Additive masterbatch market size is poised to expand considerably through 2028 owing to the growing demand for high performance plastic across diverse end-user industries such as construction and building, consumer goods, packaging, automotive, and other sectors. The rising trend of urbanization has led to a prolific demand for construction and building materials, supporting the expansion of additive masterbatch business. As per estimates, the level of construction output across the UK was 2.8% as of October 2021.
The product is also used in the production of packaging films to comply with industrial requirements and prescribed packaging standard specifications. Besides, a robust surge in the packaging industry and elevating demand for efficient packaging materials worldwide is further likely to bolster the market demand over the forecast period of 2022-2028.
Various governments are implementing stringent regulations to reduce plastic waste and also promote the recycling and reusing of plastic. For instance, the Environment Ministry, India announced government regulations for plastic recycling. The Ministry issued draft rules that dictate plastic packaging material producers to collect all of their produce by 2024 end, in an attempt to ensure a minimum percentage of it. Additive masterbatch is used for imparting functional attributes to re-cycled plastic.
In terms of the application, electrical and electronics segment will record significant traction over the foreseeable time frame. Plastics play a vital role in the production of electrical and electronic products and boasts of various uses in the industry. The demand for lightweight, strong, and aesthetically beautiful packaging material in electrical and electronic products is dramatically elevating, influencing the growth curve of additive masterbatch market over the ensuing years.
Based on the type, white masterbatches are gaining considerable growth worldwide. The product is the high quality pigment used on plastics. White masterbatch can be generally used for lamination, protective films, coating, molding, and more. Potential advantages offered by white masterbatches include easy operability, ability to maintain the chemical stability of pigments, eco-friendly, high suitability for food items, and can be easily consolidated and boast of robust dispersion.
Regionally, the growth in North America additive masterbatch market is projected to come from the expanding demand for plastics across several end-user industries including construction, packaging, and others through 2028. Growth in the construction industry in the United States and Canada would augment the demand for additive masterbatches in the coming years. As per the Construction Association, construction industry in the United States generates nearly $1.4 trillion worth of structures every year.
Prominent players operating in the global additive masterbatch industry are Ampacet Corporation, Clariant AG, Tosaf Group (Ravago S.A., Megides Holdings Ltd), DOW Corning Corporation (Dow, Dow Global Technologies Inc, Dow Holdings LLC), O'neil Color & Compounding (Primex Plastics Corporation), and others.
These market vendors are introducing novel products in the space in an attempt to solidify their position in the global industry. For instance, Ampacet recently launched two new additions to its expanded line of anti-scratch additives masterbatches for PET. The new line is expected to minimize the appearance of scratches and scuffs in bottles, preforms, and range of PET packaging.
The daunting coronavirus pandemic has had a debilitating impact on the global sales of additive masterbatch market. This can be reasoned to the decline in construction and building industries and automotive industry due to the stringent movement restrictions imposed by various governments. Besides, disruptions in raw material prices and chemicals have further challenged the market growth.