Global Masterbatch Market Feeding off High Demand of Plastic Products

Diverse end-use segments of the Masterbatch market range from automobile, construction, and packaging to consumer goods, wire and cable, and electronic appliances. Masterbatches are also incorporated into end-use products such as housewares, stadium seating, pipe, vinyl siding, and medical packaging. Due to its diverse application, the demand for masterbatches is increasing. The price of masterbatch is expected to range from $15 to $30 per one metric ton by 2022.

Masterbatch is a solid or liquid additive. Based on the applications it performs, the masterbatch can be precisely classified as color or additive masterbatch. Color masterbatch is used to add color to the plastic by blending different color additives to achieve the desired color, whereas additive masterbatch is used to enhance properties of plastic such as providing texture to it. Masterbatch are mainly available in standard color, white, black, additive, special effect and filler masterbatches. Different types of carriers for masterbatch are Polyethylene (PE), Polyethylene Terephthalate (PET), Polystyrene (PS), Acrylonitrile Butadiene Styrene (ABS), Ethylene-Vinyl Acetate (EVA), Polypropylene (PP), Polybutylene Terephthalate (PBT), and Polyvinylchloride (PVC). 

Masterbatches are ubiquitous raw materials used as colorants for plastics. It has become a crucial product with applications in almost all areas of plastic processing including injection molding, extrusion, rotational molding, sheet, film, and blow molding. Plastic and synthetic fiber producers use masterbatch over pigments because it is simpler to feed and handle, offers better color consistency of products, and allows processors to improve the appearance and performance of raw polymer in a cost-effective manner. 

Masterbatch contains additive concentrates that deliver desirable traits such as UV stability, antioxidants, optical brightening, and scratch and surface resistance, which are all responsible for the growth of the market. Strict government regulations towards greenhouse gas emission is increasing the demand for lightweight vehicles. This can be achieved by replacing the metal with plastic in the manufacturing of vehicles. This can reduce carbon emission and increase overall fuel efficiency. Rising investments on infrastructural developments used in the production of wires, cables, and plastics are also projected to boost demand for masterbatch.

Masterbatch market is largest in European region owing to automobiles production in countries such as the UK, Germany, and France. In the Asia Pacific region, plastics industry is thriving and growing demand in the end-users especially in China and India is propelling the consumption of masterbatch.  India is emerging as a low-cost manufacturing base for the automotive sector and thus, the country is attracting masterbatch market players. The launch of “Make in India” campaign by the present government is projected to boost growth in the country’s manufacturing and real estate sectors. 

The Middle East is among the major manufacturers of feedstocks for polyolefin and raw materials used in the production. Easy availability of raw material and surging demand from the end-user industries such as building and construction and automotive is driving the demand for masterbatches in Saudi Arabia. According to a latest business intelligence report from IndustryARC, global masterbatch market was estimated at $9,689 million in 2017 and the demand is projected to grow at a CAGR of 10.23% during the forecast period of 2018 to 2023.

Masterbatch is used as colorants of plastic that is used in packaging, manufacturing of containers, and other products. Requirement of color plastic is showing high growth in the automotive sector, wherein manufacturing of lightweight vehicles is the latest trend as it reduces carbon emission. Usage of plastics can be harmful as it is nonbiodegradable substance and hence different key players in the market are investing in research and development to find optimum ways of using plastic without harming the environment.  

Color Masterbatches Market: By Type (Color, White, Black, Special Effect, Filler); By Carrier Resins (Polyethylene, Polystyrene, Acrylonitrile Butadiene Styrene, Ethylene-Vinyl Acetate, Polypropylene, Polybutylene Terephthalate, Polyvinyl chloride, Acrylate Copolymers, Ethylene Methyl Acrylate); By Process (Blow Molding, Film Extrusion, Injection Molding, Pipe, Conducit &Tubing, Extrusion Coating, Sheet and Thermoforming, Wire and Cable and Rotational Molding); By End-User (Automotive, Medicine Packaging, F&B Packaging, Building & Construction, Consumer Goods, Textiles, Agriculture) Geography - Forecast (2018-2023)