Purging compounds are types of polymeric materials that are used in the process of purging or cleaning out the residues and remainders of one plastic grade from the barrel, screw and downstream components, prior to a changeover to a different plastic grade or color. Purging compounds help in removing contaminants, residues, moisture and other residues to prepare the plastic machinery for a quick, efficient and contamination-free product changeover. They aid in effectively eliminating grade-to-grade contamination that results due to mixing of incompatible resins during product changeovers.
The global purging compound market is estimated to be valued at US$ 596.5 Mn 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 Opportunity:
The need for frequent color, additive and resin changing in plastic processing industries has been a key factor driving the demand for purging compounds. With increasing plastic production volumes and growing consumer demand for various customized plastic products available in different colors and materials, plastic manufacturers are under constant pressure to optimize production changeovers and reduce downtimes. Purging compounds help in quick transition between materials during changeovers thereby minimizing production losses. Their ability to streamline plastic production processes by facilitating seamless grade changes in lesser time and with minimal material wastage and quality issues offers immense growth potential for purging compound manufacturers. Innovation in product formulations to further enhance purging efficiency and compatibility with novel plastics is expected to present significant lucrative opportunities.
Porter's Analysis
Threat of new entrants: Low capital requirements and established suppliers lower the barriers for new companies to enter the purging compound market. However, existing players have strong brand names and supply contracts that deter new entrants.
Bargaining power of buyers: Large auto manufacturers and molders have significant buyer power to negotiate pricing with purging compound suppliers. Substitute products also provide options to buyers.
Bargaining power of suppliers: The purging compound market has few global players controlling majority of market share, giving them stronger negotiating power over OEMs and molders.
Threat of new substitutes: New materials like engineering plastics and aluminum pose a substitutes threat, but purging compounds have advantages in removing impurities efficiently during switchovers.
Competitive rivalry: Major players compete on product innovations, applications support, and economies of scale. Smaller firms target niche applications.
SWOT Analysis
Strengths: Purging compounds help improve product quality and reduce cleaning costs. Demand Driven by growing polymer and plastics industries.
Weaknesses: High price volatility of raw materials increases production costs. Regulations on hazardous purging compound compositions.
Opportunities: Development of bio-based and non-toxic purging solutions opens new application areas and markets.
Threats: Slowdowns in the automotive and construction industries affect downstream demand. Use of substitute cleaning methods.
Key Takeaways
The global purging compound market is expected to witness high growth driven by increasing polymer consumption worldwide.
The Asia Pacific region is expected remain the fastest growing market during the forecast period supported by rising polymer production volumes in China, India, Southeast Asia. China accounts for over 50% of global polymer production and consumption and also dominates the regional purging compound market.
Key players operating in the purging compound market are Asahi Kasei Corporation, Clariant A.G., CALSAK Corporation, Daicel Corporation, DowDuPont Inc., Formosa Plastics Corporation, Kuraray Co., Ltd., Chem-Trend L.P., Polyplast Muller GmbH, and Claude Bamberger Molding Compounds Corporation. Major players are focusing on new product development, partnerships and mergers to enhance production capabilities and market share.
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