Global demand for masterbatch is projected to reach US$12.1 bln by 2019. Asia-Pacific is the key market for masterbatches. Asia-Pacific, North America, and Europe dominated the masterbatch market in 2013 and accounted for over 85% of the market, by volume and value, as per Markets and Markets. Country-wise, China is the top consumer of masterbatch products globally, and is also the largest market for masterbatch products registering a CAGR higher than the global average till 2019. The U.S. is the second-largest masterbatch consumer in the world. Diverse end-use markets range from automobile, construction, package, consumer goods, wire & cable, and electronic appliances among others. Growing GDP, rapid pace of industrialization, ballooning production and industrial bases, increased output of plastic components, consumer goods and packaging products and continuing penetration of masterbatch vis-à-vis competing coloring methods remain key growth driving forces in the post-recession period. Future growth in the international market hinges heavily onto developing economies in Asia-Pacific, South America, and Eastern Europe. China and India, especially, stand out as noteworthy markets, given the mass exodus of production activities (automotive & industrial) from developing countries to low-cost Asian countries. The ensuing increase in foreign investments and rise in the number of new manufacturing establishments will witness Asia-Pacific emerge into a prime driver of growth. Packaging take the topmost positions in the masterbatch market with around 40% share by value in 2013. The fastest growth rate till 2019 in the masterbatch market is projected to come from applications such as automotive and consumer goods. The increasing plastic consumption in the automotive industry is expected to benefit masterbatch market over the next five years. Color dominates the masterbatch market by type, in terms of volume and value. Packaging industry uses all types of masterbatch, but the most commonly used are color and white masterbatch. Food and beverage manufacturers continue to enhance their focus on attractive product packaging, by using various custom colored masterbatch, in order to gain consumer attention. Further, with the advent of new packaging technologies such as antioxidant, UV resistant, heat resistant, antimicrobial, and anti-fog packaging, the usage of additive masterbatch has surged significantly over the last few years. Growth will be driven due to continuing robust progress in the Asia-Pacific and South American regions and strong consolidation in the U.S. and West European markets. The European region remains the largest market for masterbatch, followed by North America. The Asia-Pacific market is slated to be the key growth area due to combination of swift growth in plastics processing and the need to produce at higher standards. This has also helped with the masterbatch market demand. Masterbatches are solid or liquid mixture of additive or pigments used for coloring or enhancing other properties of polymers such as UV stabilizing, flame retardation, antistatic and antilocking. Masterbatches can be used by several technological methods including injection, blow, spinning and others.
As per Persistence Market Research Pvt. Ltd, growing end user markets such as packaging, automobile and healthcare is boosting the demand of masterbatch market. Moreover, increasing demand of plastics from construction and luxury goods packaging industries are further driving the market. Among the end-user industries, packaging accounts for the largest share in global masterbatch market. Packaging industry uses all types of masterbatches, wherein color and white masterbatch are the most commonly used segments. Food and beverages manufacturers’ increasing interest in enhancement of packaging colors is escalating demand for color masterbatches. The raw materials for masterbatch production include pigments, carrier, dispersant and some additives. Masterbatch market can be classified into four segments - additive, color, white and black. Additive masterbatch is the fastest growing segment which finds its application in customized plastic products in industries such as automotive, electronic appliances, textile, pharmaceutical packaging, and food and beverages packaging. Color masterbatch is used in the production of plastics for automobiles, electronic appliances, flexible packaging for food and beverages and medicine packaging. Black masterbatch is mainly used in construction, automotive and electronic appliance industries. The demand for light weight vehicles is escalating globally due to European Union’s concern for reduction in green house gases. Increasing the plastic content in vehicles reduces their weight and carbon emission, and also increases fuel efficiency. This is leading to replacement of metal parts in the vehicles by plastic components. This shows growth opportunities for the masterbatch market for the forecasted period (2014-2020). However, the rising oil prices and stringent environmental laws related to non-biodegradability of plastics are posing significant challenge to the growth of plastic industries which is in turn affecting the masterbatch market. Asia Pacific was the largest market for masterbatch in 2013 owing to high demand of plastics from construction and automobile industries. Asia Pacific, Latin America and Middle East are expected to witness high growth rates during the forecasted period. Masterbatch market in Europe and North America is consolidated, whereas the masterbatch market in Asia Pacific has a fragmented structure where china alone is a home to about 500 masterbatch manufacturers. Due to large number of mergers and acquisition taking place, rivalry in the masterbatch industry is expected to reduce during the forecasted period. The major companies operating in global masterbatch market include, A. Schulman Inc., Ampacet Corporation, Clariant International Ltd., PolyOne Corporation, Gabriel-Chemie Group, Ferro Corporation and Americhem, Inc.
