Plastic Compounds Market Size, Share & Trends Analysis Report By Resin (PP, PE), By Technology (Injection Molding, Extrusion), By Filler (Unfilled, Calcium Carbonate-filled), By End Use, By Region, And Segment Forecasts, 2021 - 2028

Report Overview

The plastic compounds market size was valued at USD 66.74 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 5.1% from 2021 to 2028. Increasing demand from the automotive industry is anticipated to significantly drive the market growth during the forecast period. The use of compounded plastic products in automotive applications helps reduce fuel consumption on account of their lightweight.

Increasing awareness regarding consumer safety and health hazards in various industries, such as automotive, healthcare, and others is expected to drive the global demand for plastics over the forecast period. In the automotive industry, compounded plastics find application in under-the-hood components, structural parts, electrical components & lighting, and others.

The product application in the automotive industry is driven by the demand for safe, lightweight, and inexpensive multi-utility vehicles with high fuel efficiency and better comfort & esthetics. Currently, on average, plastics account for 10 to 15% of the total curb weight of a car.

The food & beverage industry involves the use of plastics primarily for the production of containers, bottles, and other plastic packaging containers. Product demand in food packaging is driven by the need for food safety. Perishable and sterile foods require hygiene systems and contamination protection from different types of microorganisms, such as bacteria, wherein plastic compounds play an important role.

Ascending demand for hot and cold beverages is likely to fuel the growth of plastic compounds as plastic compounded products are widely utilized for imparting useful properties to various types of plastics, such as PS, PP, and PET. Plastics are increasingly being used in the packaging of Ready-to-Eat (RTE) foods as the desired features are imparted by plastic compounds with the addition of different types of fillers and additives. These trends are expected to positively impact the demand for plastic compounds in the food & beverage packaging application over the forecast period.

However, the outbreak of COVID-19 negatively impacted the product demand in various applications including automotive, building & construction, appliances, and others owing to the stalled manufacturing activities, restrictions in supply & transportation, and economic slowdown across the globe in 2020. However, the recommencing industrial operation is projected to positively influence the product demand in the coming years.

Resin Insights

The Polypropylene (PP) resin segment led the market and accounted for more than 27% of the overall revenue share in 2020 and is estimated to grow at the fastest CAGR over the forecast period. Polypropylene can be processed using any of the thermoplastic processing methods, such as injection molding, extrusion blow molding, and general-purpose extrusion. It provides good fatigue, chemical, and temperature resistance.

This has made it a popular material in several industries of developed and emerging economies. Automotive has been the largest application segment for PP compounds owing to their high impact resistance and serviceability. Rising automotive manufacturing on account of high demand for Electric Vehicles (EVs), which require lightweight and durable plastic products to enhance vehicle efficiency, is driving the product demand. However, polypropylene is vulnerable to oxidative degradation upon contact with copper and certain other materials.

Technology Insights

The extrusion segment led the market and accounted for the largest revenue share of more than 34% in 2020.Extrusion is a continuous process of converting solid plastic compound pellets, granules, or powders into melted form and further reconstituting them as finished products. Plastic materials are loaded into a hopper and then fed into a long-heated extruder. It is further moved by a continuously revolving screw.

The plastic compounds are melted by the extruder wall heat and the mechanical work of the screw. Furthermore, the molten plastic compounds are forced through a die, which shapes them into the desired end products. The extruded plastic product is fed onto a conveyor belt or rollers for cooling. This process is used to manufacture straws, hoses, pipes, and window frames, among others.

Rising demand for injection molded compounded products from the automotive, packaging, and healthcare applications are fueling the segment growth. Injection molding is a discontinuous process as the plastic parts are produced in molds and are required to be cooled before being removed. This process requires an injection molding machine, a mold, and plastic materials. The molten plastic is injected into the mold cavity and then cooled to create the final product.

Filler Insights

The calcium carbonate-filled fillers segment led the market and accounted for the largest revenue share of more than 24% in 2020.Polyethylene and polypropylene compounds are commonly used with calcium carbonate-filled fillers for manufacturing furniture and packaging solutions. The use of calcium carbonate-filled fillers is 100% FDA approved, which makes it suitable for use in packaging solutions for processed food, food delivery packaging, and medical & pharmaceutical packaging.

In addition, calcium carbonate fillers can reduce the amount of resin required for producing components by 40%, which possesses an economic advantage for use of calcium carbonate fillers. Moreover, amid the global pandemic, the demand for packed and processed food has increased owing to work-from-home norms, which is driving the demand for calcium carbonate fillers. Plastic compounds with unfilled fillers are used to produce bean bags, pillows, and 3D design of construction projects.

