Additive Masterbatch Market size is projected to record significant growth during the forecast period of 2023-2032. There is a rising demand for high-performance plastics across a wide range of end-user sectors, including consumer goods, construction & building, automotive, packaging, and others. The trend of urbanization has also picked up pace, leading to a robust increase in the production of various construction and building materials, including additive masterbatches. As per estimates by the UK Office for National Statistics (ONS), in October 2022, the nation’s total construction output was 4.8% above the pre-COVID-19 pandemic level figures recorded in February 2020.
Additive masterbatches are also widely used in the manufacturing of packaging films that are in line with industrial requirements and prescribed packaging standards. The packaging sector is expanding at a notable pace due to the growing product usage in prominent sectors, including food. The requirement for efficient packaging materials is increasing across the globe as well, thereby boosting the possibility of new product launches. For example, in November 2022, Bobst unveiled the Generation 3.0 oneBarrier PrimeCycle solutions to promote the concept of sustainable packaging. Such developments are expected to enhance the additive masterbatch market forecast over the coming years.
Also, various governments are laying down stringent regulations and laws to decrease plastic waste and advance efforts towards recycling and reusing plastic products. For instance, in February 2022, India’s Ministry of Environment, Forest and Climate Change announced new rules regarding the management of single-use plastics. This included mandates for importers, producers, and brands to recycle up to 50% of plastic products utilized or manufactured by them over a three-year period, further improving the adoption of materials such as additive masterbatches.
The recent cost-of-living crisis has negatively impacted additive masterbatch industry progress, with the prices of raw materials, including plastics, increasing steadily. This has compelled manufacturers to reduce their production capacity and find various alternatives to these products. The growing demand for sustainable packaging solutions may also adversely affect the adoption of additive masterbatches.
Based on application, global additive masterbatch market value from the electrical & electronics segment is anticipated to record a considerable increase by 2032. Plastics are among the most important components used to manufacture a vast range of electronic & electrical products. End-users across the sector are demanding lightweight, aesthetically pleasing, and strong packaging materials for electrical and electronic items, thereby influencing additive masterbatch industry dynamics.
In terms of type, white masterbatches are expected to account for a major industry outlook during the forecast timeline. These products are high-quality pigments used on plastics. White masterbatches are generally used in applications such as protective films, lamination, molding, coating, and many others. Some of the advantages of using white masterbatches include the ability to maintain the chemical stability of pigments, easy operability, eco-friendliness, ease in consolidation, high suitability for food items, and robust dispersion. Novel product launches are also likely to fuel the product usage. For example, Israeli firm Tosaf created a new series of white masterbatches, to act as an alternative to the traditional products that consist of titanium dioxide and make them safe for human use.
North America additive masterbatch market is estimated to witness a robust increase in its revenue during the forecast timeframe as plastics are being increasingly used in many end-user industries including packaging and construction. According to the Construction Association, the U.S. construction sector creates structures worth nearly $1.4 trillion every year. The rapid expansion of the construction sector will thus augment the usage of additive masterbatches across the North American region.
Leading companies operating in the additive masterbatch market include Clariant AG, O'neil Color & Compounding (Primex Plastics Corporation), Tosaf Group (Ravago S.A., Megides Holdings Ltd), Ampacet Corporation, DOW Corning Corporation (Dow, Dow Global Technologies Inc, Dow Holdings LLC), and many others.