The market size of color masterbatch is projected to reach USD 4.75 Billion by 2021, registering a CAGR of 5.6% between 2016 and 2021. The rapid growth in the packaging industry in Asia-Pacific is a key driver of the color masterbatch market.
Packaging is the dominating industry in the color masterbatch market. It is widely used for industrial and household purposes. Improved lifestyle and globalization have triggered the demand from the packaging industry, which drives the market of color masterbatch. The automotive and packaging segments are estimated to witness a strong growth during the forecast period. Some of the common applications of color masterbatches are roofing, storage containers, pipes, cables, electronics, toys, kitchenware, safety gear, cosmetic articles, household products, seat belts, door panels, greenhouse films, and silage sheet.
The color masterbatch market is classified on the basis of type, namely, standard color, specialty color, and tailor-made color. Standard colors are used in a wide range of applications due to their mechanical, heat resistance, and weather resistance properties. Some of the applications of standard color masterbatch are packaging sheets & films, plastic bottles & containers, and cables & wire.
The color masterbatch market is classified on the basis of carrier resin, namely, polyethylene (PE), polypropylene (PP), and polystyrene (PS), and others. PE is a major carrier resin used to manufacture color masterbatch. It is used to impart specific resin properties to processed polymers. Polyethylene products are mostly used in various end-use applications, such as packaging bags, general plastic films, medical packaging, mulch films, green house & tunnel films, and pipes.
Currently, Asia-Pacific is the largest market for color masterbatch. The growing packaging industry coupled with the increased demand from the retail industry drives the market of color masterbatch in the region. End-use industries are witnessing a high growth in developing nations such as India, Indonesia, and Brazil due to growing economies. Europe is projected to be the second fastest-growing market between 2016 and 2021. This growth is attributed to the rising packaging and automotive sectors in the region.