USD 63.45 billion
Plastic Compounding Market Size, Share, Growth Analysis, By Polymer Type, By Additive Type, By End User Industry, By Process, By Region - Industry Forecast 2025-2032
Report ID:
SQMIG15A2451 |
Region:
Global |
Published Date: December, 2024
Pages:
175
|Tables:
0
|Figures:
0
Plastic Compounding Market Insights
Plastic Compounding Market size was valued at USD 72.17 Billion in 2023 and is poised to grow from USD 77.51 Billion in 2024 to USD 127.76 Billion by 2032, growing at a CAGR of 7.4% during the forecast period (2025-2032).
Plastic compounding refers to the formation of plastic compounds by blending or mixing other polymers and additives. Growing demand for lightweight materials for the automotive and aerospace industries is projected to primarily drive the demand for plastic compounding in the future. Advancements in plastic compounding technologies and the rising use of plastic compounds in multiple applications across various industry verticals will also offer new business scope for plastic compounding providers going forward. A high emphasis on reducing the weight of vehicles to enhance efficiency will boost the sales of plastic compounds in the automotive manufacturing vertical over the coming years. Growing investments in infrastructure development are also expected to create new opportunities for plastic compounding companies in the long run. Development of bio-based plastic compounds will be a major trend for all market players looking to stay relevant in a sustainable future. On the contrary, the imposition of stringent mandates regarding plastic usage, fluctuations in raw material pricing, and competition from alternative materials are expected to slow down the global plastic compounding market outlook across the study period and beyond.
Market snapshot - 2024-2031
Global Market Size
Largest Segment
Automotive
Fastest Growth
Packaging
Growth Rate
7.2% CAGR
Global Plastic Compounding Market ($ Bn)
Country Share for Asia Pacific Region (%)
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Plastic Compounding Market Segmental Analysis
Global Plastic Compounding Market is segmented by polymer type, additive type, end user industry, process and region. Based on polymer type, the market is segmented into polypropylene (PP), polyethylene (PE), polyvinyl chloride (PVC), polystyrene (PS), polyethylene terephthalate (PET), acrylonitrile butadiene styrene (ABS) and others. Based on additive type, the market is segmented into fillers, plasticizers, stabilizers, colorants, flame retardants and others. Based on end user industry, the market is segmented into automotive, building & construction, electrical & electronics, packaging, consumer goods, industrial machinery, medical devices, optical media, aerospace & defense and others. Based on process, the market is segmented into injection molding, extrusion, blow molding and others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & and Africa.
Analysis by Application
The demand for plastic compounding in the automotive industry is projected to lead revenue generation for companies as per this plastic compounding market forecast. Growing emphasis on weight reduction of vehicles to comply with emission regulations is primarily bolstering the demand for plastic compounds in this segment. Rising demand for lightweight components in electric vehicles and increasing investments in the development of new lightweight plastic compounds are also expected to aid the dominance of this segment in the future. Plastic compounds with low thermal expansion, high stiffness, lightweight, dimensional stability, moisture resistance, exceptional scratch resistance, and impact resistance are preferred in the automotive industry.
Packaging is projected to account for the second-largest share of the global plastic compounding market outlook. A rapid boom in e-commerce activity around the world and growing demand for lightweight packaging are slated to create new opportunities for plastic compounding providers going forward. The cheap nature of certain plastic compounds makes them a mainstay in the global packaging industry thereby generating new opportunities for plastic compounding companies as well. The growing use of polyethylene and polypropylene in packaging applications will also help this segment maintain its plastic compounding market share in the long run. High demand for innovative packaging solutions will also create new opportunities in this segment going forward.
Analysis by Source
Fossil-based segment is forecasted to account for a prominent chunk of the global plastic compounding market share. High use of petrochemical-based raw materials for manufacturing of multiple plastic compounds and their extensive usage across different industry verticals is projected to aid the dominance of this segment going forward. High convenience, more profitability, and the presence of infrastructure for easy derivation of petrochemical raw materials for plastic compounding are other factors that are helping this segment emerge as a highly rewarding one for all market players. However, the segment is estimated to lose some market share to recycled and bio-based plastic compounds in the long run.
Meanwhile, the demand for bio-based plastic compounding is forecasted to rise at an impressive pace across the study period and beyond. Increasing awareness regarding the harmful impact of plastic waste on our environment coupled with growing emphasis on promoting sustainability are expected to make this segment a highly opportune one for all plastic compounding companies. Efforts of governments to reduce landfill plastic waste and promote easy degradation of plastic waste are expected to create new business scope for plastic compounding companies targeting this segment. High investments in R&D of bio-based plastics will further boost revenue for companies operating in the global plastic compounding industry.
Global Plastic Compounding Market By Source
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Plastic Compounding Market Regional Insights
The Asia-Pacific region is estimated to hold sway over global plastic compounding demand outlook going forward. The presence of a robust manufacturing industry, growing sales of consumer electronics and vehicles, and supportive government initiatives to promote plastic compound manufacturing are all expected to help Asia Pacific account for a prominent chunk of the global plastic compounding market share. India, China, Korea, Philippines, and Japan are estimated to be the leading markets for plastic compounding providers operating in this region owing to the presence of top automotive manufacturers. Low labor costs and the high availability of cheap raw materials are also attracting plastic compounding companies to this region.
