The Americas plastic compounding market size exceeded USD 11.0 billion in 2015. Growing demand for lightweight materials from automotive & construction industries coupled with increasing concerns regarding depletion of conventional materials, such as wood and rubber, is expected to drive market growth over the forecast period.
Plastic compounding is a process whereby additives and fillers are incorporated into polymers in a molten state to attain uniformity in end products. The three basic constituents or raw materials, namely polymers, fillers, and additives are extensively used in the manufacturing process.
Increasing automotive production coupled as a result of recovery from recession is anticipated to boost demand in North America. The shift towards lightweight components to attain fuel efficiency and reduce carbon emission is a key factor driving consumption in the automotive sector. Automotive production in Mexico and the U.S. has gathered pace in last two years and is anticipated to positively influence industry growth.
Economic growth in Central & South American (CSA) countries such as Argentina, Colombia, Peru, Venezuela and Chile, combined with government funding and support to foster recovery in Brazil are significant drivers for growth in end-use industries such as construction, automotive, aerospace, and others.
There has been considerable demand for compounds as a replacement for metals and alloys across various industries such as industrial machinery, medical devices, and consumer goods. Product innovation and continuous R&D has unlocked new avenues for manufacturers regarding application scope and is anticipated to remain a key factor in shaping industry dynamics.
U.S. plastic compounding market revenue by application, 2014 - 2024 (USD Million)
Polyethylene terephthalate (PET) is the fastest growing product owing to its consumption in the food packaging industry. Rising demand for sustainable & recyclable plastics with superior barrier properties & excellent clarity has led to its consumption in the expanding processed food sector of emerging economies such as Brazil, Mexico, and Argentina.
Polyethylene (PE) finds extensive application scope in diverse end-use industries such as automotive & aerospace. The product is an integral solution for packaging applications as well. Outstanding product characteristics such as its high chemical & environmental stress crack resistance are expected to drive its application in several industries.
Polypropylene (PP) compounds are widely utilized across various automotive applications that include exterior components, interior trims, seating components, boot liners, lamp housing, electrical housings and other injection molded parts. The product demand is expected to witness strong growth owing to positive automotive industry outlook in the U.S. and Mexico.
Automotive dominated the plastic compounding industry in America, with the volume estimated at nearly 1.40 million tons in 2015. They are being increasingly utilized in the automotive industry on account of the regulatory intervention promoting fuel efficiency in various automobiles and vehicles Economic recovery from the recession of 2009-10 in the U.S. has led to revitalization in the automotive industry, which in turn has fostered passenger car sales as well.
Electrical & electronics industry is expected to grow at a steady growth rate owing to rapid technological advancements coupled with evolving customer requirements. Miniaturization of electrical appliances along with rising demand for polymers is a key factor driving plastic compound consumption in the application sector.
Increasing construction spending in emerging nations along with infrastructure development activities in Mexico, Brazil, Argentina and Peru are major driving factors for the application growth in future. PVC is a major plastic constituent in various building materials & construction activities. The plastic is modified accordingly to meet structural requirements and application specifications.
The U.S. was the leading consumer and accounted for over 55% of the Americas plastic compounding market revenue in 2015. Rebound of the automotive industry coupled with increasing construction spending in the country is anticipated to drive demand over the forecast period. Wide application scope has led to significant increase in consumption in end-use industries such as medical devices, industrial machinery, and consumer goods.
Mexican market is expected to be driven by strong manufacturing sector growth along with the shift of major automotive companies to the country due to the availability of low-cost raw material and cheap labor. Escalating investments coupled with the favorable business environment is further anticipated to contribute towards expanding industrial sector coupled with the growth of consumer goods in the region.
Competitive Market Share Insights
Some of the prominent players operating in the Americas plastic compounding industry include RTP Company, SABIC, BASF SE, Kraton Polymers, Kuraray, Asahi Kasei, A. Schulman, LyondellBasell Industries N.V., DuPont, and Bayer Material Science (Covestro). Other players include Washington Penn Plastics Co., The Dow Chemical Company, S&E Specialty Polymers LLC, Solvay, Heritage Plastics, Inc., Adell Plastics, Inc., Foster Corporation and Kingfa Sci. & Tech. CO. Ltd., PolyOne, and MRC Polymers, Inc.
Avail customized purchase options to meet your research needs:
Get your queries resolved from an industry expert. Request for a free product review before report purchase.
Speak to the report author to design an exclusive study to serve your research needs.
A testimonial for service excellence represented in the form of BBB "A" Accreditation.
Your personal and confidential information is safe and secure.