“Global Plastic Compounding Market to reach a market value of USD 110.4 Billion by 2031 growing at a CAGR of 7.1%”
The Global Plastic Compounding Market size is expected to reach $110.4 billion by 2031, rising at a market growth of 7.1% CAGR during the forecast period. In the year 2023, the market attained a volume of 38,687.6 kilo tonnes, experiencing a growth of 23.4% (2020-2023).
Polypropylene compounds are used in many sectors, such as construction, automotive, packaging, consumer products, and electrical appliances. Thus, polypropylene (PP) segment captured 22.1% revenue share in the market 2023. In terms of volume polypropylene (PP) segment attained a volume of 5,402.1 kilo tonnes in the market 2020. The increasing need for economical, long-lasting, and lightweight materials in these industries propels the implementation of polypropylene compounds. Hence, the segment will grow rapidly in the coming years.
The major strategies followed by the market participants are Product Launches as the key developmental strategy to keep pace with the changing demands of end users. For instance, In February 2024Kraton Corporation introduced "SYLVASOLV 1000" biobased oils. The SYLVASOLV 1000 underscores Kraton's ongoing commitment to delivering sustainable, high-performance alternatives to products derived from petroleum. Additionally, this completely biobased oil has the potential to enhance fertilizer coating formulations and facilitate a decreased carbon footprint. Moreover, In January 2024, LyondellBasell Industries Holdings B.V. Introduced Petrothene T3XL7420: A Groundbreaking Polymer Compound for Enhanced Manufacturing Optimization. Petrothene T3XL7420 presents numerous advantages, rendering it a compelling choice for wire manufacturers. These include improved cure kinetics, heightened stiffness facilitating assembly of small gauge wire, and superior barrier performance in comparison to other Petrothene XL variants.
Based on the Analysis presented in the KBV Cardinal matrix; Chevron Phillips Chemical Company LLC is the forerunners in the Market. In October, 2023, Chevron Phillips Chemical Company LLC came into partnership with Danimer Scientific, a biopolymer manufacturer headquartered in Bainbridge, Georgia. Through this partnership, Phillips would delve into the advancement and commercialization of cast extrusion films, blown extrusion films, injection molded parts, and rotational molded parts utilizing Rinnovo polymers fabricated through a loop slurry reactor process. Companies such as Arkema S.A, Lanxess AG and Saudi Basic Industries Corporation (SABIC) are some of the key innovators in Market.
Plastic compounding allows for incorporating recycled materials into new plastic formulations, such as post-consumer or post-industrial plastics. By using recycled content, manufacturers can reduce their reliance on virgin plastics, divert waste from landfills, and lower their products.
Additionally, the growing construction industry worldwide presents a compelling opportunity for expansion in the market. For Example, as per the India Brand Equity Foundation, in conjunction with the initiative. Thus, these factors can help in the growth of the market.
Plastic compounding is intrinsically linked to the availability and cost of raw materials. Polymers, additives, and fillers constitute the foundational components of compounded plastics, and their prices can be subject to rapid changes driven by market dynamics, supply-demand imbalances, and external factors such as weather events or geopolitical tensions. Therefore, these factors can hamper the growth of the market.
Based on application, the market is segmented into automotive, building & construction, electrical & electronics, packaging, consumer goods, industrial machinery, and others. The automotive segment held 24.4% revenue share in the market in 2023.
On the basis of product, the market is divided into polyethylene (PE), polypropylene (PP), polyvinyl chloride (PVC), polystyrene (PS), polyethylene terephthalate (PET), polycarbonate (PC), polyurethane (PU), polymethyl methacrylate (PMMA), acrylonitrile butadiene styrene (ABS), and others. In 2023, the polyethylene terephthalate (PET) segment witnessed 13.2% revenue share in the market.
Based on source, the market is segmented into fossil-based, bio-based, and recycled. In 2023, the bio-based segment garnered 31.2% revenue share in the market. In the terms of volume, the bio-based segment attained a volume of 8,693.2 kilo tonnes I the market 2021. the Growing awareness of environmental issues, including plastic pollution and climate change, has increased demand for sustainable materials.
Free Valuable Insights: Global Plastic Compounding Market size to reach USD 110.4 Billion by 2031
By region, the market is segmented into North America, Europe, Asia Pacific, and LAMEA. In 2023, the Europe segment acquired a 27.3% revenue share in the market. In the terms of volume, the Europe region volume of 9,539.1 kilo tonnes in the market 2023.
The market thrives on competition, with companies vying for superiority in innovation, cost-effectiveness, and product quality. Customization, pricing strategies, and supply chain efficiency are pivotal battlegrounds. Staying ahead requires adeptness in technological advancements, operational excellence, and market responsiveness. Success hinges on the ability to meet diverse customer demands, spanning automotive, electronics, packaging, and construction sectors, while continually innovating in materials and processes to maintain a competitive edge in an ever-evolving marketplace.
Report Attribute | Details |
---|---|
Market size value in 2023 | USD 64.4 Billion |
Market size forecast in 2031 | USD 110.4 Billion |
Base Year | 2023 |
Historical Period | 2020 to 2022 |
Forecast Period | 2024 to 2031 |
Revenue Growth Rate | CAGR of 7.1% from 2024 to 2031 |
Quantitative Data | Volume in Kilo Tonnes, Revenue in USD Billion, and CAGR from 2020 to 2031 |
Number of Pages | 485 |
Number of Tables | 914 |
Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Porter’s 5 Forces Analysis, Company Profiling, Companies Strategic Developments, SWOT Analysis, Winning Imperatives |
Segments covered | Product, Source, Application, Region |
Country scope |
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Companies Included | BASF SE, Saudi Basic Industries Corporation (SABIC), Kraton Corporation, LyondellBasell Industries Holdings B.V., DuPont de Nemours, Inc., RTP Company, Inc., Lanxess AG, Covestro AG, Arkema S.A., Chevron Phillips Chemical Company LLC |
By Product (Volume, Kilo Tonnes, USD billion, 2020-2031)
By Source (Volume, Kilo Tonnes, USD billion, 2020-2031)
By Application> (Volume, Kilo Tonnes, USD billion, 2020-2031)
By Geography (Volume, Kilo Tonnes, USD billion, 2020-2031)
This Market size is expected to reach $110.4 billion by 2031.
Rising adoption of plastic compounds in electrical and electronics applications are driving the Market in coming years, however, Economic volatility and raw material price fluctuations restraints the growth of the Market.
BASF SE, Saudi Basic Industries Corporation (SABIC), Kraton Corporation, LyondellBasell Industries Holdings B.V., DuPont de Nemours, Inc., RTP Company, Inc., Lanxess AG, Covestro AG, Arkema S.A., Chevron Phillips Chemical Company LLC
In the year 2023, the market attained a volume of 38,687.6 kilo tonnes, experiencing a growth of 23.4% (2020-2023).
The Fossil-based segment is leading the Market by Source in 2023; thereby, achieving a market value of $60.2 billion by 2031.
The Asia Pacific region dominated the Market by Region in 2023, and would continue to be a dominant market till 2031; thereby, achieving a market value of $47.5 billion by 2031.
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