Growing demand from packaging and automotive to drive masterbatch market in Europe

24-May-15

The masterbatch market in Europe is projected to surpass US$4.7 bln by 2020, as per TechSci Research. Growth in the market is anticipated on account of rising demand for plastics from various end user segments such as packaging, automotive, and buildings & construction. Masterbatch formulations are used in the production of plastics, to impart color and other specialized properties based on specific applications. Increasing demand for attractively packaged food & beverage products, along with rising consumption of plastics in automotive sector for production of light weight vehicles, is expected to drive the demand for masterbatch formulations in Europe over the next five years. Market opportunities for bioplastics continue to grow on account of increasing R&D investments, growing government support towards sustainable development, rising purchasing power of consumers and growing awareness about using eco-friendly products. Consequently, bioplastics are being increasingly used in automotive, pharmaceuticals and agriculture sectors. Since production of bioplastics requires addition of bio-additive masterbatches, which provide color and durability, increasing demand for bioplastics from various end use segments is expected to drive growth in the region's masterbatch market over the forecast period. "Until 2020, Europe masterbatch market is anticipated to exhibit a similar growth trajectory as has been case over the last five years. The masterbatch market in Western Europe is well-developed and characterized by the presence of prominent players. However, Eastern European countries, especially Russia, Poland and Belarus, are expected to outperform the broader market.", said Mr. Karan Chechi, Research Director with TechSci Research.