Specialty Plastic Additive Market - Forecast(2021 - 2026)

Report Code: CMR 0796 Report Format: PDF + Excel (Delivery in 48 Hrs)

Specialty Plastic Additive Market Overview

Specialty Plastic Additive Market size is forecast to reach $XX.X billion by 2025, after growing at a CAGR of 6.3% during 2020-2025. Specialty plastic additives are ingredients that are added in polymers to improve their strength, durability, and heat sensitivity. The day-to-day activity of an individual involves plastic goods that are made from polymer mixed with a complex blend of materials known as additives. Specialty plastic additives are added to enhance process-ability, performance, or appearance of the polymer. The demand for plastic additives is estimated to grow on account of the increasing consumption of plastic and rising disposable income of consumers.

Report Coverage

The report: “Specialty Plastic Additive Market – Forecast (2020-2025)”, by IndustryARC, covers an in-depth analysis of the following segments of the Specialty Plastic Additive Market Industry.
By Type: Plasticizers, Stabilizers, Flame Retardants, Impact Modifiers and Others 
By Application: Polyvinyl chloride, Polyethylene, Polypropylene, Polyurethane, Polystyrene and Others.
By End User Industry: Packaging, Construction, Consumer Goods and Others.
By Geography: North America, South America, Europe, APAC, and RoW

Key Takeaways

  • Asia-Pacific is the fastest-growing region for specialty plastic additive market.
  • Replacement of conventional materials by plastics in several applications.
  • Increasing performance requirements across various applications are accelerating the adoption of specialty plastic additive in both automotive and aerospace industries.

Specialty Plastic Additive Market Segment Analysis - By Type 

Plasticizers segment held a significant share in specialty plastic additive market in 2019. On the basis of type, plasticizers account for a major share of the plastic additives market as it is extensively used to process polymers and are less expensive than other additives. They are usually combined with PVC or other polymers to impart unique physical and technological properties for use in various applications such as cable jacketing, floor & wall coverings, and coating fabrics. 

On the basis of types of plastic, commodity plastic dominates the consumption of plastic additives. Commodity plastics include polyethylene, polypropylene, polystyrene, Polyvinyl chloride, polymethyl methacrylate, and others. These are 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

Specialty Plastic Additive Market Segment Analysis - By Application

Polyvinyl chloride segment held a significant share in specialty plastic additive market in 2019. Due to its versatile nature, PVC is used extensively across a broad range of industrial, technical and everyday applications including widespread use in building, transport, packaging, electrical/electronic and healthcare applications. PVC is a very durable and long-lasting material which can be used in a variety of applications, either rigid or flexible. In addition, phthalates are used in other non-PVC applications such as paints, rubber products, adhesives and some cosmetics. PVC has excellent electrical insulation properties, making it ideal for cabling applications. Its good impact strength and weatherproof attributes make it ideal for construction products.

The global COVID-19 pandemic has led to a sudden pause to manufacturing activities across the globe, affecting the demand for plastics and also production & processing of them. The most critically impacted end-use segments of the plastics industry include automotive & transportation, consumer goods, industrial equipment, construction, and electronics.

Specialty Plastic Additive Market Segment Analysis - By End-User Industry

Construction segment held a significant share in specialty plastic additive market in 2019. Impact modifiers are chiefly employed in rigid PVC construction products and will therefore benefit from a turnaround in construction spending. This rebound will also provide opportunities for colorants in wood-plastic composite (WPC) lumber applications and chemical blowing agents utilized in the production of cellular PVC for decking, molding, and trim. Moreover, increased building activity will fuel demand for processing aids such as mold releases and lubricants, as well as compatibilizers and coupling agents.

Specialty Plastic Additive Market Segment Analysis - Geography

Asia Pacific dominated the specialty plastic additive with a share of more than 38%, followed by North America and Europe. The current specialty plastic additive market in developing economies is showing opportunities in China and India for investors due to low labor cost and higher internal consumption. The demand for specialty plastic additive is estimated to grow on account of the increasing consumption of plastic and rising disposable income of consumers. Commercialization of automobile industry and increasing specialty plastic additives applications in construction sector may fuel the specialty plastic additive market growth in this region. 

Specialty Plastic Additive Market Drivers

Excess usage of plastic products 

The increase in cost of natural metal ore is shifting the trend of metal product to plastic products. Plasticizers in such cases are providing effective platform to plastic industries through their flexible properties. In addition, increasing awareness for the conservation of limited resources and other environmental factors such as forest protection has reduced and replaced the wooden products to plastic products. This increase in usage of plastic products has increased the demand for the specialty plastic additives that are used in the manufacturing of end user plastic products. These products are replaced by the plastic products that are widely used as raw materials in automotive, construction, industrial manufacturing equipment, and mechanical engineering. 

The commercial usage of plastic is exponentially increasing due to its lower prices, high performance and higher durability. The global market for specialty plastic additive also got the necessary boost with this increase in application of plastics as these additives provide different type of plastics that replaces the conventional materials. Thus, excess usage of plastic product is positively influencing the specialty plastic additive market and expected to have a greater impact in the future

Specialty Plastic Additive Market Challenges

Environmental impacts 

Increase in environmental awareness and stringent government interventions to regulate the commercial application of plastic products are currently dominating and negatively affecting specialty plastic additive market. The use of phthalates was banned by most of the economies including China, Europe, and United States, which is currently impacting the specialty plastic additive market. Toxic plastic additives such as Phthalates are banned in the health care industry. The developed economies have issued strict regulatory policies to reduce the commercial applications of phthalates. The stringent government regulations from the European government have banned the commercial application of certain specialty plastic additives that include flame retardants, plasticizers, colorants and other additives. The commercial applications of these specialty plastic additives are controlled by Restriction on Hazardous Substances (RoHS) in electrical and electronic equipment, The European chemical registration legislation Reach, and Waste Electrical and Electronic Equipment (WEEE).

Market Landscape

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the specialty plastic additive market. In 2019, the market of specialty plastic additive has been consolidated by the top five players accounting for xx% of the share. Major players in the specialty plastic additive market are BASF, Exxon Mobil, Eastman Chemical, Songwon Industrial, Albemarle, Clariant, DowDuPont, Bayer, Evonik, Kaneka and Lanxess Chemicals among others.

Product Launch/ Acquisition

  • In June 2016, Lanxess AG introduced Stabaxol P 110, a new hydrolysis stabilizer. It has high performance when used in thermoplastics such as PET and PBT. With the addition of this product the company has increased its offering for hydrolysis stabilizers for various applications such as engineering injection molding, cable sheathing, and paper machine screens. 
  • In June 2016, Songwon Industrial Co. Ltd. introduced SONGXTEND 2124, a stabilizer solution for the automotive industry. With this addition, the company has increased its offering for unfilled, talc, and glass-filled polypropylene (PP).
  • In May 2016, Evonik Industries AG (Germany) acquired the specialty & coating additive business of Air Products and Chemicals, Inc. (U.S.). The acquisition has helped the company to strengthen its position in the market for specialty & coating additives.