The global masterbatch market size was valued at USD 8,986.7 million in 2016. The replacement of metal by plastics in end-use industries including automotive, building & construction, consumers goods, and packaging is expected to be a key factor driving the global market growth over the forecast period.
Masterbatch is available in solid and liquid forms and is used imparting color and also for enhancing useful properties of polymers such as antistatic, antifog, antilocking, UV stabilizing, and flame retardation. Various types of carrier polymer such as polypropylene, polyethylene, polyvinyl chloride, polyethylene terephthalate are preferred along with the product for use in injection molding and extrusion process.
U.S. masterbatch market, by end use, 2014 - 2025 (USD Million)
The U.S. market was valued at USD 1,624.3 million in 2016 and is anticipated to register a CAGR of 6.9% from 2017 to 2025. The rising demand from packaging industry in the U.S. is expected to boost the market.
There has been a considerable rise in packaging market in the U.S. on account of growth in e-commerce business. The consumer goods manufacturers are providing attractive product packaging to attract a high number of customers, to boost sales of their products. Different types of masterbatch are used in combination with polymers to make attractive packaging, which is projected to increase the product demand over the forecast period.
The increasing focus on the use of plastic in automotive industry to reduce the vehicle weight, and thereby improve the fuel efficiency, is driving the demand for different types of plastic that use this product for imparting functional properties. The emerging economies of Asia Pacific such as China, India, Japan, and others have registered an increase in automobile production activities, which are further expected to boost the plastic components in the region over the forecast period.
However, stringent environmental regulations related to non-biodegradability of plastics pose a challenge to the market as such regulations affect the adoption rate of plastics, which in turn has implications on the demand for masterbatch.
The demand for white is growing as it imparts opacity and is also being used as a base color for the packaging industry. The demand for packaged food with a higher shelf life is increasing, which is a major factor driving investment in the packaging sector. The growth of color masterbatch is mainly driven by end-use industries such as consumer goods, automotive, building & construction, and packaging.
The color on products is used to differentiate the products in the market, which is an important factor driving the demand for color masterbatches over the forecast period. In addition, this also provide customization alternative to manufacture products with attractive visual appearance.
Color masterbatch emerged as the leading segment accounting for 25.82% of the total revenue share in 2016. It is expected to register a growth rate of 7.1% over the forecast period.
Carrier Polymer Insights
Increasing popularity of various types of polyethylene, such as high-density polyethylene, low density polyethylene, and linear low-density polyethylene, has resulted in growing market share of polyethylene as a carrier polymer in packaging, building & construction, automotive, and various other end-use industries. Polyethylene packaging offers different types of shades, which impact product differentiation and hence, is driving the growth of color masterbatch. The use of polyethylene in automotive application enhances the look of components by making the surface glossy.
Europe market in polyethylene segment was valued at USD 172.5 million in 2016 expanding at a CAGR of 5.5% over the forecast period. Germany as a major manufacturing hub is expanding its production facilities, which is expected to increase the demand for polyethylene. The presence of a large number of plastic component manufacturing companies within the European region, which implies easy and cost-effective availability of plastics, is a key factor driving the growth in the region.
Polypropylene is being extensively used in consumer goods, which has been a contributing factor to the growth of product demand. It has many advantageous properties which include antimicrobial and antibacterial, making it useful in manufacturing various products related to building & construction. The polypropylene manufacturers are shifting the focus from synthetic to bio-based due to environmental concerns, which is projected to drive the growth over the forecast period.
Packaging emerged as the major end-use segment and accounted for 44.27% of the global revenue share in 2016. Packaging industry includes retail, industrial, and consumer packaging, which further include flexible and rigid options. Rise in the number of city inhabitants who require packaged goods is resulting in increased demand for packaging. The consumers need packaging which is convenient, sustainable, flexible, offers protection, and is easily traceable. As plastic packing fulfills all these needs, its demand is expected grow, which is in turn projected to result in growing demand. There is immense growth potential for packaging industry in emerging economies such as India and China.
The rise in infrastructural activities in these countries has resulted in growing demand from building & construction sector, which may boost the product demand. The development of various government schemes such as Make in India and Smart City plans is also projected to ascend the demand over the forecast period.
Europe is estimated to be the fastest-growing regional segment at a CAGR of 7.1% from 2017 to 2025. The European region was valued at USD 2,993.8 million in 2016. The increased demand can be attributed to the presence of a number of end-use industries including automotive, packaging, building & construction, and consumer goods. The growth of these industries is expected to fuel the demand for the product over the next eight years.
Global masterbatch market revenue, by region, 2016 (%)
In terms of revenue, Asia Pacific was the second-largest regional segment followed by Europe in 2016. Asia Pacific held 23.96% share in 2016, and the trend is projected to continue over the forecast period. Rapid growth of packaging, consumer good, and automotive industries coupled with growing building & construction and agriculture sectors in Asia Pacific, which are among the major end-use sectors using masterbatch, is projected to be a major driver.
The market is fragmented in nature with the presence of several global and regional players. A. Schulman, Inc., Ampacet Corporation, Cabot Corporation, Clariant AG, Plastiblends India Ltd., and Global Colors Group are some of the key players, which comply with the regulatory policies and are engaged in the research & development activities to develop innovative masterbatches. Most of the key industry players are integrated across the value chain posing entry barriers for new players.
Base year for estimation
2014 - 2015
2017 - 2025
Volume in Kilotons and revenue in USD Million and CAGR from 2017 to 2025
North America, Europe, Asia Pacific, Central & South America, and the Middle East & Africa
U.S., Germany, UK, Italy, China, India, Japan, and Brazil
Revenue forecast, competitive landscape, growth factors, and trends
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Segments covered in the report
This report forecasts revenue growth at global, regional & country level and provides an analysis on the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global masterbatch market on the basis of type, carrier polymer, end use, and region.
Type Outlook (Volume, Kilo Tons; Revenue, USD Million; 2014 - 2025)
Carrier Polymer Outlook (Volume, Kilo Tons; Revenue, USD Million; 2014 - 2025)
Polyvinyl Chloride (PVC)
Polyethylene Terephthalate (PET)
End Use Outlook (Volume, Kilo Tons; Revenue, USD Million; 2014 - 2025)
Building & Construction
Regional Outlook (Volume, Kilo Tons; Revenue, USD Million; 2014 - 2025)
Central & South America
Middle East & Africa
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