LATAM Masterbatch Market Overview
LATAM Masterbatch Market size is estimated
to reach US$300 million by 2027 and it is projected to grow at a CAGR of 3.2%
during 2022-2027. A masterbatch is a solid or liquid additive used for plastics to color. Masterbatch comes in
varieties of materials some of which are polyethylene, polypropylene, polyvinyl
chloride, polyethylene terephthalate and polycarbonate. Potential demand in textile
industry and growth in food production are driving factor for LATAM masterbatch
industry where as higher lead time is the restraining factor of masterbatch
market. The industries such as automotive, packaging, textile including many others
have experienced pitfalls in covid-19 pandemic. Also, the production and demand in the electrical
and electronics industry had declined due to an interrupted supply chain and cessation
in transportation of raw materials. Thus, with the global pause in industrial
production and distribution, the demand and consumption of LATAM masterbatch has
hampered to an extent in several industries.
The “LATAM Masterbatch Market Report – Forecast (2022-2027)”, by IndustryARC,
covers an in-depth analysis of the following segments of the LATAM masterbatch industry.
- Brazil holds the largest share in the global LATAM masterbatch market. This growth is mainly attributed to the increased production of motor vehicles.
- Electrical and electronics is expected to be the significant segment owing to the surge in demand for TV, refrigerator and more. As a result of which market will be flourished over the coming years.
- Masterbatch plays an important role in several industries especially in the automotive, textile and sports equipment which is expected to provide significant growth opportunity for the LATAM market.
The household appliances segment
held the largest share in the LATAM masterbatch market in 2021 and it is
expected to grow with a CAGR of around 3.8% during the forecast period 2022-27.
Masterbatch is additive which comes in different colors. Masterbatch is majorly
used in household appliances as it provides higher toughness and stiffness. Using
masterbatch, the processor can color raw polymer in a cost-effective manner
during the plastics manufacturing process. Also, its characteristic of thermal
insulator has an application in household appliances. In addition to that it
aids in aesthetic look to household appliances. Thus, versatile applications of
masterbatch in household appliances is potentially driving the growth of LATAM
LATAM Masterbatch Market Segment Analysis – By End-Use Industry
The electrical and electronics segment held the largest share in the LATAM
masterbatch market in 2021 and
it is expected to grow with a CAGR of around 4.2% during the forecast period
2022-27. The masterbatch is commonly
used in various electronics components. In order to function properly, plastic
components of the electric machines need to be durable and resistant to wear
and tear. This is where the masterbatch serve as an application in electronics
accessories such as TV, refrigerator, vacuum cleaner and more. According to
IVEMSA Mexico is largest exporter of flat screen TV and 8th largest
electronics producer in the world. As a result, the growth in electronics
components, LATAM masterbatch market is likely to witness the boost.
LATAM Masterbatch Market Segment Analysis – By Geography
The Brazil accounts for the largest share in the LATAM Masterbatch market in 2021 up to 34%. This growth is mainly attributed to the increase in demand for LATAM masterbatch in several end use industries in this region such as electrical and electronics, food and beverages and textile. Increase in demand for motor vehicles in Latin America is further boosting the demand for masterbatch. Masterbatch improves comfort, aesthetics, and function while also allowing for vehicle recovery at the end of its life cycle. Vehicles with masterbatch have higher energy efficiency. According to Organisation Internationale des Constructeurs d’Automobiles (OICA) total motor vehicle production in Brazil in 2021 increased by 12% compared to production in 2020. Total motor vehicle production in 2021 was 2248253 units out of which 24% were commercial vehicle and 76% were passenger cars. Thus, the growth in automotive industry is boosting the market growth.
LATAM Masterbatch Market Drivers
Surge in Textile Industry
The masterbatch acts as an additive. It is available in black, white, and many hues. These various color additives are mixed together to achieve the desired color. For coloring, masterbatch is employed (color masterbatch). By blending multiple colors specific color can be made as per the requirement. It is used for clothing, carpet production and more. There is a huge demand for textile in Brazil. According to The Brazilian Association of Producers of Artificial and Synthetic Fibers (ABRAFAS) Brazil can fulfill only 40% of its textile demand in 2021 meaning that 60% of textile needs to be imported. There is lot of scope for foreign companies to expand their business in Brazil. Besides, it presents opportunities for necessary accessories, such as masterbatch, required in textile industry. Thus, the potential scope of masterbatch in textile industry in Brazil is fueling the growth of global LATAM masterbatch market.
Growth in Food and Beverages
Food and beverages is one of the fastest growing industry across the globe. It includes a wide
range of business divisions such as food production, food processing, food
storage and food packaging. Masterbatch is resistant to chemicals and
corrosion. This finds an application in food processing and food packaging.
Increasing food production is driving the food processing sector as easy
availability leads lower cost of production. For instance, according to cocoa processors association AIPC, Brazil
is in the top 7 cocoa producer country in the world. In 2019 more than 580
thousand hectors were planted for cocoa in Brazil. Thus, growth of food and
beverage industry is boosting the demand for LATAM masterbatch.
LATAM Masterbatch Market Challenges
Higher Lead Time and More Storage Space
Although masterbatch has versatile application in many industries it has certain limitations. One of the biggest drawbacks of color masterbatch is the insufficient dispersion of the coloring pattern. Color masterbatch is well-known for its exceptional prolonged lead times. Masterbatches require more storage space than pure pigments, and their lead times are longer. Another disadvantage is that the carrier and additive are exposed to more heat. This has adverse impact on not only economical aspect of the process but also on the quality of finished product. Thus, higher lead time and more storage space is restraining the growth of global market.
LATAM Masterbatch Industry Outlook
Technology launches, acquisitions, and R&D
activities are key strategies adopted by players in the LATAM masterbatch market.
LATAM masterbatch market top 10 companies include -
- Avient Corporation
- Cabot Corporation
- Hubron International
- Tosaf Group
- Modern Dispersions, Incorporated (MDI)
- Astra Polymers
- Alok Masterbatches
- Americhem, Inc.
Code: CMR 73074
Code: CMR 0118
Report Code: CMR 97960
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