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PUBLISHER: DataM Intelligence | PRODUCT CODE: 1107809

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PUBLISHER: DataM Intelligence | PRODUCT CODE: 1107809

Global Plastic Compounding Market - 2022-2029

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Market Overview

The global plastic compounding market size was worth US$ XX million in 2021 and is estimated to reach US$ XX million by 2029, growing at a CAGR of XX% during the forecast period (2022-2029).

It's an art as a science to create and provide plastic compound solutions. While technical and scientific material knowledge is essential to adapt custom-made compounds to exact specifications and performance characteristics, purposeful material customization and design is an art that requires years of real-world formulation expertise.

Compounding produces plastic formulations by combining and blending polymers and additives to produce the desired properties. The blends are normally dosed automatically with specific set points using feeders/hoppers. It's typically a mix of copolymers like ABS, SAN, SMA and others, with anti-oxidants, UV stabilizers, other value-adding compounds and occasionally a reinforcing component like glass fiber.

Certain requirements must be met to obtain a homogeneous blend of the various raw materials. Heat, as well as dispersive and distributive mixing, are essential components. Extrusion is the most common method of compounding. The process of tailoring basic, raw plastic material with numerous additives to satisfy color, property and performance requirements is known as plastic compounding. It is accomplished by lab formulation and physical methods that combine the essential chemicals and color of the plastic resin.

Market Dynamics

Plastic is high in demand due to its numerous industrial applications and perks, such as easy molding and making the desired shape. Plastic compounding is a multi-step process that includes selecting the additive ratio, high-speed mixing with twin-screw extruders, melt mixing and chilling before pellet cutting and packaging. Depending on the additives and fillers used in polymer processing, a wide range of products is possible.

Increasing demand for plastic in various end-use sectors

The growing need for plastics in the construction, automotive and electrical & electronics industries is likely to be a primary driver of worldwide plastic compounding industry growth. PVC, PET, PC, PP and PU are synthetic polymers traditionally used in packaging, electronic components, automobile components, toys, furniture and construction materials.

Automobile OEMs have adopted plastics as a substitute for metals such as steel and aluminum for producing automotive components due to regulatory intervention to lower gross vehicle weight to increase fuel efficiency and cut carbon emissions. Plastic compounding is predicted to acquire significance as the need for thermoplastics and thermosets in automotive component fabrication grow, owing to increased quality and material specification requirements from automotive OEMs.

Widespread adoption of plastic compounding in infrastructure development

In the building industry, demand for plastics is expanding in flooring, insulation materials, storage tanks, performance safety windows, doors, pipes and cables. In developing countries, residential and commercial projects' growth supports infrastructure development. Furthermore, as consumers become more aware of appealing interiors, the demand for materials in interior design is expanding. The flourishing construction industry will supplement the plastic compounding market during the projected period.

Large investments are being made in water and sanitation management, irrigation, building & construction, power, transportation and retail. PVC and CPVC, through various goods such as pipes, wires & cables, waterproofing membranes, wood PVC composites, food and pharmaceutical packaging, play a key role in the sector's long-term sustainability. Shortly, this will also increase the plastic compounding business.

The rising price of plastic

In plastic compounding, three primary ingredients or raw materials are used: polymers, additives and fillers. Polymers comprise polypropylene (PP), which can be homopolymers or block copolymers. PE (polyethylene) and certain elastomers are also employed in compounding.

The cost of plastic compounds has been gradually rising, owing to shifting petrochemical pricing and the great substitutability of bio-based alternatives. During the forecast period, fluctuating petrochemical prices may stifle the expansion of the plastic compounding market. The price of plastic compounds will likely be affected by the shifting price of crude oil.

COVID-19 Impact Analysis

Multiple parameters in the plastic compounding business have been affected by COVID-19. Short- and long-term consequences, as well as their implications for manufacturers and end-users, were investigated. Due to early instances being detected in China, the worldwide industry halted during the initial dissemination of the COVID-19 virus. The enforcement of strict lockdowns caused immediate disruption in manufacturing in China, which is the leading exporter of numerous plastic compounded items.

The output of major chemical industrial hubs and free trade zones such as Zhejiang, Shanghai and Guangdong has decreased. Due to the strict shutdown of manufacturing activities and production facilities, demand from major industries such as automotive and industrial has plummeted due to the global spread.

Demand was also harmed by changing customer priorities for need-based vital products. Plastic compounding market demand has decreased significantly in major areas such as consumer products, electronics, automotive and aerospace. During China's initial recovery, short-term increases in industrial output were blips, mostly attributable to international corporations' backlog orders. Governments are offering several assistance and stimulation packages to increase consumer confidence and European manufacturing is also expected to return.

