Specialty Carbon Black Market Size, Share & Trends Analysis Report By Grade (Conductive, Fiber, Food Contact), By Region (North America, Europe, APAC, Latin America, MEA), And Segment Forecasts, 2020 - 2027

Report Overview

The global specialty carbon black market size was valued at USD 2.0 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 8.9% from 2020 to 2027. The market is expected to be driven by increasing product demand as reinforcing agents in hoses, belts, tires, and molding plastic parts. The conductive polymer is one of the prominent applications where specialty carbon black compounds have improved conductive properties than rubbers and polymers. It also reduces resistance to electricity by making a conductive network through the polymer and rubber. Economies, such as China, Mexico, Brazil, and India, over the past decade have registered tremendous growth, in terms of industrial output and GDP. This has led to greater discretionary spending resulting in higher demand for battery electrodes.

The outbreak of COVID-19 across the globe is estimated to result in a demand-supply gap and thus restrain the product requirement. However, increasing consumer preference for fuel-efficient and lightweight vehicles is expected to drive the demand for specialty carbon black. It helps in providing conductivity and antistatic properties to plastics, ranging from highly conductive to insulation materials, and it is expected to drive the market over the forecast period.

The product is broadly utilized as a reinforcing agent in products, such as chassis bumpers, tires, blow-molded containers, conveyor wheels, grommets, gaskets, automotive, hoses, bushings, fascia, photographic containers, and wiper blades. A key attribute of specialty carbon black is its ability to absorb UV light and convert it to heat, thereby making plastics, which are more resistant to UV radiation. It provides antistatic and conductive properties to plastics ranging from highly conductive to insulation materials. Some of the emerging trends directly influencing the industry dynamics include a shift to more specialized grade products from the commodity and its increased usage as a pigment in lightweight auto-parts to improve conductivity.

Furthermore, specialty carbon black is a highly versatile component for non-rubber applications. The selection of carbon black entirely depends on the requirements of the product. It is mainly used in key plastic segments including molding, film pipe, fiber, and cable. Plastics are used in a wide range of applications in various key end-use industries including packaging, paints & coating, construction, electrical & electronics, and automotive.

The increasing application scope can be attributed to its high durability, corrosion resistance, flexibility, and low maintenance requirements. Increasing demand for electrical and electronic components, such as microwaves, ovens, phones, tablets, laptops, computers, television, music player, and fax machine, is expected to drive the plastics demand over the forecast period, thereby propelling the market growth.

Grade Insights

In terms of volume, conductive grade dominated the specialty carbon black market with a share of over 28% in 2019. Conductive carbon blacks are primarily used in the manufacturing of printing inks, paints & coatings, and conductive polymers. The growth of the manufacturing sector owing to the rising population coupled with strong demand for polymers is anticipated to drive segment growth over the forecast period. Increasing the requirement for lithium-ion batteries owing to their superior properties is anticipated to further boost segment growth.

Rapidly growing end-use industries, such as automotive, architecture, and consumer goods, are anticipated to fuel the product demand in paints & coatings applications. The growing manufacturing sector coupled with strong economic growth is anticipated to drive the product’s consumption over the forecast period. Asia Pacific is one of the largest manufacturers and consumers of polymers and is expected to fuel market growth over the next eight years.

Fiber-grade product is majorly utilized in the textile industry for manufacturing polyester fiber, PP masterbatches, and other synthetic fibers. The growth of the textile industry in the Asia Pacific region is the key driving force for fiber-grade carbon black demand. Moreover, countries, such as the U.K. and France, are expected to witness strong demand from the regional textile industry.

Increasing usage in packaging, films & sheets, and plastic molded goods in the food industry is anticipated to drive the food contact grade product segment growth over the forecast period. Food-grade products adhere to various requirements imposed by the FDA, the European Plastics Regulation, and Japan Hygienic Olefin & Styrenic Plastics Association (JHOSPA). Specialty carbon blacks are used for packaging a diverse range of products and thus have extensive applications across several end-use industries. The food-grade products are used in the food packaging and agriculture industries.

Regional Insights

Asia Pacific led the market and accounted for over 46% of the global volume share in 2019. It will expand further at the fastest CAGR, in terms of volume as well as revenue, from 2020 to 2027 on account of rapidly growing end-use industries and rising awareness about recyclable & sustainable, yet luxurious and comfortable products. Countries, such as China, India, Vietnam, and Thailand, are expected to generate high product demand over the coming years.

The automotive sector is an important contributor to economic activity across the globe. The growth of this industry has a positive influence on diverse sectors and industries, both downstream and upstream. The automobile industry has been witnessing the establishment of new manufacturing facilities, especially in China, India, and South-east Asia, as major manufacturers set up plants in the emerging markets and take advantage of local operations, which is anticipated to drive the product demand across the Asia Pacific region.

However, due to the outbreak of COVID-19 the governments across the globe have taken several preventive measures, such as shutting down of industrial and commercial firms like manufacturing units, plants, shops, and factories, which has hampered the overall production as well as import-export. Although, in the longer run, recovery of the automotive industry in countries, such as Germany, France, the U.K., and Russia, will boost market growth over the forecast period.

Key Companies & Market Share Insights

The market is highly concentrated by major multinationals, such as Birla Carbon, Cabot Corporation, Orion Engineered Carbons, Mitsubishi, and Tokai Carbon, which offer their diverse range of products globally. Furthermore, chemical companies, such as Evonik Industries, Sid Richardson, and Mitsubishi, are integrated throughout the value chain from feedstock manufacturing to end product formulation. These companies have an advantage over their competitors in terms of captive raw material supply, especially during price fluctuations. In terms of market development, recently Birla Carbons acquired Columbian Chemicals, a U.S.-based carbon black producer, allowing it to emerge as the world’s largest manufacturer. This step strengthened the company financially. Some of the prominent players in the specialty carbon black market include:

• Cabot Corp.

• Birla Carbon

• Tokai Carbon Co. Ltd.

• Continental Carbon Company

• Omsk Carbon Group

Specialty Carbon Black Market Report Scope

Segments Covered in the Report

This report forecasts volume and revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global specialty carbon black market report on the basis of grade and region:

• Grade Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • Conductive Carbon Black

    • Conductive Polymers

    • Paints & Coatings

    • Battery Electrodes

    • Printing Inks

    • Others

  • Fiber Carbon Black

    • Polyester Fiber

    • PP Masterbatches

    • Nylon Textiles

    • Other Synthetic Fibers

  • Food Contact Carbon Black

    • Packaging

    • Film & Sheet

    • Consumer Molded Parts

    • Others

  • Other Carbon Black

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • North America

    • The U.S.

    • Canada

  • Europe

    • Germany

    • France

    • The U.K.

    • Italy

    • Russia

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Southeast Asia

  • Latin America

    • Mexico

    • Brazil

    • Argentina

  • Middle East & Africa

    • Saudi Arabia

    • UAE

    • South Africa