Plastic Compounding Market Size, Share, Growth, Trends, Company Analysis, Regional Insights and Forecast 2021 - 2027

The global Plastic Compounding market size is expected to be worth around US$ 87.8 billion by 2027, according to a new report by Vision Research Reports.

The global Plastic Compounding market size was valued at US$ 61 billion in 2020 and is anticipated to grow at a CAGR of 5.2% during forecast period 2021 to 2027. Plastic compounding is a process wherein various materials (polymers and additives) are mixed and melted together, generally in an extruder, which is later pelletized. The material derived through pelleting is later processed into final products (finished or semi-finished). Increase in demand for plastics in construction, automotive, and electrical & electronics sectors is likely to be a major factor driving the global plastic compounding market. Synthetic polymers such as PVC, PE, PC, PP, and PU have been traditionally used in various applications including packaging, electronic components, and automotive components.

Growth Factors

The rapidly developing construction and automobile sectors are anticipated to drive the demand for interiors, exteriors, and underhood components. The maximum application of plastic compounding in underhood components in the automotive industry, building interiors and exteriors in construction and infrastructure industries, and in electronics, durables, and wire and cable industries are anticipated to further fuel the growth.

However, the COVID-19 outbreak has affected the raw material prices of plastic compounding. Recently, crude oil prices hugely slumped due to the COVID-19 pandemic. A decline in demand, halts or slowdowns in the manufacturing industry, and restrictions in supply and travel are resulting in the decline of crude oil prices. 

Increasing substitution for glass, metals, wood, natural rubber, and man-made materials, such as concrete, is anticipated to drive the growth. The demand for plastic is rising owing to the various industrial applications due to its versatile benefits, easy molding, and ability to form desired shape. Plastic compounding involves an elaborate process with various stages such as determining additives ratio, high-speed mixing via twin-screw extruders, melt mixing, and cooling, before final pellet cutting and packaging. There is a diverse range of products available, depending on the additives and fillers integrated while processing the polymers including antioxidants, processing aids, colorants, wear-resistant, blowing agents, lubricants, fillers and reinforcements, antistatic agents, slip/ anti-slip agents, anti-block agents, flame retardants, light stabilizers, impact modifiers, and cross-linking agents.

Major Drivers and Restraints

Stringent regulatory norms, such as EU directives to reduce gross vehicular weight and carbon emissions, have been instrumental in driving the demand for thermosets in automotive components. This is propelling the global plastic compounding market. Three basic ingredients or raw materials, namely polymers, additives, and fillers, are utilized in compounding. Polymers consist of polyamide (PA) compound, polycarbonate (PC) compound, polymethyl methacrylate (PMMA) compound, etc. Prices of plastic compounds have been rising gradually, primarily due to fluctuating petrochemical prices and high substitution potential from their bio-based counterparts. Oscillating petrochemical prices, a source of extraction of plastic, can hamper the plastic compounding market. Fluctuation in prices of crude oil is also adversely affecting the prices of plastic compounds.

Reduced Vehicle Weight via Sustainable Compounding Helps in Achieving Fuel Efficiency

Vehicle fuel efficiency is being linked with plastic compounding. The ever-evolving automotive industry is creating stable revenue streams for stakeholders in the global plastic compounding market. Houston-based Ascend Performance Materials has declared an acquisition pact with Tehe Engineering Plastic and NCM Co. Ltd. to expand their compounding assets in China. Companies are taking efforts to invest in R&D centers with immense focus on existing applications in the automotive, electronics, and consumer goods sectors.

Stakeholders are gaining proficiency in sustainable compounding to strengthen their position in the automotive industry. The craze of lightweight vehicles among Gen-Z population to achieve fuel efficiency is driving plastic manufacturers in the plastic compounding market to innovate in sustainable compounding. Reduced vehicle weight is the key to combat the risk of carbon emissions from an automobile. Such trends are fueling plastic compounding activities in the automotive industry.

Twin-screw Compounding, Additives Enhance Impact Strength of Thermoplastics

Thermoplastic compounding is gaining prominence in consumer goods, medical, and 3D (3 Dimensional) modeling applications. Companies in the plastic compounding market are increasing their production capabilities in long-fiber reinforced thermoplastics. Oak Tree Engineering - a specialist in thermoplastics compounding is incorporating a wide range of additives, polymers, fillers, and colorants in thermoplastics to meet demanding needs of clients in the automotive, consumer goods, and 3D modeling applications.