Segment Analysis

By polymer, the plastic compounding market is segmented into Polypropylene(PP), Polyethylene (PE), Acrylonitrile Butadiene Styrene (ABS), Polyethylene Terephthalate (PET), Polyurethane (PU), Polyvinyl Chloride (PVC), Polystyrene (PS), Expanded Polystyrene (EPS) and Others

Great impact resistance and serviceability of Polypropylene (PP)

The Polypropylene (PP) segment will dominate the market in the coming years. Because of their great impact resistance and serviceability, PP compounds are widely employed in automotive applications. The growth of the automobile sector, both in terms of car sales and domestic manufacturing, has been fueled by economic development in Asia-Pacific and Latin America.

Over the forecasted period, plastic use in automotive applications will likely increase dramatically, owing to rising automotive production and regulatory trends requiring manufacturers to reduce vehicle weight and enhance fuel efficiency. The material is resistant to fatigue and has improved chemical and temperature resistance. Due to these considerations, PP has become a popular material for various applications in various worldwide end-use sectors.

Geographical Analysis

The rising demand for consumer goods in North America

The expansion of the North American plastic compounding market will be aided by rising thermoplastic elastomer demand in medical equipment, paving & roofing, sports & leisure equipment and personal hygiene. North America is a leading plastic packaging region with major headquarters. The growing need for flexible packaging from the regional food and beverage industry will propel the market forward.

The region's plastic compounding market will benefit from a significant increase in the vehicle industry in North America. In 2016, total vehicle sales in North America, including U.S. and Canada, exceeded 19 million units, with a strong increase expected by 2028. Over the projected period, high demand for 3D printing is expected from healthcare, aerospace & defense, consumer product industries and education.

Competitive Landscape

The global market is highly fragmented, with SMBs accounting for most of the industry (SMEs). To maintain their market position, businesses are aggressively expanding their production capacities. With the development of freestanding independent compounders, the industry has seen a tremendous capacity expansion in China.

Unlike major end-user firms such as automotive manufacturers and Original Equipment Manufacturers (OEMs), which form strategic partnerships with compounders or expand their compounding capabilities, Chinese compounders serve many medium-sized businesses. For example, in April 2020, Covestro donated 30,000 pieces of high-quality and ready-to-use Polycarbonate (PC) films to Siriraj Piyamaharajkarun Hospital in Thailand to produce high-quality face shields.

Major players operating in the global market for plastic compounding include Celanese Corporation, LyondellBasell Industries Holdings BV, Asahi Kasei Corporation, BASF SE, PolyOne Corporation, Covestro AG, Alpha Packaging, Inc, SABIC, Solvay SA and Kingfa Sci. and Tech. Co., Ltd.

LyondellBasell Industries Holdings BV.

Overview: LyondellBasell is a global leader in the plastics, chemicals and refining industries. LyondellBasell produces materials and products that help in improving food safety with lightweight & flexible packaging, protecting the purity of water supplies by stronger and more versatile pipes, improving the comfort, safety and fuel efficiency of many cars & trucks on-road and ensuring the safe & effective working of electronics and appliances. LyondellBasell is driven by its employees all over the world.

LyondellBasell is one of the world's largest producers of polypropylene compounds and licensor of polyolefin technologies, with products sold in over 100 countries. In North America & Europe, the firm is also one of the top producers of oxyfuels and polypropylene.

Product Portfolio: LyondellBasell is one of the world's leading manufacturers of polypropylene, polypropylene compounds and polyethylene resins. The materials are utilized to make a wide range of items, including vehicle parts, renewable energy technology, packaging, pipelines and textiles used to promote solutions in practically every area of the economy.

Key Development: LyondellBasell stated in 2021 that it is currently producing polypropylene (PP) and polyethylene (PE) commercially using renewable feedstock with measurable and confirmed C14 renewable content. LyondellBasell's newest product is unique in that it employs feedstocks that are not directly competing with the food supply chain.

Neste provides sustainable feedstock made entirely of bio-based waste and leftovers such as spent cooking oils. The LyondellBasell product has a reduced carbon footprint than fossil-based polymers, is manufactured in Europe and will be sold worldwide under the CirculenRenew brand.

Why Purchase the Report?

  • Visualize the composition of the plastic compounding segmentation by polymer, additives, process, end-user and region, highlighting the critical commercial assets and players.
  • Identify commercial opportunities in plastic compounding by analyzing trends and co-development deals.
  • Excel data sheet with thousands of data points of plastic compounding - level 4/5 segmentation.
  • PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
  • Product mapping in excel for the key product of all major market players

The global plastic compounding report would provide access to an approx. 64 market data table, 80 figures and 209 pages.

