Plastic Additives Market Dynamics: Impact of Technological Advancements on Market Growth
The plastic additives market is estimated to be valued at US$ 45.94 Bn in 2023 and is expected to exhibit a CAGR of 5.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Plastic additives are used to enhance the properties of plastics such as durability, heat resistance and colour stability. They provide benefits such as protection from UV radiation, prevention of microbial degradation and improvement of impact strength. Plastic additives are essential to meet various technical requirements of plastic products used across industries such as building and construction, automotive, electronics and healthcare.
Market key trends:
The plastic additives market is expected to witness high growth owing to increasing adoption of bio-based plastic additives. Bio-based plastic additives are manufactured using renewable plant-based resources and provide sustainability benefits over conventional plasticizers. They help reduce dependency on petroleum-based plasticizers. Moreover, stringent regulatory norms pertaining to use of phthalate plasticizers is further driving demand for safer bio-based alternatives. Leading players are investing in R&D activities to develop innovative bio-based plastic additives solutions to capitalize on rising consumer preference for green chemicals.
Porter’s Analysis
- Threat of new entrants: The plastic additives market has moderate barriers of entry. Established players have economies of scale and strong brands but requirements for R&D innovation can attract new players.
- Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes and differentiated product offerings from suppliers.
- Bargaining power of suppliers: Suppliers have moderate bargaining power since raw materials can be sourced from various locations and transportation costs are low.
- Threat of new substitutes: Threat from substitutes is moderate as plastics are widely used in different industries and alternatives are evolving.
- Competitive rivalry: Intense rivalry exists between key players to gain market share through innovations.
SWOT Analysis
- Strengths: BASF SE and Evonik Industries AG are market leaders with global presence and innovation capabilities.
- Weaknesses: Regulations on phthalates can impact some players. High R&D costs are barriers for small companies.
- Opportunities: Rising automotive, construction sectors increase demand for plasticizers and fillers.
- Threats: Stringent environmental norms and substitution threaten demand for certain additives.
Key Takeaways
The global Plastic Additives Market is expected to witness high growth, exhibiting CAGR of 5.6% over the forecast period, due to increasing use of plastics in automotive and construction industries. Asia Pacific dominates the market currently due to high consumption in China, India etc.
Regional analysis fastest growing region is Asia Pacific due to rising manufacturing activities, building & construction industries and increasing per capita plastic consumption in China and India. The growing automotive manufacturing in China, India and ASEAN countries is also driving the plastic additives demand.
Key players operating in the plastic additives market are BASF SE, Songwon Industrial Co., Ltd., Clariant AG, and Evonik Industries AG. BASF SE and Evonik Industries AG have leading positions due global presence and wide product portfolios. Songwon Industrial Co., Ltd. and Clariant AG are also prominently positioned catering to plastic additives demand.
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