Plastic Compounds Market Competitive Spectrum, and Sales Projections by 2028

Plastic Compounds Industry Overview

The global plastic compounds market size is expected to reach USD 98.65 billion by 2028, according to a new report by Grand View Research, Inc. It is projected to expand at a CAGR of 5.1% over the forecast period. The market is estimated to be driven by packaging applications across the globe. The product demand in the packaging industry is driven by high consumerism in major economies, such as China, India, Germany, the U.S., and Brazil. Various regulatory bodies have stipulated guidelines regarding packaging materials in food contact applications. Polypropylene (PP) compounds offer a cost-effective packaging solution and help enhance impact strength, flexibility, clarity, and process efficiency. High demand for Polyethylene (PE) in the packaging industry has majorly contributed to the growth of the packaging end-use segment.

Plastic Compounds Market Segmentation

Grand View Research has segmented the global plastic compounds market on the basis of basis of resin, technology, filler, end use, and region:

Based on the Resin Insights, the market is segmented into Polypropylene (PP), Polyethylene (PE), 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).

• 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.

Based on the Technology Insights, the market is segmented into Injection Molding, Extrusion, Blow Molding, and Others.

• 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.

Based on the Filler Insights, the market is segmented into Unfilled, Calcium Carbonate-filled, Talcum-filled, Glass Fiber Reinforced, Long Glass Fiber-filled, Flame Retardant, Carbon Fiber Reinforced.

• 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.

Based on the End-use Insights, the market is segmented into Automotive, Appliances, Electrical, Electronics & Electrotechnical, Building & Construction, Furniture, Power Tools, Packaging, Agriculture, Sport & Leisure, Healthcare, Others.

• 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.

Plastic Compounds Regional Outlook

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

Key Companies Profile & 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.

Some of the prominent players operating 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.

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