Plastic is the material choice for most consumer goods. Manufacturers in the plastic compounding market are using twin-screw compounding and additives to enhance the flexibility, impact strength, and flame retardance of thermoplastics. These thermoplastics compliment consumer goods approved for food contact and pet use. Manufacturers are making use of chemical and mechanical knowledge to ensure that thermoplastics are free from raw materials that may concern consumers.

Pre-work Testing, Post-blending Testing Help Manufacture High Quality Products

Specialty compounding is being used to enhance UV protection and electrical conductivity in plastics. Epsilon Carbon Pvt. Ltd. - a leading manufacturer of coal tar derivatives, is acquiring recognition for specialty compounding and is using a blend of pigments, carrier resins, and masterbatches to strengthen the properties of plastic.

On the other hand, custom polymer compounding is gaining popularity in the plastic compounding market. Companies are increasing their R&D capabilities for feedstock testing, in-process testing, and final quality control testing to gain a competitive edge over other market players. Pre-work testing and post-blending testing help to qualify the base raw materials to ensure high performance characteristics in products. In-process testing helps to ensure client requirements are being met at every step.

Product Insights

Polypropylene segment led the market and accounted for more than a 25.4% share of the global revenue in 2020. Its compounds are largely used in automotive applications owing to the high impact resistance and serviceability. Economic growth in Asian and Latin American markets has propelled growth in the automotive sector both in terms of vehicle sales and domestic production. Considering ever increasing automotive production along with regulatory trends compelling manufacturers to reduce vehicular weight and improve fuel efficiency; plastics consumption in automotive applications shall rise considerably over the forecast period. It has good fatigue resistance and better chemical and temperature resistance. These factors have made PP popular material for multiple applications in developed economies and emerging economies alike.

Increasing construction spending in Asia, the Middle East, and Latin America are expected to provide growth opportunities for PVC compounds considering relatively lax regulatory intervention regarding the presence of plastics in building materials. The recent trend of developing PVC through bio-based sources have been successful, such as the recently introduced Dow Chemical’s Ecolibrium plasticizer, which shall have a positive influence on PVC compounds growth over the forecast period.

However, slow down or halt in manufacturing activities to contain the spread of coronavirus pandemic has led to a decline in the consumption of polypropylene and negatively impacted its demand in various applications. Manufacturers are experiencing difficulties in running their production units owing to logistic restrictions and limitations on the movement of people, which are further cascading the impact on the product demand.

Application Insights

The automotive segment is anticipated to account for more than 24% of the overall market in 2020. Increasing incorporation of plastics, as opposed to metals and alloys in automotive components, has been a major factor for the segment growth. Over the recent past, there has been a considerable rise in automotive production, which is largely driven by the growth of the industry and manufacturing landscape of emerging markets. China, India, and Brazil are the fastest-growing economies and are also the major production hubs for automobiles. This trend is expected to continue over the future, thus driving demand for compounded plastics.

Asian markets have been registering an above-average industrial output over the recent past when compared to their Western counterparts. Companies based in the western markets are gradually increasing their presence in Asia to capitalize on growth prospects. Also, a favorable environment in Asia that promotes small scale enterprises to develop and government-driven tax incentives for foreign corporations are expected to increase sales of industrial machinery and equipment. Companies manufacturing these types of machinery tend to channel their businesses locally, i.e., establishing manufacturing units closer to their customer bases. These factors are likely to increase the consumption of plastic compounds in industrial machinery over the forecast period.

However, the outbreak of COVID-19 has immensely affected the production of automobiles and has caused disruption across the value chain of the automotive industry. Slowdown or halt in manufacturing activities and a decline in demand from consumers owing to the COVID-19 are expected to impact the demand for plastic compounds in automotive applications.

Regional Insights

Asia Pacific (APAC) dominated the market and accounted for over 43% of the revenue share in 2020 favored by the economic environment and the emergence of plastic manufacturers. The growing manufacturing sector shall drive the demand from automotive, industrial machinery, construction, packaging, and electrical and electronics industries in the region. It is the largest producer and consumer of automobiles, consumer goods, and packaging materials that paved a way for the regional market growth. Most of the producers are involved in roughly one of the segments of the plastics industry value chain. APAC is also one of the largest consumers and producers of electrical and electronic products, such as equipment and wires among others, which further fuel the regional demand.

On the other hand, Europe is likely to remain a saturated market with slightly positive aspects in Central and Eastern European countries. Various federal level agencies and others such as the European Chemicals Agency (ECHA) and the European Commission have characterized stringent environmental regulations in Europe with regards to production and consumption of the materials. These regulatory policies however challenging might they be for growth, are in a way expected to aid industrial development as they tend to push manufacturers to optimize processes and to develop sustainable technologies and products.

