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, consumer 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.
The U.S. masterbatch 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 the packaging industry in the U.S. is expected to boost the market.
There has been a considerable rise in the 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 the automotive industry to reduce the vehicle weight, and thereby improve fuel efficiency, is driving the demand for different types of plastic that use this product for imparting functional properties. The emerging economies of the 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 the 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 masterbatch market, which is an important factor driving the demand for color masterbatches over the forecast period. In addition, this also provides customization alternatives 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.
The increasing popularity of various types of polyethylene, such as high-density polyethylene, low-density polyethylene, and linear low-density polyethylene, has resulted in a 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 the 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 an 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 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. The packaging industry includes retail, industrial, and consumer packaging, which further include flexible and rigid options. The 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 to grow, which is in turn projected to result in growing demand. There is immense growth potential for the packaging industry in emerging economies such as India and China.
The rise in infrastructural activities in these countries has resulted in growing demand from the 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.
In terms of revenue, Asia Pacific was the second-largest regional segment followed by Europe in 2016. The Asia Pacific held a 23.96% share in 2016, and the trend is projected to continue over the forecast period. The rapid growth of packaging, consumer good, and automotive industries coupled with growing building & construction and agriculture sectors in the 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.
Attributes |
Details |
Base year for estimation |
2016 |
Historical data |
2014 - 2015 |
Forecast period |
2017 - 2025 |
Market representation |
Volume in Kilotons and revenue in USD Million and CAGR from 2017 to 2025 |
Regional scope |
North America, Europe, Asia Pacific, Central & South America, and the Middle East & Africa |
Country scope |
U.S., Germany, U.K., Italy, China, India, Japan, and Brazil |
Report coverage |
Revenue forecast, competitive landscape, growth factors, and trends |
15% free customization scope (equivalent to 5 analyst working days) |
If you need specific market information, which is not currently within the scope of the report, we will provide it to you as a part of customization |
This report forecasts revenue growth at global, regional & country levels and provides an analysis of 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)
White
Black
Color
Additive
Filler
Carrier Polymer Outlook (Volume, Kilo Tons; Revenue, USD Million; 2014 - 2025)
Polypropylene (PP)
Polyethylene (PE)
Polyvinyl Chloride (PVC)
Polyethylene Terephthalate (PET)
Others
End-Use Outlook (Volume, Kilo Tons; Revenue, USD Million; 2014 - 2025)
Packaging
Building & Construction
Consumer Goods
Automotive
Agriculture
Others
Regional Outlook (Volume, Kilo Tons; Revenue, USD Million; 2014 - 2025)
North America
The U.S.
Europe
Germany
The U.K.
France
Asia Pacific
China
India
Japan
Central & South America
Brazil
The Middle East & Africa
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The prevalence of COVID-19 has led to decreased utilization rates of refineries across the globe, resulting in supply shortages for various end-use sectors. The health crisis has, on a different note, has led to a sudden spike in demand for olefins which find usage in the formulation of sanitizers and other cleaning products. The report will account for Covid19 as a key market contributor.