Plastic Additives Market Growth Analysis and Future Projections 2024-2

The plastic additives market is set for substantial growth driven by the increasing demand for plastics in various industries, propelled by rapid urbanisation and lifestyle changes. The urban population surge is significantly boosting the automotive and transportation sectors, which in turn escalates the need for plastic additives. The packaging industry is also experiencing robust growth due to globalisation and evolving consumer lifestyles, further bolstering the plastic additives market.

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Urbanisation and Lifestyle Changes Drive Market Growth

According to a United Nations (UN) report, approximately 55% of the global population resides in urban areas, a figure projected to rise to 68% by 2050. This urban population growth is directly linked to increased demand in various industries. The popularity of convenience foods has driven up the demand for food-grade plastic used in packaging, thereby propelling the plastic additives market. Additionally, the expansion of the e-commerce sector worldwide is a significant factor driving the packaging industry, subsequently boosting the demand for plastic additives.

Strategic Acquisitions and Market Expansion

In March 2021, REPI, a provider of high-performance liquid, colour, and additive solutions, acquired Novosystems GmbH, a European player in liquid colours and additives. This acquisition strengthens REPI’s position in the polyurethanes and plastics markets and expands its geographical footprint in Northern and Central Europe. The renewable sector’s expansion also supports the growth of the plastic additives market. The rising awareness about pollution and the accumulation of plastic in soils and water bodies has led to increased market demand for sustainable plastic additives. Government regulations aimed at reducing the use of non-biodegradable plastics have also significantly influenced market growth.

Innovations in Recycling and Biodegradability

In December 2019, Evonik shifted its focus to developing solutions for plastic and rubber recycling. Vestoplast, one of Evonik’s primary products for recycling, involves breaking down plastics into their component monomers. Similarly, Biotec Environmental offers a diverse product portfolio that includes EcoPure, an organic additive used to enhance the biodegradability of traditional polymer products. These innovations in recycling and biodegradability are key factors driving the plastic additives market.

Increased Demand in the Packaging Industry

Rapid urbanisation, changing consumer lifestyles, economic trends, rising health awareness, and advancements in packaging materials and technology are major factors driving the growth of the packaging industry. The various properties of plastics, such as durability, low cost, resistance to corrosion, water and chemicals, and low thermal conductivity, make them suitable for a wide range of applications. The increased use of plastics in both heavy and light packaging drives the demand for plastic additives. With the rising demand for plastics in packaging, the need for plasticisers, flame retardants, and stabilisers is also increasing.

Asia Pacific: A Hub for Plastic Additives Manufacturing

Asia Pacific is expected to hold a significant market share due to the presence of a large number of manufacturers in the region. The expanding construction industry, increasing need for electrical and electronic items, and rising demand for e-buses contribute to the region’s plastic additives market growth. Consumer goods that are cheap and lightweight are predominantly made from plastic, and Asia Pacific is witnessing a surge in the packaging sector. The rapid rise of the e-commerce sector is encouraging the expansion of the regional packaging business, which supports market growth. Furthermore, rising disposable incomes are leading consumers to spend more on home décor, ornamental products, and furniture, boosting the furniture sector in countries like China and India.

North America: A Significant Market Player

North America holds a substantial part of the global plastic additives market due to the growing use of plastics and polymers in the packaging, construction, aerospace and defence, food and beverage, general manufacturing, and automobile industries. The US continues to dominate the market due to significant demand from the automotive and packaging industries. Increased demand for plastic components, driven by urbanisation and rising consumer spending power, propels the industry forward. Rising industrialisation across all economies is a primary factor driving market growth. For instance, in February 2021, Lanxess signed an agreement to purchase 100% of Emerald Kalama Chemical, a US-based firm and global leader in specialty chemicals, significantly boosting its market position.

Competitive Landscape

The global plastic additives market is highly competitive, with key players continuously engaging in strategic partnerships and acquisitions to strengthen their market positions. In March 2021, SABO signed a distribution agreement with the RNM Group, a leading chemical company in Portugal, to distribute SABO Polymer Additives products throughout Portugal. Similarly, in January 2021, Songwon Industrial Co. Ltd and Mumbai-based Makwell Plastisizers Pvt. Ltd signed an exclusive distribution agreement for PVC additives in India.

Prominent players in the plastic additives market include BASF SE (Germany), Clariant AG (Switzerland), LANXESS AG (Germany), Evonik Industries AG (Germany), Kaneka Corporation (Japan), Albemarle Corporation (U.S.), Songwon Industrial Co., Ltd. (South Korea), Nouryon (Netherlands), and The Dow Chemical Company (U.S.). These companies are at the forefront of innovation and market expansion, driving the global plastic additives market towards robust growth.