Innovations in masterbatch and the demand for lightweight materials in the automotive industry is encouraging the replacement of metals with plastics and therefore driving the market. However, the masterbatch market is restrained due to low-cost offerings of masterbatch, which affect the quality of end-use products in emerging countries. As per Research and Markets, the color segment accounted for the largest share of the global masterbatch market in 2016. This large share is mainly attributed to the increasing use of color in manufacturing various plastic applications, such as packaging, building & construction, automotive, consumer goods, agriculture, textile, and others.
Based on polymer, the polypropylene segment is projected to be the largest market size between 2017 and 2022. The demand for masterbatch in this segment is mainly driven due to the efficient, smooth, and dispersion properties of polypropylene for end-use applications of plastics. Based on application, the packaging segment is projected to grow at the highest CAGR between 2017 and 2022. The increase in handling and transport of goods due to globalization, liberalization, changing consumer lifestyles, and economic development has led to the increase in demand for better protection and handling of goods. This demand has in turn has led to the increase in consumption of packaging in every sector, thus driving the demand for masterbatch.
The Asia-Pacific region is expected to lead the global masterbatch market between 2017 and 2022. Countries in the Asia-Pacific region such as China, India, Taiwan, Indonesia, and South Korea are key consumers of masterbatch. In addition, the increasing demand for masterbatch in the packaging, building & construction, consumer goods, automotive, textile, and agriculture application is further expected to drive the growth of the masterbatch market in the Asia-Pacific region.