Europe Plastic Additives Market Size, Share & Trends Analysis Report By Function (Plasticizers, Flame Retardants, Impact Modifiers, Antioxidants), By Plastic Type, By Application, By Region, And Segment Forecasts, 2023 - 2030

Market Size & Trends

The Europe plastic additives market size was valued at USD 16.62 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 5.4% from 2023 to 2030. Plastic additives are increasingly utilized for varied functions including plasticizers, flame retardants, impact modifiers, antioxidants, antimicrobials, UV Stabilizers, color addition, and other processing aids in industrial applications such as packaging, consumer goods, building & construction, automotive, medical, electrical & electronics, and others.

Based on plastic type, the commodity plastics product segment dominated the plastic additives market in Europe in 2022 by accounting for a share of over 42.0% in terms of revenue. The increasing penetration of commodity plastics into consumer durables, packaging products, and medical applications is expected to be a significant driver for the growth of this segment over the forecast period.

Rising industrial output and increased economic activity in emerging economies of the UK, Germany, and France are expected to drive the European industry over the forecast period. Regulatory bodies such as the European Commission (EU) amended acts such as the Restriction of Hazardous Substances (RoHS) to regulate and control plasticizers, flame retardants, and other additives owing to adverse effects on human health and the environment.

Germany is a leading producer of passenger cars among all the member countries of the European Union. The German automotive industry accounts for over 28% of the European automotive market share. This factor is expected to contribute to the growth of the plastic additives market over the forecast period.

The growth of plastic additives can be attributed to their considerable consumption in the automotive industry and other sectors including construction and electronics. The maintenance, repair, and overhaul (MRO) industry is considered to be a major driving factor for the Germany plastic additives market.

The personal care packaging industry in Germany is expanding with the increased consumption of youth-oriented, floral, and exotic fragrances and celebrity-advertised perfumes. Paper recycling technologies and R&D initiatives to develop superior packaging products are expected to offer ample opportunities to market participants over the forecast period.

The adoption of new manufacturing technologies to offer superior quality and high-performance plastics for manufacturing durable and safe medical devices is expected to boost the consumption of plastic additives in the medical device industry over the forecast period. In addition, decreased fertility rates are expected to fuel the demand for medical devices in the country.

The growing geriatric population in the country is prone to various chronic diseases and requires constant medication. As a result, the demand for various medical equipment such as medical bags, disposables, catheters, medical containers, and testing equipment is expected to increase, in turn, having a positive impact on the plastic additives market over the forecast period.

Function Insights

Based on function, the Europe plastic additives market has been segmented into plasticizers, flame retardants, impact modifiers, antioxidants, antimicrobials, UV stabilizers, color addition, and others. Plasticizers led in 2022, accounting for over 46.0% of the revenue share.

Plasticizers are low molecular weight substances that are added to a plastic solution to promote its flexibility and plasticity. Plasticizers are the most common additives used in the plastic industry. Plasticizers are available as colorless and non-volatile liquids. They increase the thermoplasticity and fluidity of a polymer by reducing the polymer melt viscosity, glass transition temperature, elastic modulus, and melting temperature of the finished product without changing the basic chemical properties of the plasticized material.

After plasticizers, flame retardants held the maximum revenue share of over 11% in 2022. Flame retardant plastics are in high demand due to their growing use in applications including packaging, consumer products, construction, automotive, medical, and electrical & electronics. Rising demand for flame retardants from various applications such as medical and electrical & electronics, based on the growing demand for thermoplastics to reduce carbon emissions and increased investment in R&D, is expected to drive the segment.

The ability of a flame-retardant plastic to stop little sparks from igniting into large flames is a crucial advantage in product design. Electronic products have a potential ignition source created by critical components such as printed circuit boards, transformers, connectors, and batteries. Flame-retardant plastic helps to reduce the risk of fire to confirm that manufacturers comply with fire safety standards.

Application Type Insights

The packaging application segment led the market and accounted for more than 21.0% share of the global revenue in 2022. Packaging is essential and it is used extensively in various end-use industries. Packaging is available in various forms including flexible packaging, glass packaging, metal packaging, rigid plastic packaging, and paper container packaging.

The usage of plastic additives in packaging gives protection to the packed products against microbes, increases product shelf life, and enhances aesthetic value. The growth of the packaging industry is driven by the rising demand for personal care & packed food products, which, in turn, is anticipated to increase the consumption of plastic additives in packaging products.

Building & construction is the second dominating segment accounting for a revenue share of over 18% in 2022. The building & construction industry is growing owing to increasing urbanization, population, and infrastructural development plans. Moreover, rapid growth in public infrastructure, hospitals, schools, government accommodation, defense infrastructure, and airport expansion is further strengthening the construction industry in Europe.

The increasing trend of green construction projects along with the increasing use of modular & prefabricated construction, mainly in developed economies, is expected to drive the demand for plastic additives over the forecast period.

