Plastic Additives Market

Analysis from GMI Research finds that the Plastic Additives Market earned revenues of USD 48.3 billion in 2022 and forecast to touch USD 72.5 billion in 2030 will grow at a CAGR of 5.2% from 2023-2030.

Major Plastic Additives Market Drivers

The primary factors driving the global plastic additives market growth are development in the packaging sector in response to significant growth in income per capita, extensive usage in the construction and automotive industry, rising demand for plastics additives in end-user goods, rapid industrialization and urbanization in emerging nations, and an increase in investment in research and development activities. These additives have attained widespread adoption in the automotive industry, where they are used for applications, such as developing interior scratch resistance in panels, or trims and introducing high-gloss panels for the beautification of central consoles. The global plastic additives market is estimated to grow as growth in the prevalence of low-cost automobile interiors. The end-user product industry utilizes chemicals due to their recyclability, which offers ease and sustainability in manufacturing procedures. Plastic additives are used significantly in construction industry to maintain properties and appearances, long-term stability, and thermal protection, and to preserve of reliability of polymer properties throughout processing. Plastic additives are extending the duration of UV-sensitive construction applications. The developing global construction industry is predicted to propel the growth of the plastics additives market globally.

The world has faced a significant issue for the last few years caused by the accumulation of plastic waste, which does not degrade naturally due to its non-biodegradable nature. Polymers find extensive applications, spanning from household to industrial utilization. Polymers have extensive usage for different purposes, varying from household to industrial applications. The speedy rise in awareness about pollution and the accumulation of polymers in soil and water bodies has increased the advancement of biodegradable materials as an innovative solution. The utilization of non-degradable plastic has considerably decreased due to rigorous rules and regulations forced by the government authorises which further foster the demand for the biodegradable market. Different developed and developing nations have taken different initiatives to eliminate single-use goods in recent years. This is propelling the demand for plastic additive products that are accountable for biodegradability.

Global and domestic market players are increasingly inclined towards producing additives for biodegradable polymers. For instance, in 2019, Evonik moved its functionality towards introducing solutions for recycling rubber materials, and plastic. There is one product Vestoplast introduced by Evonik that is anticipated to be the key product for recycling, which comprises a strong and durable product portfolio of these products and additives. Presently, market players have been aiming to enhance new and innovative products for developing the biodegradability and functionality of the good. For example, Biotec Environmental has a strong portfolio of such types of additives and products whereas, its organic additive EcoPure is employed to develop the functionality and biodegradability proportion of traditional polymer products. The significant growth in the number of extractable segments to foster photo-oxidation and thermo-oxidation that proportionally augments the number of extractable compounds is one of the foremost attributing trends the global plastic additives market share.

Moreover, significant developments have been witnessed in the packaging sector over the last few years due to a considerable increase in demand for ready-to-eat food and convenience food. In addition, rising advancement in the e-commerce segment globally is one of the key drivers propelling the packaging sector, which is presenting a positive growth in the global plastic additives market size. Furthermore, plastic additives offer different properties in manufacturing automotive parts such as cost-effectiveness and lightweight nature. There will be an increase in the efficiency in the performance of automobiles because the lighter automotive parts decrease fuel consumption. In the end-use industries, the substitution of conventional materials with effective polymers has considerably raised the demand for this additive.

By Type, Plasticizer is dominating segment in the global plastic additives market

The plasticizers decrease the viscosity of polymer materials and develop the flexibility of polymers. The plasticity of polymers can be adjusted to meet precise demands in different application fields. They enable easier handling of raw materials in the manufacturing procedure and can adjust the frictional coefficient to suit precise applications as required. Commonly used products are often derived from esters of polycarboxylic acids, mixed with branched or aliphatic alcohols with moderate-length chains. Based on the evaluation based on functionality and cost, non-volatility, toxicity, compatibility, and processability most ester plasticizers are selected with the host material. However, nearly 90% of all plasticizers are utilized for the introduction of flexible PVC. The significant growth in demand for flexible PVC polymer is predicted to foster the plasticizers segment.

By Applications, Packaging segment led the largest market growth

Various products require precise packaging materials to meet their unique needs. There a different choices of plastic materials freely accessible in the market, including medical-grade, food-grade, transparent, heat-resistant, moisture-resistant, opaque, porous, and several others. Plastic is one of the most easily accessible and cost-effective substitutions for other packaging materials including alloys, and metals. In addition, ready-to-eat food and convenience food are witnessing growing demand accredited to the busy schedule of working females across urban locations. The effective growth in demand for plastic packaging from medical, food & beverages, and several other industries is estimated to propel the global market.

By Region, APAC accounts for the largest market size in the market

The significant growth in construction industry, rise in demand for automobiles, and high increase in demand for electrical and electronic goods, will propel the APAC plastic additives market growth. It is predicted that China holds the largest market growth due to different producers. In addition, emerging nations such as Japan, China, and India are the foremost contributors to the plastic additives market in the Asia Pacific due to the large existence of giant market players and end-use industries including consumer goods, building & construction, and packaging further propel the Asia Pacific plastic additive market. Although, food packaging holds a considerable position in the packaging industry, registering a significant market share in China. As per Interpak, the foodstuff packaging category in China is predicted to touch 447 billion units in total packaging by 2023.

In addition, in the construction industry, the usage of plastic additives is increasing as more engineering plastic is effectively utilized in construction applications. The preferences moved from conventional to polymer-based materials. Utilizing plastics in construction products saves power as compared to other alternative construction materials. The GOI is planning to initiate different projects in the coming years. The project on ‘Housing for All’ focused on constructing more than 20 million cost-effective residences for the urban poor people by 2022. In the 2021-2022 budget, a USD 778.78 million smart cities mission was initiated against USD 410.52 million during 2020-2021 revised estimations.