Key Players

• BASF SE

• Lyondellbasell Industries N.V.

• Dow, Inc.

• DuPont

• SABIC

• Asahi Kasei Plastics

• Covestro AG

• Kuraray Plastics Co., Ltd.

Market Segmentation

• Product Outlook 

  • 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)

  • Acrylonitrile Butadiene Systems (ABS)

  • Others

• Application Outlook

  • Automotive

  • Building & Construction

  • Electrical & Electronics

  • Packaging

  • Consumer Goods

  • Industrial Machinery

  • Medical Devices

  • Optical Media

  • Others

• Regional Outlook 

  • North America

    • The U.S

    • Canada

    • Mexico

  • Europe

    • Germany

    • The U.K.

    • France

    • Italy

    • Netherlands

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

  • Central and South America

    • Brazil

    • Argentina

  • The Middle East and Africa

    • Saudi Arabia

    • South Africa

The Plastic Compounding market research report covers definition, classification, product classification, product application, development trend, product technology, competitive landscape, industrial chain structure, industry overview, national policy and planning analysis of the industry, the latest dynamic analysis, etc., and also includes major. The study includes drivers and restraints of the global market. It covers the impact of these drivers and restraints on the demand during the forecast period. The report also highlights opportunities in the market at the global level.

The report provides size (in terms of volume and value) of Plastic Compounding market for the base year 2020 and the forecast between 2021 and 2027. Market numbers have been estimated based on form and application. Market size and forecast for each application segment have been provided for the global and regional market.

This report focuses on the global Plastic Compounding market status, future forecast, growth opportunity, key market and key players. The study objectives are to present the Plastic Compounding market development in United States, Europe and China.

It is pertinent to consider that in a volatile global economy, we haven’t just conducted Plastic Compounding market forecasts in terms of CAGR, but also studied the market based on key parameters, including Year-on-Year (Y-o-Y) growth, to comprehend the certainty of the market and to find and present the lucrative opportunities in market.

In terms of production side, this report researches the Plastic Compounding capacity, production, value, ex-factory price, growth rate, market share for major manufacturers, regions (or countries) and type.

In terms of consumption side, this report focuses on the consumption of Plastic Compounding by regions (countries) and application.

Buyers of the report will have access to verified market figures, including global market size in terms of revenue and volume. As part of production analysis, the authors of the report have provided reliable estimations and calculations for global revenue and volume by Type segment of the global Plastic Compounding market. These figures have been provided in terms of both revenue and volume for the period 2016 to 2027. Additionally, the report provides accurate figures for production by region in terms of revenue as well as volume for the same period. The report also includes production capacity statistics for the same period.

With regard to production bases and technologies, the research in this report covers the production time, base distribution, technical parameters, research and development trends, technology sources, and sources of raw materials of major Plastic Compounding market companies.

Regarding the analysis of the industry chain, the research of this report covers the raw materials and equipment of Plastic Compounding market upstream, downstream customers, marketing channels, industry development trends and investment strategy recommendations. The more specific analysis also includes the main application areas of market and consumption, major regions and Consumption, major Chinese producers, distributors, raw material suppliers, equipment providers and their contact information, industry chain relationship analysis.

The research in this report also includes product parameters, production process, cost structure, and data information classified by region, technology and application. Finally, the paper model new project SWOT analysis and investment feasibility study of the case model.

Overall, this is an in-depth research report specifically for the Plastic Compounding industry. The research center uses an objective and fair way to conduct an in-depth analysis of the development trend of the industry, providing support and evidence for customer competition analysis, development planning, and investment decision-making. In the course of operation, the project has received support and assistance from technicians and marketing personnel in various links of the industry chain.

The Plastic Compounding market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies’ focus related to Plastic Compounding market.

Prominent players in the market are predicted to face tough competition from the new entrants. However, some of the key players are targeting to acquire the startup companies in order to maintain their dominance in the global market. For a detailed analysis of key companies, their strengths, weaknesses, threats, and opportunities are measured in the report by using industry-standard tools such as the SWOT analysis. Regional coverage of key companies is covered in the report to measure their dominance. Key manufacturers of Plastic Compounding market are focusing on introducing new products to meet the needs of the patrons. The feasibility of new products is also measured by using industry-standard tools.

