Masterbatch Market Size, Growth And Forecast To 2031

(MENAFN- Straits Research) Introduction

A masterbatch is a solid or liquid additive that colors or imparts specific qualities to plastics. The plastic products are colored or tinted using colored masterbatch. They can convey energy, effect, UV stabilizer, biodegradable, and antioxidant attributes. Ideally, the product should contain a pigment and additive mixture encased in a heated, cooled, granulated carrier resin. It also AIDS the processor in coloring raw polymer efficiently during the plastics manufacturing process. Masterbatches have been widely utilized in several decades of polymer compounding, such as injection, blow, extrusion, compression, rotational molding, and thermoforming. These additives reduce the safety risk associated with powder pigments because they are simple to use and facilitate a clean, stable process.

Market Dynamics Growing Demand for Sustainable Additive Masterbatch Solutions Drives the Global Market

Numerous additives and polymer combinations, such as flame retardant and sustainable additive masterbatches (viscosity modifiers, chain extenders, foaming agents, nucleating agents, and corrosion-resistant masterbatches), are evolving to meet the market's fluctuating needs. Due to the changing demands of the end-user industry, the masterbatch industry has expanded significantly, resulting in modifications to the products, manufacturing processes, and engineering applications. In the packaging, automotive, agricultural, and medical industries, masterbatches are utilized. They also contribute to the base plastic's durability and additional customized properties, such as UV resistance, tear resistance, and heat resistance. The masterbatch industry is gradually transitioning from its traditional use of petroleum-based to sustainable masterbatches, thereby increasing a product's sustainability and market expansion value.

Increasing technological advances in masterbatches have led to a rise in market adoption and demand. Biodegradable, bio-based masterbatches offer eco-friendly solutions and possess superior structural properties. With the aid of additives, they offer enhanced product quality and durability. Thermally stable and custom-colored masterbatches are also available as part of these advancements. In addition, global demand for sustainable masterbatches has increased, resulting in increased R&D expenditures. These investments aim to create masterbatches that withstand temperatures and harsher environments. Likewise, countries with relatively high incomes, such as Germany, Canada, and the United States, have a higher adoption rate of sustainable masterbatches. Such nations could increase demand for sustainable masterbatches in packaging, aircraft, and automotive applications.

Regional Analysis

China is the most significant shareholder in the global masterbatch market and is estimated to exhibit a CAGR of 8.07% during the forecast period. China has been one of the largest regional markets in terms of volume for conventional and sustainable masterbatches sales. The country is a world leader in producing polymers, other plastics, and masterbatch-related goods. Moreover, the nation has adopted bioplastics and biodegradable plastics for numerous processes in each industry. In addition, substantial investments in research and development create enormous growth opportunities for the masterbatch market's development. China also has a large number of company and university patents, which aids in the development of masterbatches. Consequently, the masterbatch market has reached a point of saturation where any new company investing in the sustainable masterbatch market has no growth potential unless it introduces a market-altering technology or product.

Europe is anticipated to exhibit a CAGR of 6.33% over the forecast period. European nations contribute significantly to adopting and producing novel technologies and products for masterbatches. In addition to conventional masterbatches, adopting eco-friendly masterbatch technologies is anticipated to boost the masterbatch industry. Several companies offer sustainable masterbatches in addition to masterbatches derived from petroleum. According to PlasticsEurope, the European Union is expected to mandate the reuse and recycling of 60 percent of all plastic packaging by 2030 and 100 percent by 2040. This is anticipated to increase the masterbatch market in the long term. In addition, the European Union has set a goal to reduce CO2 emissions by 15% by 2025, paving the way for the evolution of masterbatches.

Key Highlights

• The global masterbatch market was valued at USD 75 billion in 2022. It is estimated to reach USD 30.44 billion by 2031, growing at a CAGR of 6.69% during the forecast period (2023–2031).
• Based on product, the global masterbatch market is divided into color masterbatch, additive masterbatch, filler masterbatch, and special effect masterbatch.
  The color masterbatch segment accounts for the largest market share and is anticipated to exhibit a CAGR of 5.64% over the forecast period.
• Based on substrate type, the global masterbatch market is bifurcated into polyethylene terephthalate (PET), polyhydroxyalkanoate (PHA), polyolefins, polylactic acid (PLA), and others.
  The polyolefins segment dominates the global market and is projected to exhibit a CAGR of 4.68% over the forecast period.
• Based on the state of the product, the global masterbatch market is divided into solid and liquid.
  The solid segment is the most significant contributor to the market and is estimated to exhibit a CAGR of 6.79% over the forecast period.
• Based on end-user, the global masterbatch market is bifurcated into consumer goods, automotive, electrical and electronics, infrastructure and industrial, packaging, and others.
  The packaging segment owns the highest market and is predicted to exhibit a CAGR of 5.43% over the forecast period.
• China is the most significant shareholder in the global masterbatch market and is estimated to exhibit a CAGR of 8.07% during the forecast period.