The subsequent growth in the e-commerce segment is encouraging the growth of the Asia Pacific packaging industry, driving the market growth in Asia Pacific. Moreover, the high rise in disposable incomes leads customers to spend substantially on decorative items, home décor, and furniture has propelled the furniture market in China and India. The effective growth in demand for Chinese products globally is estimated to increase the local plastic market which in turn raises the growth of the plastic additives market regionally.

North America is the fastest-growing region in the plastic additives market

The steady growth in construction, food & beverages, packaging, general manufacturing, aerospace & military, and car industries propels the usage of plastics and polymers, North America regions register for a substantial portion of the plastic additive market globally. Considerable growth in the investment in aerospace and military segments for the advancement of developed materials is estimated to propose profitable plastic additives market opportunities for market players in this field. Furthermore, the Environmental Protection Agency’s strict regulations regarding the degradability of polymers and plastics have encouraged industry players to invest more in research and development activities. This is predicted to present positive growth in the regional plastic additive market.

By Region, Europe is presenting steady growth in the global plastic additives market

The high rise in enhancing less harmful plastic products is anticipated to drive the regional market growth. Vigorous regulations enforced by EU concerning the usage of phthalates around the medical and food applications are predicted to function as an opportunity for enhancing developed and innovative polymer additives.

Top Market Players

Various notable players operating in the market include ADEKA CORPORATION, Arkema, Baerlocher GmbH, BASF SE, Clariant, Croda International PLC, Dow, Emery Oleochemicals, Evonik Industries AG, Exxon Mobil Corporation, KANEKA CORPORATION, among others.

Segments covered in the Report:

The Global Plastic Additives Market has been segmented on the basis of Type and Application. Based on the Type, the market is segmented into Plasticizers, Stabilizers, Impact Modifiers, Blowing Agents, Flame Retardants, Nucleating Agents, Others. Based on the Application, the market is segmented into Construction, Consumer Goods, Packaging, Automotive, Others.

Key Development

• • In 2023, Arkema announced an expansion of its production proficiency of organic peroxide in China with an investment of nearly €50 million to dominate the market by being a major producer of niche additives with eco-friendly development.
  • In 2023, Evonik launched additives to aid its clients in developing the procedure, improving the polymer’s quality, and enhancing the final superiority of reprocessed plastics.
  • In 2022, BASF expanded the production capacity of its HALS at sites positioned in Pontecchio Marconi, Italy, and Lampertheim, Germany to focus on the increasing need for light stabilizers to develop security of supply to international clients.
  • In 2022, Clariant announced the launch of new additives to aid durability and accomplish better proficiency, extend service life, and lower carbon footprint throughout processing and compounding.
  • In 2019, Baerlocher announced an investment in its India subsidiary US$ 30 million to present the company’s promise to the buoyant Indian plastics industry and grow in these segments.

Report Coverage	Details
Market Revenues (2022)	USD 48.3 billion
Market Base Year	2022
Market Forecast Period	2023-2030
Base Year & Forecast Units	Revenues (USD Billion)
Market Segment	By Type, By Application, By Region
Regional Coverage	Asia Pacific, Europe, North America, and RoW
Companies Profiled	ADEKA CORPORATION, Arkema, Baerlocher GmbH, BASF SE, Clariant, Croda International PLC, Dow, Emery Oleochemicals, Evonik Industries AG, Exxon Mobil Corporation, KANEKA CORPORATION, among others; a total of 11 companies covered.
25% Free Customization Available	We will customize this report up to 25% as a free customization to address our client’s specific requirements

Market Segmentation

Global Plastic Additives Market by type

• • Plasticizers
  • Stabilizers
  • Flame Retardants
  • Impact Modisiers
  • Blowing Agents
  • Nucleating Agents
  • Others

Global Plastic Additives Market by application

• • Packaging
  • Consumer Goods
  • Construction
  • Automotive
  • Others

Global Plastic Additives Market by Region

• • North America Plastic Additives Market (Option 1: As a part of the free 25% customization)

    • By Type
    • By Application
    • US Market All-Up
    • Canada Market All-Up

  • Europe Plastic Additives Market (Option 2: As a part of the free 25% customization)

    • By Type
    • By Application
    • UK Market All-Up
    • Germany Market All-Up
    • France Market All-Up
    • Spain Market All-Up
    • Rest of Europe Market All-Up

  • Asia-Pacific Plastic Additives Market (Option 3: As a part of the free 25% customization)

    • By Type
    • By Application
    • China Market All-Up
    • India Market All-Up
    • Japan Market All-Up
    • Rest of APAC Market All-Up

  • RoW Plastic Additives Market (Option 4: As a part of the free 25% customization)

    • By Type
    • By Application
    • Brazil Market All-Up
    • South Africa Market All-Up
    • Saudi Arabia Market All-Up
    • UAE Market All-Up
    • Rest of world (remaining countries of the LAMEA region) Market All-Up

Global Plastic Additives Leading Market Players (Option 5: As a part of the free 25% Customization – Profiles of 5 Additional Companies of your Choice)

• • ADEKA CORPORATION
  • Arkema
  • Baerlocher GmbH
  • BASF SE
  • Clariant
  • Croda International PLC
  • Dow
  • Emery Oleochemicals
  • Evonik Industries AG
  • Exxon Mobil Corporation
  • KANEKA CORPORATION