Target Audience

  • Service Providers/ Buyers
  • Industry Investors/Investment Bankers
  • Education & Research Institutes
  • Research Professionals
  • Emerging Companies
  • Manufacturers
Product Code: DMMA5555

Table of Contents

1. Global Plastic Compounding Market Methodology and Scope

  • 1.1. Research Methodology
  • 1.2. Research Objective and Scope of the Report

2. Global Plastic Compounding Market - Market Definition and Overview

3. Global Plastic Compounding Market - Executive Summary

  • 3.1. Market Snippet By Polymer
  • 3.2. Market snippet By Additives
  • 3.3. Market Snippet By Process
  • 3.4. Market snippet By End-User
  • 3.5. Market Snippet by Region

4. Global Plastic Compounding Market-Market Dynamics

  • 4.1. Market Impacting Factors
    • 4.1.1. Drivers
      • Increasing demand for plastics in various end-use sector
      • Widespread adoption of plastic compounding in infrastructure development
    • 4.1.2. Restraints
      • The rising price of plastics
      • XX
    • 4.1.3. Opportunity
      • XX
    • 4.1.4. Impact Analysis

5. Global Plastic Compounding Market - Industry Analysis

  • 5.1. Porter's Five Forces Analysis
  • 5.2. Supply Chain Analysis
  • 5.3. Pricing Analysis
  • 5.4. Regulatory Analysis

6. Global Plastic Compounding Market - COVID-19 Analysis

  • 6.1. Analysis of COVID-19 on the Market
    • 6.1.1. Before COVID-19 Market Scenario
    • 6.1.2. Present COVID-19 Market Scenario
    • 6.1.3. After COVID-19 or Future Scenario
  • 6.2. Pricing Dynamics Amid COVID-19
  • 6.3. Demand-Supply Spectrum
  • 6.4. Government Initiatives Related to the Market During Pandemic
  • 6.5. Manufacturers Strategic Initiatives
  • 6.6. Conclusion

7. Global Plastic Compounding Market - By Polymer

  • 7.1. Introduction
    • 7.1.1. Market Size Analysis and Y-o-Y Growth Analysis (%), By Polymer
    • 7.1.2. Market Attractiveness Index, By Polymer
  • 7.2. Polypropylene (PP)*
    • 7.2.1. Introduction
    • 7.2.2. Market Size Analysis and Y-o-Y Growth Analysis (%)
  • 7.3. Polyethylene (PE)
  • 7.4. Acrylonitrile Butadiene Styrene (ABS)
  • 7.5. Polyethylene Terephthalate (PET)
  • 7.6. Polyurethane (PU)
  • 7.7. Polyvinyl Chloride (PVC)
  • 7.8. Polystyrene (PS)
  • 7.9. Expanded Polystyrene (EPS)
  • 7.10. Others

8. Global Plastic Compounding Market - By Additives

  • 8.1. Introduction
    • 8.1.1. Market Size Analysis and Y-o-Y Growth Analysis (%), By Additives
    • 8.1.2. Market Attractiveness Index, By Additives
  • 8.2. Flame retardants *
    • 8.2.1. Introduction
    • 8.2.2. Market Size Analysis and Y-o-Y Growth Analysis (%)
  • 8.3. Colorants
  • 8.4. Stabilizers
  • 8.5. Impact modifiers
  • 8.6. Plasticizers
  • 8.7. Others

9. Global Plastic Compounding Market - By Process

  • 9.1. Introduction
    • 9.1.1. Market Size Analysis and Y-o-Y Growth Analysis (%), By Process
    • 9.1.2. Market Attractiveness Index, By Process
  • 9.2. Injection or blow molding*
    • 9.2.1. Introduction
    • 9.2.2. Market Size Analysis and Y-o-Y Growth Analysis (%)
  • 9.3. Extruding
  • 9.4. Others

10. Global Plastic Compounding Market - By End-User

  • 10.1. Introduction
    • 10.1.1. Market Size Analysis and Y-o-Y Growth Analysis (%), By End-User
    • 10.1.2. Market Attractiveness Index, By End-User
  • 10.2. Pharmaceuticals*
    • 10.2.1. Introduction
    • 10.2.2. Market Size Analysis and Y-o-Y Growth Analysis (%)
  • 10.3. Packaging
  • 10.4. Aerospace
  • 10.5. Automotive
  • 10.6. Agriculture
  • 10.7. Transportation
  • 10.8. Medical
  • 10.9. Electrical & Electronics
  • 10.10. Building & Construction
  • 10.11. Industrial
  • 10.12. Others

