in interior design. The booming construction industry is anticipated to complement the plastic compounding market. PVC and CPVC play an important role in the sustainable management of this sector through various products like pipes, wires & cables, waterproofing membranes, and wood PVC composites. Most developing countries, such as Mexico, India, and others, are expected to benefit from the rising construction spending and inclination of consumers toward utilizing sustainable and lightweight building materials in place of conventional materials such as metals and alloys.

Growing advantages and superior physical properties of plastic compounds

Some plastic products benefit from compounding to prohibit germs' growth on their surface. These plastic additives are mostly used in the production of medical products, and this plastic can also be compounded to add extra protection against UV rays that often lead to degradation of the material. All these advantages offered by compounded plastics have spurred their demand from different end-users and industries, which will boost its growth in the global plastic compounding market.

Shift in preference toward the adoption of lightweight materials for the production of automobile parts

Regulatory intervention by various governments across the globe to reduce gross vehicle weight and improve fuel efficiency, which will reduce carbon emissions, has driven automotive OEMs and spare parts manufacturers to adopt plastics as the substitute for metals such as steel and aluminum for fabricating automotive components. With growing thermoplastic and thermosets demand in automotive component fabrication, plastic compounding is expected to gain prominence due to increasing quality and material specification requirements from automotive OEMs.

Multiple and varied applications scope of plastic compounding
Apart from these applications, various compounded plastic such as PVC is commonly used to insulate electrical wiring, while thermosets are commonly used for switches, light fittings, and handles to withstand high temperatures and heat. Plastics are ideal for housings for items like hairdryers, electric razors, and food mixers because they protect the user from electric shock. Thus the increasing use and wide application scope in various industries like electronics and appliances, packaging, and construction are expected to drive the growth of the global plastic compounding market.

Opportunities
Shift in preference for bio-based and recycled plastics
Bio-based plastics are plastics manufactured from bio-based polymers, which contribute to more sustainable commercial plastic life cycles as part of a circular economy, in which virgin polymers are made from renewable or recycled raw materials. Carbon-neutral energy is used to produce these plastics, and the products are reused or recycled at their end of life (EOL). Bio-based plastics have a lower carbon footprint and exhibit advantageous material properties compared with fossil-based plastic compounds. Moreover, they are also compatible with existing recycling streams, and some offer biodegradation in controlled or predictable environments.

Ongoing development in catalyst technologies to increase the performance and yield of resins

Some catalysts can increase resin yield and, at the same time, increase quality issues and offer subpar product performance. Therefore, continuously improving polymerization catalyst technologies will enhance the performance, customization, and yield of polyethylene and other polymer resins, which will provide a lucrative opportunity for the key players to increase their production and offer superior products in the market.

Restraints/Challenges
Fluctuations or volatility in the prices of raw materials
These oscillating petrochemical prices can hamper the growth of the plastic compounding market supported by future supply and demand changes, which are expected to keep plastics prices very volatile. Most raw materials are produced through downstream processes of petrochemicals. Volatility in crude oil prices is mainly due to political instability, supply and demand imbalances, and seasonal variations. In addition, the market is highly integrated, from raw material procurement to distribution channels.

High substitution potential from its bio-based counterparts
Various restrictions imposed by national governments on the consumption of polymers derived from petrochemicals in different end-use industries have incentivized the use of bio-based polymers production. These bio-compound plastics are made from plants or other renewable sources instead of hydrocarbons. Polymers derived through bio-based sources, such as Polylactic Acid (PLA), Polybutylene Succinate (PBS), and Polyhydroxyalkanoate (PHA), have shown remarkable biodegradability that their petrochemical-derived counterpart products severely lack. Therefore, these products are gaining wide popularity, especially in biomedical and agricultural applications.

Stringent regulations imposed on the use of plastic
There has been the imposition of various stringent regulations on the use of plastic with rising environmental concerns related to toxicity issues, which will pose a major challenge to the growth of the global plastic compounding market. Many large and most developed countries and regions have taken significant steps to introduce regulations to drive sustainability, while others are still operating as per the status quo, with limited or no regulations in place.

