Global Masterbatch Market Forecast and Opportunities, 2019

Masterbatches find widespread use in various industries such as packaging, building and construction, automotive, appliances and consumer goods. As per techsciresearch.com, growth in masterbatch market is directly related to the amount of polymer consumption in a region. With increasing use of plastic in flexible packaging, building and construction and automotive industries, the global masterbatch market is forecast to grow at a CAGR of 5.3% during 2014-19. Masterbatches are classified into four categories- black, white, color and additive, depending on the color or certain functional properties they impart to the base polymer. Among different masterbatch types, color masterbatches occupied the highest revenue share in 2013. Color masterbatches are used in the production of plastics for automotive, appliances, food and beverage and pharmaceutical packaging. Black masterbatches are majorly used in building and construction, automotive and consumer appliance industries. Emergence of large-scale infrastructural projects in the Middle East and growth in Asia-Pacific construction industry are expected to emerge as major demand drivers for black masterbatches over the next five years. Additives is the fastest growing segment of masterbatches due to growing preference for customized plastic products in packaging, automotive, appliance, textile, pharmaceutical, and consumer goods industries. Fast emerging economies such as China and India as well as the Middle East and South America are expected to be the major drivers for the global masterbatch market during the forecast period. The report also points out that A. Schulman, Ampacet and Clariant are the largest global masterbatch players. Market dynamics in developed regions such as Western Europe and North America are significantly different from developing regions like Asia-Pacific and Africa. The developed regions are dominated by select global players such as A. Schulman, Ampacet, Clariant, and PolyOne. These regions are also characterized by significant technology advancements and relatively low growth rate of end-user segments. On the contrary, developing markets are characterized by several small-scale domestic players offering low-cost masterbatches, and high end-user industry demand. China alone has more than 500 masterbatch manufacturers. However, during the last decade, global masterbatch leaders have increased their focus on mergers and acquisitions in Asia-Pacific, theMiddle East and South America. At the same time, few companies are streamlining their masterbatch business by downsizing or reducing operations in Europe or America, and increasing their presence in Asia-Pacific.