Masterbatch Market

The masterbatch market size was USD 12.9 billion in 2023 and is projected to reach USD 16.8 billion by 2028, at a CAGR of 5.4% during the forecast period. The types of masterbatches are color, additive, black, white, and filler, and are used in polymers such as HDPE, PVC, PET, PP, LDPE & LLDPE, PS, and PUR. The major applications considered of masterbatch are building & construction, automotive, consumer goods, packaging, textile, and agriculture. The stringent regulations by the government against the use of hazardous products can act as a challenge for the players in the masterbatch market. However, the use of new and innovative technologies to reduce the impact of environmental hazards can provide growth opportunities for the manufacturing players of the masterbatch market. Although the non-biodegradability of plastics is affecting the market, the growth in emerging economies is expected to provide immense opportunities to manufacturers of masterbatch.

Masterbatch Market Size, Dynamics & Ecosystem

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Market Dynamics

Driver: Replacement of metals with plastics in automotive applications

In the past five years, although the growth of the automotive industry in this region has remained steady, there has been a significant increase in the use of lightweight materials for the production of vehicles. The increase in the consumption of plastics in automotive applications positively influences the growth of the masterbatch market. Masterbatches, especially color and additive, are widely used in coloring automotive plastics for use in the interior and exterior components of vehicles.

Restraints: Longer lead time and need for exposure to heat

Masterbatch pellets are manufactured using resins that are different to the resins used in the final end-product. Due to the dissimilarity in resins, there can be chances of change in the processing characteristics of these resins. The end users tend to always use these dissimilar resins when they lack any technical knowledge. For example, EVA and LDPE are often used as the concentrate carrier for linear medium-density polythene (LMDPE), high-density polyethylene (HDPE), polypropylene (PP), high-density crosslinked polyethylene (XLHDPE), and nylon. Styrene has been used as the concentrate carrier of SAN, ABS, and even polycarbonate.

Opportunities: High demand for masterbatches in black polyester fibers

Polyester fibers are used in the textile and automotive sectors.  In the automotive industry, it is used in applications such as roof lining, interior cladding, and seat covers. Polyester fibers made from PET (polyethylene terephthalate) receive their desired properties by adding functional additives and pigments, generally in the form of black masterbatches.  For these applications, an industrially manufactured, hi-tech black masterbatch, which is physically and chemically specified and produced under controlled processing conditions, is used. The growing urbanization and introduction of premium automotive brands in the leading economies of Asia Pacific are expected to fuel the growth of black masterbatch in the coming years.

Challenge: Non-biodegradability of plastics

Recycled plastics are mixed with certain additives such as flame retardants, stabilizers, and coloring agents and are toxic in nature. They are non-biodegradable, standing as a challenge to the masterbatch manufacturers in the plastic industry. Also, there are certain regulations pertaining to the use of plastics. For instance, Europe has imposed a ban on single-use plastics, considering the issues with recycling. This challenge can impact the use of plastics in high-growth applications such as packaging.

Masterbatch Market Ecosystem

The masterbatch ecosystem includes companies manufacturing raw materials such as pigments, additives, and other base polymers. The major manufacturers of Masterbatch are Ampacet Corporation, LyondellBasell, Avient Corporation, and Cabot Corporation. Masterbatch is a blend of pigments, additives, and polymer materials used to impart color and strengthen the properties of plastics, which find various applications in the automotive, construction, consumer goods, and other industries. The use of masterbatch is mainly driven by the building & construction and packaging industries.

Masterbatch Market Segmentation & Geographical Spread

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Based on the type, color was the largest segment of the masterbatch market, in terms of value, in 2022.

The color masterbatch segment accounted for the largest share, in terms of value, of the overall masterbatch market in 2022. Color masterbatch adds attractive shades of color and improves the efficiency of products. Standard color imparts standard color to plastics. They are readily available in basic colors, such as blue, green, red, and yellow. Specialty color masterbatches are used for high visibility applications and are readily available with manufacturers. It can be further segmented into pearlescent, fluorescent, metallic, and phosphorescent. Similarly, tailor-made color is customized color based on consumer demand. It is used to meet the specific color requirements of users.