Strict environmental concerns
Consumers are becoming increasingly aware that plastic and various plastic materials can harm the environment. This has made much of consumers' concern focused on plastic's post-consumption or end-of-life effects on the environment, such as its recyclability, biodegradability, and reusability. However, the effect of plastic on the environment starts well before it hits store shelves as it starts with the extraction of fossil fuels and crude oil as it is the major source of its raw materials.

Recent Development

In May 2022, BASF SE launched its Ultradur B4335G3 HR HSP, which is an all-rounder for reliable protection. The PBT in this material offers a unique combination of different properties such as outstanding hydrolysis resistance and good flow ability and ensures safety for sensitive electronics in extremely challenging environments.

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Global Plastic Compounding Market Scope

The global plastic compounding market is categorized based on product type, source, additive type, manufacturing process, and application. The growth amongst these segments will help you analyze major growth segments in the industries and provide the users with a valuable market overview and market insights to make strategic decisions to identify core market applications.

Product Type
Polyethylene (PE)
Polypropylene (PP)
Poly Vinyl Chloride
Polyethylene Terephthalate (PET)
Thermoplastic Vulcanizates
Polycarbonate
Thermoplastic Polyolefins
Polyamide (PA)
Polystyrene
Poly-Butylene Terephthalate (PBT)
Acrylonitrile Butadiene Styrene
Others
Based on type, the global plastic compounding market is classified into polyethylene (PE), polypropylene (PP), thermoplastic vulcanizates, thermoplastic polyolefins, poly vinyl chloride, polystyrene, polyethylene terephthalate (PET), poly-butylene terephthalate (PBT), polyamide (PA), polycarbonate, acrylonitrile butadiene styrene and others.

Source
Fossil-Based
Bio-Based
Recycled
Based on the source, the global plastic compounding market is classified into fossil-based, bio-based, and recycled.

Additive Type
Anti-Oxidants
UV Stabilizers
Colorants
Blowing Agents
Flame-Retardants
Reinforcement Agents
Fillers
Anti-Foaming Agents
Oxygen Scavengers
Others
Based on the additive type, the global plastic compounding market is classified into fillers, anti-oxidants, colorants, UV stabilizers, reinforcement agents, flame-retardants, anti-foaming agents, oxygen scavengers, blowing agents, and others.

Manufacturing Process
Injection Molding
Extrusion
Others
Based on the manufacturing process, the global plastic compounding market is classified into injection molding, extrusion, and others.

Application
Automotive
Building & Construction
Packaging
Electrical & Electronics
Medical
Consumer Goods
Industrial Machinery
Optical Media
Textiles
Others

Plastic Compounding Market Regional Analysis/Insights

The Plastic Compounding market is analyzed and market size insights and trends are provided by country, material type, end user and application as referenced above.

The countries covered in the Plastic Compounding market report are U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, Israel, Egypt, South Africa, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America.

North America dominates the market in terms of market share and market revenue and will continue to flourish its dominance during the forecast period of 2022-2029. The market growth over this region is attributed to the high demand for fiber cement Plastic Compounding within the region. Asia-Pacific on the other hand, is estimated to show lucrative growth over the forecast period of 2022-2029, due to the prominent presence of fiber cement Plastic Compounding market players within the region. Moreover, the high requirement for the residential and commercial building construction also boosts the regional demand.

The country section of the report also provides individual market impacting factors and changes in market regulation that impact the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.

The report answers questions such as:

What is the market size and forecast of the Plastic Compounding Market?
What are the inhibiting factors and impact of COVID-19 shaping the Plastic Compounding Market during the forecast period?
Which are the products/segments/applications/areas to invest in over the forecast period in the Plastic Compounding Market?
What is the competitive strategic window for opportunities in the Plastic Compounding Market?
What are the technology rends and regulatory frameworks in the Plastic Compounding Market?
What is the market share of the leading vendors in the Plastic Compounding Market?
What modes and strategic moves are considered suitable for entering the Plastic Compounding Market?

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