The global Masterbatch market is projected to reach US$13 billion by 2024, driven by the rising significance of colorful plastics in major end-use markets of packaging, construction and automotive sectors. Technology advancements aimed at improving masterbatch characteristics and increased focus on biodegradability will also drive growth in the coming years.
Masterbatches are omnipresent raw materials used as colorants for plastics. Masterbatch has become an indispensable product with applications in almost all areas of plastic processing, including injection molding, extrusion, rotational molding, sheet, film, and blow molding. Masterbatch allows processors to improve the appearance and performance of raw polymer/resin in a cost-effective manner during the plastic manufacturing process. Diverse end-use markets range from automobile, construction, package, consumer goods, wire and cable, and electronic appliances among others. Masterbatches are also incorporated into end-use products such as toys, housewares, stadium seating, pipe, vinyl siding, medical packaging, and food packaging.
With dynamics of the masterbatch market linked to trends in the plastics industry, steady improvements in demand for colorful plastics from major end-use sectors of automotive, electronic appliances and consumer goods is expected to bolster growth in the masterbatches market. Positive economic environment and ensuing rise in demand for plastics products will lead to higher demand for masterbatch. Rising production of plastic compounds and growing use of packaging goods are expected to fuel growth in the masterbatch market. Rapid pace of industrialization, increased focus on infrastructure development projects and growing use of lightweight plastics in place of traditional materials also favor the masterbatch market. Future demand for masterbatches will be driven by emerging economies and increasing inclination of consumers for sophisticated color formulations.
Masterbatch market is being impacted by a number of emerging trends including the rising demand for flame retardant and anti-shrinkage masterbatches for use in PC sheets and PP pipes, and growing focus on biodegradable masterbatch products. Among the most prominent trends is the increase in demand for biodegradable resins. With waste management becoming a key focus area, the upcoming years will witness increased emphasis being placed on renewable and bio-based raw materials in emerging markets. Demand for biodegradable resins is also expected to gain traction owing to its ability to cut down overall carbon dioxide emissions and hence reduce carbon footprint.
Packaging represents the largest end-use market for masterbatch. Growth in the segment is being driven by the growing use of masterbatch in manufacturing rigid, flexible, and industrial packaging materials owing to its ability to offer protection to products against physical, chemical and microbiological degradable. Automotive is another major market for masterbatch. The ability of masterbatch to enable creation of lightweight plastic components is ensuring significant improvements in fuel efficiency levels, thus aiding demand masterbatch in automobile manufacturing operations.
Europe represents the largest regional market, worldwide. While rising demand for flexible packaging solutions and growing popularity of smaller packs are enhancing masterbatch consumption in packaging sector, the increased use of plastics to manufacture lightweight vehicles is propelling masterbatch demand in automotive sector. Asia-Pacific is forecast to register the fastest CAGR of 6% over the analysis period, with growth driven by the sustained increase in consumption and production of plastics in the region. Increasing demand for attractive and innovative food packaging products and growing investments in construction projects are also driving demand for plastic products, thus aiding growth of masterbatch market in Asia-Pacific.