Plastic Additives Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Market Overview

The plastic additives market was estimated at USD 24,814.43 million in 2020, and the market is projected to register a CAGR of over 4.5% during the forecast period (2021-2026).

The market was negatively impacted due to the COVID-19 outbreak in 2020. COVID-19 exposed several challenges for various industries. The world apparently moved into lockdown to curb the transmission of the COVID-19 virus. The uncertainty and constraints hindered markets. Additionally, the pandemic leads to decreased investment and postpones the ongoing projects in all the countries across the world. With manufacturing activities being halted across the world, the demand for plastic, including plastic additives, was impacted by almost all industries worldwide. However, the conditions are expected to recover in 2021, which will restore the market's growth trajectory.

• Over the medium term, the replacement of conventional materials by plastics in several applications and increasing demand for plastics due to rapid urbanization and rising purchasing power among consumers are expected to drive the market's growth.
• On the flip side, stringent governmental regulations on plastic usage and the impact of the COVID-19 pandemic are restraining the growth of the plastics industry globally, which is directly affecting the plastic additives demand on the global front.
• By plastic type, polypropylene is likely to be the fastest-growing segment among others.
• By geography, Asia-Pacific dominated the market, with the largest consumption coming from countries such as China, India, and Japan.

Scope of the Report

Plastics additives are chemicals which are used to polymerize, process or to modify end use properties of plastics. The demand for plastic additives is fully dependent on the demand for plastics. The growing usage of plastics is vastly dependent on the growth of the economy, rapid urbanization, increasing purchasing power, and rising disposable income among consumers. The plastic additives market is segmented by type, plastic type, application, and geography. By type, the market is segmented into lubricants, processing aids, flow improvers, slip additives, antistatic additives, pigment wetting agents, filler dispersants, antifog additives, plasticizers, stabilizers, flame retardants, impact modifiers, and other types. By plastic type, the market is segmented into polyethylene, polystyrene, polypropylene, polyamides, polyethylene terephthalate, polyvinyl chloride, polycarbonate, and other plastic types. By application, the market is segmented into packaging, consumer goods, construction, automotive, and other applications. The report also covers market size and forecasts for plastic additives in 18 countries across major regions. For each segment, market sizing and forecasts have been done on the basis of value (USD million).

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Key Market Trends

Packaging Segment to Dominate the Market

• The packaging industry mostly relies on polymers for the packaging and decoration of its end-user products. Factors leading to the increased application of polymers in the packaging industry are certain properties of polymers, including lightweight, availability in different colors, low reactivity, chemical, and moisture resistance, etc.
• The usage of suitable plastic additives contributes toward extended lifetime, appearance, thermal protection, clarity, low haze, and improved mechanical properties, which are the most important factors for packaging.
• Major forms of plastics used in the packaging industry are polyethylene terephthalate (PET/PETE), high-density polyethylene (HDPE), polyvinyl chloride (PVC), low-density polyethylene (LDPE), polypropylene, polystyrene, etc.
• One of the main applications of packaging is in the food and beverage industry. With the increase in awareness toward hygiene and health among the global population, the packaging industry is also growing at a steady pace.
• Packaging of food items is a process that continually responds to the changes in demand and supply, which are the results of adaptations to the varying demands of the consumers, changes in retail practices, technological innovations, and new developments in legislation, especially with respect to environmental concerns.
• A wide range of additives is available for enhancing the performance and appearance of food packaging, where polymer additives are important areas of innovation for packaging materials.
• The revenue from the global food and beverage industry is expected to grow at a CAGR of over 8% during the forecast period and reach a market volume of around USD 380 million by 2025. This is expected to provide lucrative opportunities for the growth of the market studied during the forecast period.
• All the aforementioned factors, in turn, are expected to increase the demand for plastic additives during the forecast period.

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