The global masterbatch market is expected to reach USD 15.81 billion by 2025, according to a new report by Researchandmarkets.com. The market is anticipated to grow at a CAGR of 6.6% primarily driven by increasing replacement of metal by plastic is projected to fuel the market growth. In addition, rising demand from the European region is further expected to propel the demand over the forecast period.
In terms of revenue, color masterbatch was the largest segment in 2016 and the trend is anticipated to continue at a growth rate of 7.1% over the forecast period. Increasing need for improving the surface appearance of plastic components in automotive, building & construction, and consumer goods is expected to contribute to the growth. Additive masterbatch is being widely used on account of various properties it imparts to plastics such as antistatic, antifoaming, antioxidant, antimicrobial, thermo-stabilizer, barrier properties, metal deactivators, antiblock, flame retardant, UV stabilizer, oxygen scavenger, and abrasion resistance. The growth of packaging sector, especially plastic packaging, is anticipated to drive the masterbatch demand.
Masterbatch is used in various end-use industries, such as packaging, building & construction, consumer goods, automotive, agriculture, as it imparts useful functional properties such as smooth surface finish and desired hardness. The increasing spending capability of customers toward purchasing attractively packaged consumer goods is expected to trigger the need for various plastic components, which use masterbatches to improve the appearance and other properties. These factors together are anticipated to boost masterbatch market demand over the forecast period.
Further key findings from the report suggest:
- Color segment is expected to experience the fastest growth, in terms of value, at a CAGR of 7.1% from 2017 to 2025 as color masterbatch finds application in various end-use industries such as packaging, building & construction, consumer goods, automotive, and agriculture
- Polyethylene emerged as the largest carrier polymer segment, in terms of revenue, in 2016 and is estimated to be valued at USD 5,461.8 million by 2025. The growing popularity on account of useful properties of HDPE, LDPE, and LLDPE is projected to drive the growth.
- Packaging was estimated as the largest end-use industry due to different types of industrial, customer, and retail packaging segments across various geographies
- The U.S. masterbatch market, in terms of revenue, was valued at USD 1,624.3 million in 2016 and is estimated to reach USD 2,920.3 million by 2025. The consumer goods industry in the U.S. is projected to witness the fastest growth over the next eight years owing to the increasing demand from customers.
- Key players including A. Schulman, Inc., Ampacet Corporation, Cabot Corporation, Clariant AG, Plastiblends India Ltd., and Global Colors Group have a prominent presence in the global masterbatch market