On the other hand, Europe is projected to account for the second-largest share of the global plastic compounding market forecast. The presence of key automotive companies, rising investments in infrastructure development, and the presence of key packaging companies are helping Europe maintain its stance as the second-most opportune market for plastic compounding providers going forward. Germany, France, and the United Kingdom are slated to be the leading markets for plastic compounding companies looking to make a mark in this region. High emphasis on sustainability and imposition of bans on certain types of plastics are estimated to bolster the demand for recycled and bio-based plastic compounds in this region through 2031 and beyond.
Global Plastic Compounding Market By Region
- Largest
- Fastest
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Plastic Compounding Market Dynamics
Plastic Compounding Market Drivers
Extensive Use of Plastic Compounds in Consumer Electronics Industry
- Sales of consumer electronics and appliances are increasing at a rapid pace around the world owing to rapid digitization. Plastic compounds are widely used in consumer electronics and appliances for their electrical insulation properties, durability, and flexibility in design. So as the demand for consumer electronics increases it is also expected to favor the global plastic compounding market forecast as well.
High Demand for Lightweight Automotive Components
- Automotive companies are focusing on reducing the weight of their vehicles to reduce emissions and improve efficiency, which has led them towards high use of plastic compounding products. Thus, growing demand for lightweight automotive components is slated to bolster the global plastic compounding market outlook across the forecast period and beyond.
Plastic Compounding Market Restraints
Fluctuations in Raw Material Pricing
- Plastic compounding is highly dependent on different types of raw materials with most coming from the petrochemical industry. The raw material prices are subject to economic conditions, trade bans, supply chain disruptions, and other factors thereby making it difficult for plastic compounding companies to maintain pricing and profits for their products.
Imposition of Strict Regulations Regarding Plastic
- As emphasis on sustainability increases, the regulations regarding plastic usage are becoming more and more stringent and complex. This has led to plastic compounding companies needing to spend more to comply with these regulations, which in turn is projected to slow down the overall plastic compounding market growth potential in the future.
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Plastic Compounding Market Competitive Landscape
Plastic compounding manufacturers should focus on investing in the research and development of products that are compliant with the changing regulatory landscape. Creating sustainable and easily recyclable plastic compounds will also emerge as a key opportunity for all plastic compounding providers in the future. Targeting the automotive and electronics industries will offer good returns for plastic compounding companies in the long run.
Top Player’s Company Profiles
- BASF SE
- LyondellBasell Industries N.V.
- Dow Inc.
- SABIC
- DuPont
- Covestro AG
- Solvay S.A.
- Lanxess AG
- Celanese Corporation
- RTP Company
- PolyOne Corporation
- A. Schulman, Inc.
- Clariant AG
- Mitsubishi Chemical Corporation
- Asahi Kasei Corporation
- Teijin Limited
- Toray Industries, Inc.
- LG Chem Ltd.
- Sumitomo Chemical Co., Ltd.
- SABIC Innovative Plastics
Recent Developments
- In May 2024, EcoCortec® announced the launch of compounding operations for VpCI® polymers and bio-resins. The company is a subsidiary of Cortec® Corporation and launched its operations at the Beli Manastir plant in Croatia. The new facility will help EcoCortec shorten lead times to improve customer experience and promote sustainability as well.
- In December 2023, Sirmax Group, a leading provider of polypropylene compounds and other plastic products from Italy announced the start of construction of its new compounding facility in India. The new facility is being built in Tamil Nadu and is expected to be completed and operational in 2026 as Srimax expands its operations in India.
- In July 2023, Polyplastics, a leading provider of engineered plastics from Japan announced the launch of its re-compounding service for engineered plastics. The launch was part of the company’s DURACIRCLE® initiative to promote sustainability in the business and achieve the goal of a 100% recycling rate for their plastics.
Plastic Compounding Key Market Trends
- Bio-based Plastic Development: Almost all plastic compounding companies are projected to focus on the development of bio-based plastic compounding products. As emphasis on sustainability increases and regulations get stricter for the use of conventional plastic compounds, this plastic compounding market trend is projected to help companies stay relevant in the long term and offer new business scope as well.
- Integration of Nanotechnology: Plastic compounding manufacturers should explore the use of nanotechnology in their operations to create novel plastic compounds that have better performance properties such as strength, thermal resistance, and barrier qualities. This trend will help plastic compounding companies maximize their sales in industry verticals such as aerospace, electronics, and automotive in the long run.
Plastic Compounding Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, high use of plastic compounding in automotive applications and growing demand for plastic compounds in different industry verticals are expected to drive plastic compounding market growth. However, fluctuations in raw material pricing and the imposition of strict regulations regarding use of plastic are slated to be key constraints for plastic compounding companies going forward. The Asia Pacific region is slated to spearhead plastic compounding demand outlook owing to the high use of plastic compounds in automotive and consumer electronics manufacturing. Use of nanotechnology and development of bio-based plastic compounds are slated to provide lucrative opportunities for plastic compounding companies in the long run.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 63.45 billion |
| Market size value in 2031 | USD 118.63 billion |
| Growth Rate | 7.2% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Plastic Compounding Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Plastic Compounding Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Plastic Compounding Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Plastic Compounding Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Plastic Compounding Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Plastic Compounding Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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