GVR Report cover Southeast Asia Plastic Compounding Market Size, Share & Trends Report

Southeast Asia Plastic Compounding Market Size, Share & Trends Analysis Report By Product (PP, PET, PVC, PBT, ABS), By Application (Automotive, Electrical & Electronics, Construction), By Region, And Segment Forecasts, 2019 - 2026

  • Report ID: GVR-3-68038-489-5
  • Number of Pages: 97
  • Format: Electronic (PDF)

Industry Insights

The Southeast Asia plastic compounding market size was valued at USD 3.4 billion in 2018 and is projected to progress at a CAGR of 8.9% over the forecast period. Increasing demand for substitution for glass, metals, wood, natural rubber, and man-made materials such as concrete is anticipated to drive the market growth. Versatility and benefits of compounded plastics such as ease of molding and ability to form the desired shape are leading to its rising demand in various industrial applications in Southeast Asia.

Plastic compounding is an elaborate process with various stages such as determining additives ratio, high-speed mixing via twin-screw extruders, melt mixing, and cooling before final pellet cutting and packaging. A diverse range of products is available in the market depending on the additives and fillers integrated while processing the polymers including antioxidants, processing aids, colorants, wear-resistant blowing agents, lubricants, fillers and reinforcements, antistatic agents, slip/anti-slip agents, anti-block agents, flame retardants, light stabilizers, impact modifiers, and cross-linking agents.

Indonesia Plastic Compounding Market

Indonesia was the largest plastic compounding market in Southeast Asia in 2018 and the trend is likely to continue over the forecast period. The demand for plastic products made from the compounding process is expected to be driven with robust growth in the construction industry in Indonesia. In addition, wind energy capacity addition targets are expected to drive the demand for plastic compounding in the wind energy application segment in the country over the forecast period.

Product Insights

Polypropylene (PP) was the leading segment in the Southeast Asia plastic compounding market, accounting for 31.0% of the total volume share in 2018. Polypropylene compounds are widely used across the automotive and electrical & electronics industries for various purposes ranging from fascia systems & side moldings to modular switches.

PP segment was followed by polyethylene (PE) segment, which was valued at USD 759.6 million in 2018. PE compounds are commonly used in construction, packaging, and electrical & electronics industries. Major construction applications of PE compounds include steel pipe coating, pipe fittings, tank & reservoir substances, geotextiles, and roof tiles.

Application Insights

Southeast Asia compounding market caters to various applications including automotive, building & construction, electrical & electronics, packaging, consumer goods, industrial machinery, medical device, and optical media. Rising demand for lightweight vehicles and stringent environmental regulations regarding CO2 emission are expected to potentially drive the demand for plastic compounding in the automotive industry over the forecast period. The automotive application segment dominated the Southeast Asia market in terms of revenue and held a 24.2% share in 2018. The segment is projected to continue its domination, augmenting at a CAGR of 9.1% over the forecast period.

Southeast Asia plastic compounding market

PP and PET compounds are widely used in various automotive applications such as exterior body parts, casing & housings of wiper arms, bumpers, moldings, ignition, front grilles, cladding, and roof trim. The demand for compounded plastic products in the packaging industry is driven by high consumerism in major economies such as China, India, Germany, the U.S., and Brazil. Various regulatory bodies have stipulated guidelines regarding the use of packaging materials in food contact applications. Polypropylene compounding offers a cost-effective packaging solution and helps enhance impact strength, flexibility, clarity, and process efficiency.

Country Insights

Southeast Asia has been witnessing strong growth in recent years. Thailand and Indonesia are the two largest automotive markets in the region. Thailand is the leading automotive manufacturing and assembly hub. In addition, the Philippines and Vietnam are likely to be the fastest-growing automotive sectors in the Southeast Asia region over the forecast period. Rising per capita income and competitive bank lending rates have played a significant role in triggering the growth of the Southeast Asia plastic compounding market.

Increased output from the automotive and construction industries in Southeast Asia in the past few years has been driving the plastic compounding market. Increasing adoption of energy-efficient vehicles (EEVs) is anticipated to drive the growth of the automotive industry. Robust demand for automotive parts and components is likely to trigger the demand for compounded products in the Southeast Asian region over the forecast period.

In Vietnam, the manufacturing sector is a significant contributor to the country’s GDP and ease of foreign direct investment in the sector is expected to be an important factor driving the growth of the plastic compounding market. The presence of lower wages in the country in comparison to other countries in the Southeast Asia region is also an important factor fueling the growth of the manufacturing sector.

Southeast Asia Plastic Compounding Market Share Insights

BASF SE; SABIC; LyondellBasell Industries N.V.; Kraton Polymers Inc.; RTP Company; The 3M Company; Teijin Plastics; Polyplastics Asia Pacific Sdn Bhd; Melchers Malaysia; Helistrom Sdn Bhd; and Sheng Foong Plastic Industries Sdn Bhd. are some of the key players in the market.

Southeast Asian plastic compounding industry is fragmented in nature with the presence of various key global players such as BASF SE, SABIC, DowDuPont, LyondellBasell, RTP Company, A. Schulman, and Kingfa as well as a few medium and small regional players operating in different parts of the world. The global players in the compounding market face intense competition from each other as well as from regional players who have a strong distribution network and good knowledge about suppliers & regulations.

Report Scope



Base year for estimation


Actual estimates/Historical data

2014 - 2017

Forecast period

2019 - 2026

Market representation

Volume in Kilotons and Revenue in USD Million & CAGR from 2019 to 2026

Country scope

Indonesia, Malaysia, Singapore, Thailand, Vietnam, Philippines

Report coverage        

Volume forecast, revenue forecast, competitive landscape, growth factors and trends

15% free customization scope (equivalent to 5 analyst working days)

If you need specific information, which is not currently within the scope of the report, we will provide it to you as a part of customization

Segments Covered in the Report

This report forecasts revenue and volume growth at regional & country levels and provides an analysis of the industry trends in each of the sub-segments from 2014 to 2026. For the purpose of this study, Grand View Research has segmented the Southeast Asia plastic compounding market report on the basis of product, application, and country:

  • Product Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2026)

    • Polyethylene (PE)

    • Polypropylene (PP)

    • Thermoplastic Vulcanizates (TPV)

    • Thermoplastic Polyolefins (TPO)

    • Polyvinyl Chloride (PVC)

    • Polystyrene (PS)

    • Polyethylene Terephthalate (PET)

    • Polybutylene Terephthalate (PBT)

    • Polyamide (PA)

    • Polycarbonate (PC)

    • Acrylonitrile Butadiene Systems (ABS)

    • Others

  • Application Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2026)

    • Automotive

    • Building & Construction

    • Electrical & Electronics

    • Packaging

    • Consumer Goods

    • Industrial Machinery

    • Medical Devices

    • Optical Media

    • Others

  • Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2026)

    • Southeast Asia

      • Indonesia

      • Malaysia

      • Singapore

      • Thailand

      • Vietnam

      • Philippines

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