Key companies are increasing their investments in research and development activities for the discovery of new products. There has also been a rise in the government funding for the introduction of new Plastic Compounding market. These factors have benefited the growth of the global market for Plastic Compounding. Going forward, key companies are predicted to benefit from the new product launches and the adoption of technological advancements. Technical advancements have benefited many industries and the global industry is not an exception.

New product launches and the expansion of already existing business are predicted to benefit the key players in maintaining their dominance in the global market for Plastic Compounding. The global market is segmented on the basis of region, application, en-users and product type. Based on region, the market is divided into North America, Europe, Asia-Pacific, Latin America and Middle East and Africa (MEA).

In this study, the years considered to estimate the market size of Plastic Compounding are as follows:

• Historic Year: 2016-2020
• Base Year: 2020
• Forecast Year 2021 to 2027

Reasons to Purchase this Report:

- Market segmentation analysis including qualitative and quantitative research incorporating the impact of economic and policy aspects
- Regional and country level analysis integrating the demand and supply forces that are influencing the growth of the market.
- Market value USD Million and volume Units Million data for each segment and sub-segment
- Competitive landscape involving the market share of major players, along with the new projects and strategies adopted by players in the past five years
- Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis, and strategies employed by the major market players

Research Methodology:

In-depth interviews and discussions were conducted with several key market participants and opinion leaders to compile the research report.

This research study involved the extensive usage of both primary and secondary data sources. The research process involved the study of various factors affecting the industry, including the government policy, market environment, competitive landscape, historical data, present trends in the market, technological innovation, upcoming technologies and the technical progress in related industry, and market risks, opportunities, market barriers and challenges. The following illustrative figure shows the market research methodology applied in this report.

Market Size Estimation

Top-down and bottom-up approaches are used to estimate and validate the global market size for company, regional division, product type and application (end users).

The market estimations in this report are based on the selling price (excluding any discounts provided by the manufacturer, distributor, wholesaler or traders). Market share analysis, assigned to each of the segments and regions are achieved through product utilization rate and average selling price.

Major manufacturers & their revenues, percentage splits, market shares, growth rates and breakdowns of the product markets are determined through secondary sources and verified through the primary sources.

All possible factors that influence the markets included in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data. The market size for top-level markets and sub-segments is normalized, and the effect of inflation, economic downturns, and regulatory & policy changes or others factors are accounted for in the market forecast. This data is combined and added with detailed inputs and analysis from Vision Research Reports and presented in this report.

Market Breakdown and Data Triangulation

After complete market engineering with calculations for market statistics; market size estimations; market forecasting; market breakdown; and data triangulation. Extensive primary research was conducted to gather information and verify and validate the critical numbers arrived at. In the complete market engineering process, both top-down and bottom-up approaches were extensively used, along with several data triangulation methods, to perform market estimation and market forecasting for the overall market segments and sub-segments listed in this report.

Secondary Sources

Secondary Sources occupies approximately 25% of data sources, such as press releases, annual reports, Non-Profit organizations, industry associations, governmental agencies and customs data, and so on. This research study includes secondary sources; directories; databases such as Bloomberg Business, Wind Info, Hoovers, Factiva (Dow Jones & Company), TRADING ECONOMICS, and avention; Investing News Network; statista; Federal Reserve Economic Data; annual reports; investor presentations; and SEC filings of companies.

Primary Sources

 In the primary research process, various sources from both the supply and demand sides were interviewed to obtain qualitative and quantitative information for this report. The primary sources from the supply side include product manufacturers (and their competitors), opinion leaders, industry experts, research institutions, distributors, dealer and traders, as well as the raw materials suppliers and producers, etc.

The primary sources from the demand side include industry experts such as business leaders, marketing and sales directors, technology and innovation directors, supply chain executive, end users (product buyers), and related key executives from various key companies and organizations operating in the global market.

The study objectives of this report are:

• To analyze and study the global market capacity, production, value, consumption, status (2016-2020) and forecast (2021-2027);
• Focuses on the key manufacturers, to study the capacity, production, value, market share and development plans in future.
• Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis, and strategies employed by the major market players
• To define, describe and forecast the market by type, application and region.
• To analyze the global and key regions market potential and advantage, opportunity and challenge, restraints and risks.
• To identify significant trends and factors driving or inhibiting the market growth.
• To analyze the opportunities in the market for stakeholders by identifying the high growth segments.
• To strategically analyze each submarket with respect to individual growth trend and their contribution to the market
• To analyze competitive developments such as expansions, agreements, new product launches, and acquisitions in the market
• To strategically profile the key players and comprehensively analyze their growth strategies.