Global plastic additives market to reach US$50 bln by 2020 at a CAGR of 3.8%

The global plastic additives market is forecasted to reach US$50 billion by 2020 and is projected to grow at a CAGR of 3.8% during the forecast period, 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 mark additives market valued at US$21.4 bln ,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. Plastic additives are chemicals added in a polymer to modify its properties. The polymers used in plastics are combined with monomeric units and are not in their pure form, but are harmless. The objective is to improve the processing characteristics and properties of plastics and to enhance performance. These monomers are known as plastic additives and can be classified as reinforcing fibres, coupling agents, stabilizers, colorants, fillers, processing aids, flame retardants, peroxides and antistatic agents. Plastic additives enable safe handling of the plastic during the manufacture of finished products. The stabilizing plastic additives are halogen stabilizers, ultraviolet absorbers, antioxidants and biological preservatives. Also, there are processing aids such as lubricants and flow controls. The end-uses of plastic additives are in the plastic industry and its products. For example, fire retardation plastic additives are added to polymers to break them down. This ensures reduced viscosity, which is essential for moulding the plastics into various finished products. Another example is that of ultraviolet absorbers, which are added in plastic pots used in plantations, to enable resistance to ultraviolet rays. Anti-microbial plastic additives are also used in this product as well as other products, as microorganisms can decompose plastics into monomers. Lubricants minimizes both internal and external friction, helps mould release and enhance mould flow. Fillers are used to increase the volume of the plastic available and to make it cost-effective. Also, temperature resistance of plastics is enhanced by plastic additives. Additives facilitate the use of plastic in space craft due to the ability to sustain at high temperatures. Plastic additives have a large number of applications in defence, aerospace, aviation, automotive, consumer appliances, commodities, paints and coatings, FMCG and packaging industries.