As per TechSciResearch, growth in packaging industry and development of new packaging methods are driving global masterbatch market. The worldwide masterbatch market is forecast to witness a CAGR of 5.3% during 2014-19. Broadly, masterbatches can be categorized into four distinct types- black, white, color and additives. Major end user industries for masterbatches include packaging, building and construction, automotive, consumer goods, textiles, agriculture and furniture. Packaging accounts for the highest share of around 40% in terms of global masterbatch consumption, thereby making it a crucial industry for driving growth in the market. Packaging industry uses all types of masterbatches, but the most commonly used are color and white masterbatches. Food and beverage manufacturers continue to enhance their focus on attractive product packaging, by using various custom colored masterbatches, in order to gain consumer attention. Further, with the advent of new packaging technologies such as antioxidant, UV resistant, heat resistant, antimicrobial, and anti-fog packaging, the usage of additive masterbatches has surged significantly over the last few years. Market expansion is expected to be driven by strong growth in major end user industries such as packaging, building and construction, automotive and consumer appliances, particularly in Asia-Pacific, South America, Eastern Europe and the Middle-East. In addition, increasing market participation of major global masterbatch players such as A. Schulman, Ampacet, Clariant, and PolyOne in Asia-Pacificis expected to drive the region's masterbatch market, thereby boosting the global masterbatch industry. "The demand for light weight vehicles has surged considerably over the last few years due to strict greenhouse gas emission targets set by the European Union. The use of plastics in automotive facilitates in reducing vehicle weight, increasing fuel efficiency and lowering carbon footprint. Plastics and other polymers are therefore increasingly replacing various heavy metal vehicle parts. The light weight vehicle market is expanding across the globe, with Asia-Pacific and Europe currently being the fastest growing regions in terms of light weight vehicle production and sales. The increasing plastic consumption in the automotive industry is expected to benefit masterbatch market over the next five years", said Mr. Karan Chechi, Research Director with TechSci Research, a research-based global management consulting firm.
As per Global Industry Analysts, Inc the global market for masterbatch is projected to reach US$11 bln by 2020, driven by rising demand for colorful plastics from end-use markets such as packaging, and consumer goods, among others. Steady economic growth, rapid industrialization, increasing production of plastic products and components, and continuous penetration of masterbatch vis-à-vis competing coloring methods, remain key driving forces in the market. Product innovation and differentiation are among the key strategies adopted by masterbatch manufacturers to gain a competitive edge in the market. Key innovations which have benefited the market, over the past few years, include anti-shrinkage masterbatch, flame-retardant masterbatches for PP pipes and PC sheets, anti-fog masterbatches for food packaging, anti-microbial and odor managing masterbatches, and masterbatches for biopolymer and biodegradable resins. Future growth in the market is forecast to come from emerging economies, and the growing demand from end-use markets for sophisticated color formulations. China and India, especially, stand out as noteworthy markets, given the mass exodus of production activities to low-cost Asian countries. Increase in foreign investments, and rise in the number of new manufacturing establishments are key factors encouraging Asia’s rise to prominence in the masterbatch market. Technology advances that help impart desired color and property to plastics while simultaneously reducing cost, is also expected to turbocharge growth in the coming years, especially against the backdrop of evolving demand for high performance and functional products from various end-user markets. This demand for improved performance will continue to push manufacturers to invest in R&D in efforts to improve product capabilities. With manufacturers of consumer products seeking packaging materials that facilitate low cost production, and ensure product protection during storage and transportation, demand is expected to rise for advanced masterbatches that offer functional performance as well as aesthetic appeal. The market is expected to gain strongly from automotive as well as consumer goods industries. Asia-Pacific is forecast to register the fastest CAGR of 5.7% over the review period led by increased plastic processing activity. Color Masterbatch which finds application in the production of plastics for appliances, food and beverage, automotive and pharmaceutical packaging, accounts for the largest share of the global market, in volume terms. Additive masterbatches are forecast to witness the fastest growth driven by increased demand in personalized plastic products.
The global masterbatch market is projected to register a CAGR of 7.1% between 2014 and 2019 to reach US$12.1 bln, as per Research and Markets. The packaging segment, that uses masterbatch, is witnessing a CAGR of 7.5% and constitutes a significant part of the overall masterbatch market. However, the automotive segment is projected to grow at a high CAGR of 8.5% by 2019. Major end-user industries for masterbatch include packaging, building & construction, automotive, consumer goods, textiles, agriculture, and furniture. Steady economic growth, rapid pace of industrialization, increasing production of plastic products and components, packaging products and continuous penetration of masterbatch vis-a-vis competing coloring methods remain the key driving forces in the market. Region-wise, Asia-Pacific and South America are leading the global market. Growth in Asia-Pacific is led by rising demand for refined raw materials and products among the region's plastic processors. Due to the region's favorable prospects, several companies are expanding in Asian countries to benefit from the low-cost structures and growing local demand for plastics and packaging. Packaging represents the largest end-use market for masterbatch. Manufacturers of consumer products are increasingly seeking packaging materials that facilitate low cost production and ensure effective storage and transportation. Demand is therefore expected to grow for advanced masterbatch that offer both functional performance and aesthetic appeal.