Masterbatch demand in Saudi Arabia to see buoyant growth uptil 2019

25-Nov-14

High investments in petrochemical sector, easy availability of raw material and significant growth across major end user industries are set to buoy masterbatch demand in Saudi Arabia from 2014 to 2019. During the last decade, domestic consumption of masterbatch in Saudi Arabia remained muted due to limited number of manufacturers active in the country. With increasing investments in downstream petrochemical industry, polymer processing sector is set to witness a robust growth in the coming years, which in turn, would drive the demand for masterbatches in Saudi Arabia. The expansion of masterbatch production and processing in the country is expected to pave way for the entry of various global leaders in masterbatch production. Besides global manufacturers, domestic masterbatch manufacturers are also expected to increase their production capacity in order to address the increasing demand for masterbatches in the country. According to the recently published report by TechSci Research , the masterbatch market in Saudi Arabia is projected to witness a CAGR of 6.3% during 2014-19 in terms of volume consumption. Growth in major end user industries like packaging, automotive, appliances and textiles is expected to garner the demand for masterbatch in the country. Packaging films, however, form the fastest growing segment for masterbatches consumption in Saudi Arabia in volume terms. Although a large number of small-size domestic masterbatch manufacturers have operations in the country, the overall market is largely consolidated among three global manufacturers. Over the coming years, Saudi Arabia'smasterbatch market is expected to benefit from large scale construction projects in pipeline, growth in light weight vehicle production and steady growth in plastic packaging industry. "Heavy investments in petrochemical industry by both public and private sectors are creating expansion opportunities for plastic processors, compounders and masterbatch manufacturers in Saudi Arabia. The government of Saudi Arabia is also planning to make significant investments in downstream petroleum industries to diversify its economic dependence on oil export. Consequently, polymer processing is emerging as one of the major hotspots for masterbatch manufacturers existing or targeting to enter Saudi Arabia." said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.