Plastic Compounding Machinery Market Size

Plastic Compounding Machinery Market Analysis

The Plastic Compounding Machinery Market is expected to register a CAGR of approximately 6% during the forecast period. The increasing consumption of plastics in various end-user industries, such as packaging, automotive, oil and gas, and food and beverages, is expected to drive market growth over the forecast period majorly.

• Plastics compounding refers to the process of taking basic, raw plastic material and customizing it with various additives to achieve various properties, colors, and performance requirements. Various physical processes and lab formulations achieve this by combing the necessary additives and color into the plastic resin.
• Various types of machinery are used to achieve the entire process of preparing the formulation plastic by blending and mixing polymers and additives. The rising use of plastic components across various end-user industries drives the demand for plastics. For instance, according to the University of Georgia, the cumulative production of plastic is anticipated to reach 34 billion metric tons by 2050, from a mere 2 billion metric tons in the 1950s.
• Furthermore, the increasing demand for high-strength, low-weight, fuel-efficient, and durable components in the automotive sector, allowing them to comply with environmental and related norms, is expected to boost the adoption of plastic compounding machinery in the industry. Similarly, the food and beverage industry is expected to exhibit growth in the adoption of plastic compounding machinery, owing to the increasing adoption of plastic in the industry, to enable lightweight end-products with a focus on product design.
• Also, plastic compounding machinery is finding its applications in the bioplastics industry. The adoption of bioplastics in various end-user industries is increasing. According to European Bioplastics, the global production of bioplastics is expected to grow from 1,792 thousand metric tons in 2021 to 6,291 thousand metric tons by 2027.
• However, low capacity utilization in the manufacturing Industry owing to slow offtake and the high cost of this equipment are among the major factor challenging the studied market's growth.
• A notable impact of COVID-19 has been observed on the studied market. Asia Pacific region, which is among the major user of plastic compounding machinery owing to the presence of several major players, a higher impact of the pandemic resulted in a slowdown in demand. However, with major end-user industries on their way to recovery, the studied market is expected to witness an upward growth trend during the forecast period.