Middle East masterbatch market to grow at a CAGR of over 9% from 2016 - 2021

Growing demand from packaging and building & construction sectors will boost masterbatch market in MEA region through 2021, as per TechSci Research, registering a CAGR of over 9% during 2016 - 2021. Low production cost of polymers owing to easy availability of raw materials and less per capita plastic consumption are creating numerous opportunities for plastic and polymer manufacturers, consequently boosting the demand for masterbatch across Middle East and Africa. The polymer demand in Middle East region is anticipated to grow at a CAGR of 6%, in volume terms, during 2016-2020, in order to reach close to 20 million metric tons by 2020. Moreover, the polymer capacity in GCC is also projected to increase from 13 million tons in 2014 to 29 million tons by 2019, thereby anticipated to provide huge growth opportunities for masterbatch market of MEA region over the next five years. Growth across various end user industries such as packaging, building & construction, automotive, consumer appliances, etc., are also expected to boost the demand for masterbatch in the region. Moreover, increasing demand for colorful and innovative solutions from packaging industry and growing preference of plastic and polymers for manufacturing light weight vehicles in automotive industry are forecast to boost demand for masterbatch in Middle East & Africa region through 2021. Due to increasing living standards of consumers, especially those living in Middle East, there is a huge demand for customized decorative materials, consequently aiding the MEA masterbatch market. Masterbatches are manufactured by pigments, additives and carrier resins, and are classified as white, black, color, additive and additive masterbatches. Out of these, white masterbatch market in Asia-Pacific region is anticipated to exhibit highest growth rate during 2016-2021, on account of its ability to provide opacity and base color to plastic used extensively in food & beverage and pharmaceutical industries. "In 2015, Saudi Arabia is dominated the MEA masterbatch market, and is anticipated to maintain its dominance through 2021, as the country is the largest manufacturer of polyethylene (PE) and polypropylene (PP) chemicals, the basic raw materials used for manufacturing plastics. However, during 2016-2021, South Africa is anticipated to outpace Saudi Arabia in terms of growth, owing to large polymer production base and largest per capita consumption of plastics in Sub-Saharan Africa region.", said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm