The global masterbatch market is to be worth more than USD 21.1 billion by 2032.
The business growth within the masterbatch industry is due to various factors, such as the need to reduce pollution, stringent government regulations on carbon emissions and waste management, and a growing inclination toward a circular economy, the masterbatch industry is gradually shifting away from conventional masterbatches and toward bio-based and sustainable masterbatches. Furthermore, there is an increase in the installation of masterbatch production lines, primarily as a result of increased demand from the packaging industry, which is expected to propel the market over time. Furthermore, the growing demand for additive masterbatches, combined with an increased awareness of the importance of maintaining a cyclical economy, is expected to drive the novel masterbatch market between 2022 and 2032.
The automotive industry's evolution is expected to drive global demand for lightweight vehicles. Furthermore, European regulations to reduce greenhouse gas emissions have replaced metal parts in vehicles with plastic parts. In addition to lowering carbon emissions during automobile manufacturing processes, these reduce vehicle weight and thus improve fuel efficiency. This trend is expected to fuel demand for masterbatches throughout the forecast period (2020-2025). However, the conventional masterbatch market is expected to be limited by volatile prices and stringent environmental laws related to the non-biodegradability of plastics and conventional masterbatches. The packaging industry has been the masterbatch market's dominant end-user. Rising demand for appealing and innovative packaging is expected to drive the global masterbatch market further. The packaging industry employs a variety of masterbatches, the most common of which are colored, black, white, and additive masterbatches. The food and beverage industries and flexible packaging are showing an interest in improving the aesthetic value of product packaging, which is driving up demand for color masterbatches.
The masterbatch market is analyzed across North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa. In line with the analyzed region, the North American region will witness the highest market share, followed by Asia-Pacific, Europe, Latin America, and the Middle East & Africa. In 2021, Asia-Pacific accounted for the highest proportion of the global market for masterbatch due to its high population and large consumption of plastic products. China accounts for roughly 25% of global plastic production. The strong impetus for plastic production around the world, including China, is expected to boost the masterbatch market in the coming years. The packaging, automotive, building and construction, and consumer appliance sectors are driving growth in the plastics industry. Furthermore, masterbatch demand from the packaging industry has skyrocketed due to prominent food and beverage companies' ongoing research into alternative packaging materials with high aesthetic value. This is expected to drive demand for masterbatch in the country. Furthermore, China has emerged as a leading producer and exporter of masterbatches since 2016 and is expected to continue to lead the market until 2032.
Quick adoption of new technologies, increasing demand for recycled plating, adoption of circular economy, and rising concerns to reduce the overall carbon footprint generated due to the plastic and crude oil industry are among the major drivers backing business opportunities. The major companies operating within the masterbatch market The major players operating the market are Americhem, Inc, Ampacet Corporation, Avient Corporation, BASF SE, Cabot Corporation, CONSTAB Polyolefin Additives GmbH, Gabriel-Chemie G.m.b.H, LyondellBasell Industries N.V, Plastika Kritis S.A., and Tosaf Compounds Ltd.