Impact of COVID-19 on the Plastisols Market: Current Scenario and Future Implications

Impact of COVID-19 on the Plastisols Market: Current Scenario and Future Implications

The plastisols market is characterized by various applications in automotive, wire & cable, leather, textile & fabrics and various other industrial applications. Plastisols provide excellent bonding properties and offer resistance to moisture, which makes them suitable for applications in automotive under-hood components and other interior and exterior parts. Growing automotive production globally is estimated to drive the demand for plastisols over the forecast period.

The Global plastisols market is estimated to be valued at US$ 18.74 Bn in 2024 and is expected to exhibit a CAGR of 7.2% over the forecast period 2023 to 2030.

Key Takeaways

Key players operating in the plastisols market are 3M, Dow, KONISHI CHEMICAL INC CO., LTD., H.B. Fuller Company., Henkel Adhesives Technologies India Private Limited, CHEMENCE, Illinois Tool Works Inc., ITW Polymers Sealants North America, HERNON MANUFACTURING INC., FUJIFILM Corporation, Avient Corporation, US Plastic Coatings, hubergroup India Pvt. Ltd., International Coatings, Chemionics Corporation, Polyblend, HUTCHINSON, Hodgson Sealants., Lancer Group International, and Carlisle Plastics Company, among others. The growing demand from automotive industry globally is pushing the demand for plastisols. Furthermore, technological advancements in plastisol formulations to improve properties such as flexibility, durability and printability are supporting the market growth.

Market trends

Plastisols are increasingly being used in automotive under-the-hood components owing to their exceptional heat resistance. Growing electric vehicle market is also promoting the use of plastisols in vehicle battery packs and other components. Another key trend is the development of bio-based plastisols formulations using renewable resources such as soy and other plant-based polymers. These are environment friendly alternatives to conventional plastisol formulations.

Market Opportunities

Increasing penetration of electric vehicles worldwide presents significant growth opportunities for plastisols in battery pack coating and gasketing applications. Advanced plastisol formulations that can provide high levels of electromagnetic shielding at lower thickness are another growth opportunity. Growing 3D printing industry adoption of plastisol-based materials for prototyping and production applications also offer new revenue streams.

Impact of COVID-19 on Plastisols Market

The COVID-19 pandemic significantly impacted the plastisols market. Lockdowns and restrictions imposed to curb the spread of the virus led to temporary closure of production facilities. This disrupted supply chains and decreased demand from end-use industries such as construction, automotive, and textiles. In the initial months of 2020, the plastisols market contracted by over 15% in terms of value as compared to the pre-pandemic levels.
However, with the easing of lockdowns from mid-2020, the market started recovering gradually. Increased consumption of essential goods boosted demand from the packaging industry. Moreover, governments announced stimulus packages to revive economies which augured well for the construction industry. This fuelled consumption of plastisols in coatings and sealants applications. By late 2021, the market inched back to the pre-COVID levels and is projected to grow at a healthy pace through 2023-2030. Efforts to resume operations while ensuring safety and technology upgrades to address supply chain issues are crucial for stakeholders in the post-COVID period.

Geographical regions with concentrated Plastisols market in terms of value

The North American region holds over 35% share of the global plastisols market in terms of value. The United States leads consumption owing to sizeable automotive, construction, and industrial manufacturing industries. The European market accounts for around 30% share led by Germany, France, and the United Kingdom. The Asia Pacific region demonstrates high growth potential for plastisols consumption driven by China, India, and Southeast Asian countries experiencing rapid industrialization and infrastructure development.

Fastest growing region for Plastisols Market

The Asia Pacific region is poised to be the fastest growing market for plastisols during the forecast period of 2023-2030. This can be attributed to recovering economies, growing population, rising disposable incomes, and increasing investment in end-use sectors across developing nations. China and India specifically are anticipated to drive the market in the region supported by government initiatives to modernize industries, expand building and construction activities, and boost domestic manufacturing.