Masterbatch Market Size, Share & Trends Analysis Report By Type (White, Black, Color, Additive, Filler), By Carrier Polymer (Polypropylene, Polyethylene), By End Use, By Region And Segment Forecasts, 2022 - 2030

Report Overview

The global masterbatch market size was valued at USD 5.60 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 6.3% from 2022 to 2030. The replacement of metal with plastics in the end-use industries including automotive and transportation, building and construction, consumer goods, and packaging is expected to be a key factor driving the global market over the forecast period. The product is available in solid and liquid forms and is used for imparting color and enhancing useful properties of polymers such as antistatic, antifog, antilocking, UV stabilizing, and flame retardation. Various types of carrier polymers such as polypropylene, polyethylene, polyvinyl chloride, and polyethylene terephthalate are preferred along with the product for use in injection molding and extrusion processes.

The U.S. market size was valued at USD 877.38 million in 2021. The rising demand from the packaging industry in the U.S. is expected to boost market growth. There has been considerable growth in the packaging market in the U.S. on account of growth in the e-commerce business. The consumer goods manufacturers are providing attractive product packaging to attract a large 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 the fuel efficiency is driving the demand for different types of plastic that use the product for imparting functional properties. The emerging economies of the Asia Pacific such as China, India, and Japan have witnessed an increase in automobile production activities. This is further expected to boost the demand for plastic components in the region over the forecast period. However, stringent environmental regulations related to the nonbiodegradability 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 the product.

Type Insights

In terms of revenue, black masterbatch held the largest share of more than 25.0% in 2021. The growth in demand for black masterbatch is attributed to the high demand for tires, PVC containers, and other products for application in the automotive and transportation, building and construction, agriculture, and packaging industries. The growing need for various agricultural products such as drip irrigation tubing and tape, greenhouse films, shade cloth, and geomembranes is also projected to boost the market growth over the forecast period.

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 to this, color masterbatches provide customization alternatives to manufacture products with attractive visual appearance.

End-use Insights

In terms of revenue, packaging masterbatch held the largest share of more than 25.0% in 2021. The packaging industry includes retail, industrial, and consumer packaging, which further includes flexible and rigid options. A rise in the number of city inhabitants who require packaged goods is resulting in the increased demand for packaging. Consumers need packaging that 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 the growing demand for the product. There is the 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 the growing demand from the building and 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 for the product over the forecast period.

Carrier Polymer Insights

In terms of revenue, polypropylene (PP) masterbatch held the largest share of more than 25.0% in 2021. The demand for polypropylene as a carrier polymer is projected to increase owing to its excellent mechanical strength and flexibility offered by it. Polypropylene also enhances the quality of surfaces. It is lightweight and therefore, is used to replace metal components in the automotive industry. All these factors are expected to fuel the growth of the polypropylene segment over the forecast period.

The polyethylene segment in the European market was valued at over USD 230 million in 2021. 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 the easy and cost-effective availability of plastics, is a key factor driving the market in the region.

Polypropylene is being extensively used in consumer goods, which has been a contributing factor to the growth of the product demand. It has antimicrobial and antibacterial properties, making it useful in manufacturing various products related to building and construction. The polypropylene manufacturers are shifting the focus from synthetic to biobased due to environmental concerns, which is projected to drive the market over the forecast period.

Regional Insights

In terms of revenue, Asia Pacific held the largest share of more than 30.0% in 2021. The increased demand can be attributed to the presence of a number of end-use industries including automotive and transportation, packaging, building and 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, Europe was the second-largest regional market in 2021 and the trend is projected to continue over the forecast period. The rapid growth of the packaging, consumer goods, and automotive and transportation industries, coupled with the growing building and construction and agriculture sectors in Asia Pacific, which are among the major end-use sectors using the product, is projected to be a major market driver.

Key Companies & Market Share Insights

The market is fragmented with the presence of several global and regional players. Key players in the market comply with the regulatory policies and are engaged in research & development activities to develop innovative products. Most of the key industry players are integrated across the value chain posing entry barriers for new market players. Some prominent players in the global masterbatch market include:

• A. Schulman, Inc.

• Ampacet Corporation

• Cabot Corporation

• Clariant AG

• Hubron International Ltd.

• Penn Color, Inc.

• Plastiblends India Ltd.

• Global Colors Group

• PolyOne Corporation

• Tosaf Group

Masterbatch Market Report Scope

Segments Covered in the Report 

This report forecasts volume and revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2019 to 2030. For the purpose of this study, Grand View Research has segmented the global masterbatch market report on the basis of type, carrier polymer, end use, and region:

• Type Outlook (Volume, Kilotons; Revenue, USD Million, 2019 - 2030)

  • White

  • Black

  • Color

  • Additive

  • Filler

• Carrier Polymer Outlook (Volume, Kilotons; Revenue, USD Million, 2019 - 2030)

  • Polypropylene (PP)

  • Polyethylene (PE)

  • Polyvinyl Chloride (PVC)

  • Polyethylene Terephthalate (PET)

  • Biodegradable Plastics

  • Others

• End-use Outlook (Volume, Kilotons; Revenue, USD Million, 2019 - 2030)

  • Packaging

  • Building & Construction

  • Consumer Goods

  • Automotive & Transportation

  • Agriculture

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2019 - 2030)

  • North America

    • U.S.

  • Europe

    • Germany

    • U.K.

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • Central & South America

    • Brazil

  • Middle East & Africa