Increasing Demand for Plastics Due to Rapid Urbanisation to Fuel Growth of the Plastic Additives Market
The growing urban population drives demand for the automotive and transportation industries, which in turn drives demand for plastic additives. Lifestyle changes and globalisation have also fuelled the growth of the packaging industry, which has boosted the plastic additives market. According to a United Nation (UN) report, urban areas house approximately 55% of the global population, with that figure expected to rise to 68% by 2050. Moreover, the growing popularity of convenience foods is driving up the demand for food-grade plastic used in packaging hence driving the plastic additives market. Furthermore, the expanding e-commerce sector around the world is one of the primary factors driving the packaging sector, which is boosting market growth.
In March 2021, REPI, a provider of high-performance liquid, colour, and additive solutions, has acquired Novosystems GmbH, a European player in liquid colours, and additives. The acquisition strengthens the company's position in the polyurethanes, and plastics markets and expands the Group's geographical footprint in Northern and Central Europe. The expanding renewable sector is also supporting the plastic additives market growth. The growing concern and awareness about pollution and the accumulation of plastic in soils and water bodies has resulted in the expansion of the plastic additives market. Governmental regulations aimed at reducing the use of non-biodegradable plastic have significantly influenced the market.
In December 2019, Evonik shifted its focus to developing solutions for plastic and rubber recycling. Vestoplast, one of Evonik's additives, is expected to be the primary product for recycling, which involves breaking down into its component monomers. Similarly, Biotec Environmental has a diverse product portfolio that includes these products, and additives. EcoPure is an organic additive that is used to improve the biodegradability of traditional polymer products.
Increased Demand for Plastic Additives in Packaging Industry to Drive Market Growth
Rapid urbanisation, changing consumer lifestyles, economic trends, rising health awareness among various classes of consumers, and advancements in packaging material and technology are major factors that aid packaging industry growth. The various properties of plastics such as durability, low cost, resistance to corrosion, water and chemicals, and low thermal conductivity make them suitable for use in a wide range of applications. The increased use of plastics in heavy and light packaging drives the demand for plastic additives. With the increasing demand for plastics in packaging, the demand for plasticisers, flame retardants, and stabilisers is increasing.
Presence of Large Number of Manufacturers in Asia Pacific to Drive Growth of Plastic Additives Market
Asia Pacific is expected to hold a significant market share due to a large number of manufacturers in the region. The expanding construction industry, rising need for electrical and electronic items, and rising demand for e-buses will all contribute to the region's plastic additives market's growth. Consumer goods that are cheap and light. Currently, plastic is one of the primary materials used for packaging, and Asia Pacific is experiencing a surge in the packaging sector. The rapid rise of the e-commerce sector is encouraging the expansion of the regional packaging business, which is supporting regional market expansion. Furthermore, as disposable incomes rise, consumers are spending more on home décor, ornamental products, and furniture, boosting the furniture sector in China and India. However, the Environmental Protection Agency's (EPA) strict requirements on the degradability of polymers, and plastics have raised players' R&D spending to create additives that can speed up the degradability of plastic. This is expected to have a positive influence on regional plastic additive use. The Indian government is pushing for massive projects in the coming years. By 2022, the government's 'Housing for All' initiative hopes to have built more than 20 million affordable homes for the urban poor.
North America holds a substantial part of the global market due to the growing use of plastics, and polymers in the packaging, construction, aerospace and defence, food and beverage, general manufacturing, and automobile industries. Furthermore, due to significant demand from the automotive and packaging industries, US will continue to dominate the market throughout the projection period. Increased demand for plastics components as a result of growing urbanisation and rising consumer spending power propels the industry forward. One of the primary reasons driving the market's growth is rising industrialisation across all economies. For instance, in February 2021, Lanxess boosted its growth trajectory by signing a formal agreement to purchase 100% of Emerald Kalama Chemical. The US-based firm is a global leader in specialty chemicals (preservatives, flavours, aroma chemicals, plasticizers, antioxidants, and vulcanization accelerators), particularly for the consumer market, and it is majority-owned by affiliates of American Securities LLC, a US private equity firm.
Global Plastic Additives Market: Competitive Landscape
In March 2021, SABO has signed a distribution agreement with the RNM Group, one of the leading chemical companies in Portugal. RNM Group will be in charge of distributing SABO Polymer Additives products sold under the brand names SABOSTAB, SABOSTAT, and SABOFOG throughout Portugal. On the other hand, in January 2021, Songwon Industrial Co. Ltd and Mumbai-based Makwell Plastisizers Pvt. Ltd have signed an exclusive distribution agreement for PVC additives in India.
A few of the players in the plastic additives market include BASF SE (Germany), Clariant AG (Switzerland), LANXESS AG (Germany), Evonik Industries AG (Germany), Kaneka Corporation (Japan), Albemarle Corporation (U.S.), Songwon Industrial Co., Ltd. (South Korea), Nouryon (Netherland), and The Dow Chemical Company (U.S.).
Global Plastic Additives Market is Segmented as Below:
By Plastic Type
Key Elements Included In The Study: Global Plastic Additives Market
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