Global plastic additives market projected to grow at a CAGR of 3.8% until end of decade

24-May-15

The global plastic additives market is forecasted to reach US$50 bln by 2020, projected to grow at a CAGR of 3.8%, as per Future Market Insights. India and China are the lucrative markets due to presence of low-cost labour and raw materials. Plasticizers is the largest revenue generating segment of the plastic additives market valued at US$21.4 billion, followed by flame retardants with a CAGR of 5.4% projected for 2013–2020. The anti-microbial segment will also grow at a moderate rate due to increase in demand from the healthcare industry. The plastic additive industry is energy- and capital-intensive, wherein gas and oil are the major raw materials. It is easy to use and has numerous applications that make it an adaptable industry. Asia Pacific is the leader globally in terms of value and volume and production and consumption, and the key drivers being the surge in its automobile and infrastructure industry. Additionally, the Chinese and Indian automobile industries are expected to grow at 8% to 14% respectively during the forecast period 2014 - 2020. Plastics surfaced as an alternate solution to replace the use of metals in numerous industrial and non-industrial applications such as automotive manufacturing, mechanical fasteners, medical equipment, commercial furniture and so on. Plastic additive producers are currently focusing on developing economies such as Asia Pacific. The region accounted for around 40% revenue of the plastic additives market as of 2013, which is projected to increase to 60% by 2020. Increasing awareness regarding conservation of depleting natural resources is expediting growth of the plastic additives market in Asia Pacific. Growth prospects in the plastic additives market are vast and numerous players in the market are constantly investing and focusing on innovations in this industry through the use of plastic additives. BASF, Chemtura Corporation, Exxon Mobil Corporation, Clariant Ltd., Bayer AGand Kaneka are some major players in the plastic additives market.