Plastic Type Insights

The commodity plastics product segment dominated the plastic additives market in Europe in 2022, accounting for a revenue share of over 42.0%. This trend is expected to continue over the forecast period as well and this segment is projected to account for a revenue share of over 43% in 2030. The engineering plastics product segment accounted for a revenue share of 24.37% in 2022 and is estimated to hold a revenue share of 24.11% in 2030.

The increasing penetration of commodity plastics into consumer durables, packaging products, and medical applications is expected to be a significant driver for the growth of this segment over the forecast period. Commercial plastics are widely used for mass-producing disposable products such as drinking water bottles or packaging films.

However, these plastics can also be used in various other industries such as electrical & electronics, construction, and automotive. Surging demand for commercial plastics in consumer durables, such as weatherproof clothes, food packaging materials, containers, disposable tableware, personal care products, beverage bottles, and pharmaceutical products is expected to drive the growth commodity plastics segment.

Engineering plastics have better mechanical and thermal properties than commodity plastics. There are five types of engineering plastics, namely, polyphenol, polyester, polyoxymethylene, polyamide, and polycarbonate available in the market. The engineering plastics segment is projected to grow at the highest CAGR over the forecast period in terms of revenue.

The growth of this segment can be attributed to the increasing adoption of engineering plastics as a replacement for traditional plastics and other materials in several end-use industries such as automotive, medical, packaging, and consumer goods owing to their easy processability, improved thermal stability, and superior mechanical, thermal, chemical, and electrical properties.

Regional Insights

Germany was the largest market with over 19.0% share in 2022, which is anticipated to lose some share to other emerging nations in the region. France is anticipated to emerge as the fastest-growing country with a CAGR of 6.4% over the forecast period. The region is one of the leading manufacturers of automobiles and is expected to continue its dominance over the forecast period.

The region has a presence of major automobile manufacturers including AUDI AG, BMW AG, Mercedes-Benz AG, JAGUAR LAND ROVER LIMITED, ASTON MARTIN, Volkswagen, Volvo Car Corporation, FCA Italy S.p.A., Ferrari S.p.A., Automobile Lamborghini S.p.A., and Porsche Austria GmbH & Co. Rising demand for electric and hybrid vehicles and the presence these automobile manufacturers are projected to result in the expansion of automotive industry and also drive the demand for plastic additives over the forecast period.

The European Commission has been encouraging FDI from Asian automobile manufacturers such as Honda and Toyota on account of electric vehicle technology, which has been further contributing to the industry’s growth. This is also expected to increase the consumption of plastic additives in the automobile end-use industry over the forecast period.

Key Companies & Market Share Insights

The companies compete based on product quality offered and technology used for the production of plastic additives. Major players are involved in the expansion of their manufacturing facilities, infrastructural development, investing in R&D facilities, and seeking opportunities to vertically integrate across the value chain.

These initiatives help them cater to the increasing global demand, ensure competitive effectiveness, enhance their sales & operations planning, develop innovative products & technologies, bring down their production costs, and expand their customer base. For instance, in March 2022, BASF SE, one of the leading manufacturers, suppliers, and innovation partners of plastic additives, is planning to increase the production capacity for its hindered amine light stabilizers (HALS) in its Italy and Germany manufacturing facility.

In May 2022, Safic-Alcan SAS, one of the leading distribution companies of specialty chemicals, acquired 100% of European Additives GmbH, Inc., a German chemical distributor specializing in plastic additives across Europe. The market is found to be significantly fragmented in nature owing to the presence of a large number of manufacturers across the globe. Some prominent companies in the Europe plastic additives market include:

• BASF SE

• LyondellBasell Industries Holdings B.V.

• NanoBioMatters Industries S.L.

• Evonik Industries AG

• Solvay S.A.

• Avient Corporation

• Milliken & Company

• Dow Inc.

• LANXESS

• KANEKA CORPORATION

• Avi Additives

• Biesterfeld AG

• SONGWON

• FRILVAM S.P.A.

• Nouryon

• Gabriel-Chemie

• RIFRA MASTERBATCHES S.p.A.

• Eigenmann & Veronelli S.p.A.

• SABIC

• Clariant AG

• ADEKA CORPORATION

Europe Plastic Additives Market Report Scope

Europe Plastic Additives Market Report Segmentation

This report forecasts revenue and volume growth at regional & country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2019 to 2030. For this study, Grand View Research has segmented the Europe plastic additives market report based on function, plastic type, application, and region:

• Function Outlook (Volume, Kilotons; Revenue, USD Billion, 2019 - 2030)

  • Plasticizers

  • Flame Retardants

  • Impact Modifiers

  • Antioxidants

  • Antimicrobials

  • UV Stabilizers

  • Color Addition

  • Others

• Plastic Type Outlook (Volume, Kilotons; Revenue, USD Billion, 2019 - 2030)

  • Commodity Plastic

  • Engineering Plastic

  • High-Performance Plastic

• Application Outlook (Volume, Kilotons; Revenue, USD Billion, 2019 - 2030)

  • Packaging

  • Consumer Goods

  • Building & Construction

  • Automotive

  • Medical

  • Electrical & Electronics

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Billion, 2019 - 2030)

  • Europe

    • Germany

    • UK

    • France

    • Italy