Plasticizers Market

Updated on : October 25, 2024

Plasticizers Market

The global plasticizers market was valued at USD 17.0 billion in 2022 and is projected to reach USD 22.5 billion by 2027, growing at 5.7% cagr from 2022 to 2027. Construction is one of the major end-use industries of plasticizers and offers market growth opportunities. The construction end-use industry is experiencing high growth rates in emerging regions such as Asia Pacific and South America.

Attractive Opportunities in the Plasticizers Market

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Plasticizers Market Dynamics

Driver: Rise in the construction sectors in the developing countries

Rising population, urbanization, and industrialization in developing economies will likely drive the plasticizers market. The growing infrastructure development in developing countries, such as China, India, and Brazil, is driving the demand for plasticizers, as these countries require a large amount of construction material and automotive parts. The construction of new roads, bridges, airports, ports, and other projects requires plastic products, such as pipes, wires, and cable insulation. Thus, the increasing need for more efficient and sustainable infrastructure drive the demand for plasticizers in the coming years.

Restraint: Stringent government regulations pertaining to plastic products

Governments worldwide have imposed stringent regulations on the use of plasticizers to protect the environment and prevent health hazards. For example, some phthalate plasticizers have been banned or restricted in certain applications due to their adverse effects on health and environment. Besides, various governments aim to promote the use of bio-based and sustainable plasticizers and increase the demand for eco-friendly products.

Opportunities: Technological advancements such as production of bio plastics and its use in manufacturing plastic products

The market for bioplastics is expected to multiply in the coming years, providing an opportunity for plasticizer manufacturers to develop and market bioplastic-based products. Increasing concerns over plastic waste and the environmental impact of conventional petroleum-based plastics drive the growing demand for bioplastics. Bioplastics are made from renewable plant-based materials, such as corn starch, and have a lower carbon footprint than conventional plastics. Also, they biodegrade faster and are compostable, thereby reducing landfill waste. The rise in eco-conscious consumers and regulations promoting sustainable packaging solutions drives the growth of the bioplastics market.

Challenges: Highly volatile prices of raw materials

The volatility of raw material prices is a major challenge faced by the plasticizers industry. Plasticizers are primarily made from petroleum-based raw materials, with significantly fluctuating prices due to geopolitical tensions, natural disasters, and changes in global demand. This volatility can significantly increase production costs and negatively impact plasticizer manufacturers’ profitability. To mitigate the impact of raw material price volatility, companies in the plasticizers industry may implement hedging strategies, diversify their raw material sources, or adopt alternatives such as bio-based materials

Plasticizers Market Trends

Phthalate segment, by type, is expected to be the largest market during the forecast period

Phthalate plasticizers accounted for 80.6% market, in terms of volume, in 2021. This dominance is attributed to their low price and properties such as high durability, stability, and robust performance. The DINP type of phthalate plasticizers accounted for the largest market share (28.6%), in terms of volume, globally in 2021.

“Europe : The second fastest Plasticizers market”

The plasticizers market in Europe is driven by the electronics industry due to increased investment in research and innovations, thereby creating demand for plasticizers and PVCs that are widely used for building wires and cables.

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Plasticizers Market Players

The Plasticizers market is dominated by a few major players that have a wide regional presence. The key players in the Plasticizers market are UPC Technology (Taiwan), ExxonMobil (US), Nan Ya Plastic (Kaohsiung), BASF (Seoul), Eastman Chemical Company (US), Evonik Industries (Germany) , LG Chem ( South Korea), Shandong Hongxin Chemicals (China), Shandong Qilu Plasticizers (China), Aekyung Petrochemical (South Korea). In last few years, the companies have adopted growth strategies such as Acquisitions and expansions to capture a larger share of the Plasticizers market.

Read More: Plasticizers Companies

Plasticizers Market Report Scope

This research report categorizes the plasticizers market by fuel, applications, product type, power rating, end user, and region.

Based on type, the plasticizers market has been segmented as follows:

• Phthalate
• Non-phthalate

Based on application, the plasticizers market has been segmented as follows:

• Wires & Cables
• Floorings & Wall Coverings
• Films & Sheets
• Coated Fabrics
• Consumer Goods
• Others

Based on region, the plasticizers market has been segmented as follows:

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

Recent Developments

• BASF (Germany) and StePac Ltd. (Israel) partnered in Decemebre 2022 to create next-generation sustainable packaging specifically for the fresh produce sector
• Eastman Chemical Company acquired 3F Feed & Food in April 2021 a European leader specializing in the technical and commercial development of additives for animal feed and human food.
• Evonik’s Coating Additives Business Line developed a new, multifunctional polymer additive for powder coating formulations in December 2022. It is versatile in formulations with inorganic fillers, pigments, and organic pigments, including carbon black.

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