Based on Polymer, PP was the largest segment of the masterbatch market, in terms of value, in 2022.

PP is a thermoplastic polymer having a lower density and higher softening point than PE. There are three types of thermoplastic polymers: homopolymers, block copolymers, and random copolymers. PP is used in rigid packaging, which includes caps & closure of PET bottles and thin-walled containers of yogurts. Countries such as China, India, Japan, South Korea, and Taiwan are major consumers and producers of polypropylene in the region. The increasing focus on sustainable and recyclable materials is also driving the demand for polypropylene in Asia Pacific.

Based on application, packaging was the largest segment of the masterbatch market, in terms of value, in 2022.

The need for packaging in the food & beverage, personal care, medical, household, electrical & electronics, building & construction, automotive, and other industries drives the masterbatch market. Packaging is widely used for the protection and transportation of goods. The increase in handling and transportation of goods due to globalization, liberalization, changing consumer lifestyles, and economic development has led to a rise in the demand for better protection and handling of goods. The availability of a wide variety of plastics and their adherence to regulatory standards make them the most extensively used material for packaging. Plastic can be molded, extruded, blown, and cast into films, sheets, foams, and pellets.

Asia Pacific accounted for the largest market share of the masterbatch market, in terms of value, in 2022.

China accounted for the largest consumer of masterbatch in the Asia Pacific region. India is projected to grow at the highest CAGR, in terms of both value and volume in the Asia Pacific region, during the forecast period. Asia pacific offers great growth opportunities to different market players in various countries. The ever-growing population in Asia Pacific, along with the adoption of modern technologies, innovations, easy availability of inexpensive land, easy availability of raw materials, and cheap labor costs are expected to lead to significant market growth in the region. The growth of industries such as packaging, textile, building & construction, automotive, consumer goods, and agriculture is increasing the demand for masterbatch.

Key Market Players

The key players in this market are Avient Corporation (US), Ampacet Corporation (US), LyondellBasell Industries Holdings B.V. (US), Cabot Corporation (US), Plastika Kritis S.A. (Greece), Plastiblends (India), Hubron International (UK), Tosaf Group Ltd (Israel), Penn Color, Inc. (US), and Americhem (US).and others. These are the key manufacturers that secured a major market share in the last few years.

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Scope of the Report

This report categorizes the global masterbatch market based on type, polymer, application, and region.

On the basis of Type, the Masterbatch market has been segmented as follows:

• Color
• Additives
• White
• Black
• Fillers

On the basis of Polymer, the Masterbatch market has been segmented as follows:

• PP
• LDPE & LLDPE
• HDPE
• PVC
• PUR
• PET
• PS
• Others

On the basis of Application, the Masterbatch market has been segmented as follows:

• Packaging
• Building & Construction
• Consumer Goods
• Automotive
• Textiles
• Agriculture
• Others

On the basis of region, the Masterbatch market has been segmented as follows:

• Asia Pacific
• North America
• Europe
• Middle East & Arica
• South America

Recent Developments

• In December 2023, Ampacet introduced ColorMark, a masterbatch additive technology that enables processors to create permanent lettering and designs in intricate detail on dark plastic surfaces.
• In November 2023, Cabot Corporation announced the launch of its new REPLASBLAK product family of circular black masterbatches with certified material. With this launch, Cabot introduced three products which will be sold as the company’s first-ever International Sustainability & Carbon Certification (ISCC PLUS) certified black masterbatch products powered by EVOLVE Sustainable Solutions.
• In November 2023, Americhem announced a new partnership with Nexeo Plastics for engineered compounds’ distribution across North America. Effective November 1, 2023, Nexeo Plastics will serve as the preferred distributor of Americhem’s full range of engineered compounds in North America, encompassing Canada, Mexico, Puerto Rico, and the US.
• In November 2023, Sukano AG partnered with PlastiColors to meet the growing market demand for PET packaging in South Africa.
• In November 2023, LyondellBasell announced the establishment of a new distribution hub in the UK for its polyolefin grades. This strategic move is part of the company’s ongoing commitment to enhancing the customer experience by placing inventories closer to its customers’ facilities, thus reducing lead times on orders.

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