Plastic Additives Market Size, Share, and Industry Trends 2031

The growing urban population drives demand for the automotive and transportation industries, subsequently boosting the plastic additives market. According to a United Nations (UN) report, urban areas house approximately 55% of the global population, with this figure expected to rise to 68% by 2050. Lifestyle changes and globalization have also fueled the growth of the packaging industry, further propelling the plastic additives market. The increasing popularity of convenience foods is driving up the demand for food-grade plastic used in packaging. Additionally, the expanding e-commerce sector worldwide is a primary factor driving the packaging sector, which is enhancing market growth.

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Strategic Acquisitions and Innovations Bolster Market Position

In March 2021, REPI, a provider of high-performance liquid, color, and additive solutions, acquired Novosystems GmbH, a European player in liquid colors and additives. This acquisition strengthens REPI's position in the polyurethanes and plastics markets and expands the Group's geographical footprint in Northern and Central Europe. Similarly, Evonik has shifted its focus to developing solutions for plastic and rubber recycling. Vestoplast, one of Evonik's additives, is expected to be a primary product for recycling processes. Biotec Environmental's diverse product portfolio, including EcoPure, an organic additive that improves the biodegradability of traditional polymer products, also supports market growth.

Increased Demand for Plastic Additives in Packaging Industry to Drive Market Growth

Rapid urbanization, changing consumer lifestyles, economic trends, rising health awareness among various classes of consumers, and advancements in packaging material and technology are major factors driving 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 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 plasticizers, flame retardants, and stabilizers is rising.

Presence of Large Number of Manufacturers in Asia Pacific to Drive Growth

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 growth. The rapid rise of the e-commerce sector is encouraging the expansion of the regional packaging business. 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 increased R&D spending to create additives that can speed up plastic degradability. This is expected to positively influence regional plastic additive use.

North America Holds Substantial Market Share

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 defense, food and beverage, general manufacturing, and automobile industries. The US, in particular, will continue to dominate the market throughout the projection period due to significant demand from the automotive and packaging industries. Increased demand for plastic components as a result of growing urbanization and rising consumer spending power propels the industry forward. Rising industrialization across all economies is one of the primary reasons driving market growth. 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, particularly for the consumer market.

Competitive Landscape

In March 2021, SABO signed a distribution agreement with the RNM Group, one of Portugal's leading chemical companies. RNM Group will distribute SABO Polymer Additives products throughout Portugal. Additionally, in January 2021, Songwon Industrial Co. Ltd and Mumbai-based Makwell Plastisizers Pvt. Ltd signed an exclusive distribution agreement for PVC additives in India.

Key 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 (Netherlands), and The Dow Chemical Company (U.S.).

Conclusion

The plastic additives market is poised for significant growth driven by rapid urbanization, strategic acquisitions, innovations, and increasing demand from various industries. With key players continually enhancing their market positions through strategic initiatives and technological advancements, the market is set to witness substantial expansion in the coming years.