11. Global Plastic Compounding Market - By Region

  • 11.1. Introduction
  • 11.2. Market Size Analysis and Y-o-Y Growth Analysis (%), By Region
  • 11.3. Market Attractiveness Index, By Region
  • 11.4. North America
    • 11.4.1. Introduction
    • 11.4.2. Key Region-Specific Dynamics
    • 11.4.3. Market Size Analysis and Y-o-Y Growth Analysis (%), By Polymer
    • 11.4.4. Market Size Analysis and Y-o-Y Growth Analysis (%), By Additives
    • 11.4.5. Market Size Analysis and Y-o-Y Growth Analysis (%), By Process
    • 11.4.6. Market Size Analysis and Y-o-Y Growth Analysis (%), By End-User
    • 11.4.7. Market Size Analysis and Y-o-Y Growth Analysis (%), By Country
      • U.S.
      • Canada
      • Mexico
  • 11.5. Europe
    • 11.5.1. Introduction
    • 11.5.2. Key Region-Specific Dynamics
    • 11.5.3. Market Size Analysis and Y-o-Y Growth Analysis (%), By Polymer
    • 11.5.4. Market Size Analysis and Y-o-Y Growth Analysis (%), By Additives
    • 11.5.5. Market Size Analysis and Y-o-Y Growth Analysis (%), By Process
    • 11.5.6. Market Size Analysis and Y-o-Y Growth Analysis (%), By End-User
    • 11.5.7. Market Size Analysis and Y-o-Y Growth Analysis (%), By Country
      • Germany
      • UK
      • France
      • Italy
      • Spain
      • Rest of Europe
  • 11.6. South America
    • 11.6.1. Introduction
    • 11.6.2. Key Region-Specific Dynamics
    • 11.6.3. Market Size Analysis and Y-o-Y Growth Analysis (%), By Polymer
    • 11.6.4. Market Size Analysis and Y-o-Y Growth Analysis (%), By Additives
    • 11.6.5. Market Size Analysis and Y-o-Y Growth Analysis (%), By Process
    • 11.6.6. Market Size Analysis and Y-o-Y Growth Analysis (%), By End-User
    • 11.6.7. Market Size Analysis and Y-o-Y Growth Analysis (%), By Country
      • Brazil
      • Argentina
      • Rest of South America
  • 11.7. Asia-Pacific
    • 11.7.1. Introduction
    • 11.7.2. Key Region-Specific Dynamics
    • 11.7.3. Market Size Analysis and Y-o-Y Growth Analysis (%), By Polymer
    • 11.7.4. Market Size Analysis and Y-o-Y Growth Analysis (%), By Additives
    • 11.7.5. Market Size Analysis and Y-o-Y Growth Analysis (%), By Process
    • 11.7.6. Market Size Analysis and Y-o-Y Growth Analysis (%), By End-User
    • 11.7.7. Market Size Analysis and Y-o-Y Growth Analysis (%), By Country
      • China
      • India
      • Japan
      • Australia
      • Rest of Asia-Pacific
  • 11.8. The Middle East and Africa
    • 11.8.1. Introduction
    • 11.8.2. Key Region-Specific Dynamics
    • 11.8.3. Market Size Analysis and Y-o-Y Growth Analysis (%), By Polymer
    • 11.8.4. Market Size Analysis and Y-o-Y Growth Analysis (%), By Additives
    • 11.8.5. Market Size Analysis and Y-o-Y Growth Analysis (%), By Process
    • 11.8.6. Market Size Analysis and Y-o-Y Growth Analysis (%), By End-User

12. Global Plastic Compounding Market - Competitive Landscape

  • 12.1. Competitive Scenario
  • 12.2. Market Positioning/Share Analysis
  • 12.3. Mergers and Acquisitions Analysis

13. Global Plastic Compounding Market - Company Profiles

  • 13.1. Celanese Corporation
    • 13.1.1. Company Overview
    • 13.1.2. Product Portfolio and Description
    • 13.1.3. Key Highlights
    • 13.1.4. Financial Overview
  • 13.2. LyondellBasell Industries Holdings BV.
  • 13.3. Asahi Kasei Corporation
  • 13.4. BASF SE
  • 13.5. PolyOne Corporation
  • 13.6. Covestro AG
  • 13.7. Dow Dupont Inc
  • 13.8. SABIC
  • 13.9. Solvay SA
  • 13.10. Kingfa Sci. and Tech. Co., Ltd.


14. Global Plastic Compounding Market - Premium Insights

15. Global Plastic Compounding Market - DataM

  • 15.1. Appendix
  • 15.2. About Us and Services
  • 15.3. Contact Us
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