End-use Insights

The automotive end-use segment led the market and accounted for the largest revenue share of 24% in 2020.PP and PBT compounds are widely used in various automotive applications, such as exterior body parts, ignition, front grilles, and others. The wide application scope of these materials can be attributed to their properties, such as low thermal expansion, high stiffness, lightweight, and impact resistance in low temperatures.

Several grades of PP and PBT compounds have been developed over the past years to meet diverse performance requirements. Growing demand for sustainable materials in the automotive segment has been a major factor driving the demand for lightweight plastics. In addition, the implementation of emission norms and vehicle weight regulations in the automotive industry owing to the rising Greenhouse Gas (GHG) emissions is anticipated to propel the product demand over the forecast period.

Regional Insights

Asia Pacific dominated the global market and accounted for the largest revenue share of over 47.0% in 2020 and is estimated to grow further at the fastest CAGR from 2021 to 2028. Growing manufacturing output, booming e-commerce market, and favorable demographics in the region will drive the market over the forecast years.

Favorable economic and manufacturing initiatives by the governments in Asia Pacific are boosting the market growth. Government investments in six Asian countries (China, Thailand, Indonesia, India, Vietnam, and Malaysia) for developing the manufacturing industry and improving infrastructure& supply chain facilities are expected to drive the regional market growth.

Increasing demand for consumer goods, such as refrigerators and washing machines, in countries, such as India, Vietnam, Philippines, China, and Thailand, is expected to fuel the demand for plastic compounds in these applications. Growing demand for automobiles in the region coupled with favorable FDI norms by various governments encouraging the usage of Electric Vehicles (EVs) is further projected to facilitate investment in Asia Pacific. In addition, low manufacturing costs in China and India as compared to Europe are expected to propel the use of plastic compounds in the automotive end-use sector.

Key Companies & Market Share Insights

The global market is fragmented due to the presence of several global players and a few medium- and small-sized regional players. The companies in the market compete on the basis of product quality offered and technology used for the production of plastic polymers. Major players, in particular, compete on the basis of application development capabilities and new technologies used in product formulation.

In addition, the global market has witnessed capacity expansion in past few years. For instance, in May 2019, BASF SE initiated operations of the expanded compounding plant in Altamira, Mexico. This plant has a production capacity of 15,000 tons per year for its existing products, such as Ultradur and Ultramid. This initiative helped the company expand its market in Mexico. Some of the prominent players in the global plastic compounds market include:

• Adell Plastics

• Asahi Kasei Corp.

• BASF SE

• Chevron Phillips Chemical Company LLC

• China XD Plastics Co., Ltd.

• Covestro AG

• Dow Inc.

• DuPont

• Qingdao Gon Science & Technology Co., Ltd.

• Foster Corp.

Plastic Compounds Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global and regional levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2028. For the purpose of this study, Grand View Research has segmented the global plastic compounds market report on the basis of resin, technology, filler, end use, and region:

• Resin Outlook (Volume, Kilotons; Revenue, USD Million, 2017 - 2028)

  • Polypropylene (PP)

  • Polyethylene (PE)

  •  Thermoplastic elastomers (TPE)

    • Thermoplastic Styrenic Elastomers

      • Saturated

      • Unsaturated

    • Thermoplastic polyolefins

    • Thermoplastic vulcanizates

  • Polystyrene (PS)

  • Polybutylene terephthalate (PBT)

  • Polyamide (PA)

  • Polycarbonates (PC)

  • Acrylonitrile Butadiene Styrene (ABS)

  • Bioplastic

  • Acrylonitrile styrene acrylate (ASA)

  • Styrene Acrylonitrile (SAN)

  • Polymethyl methacrylate (PMMA)

  • Polyoxymethylene (POM)

  • Blends (PC/ABS, ABS/PBT, PS/PP)

• Technology Outlook (Volume, Kilotons; Revenue, USD Million, 2017 - 2028)

  • Injection Molding

  • Extrusion

  • Blow Molding

  • Others

• Filler Outlook (Volume, Kilotons; Revenue, USD Million, 2017 - 2028)

  • Unfilled

  • Calcium Carbonate Filled

  • Talcum Filled

  • Glass Fiber Reinforced

  • Long Glass Fiber Filled

  • Flame Retardant

  • Carbon Fiber Reinforced

• End-use Outlook (Volume, Kilotons; Revenue, USD Million, 2017 - 2028)

  • Automotive

  • Appliances

  • Electrical, Electronics & Electrotechnical

  • Building & Construction

  • Furniture

  • Power Tools

  • Packaging

  • Agriculture

  • Sport & Leisure

  • Healthcare

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2017 - 2028)

  • North America

  • Europe

  • Asia Pacific

  • Central & South America

  • Middle East & Africa