Masterbatch market 

The masterbatch market size is estimated to be USD 11.1 billion in 2020 and is projected to reach USD 14.3 billion by 2025, at a CAGR of 5.1% between 2020 and 2025. The replacement of metal with plastic in the automotive industry will drive the masterbatch market. APAC is the largest consumer of masterbatches in the automotive application and is expected to dominate during the forecast period. The increasing automobile production facilities and other developments in the region and shift of European automobile manufacturers to low-cost markets of Asia are expected to support the growth of the masterbatches market in automotive application. APAC is followed by Europe and North America, in terms of volume and value.

Cheap product offerings from emerging countries, especially China, act as a restraint for the growth of the masterbatch market. Although high competition in the market restricts the entry of new entrants, it is possible for manufacturers of low-quality masterbatch to challenge these barriers. The overall masterbatch market is highly unorganized, which makes it difficult for market players to cater to the growing domestic demand. Emerging countries such as India and Indonesia have several small plastic processing players that manufacture plastic products at a lower cost to tap the local market. These players use low-quality masterbatch to produce plastic products at lower costs. These masterbatch provides uneven mixing in the plastic mixture giving it a poor look or uneven grade.

Biodegradable masterbatch is widely increasing in daily consumer good applications, especially in food packaging industry. Bio-based resins which have the base material as soybean, wood pulp, sugarcane, coffee, castor, plant seeds and corn are used in additive masterbatch in packaging segment. The waste management of the petroleum based carrier polymers in conventional masterbatch are a major challenge. It takes several hundred years for conventional plastics to degrade. The food plastics should use masterbatch which are US FDA compliant. The stringent regulations and demand from the Europe and North America will be an opportunity for the masterbatch market in the packaging industry.

Asia-Pacific is expected to be the largest masterbatch market during the forecast period, in terms of value and volume. APAC is the largest consumer of masterbatches in the automotive application and is expected to dominate during the forecast period. The increasing automobile production facilities in the region and shift of European automobile manufacturers to low-cost markets of Asia are expected to support the growth of the masterbatches market in automotive application. APAC ranked first in terms of vehicle production, thus contributing to the increased demand for masterbatch in the automotive sector. The masterbatch market is analysed and market size, volume information is provided by country, type, polymer and application as referenced above.

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