SAN FRANCISCO, March 3, 2020 /PRNewswire/ -- The global plastic compounding market size is projected to reach USD 104.41 billion by 2027, according to a new report by Grand View Research, Inc. It is anticipated to expand at a CAGR of 6.5% during the forecast period. Rapidly developing construction and automobile sectors are anticipated to drive the demand for interiors, exteriors, and under hood components. Maximum application of plastic compounding in under hood components in the automotive industry, building interior and exteriors in construction and infrastructure industries, and in electronics, durables, and wire and cable industries is anticipated to further fuel the growth.
Key suggestions from the report:
In terms of revenue and volume, polypropylene is the most consumed plastic compounding product. The rise in its production can be attributed to high demand from packaging and medical device industries across the globe
Increasing requirement for flame retardancy, heat resistance, and improved serviceability is anticipated to drive growth in electronics and electrical industry
Construction is the leading application segment for polyethylene compounds with the segment accounting for a mass application globally
Major plastic compound manufacturers have been acquiring independent compounding facilities, rather than establishing plants, to strengthen their position
Key players operating in the plastic compounding market include BASF SE., LyondellBasell Industries, N.V., and The Dow Chemical Company.
Polyethylene Terephthalate (PET), is the plastic used for manufacturing bottle containers used for packaged water and carbonated beverages. As a raw material, PET is recognized as a safe, strong, flexible, non-toxic, and lightweight material that is 100% recyclable. Hence, it has gained wide acceptability and in turn is anticipated to drive the growth of the market for plastic compounding over the forecast period.
Asia Pacific was the leading revenue generator for PET compound segment in 2019. Ever-increasing demand for beverages-mainly carbonated beverages and nutritional drinks-is anticipated to drive the regional consumption of PET compound. This trend is favored by rise in population, changing lifestyle, and emergence of domestic beverage manufacturers. Presence of large pool of contract bottlers in the region shall also impact the scope of packaging application in Asia Pacific.
Traditionally, construction industry has been a major consumer of plastics with the product application ranging from pipe fittings and insulation to masonry materials and equipment. Plastic compounds are modified in accordance to their requirements. For instance, flame retardant additives are added to Polyvinyl Chloride (PVC) compounds, and form a very crucial aspect of building materials.
Developing countries, such as Mexico are expected to benefit from rising construction spending and inclination of consumers toward utilizing sustainable and lightweight building materials in place of conventional materials. The expanding automotive sector and changing consumer buying behavior from considering cars as luxuries to necessities are also significant factors anticipated to positively impact the plastics sector and drive compounding activities in the region.
Grand View Research has segmented the global plastic compounding market on the basis of product, application, and region:
Plastics Market– Increasing automotive production and subsequent rise in plastics consumption in automotive component fabrication because of regulatory policies pertaining to vehicular weight reduction and fuel efficiency will drive the plastics market over the forecast period.
Aluminum Foil Packaging Market– Increasing demand for packaged food coupled with rapid rise of the pharmaceutical packaging industry is anticipated to drive the aluminum foil packaging market growth.
Molded Pulp Packaging Market– Rising demand for low-cost, eco-friendly packaging by various end-use industries, including food, food service, electronics, healthcare, and industrial, is likely to fuel the molded pulp packaging market growth.
Gain access to Grand View Compass, our BI enabled intuitive market research database of 10,000+ reports
About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.