Market Size (2015)
2015
$484.10B
Vertical: CNMBase Year: 201611 Sections
Market Size (2015)
2015
$484.10B
Projected (2023)
2023
$762.47B
CAGR (2015–2023)
5.8%
5.8%Key Players
113+
Plastic compounding is defined as the blending of base polymers, such as polyethylene (PE), polypropylene (PP), and polyvinyl chloride (PVC), among other thermoelastic and thermoset polymers, with an additive to enhance the physical, thermal, and electrical properties of plastic so as to make it suitable for application in an array of end-use industries. The base polymers are first melted and blended with additives such as antioxidants, colorants, and reinforcements to achieve the required properties.
In terms of product, the market is classified into polypropylene, polyethylene, polyvinyl chloride, polyethylene terephthalate, polystyrene, acrylonitrile butadiene styrene, polyamide, polycarbonate, thermoplastic polyolefins, thermoplastic vulcanizates, polybutylene terephthalate, and others. Among these, Polypropylene accounted for 31.23% share in 2017 and is predicted to grow with the moderate CAGR of 6.50% during the review period. As polypropylene compounds are largely used in automotive applications owing to its high impact resistance and serviceability. This segment is followed by Polyethylene and is expected to register a significant growth during the assessment period.
In terms of application, the market is classified Automotive, Electrical & Electronics, Building & Construction, Packaging, Consumer Goods, Industrial Machinery, Medical Devices, Optical Media, and Others. Among these, Automotive accounted for 24.6% share and is predicted to grow with the highest CAGR of 7.53% over the forecast period. The increasing use of plastic in automotive components and simultaneous rise in passenger car and heavy-duty vehicle production, particularly in Asia and Latin America, is expected to drive market growth during the forecast period. The standardization of emission norms and vehicular weight regulations shall aid in the development of the automotive segment in the future. This segment is followed by Electrical & Electronics and is expected to register a significant growth during the assessment period.
In terms of geography, the market is classified into North America, Europe, Asia Pacific, Latin America, The Middle East & Africa. As per the analysis, the global market is likely to continue growing during the forecast period. The global growth is credible to the wide application scope covered by plastic compounding. Moreover, the rapid growth of the electronics and automotive industry in the emerging economies is estimated to fuel the market growth. For instance, China accounts for nearly 42.73% of revenue generated by the Asia Pacific plastic compounding in 2017 and is estimated to exhibit a significant CAGR of around 6.63% over the assessment period due to the various factors such as rapid urbanization, the rise in per capita disposable income, and change in lifestyle of people.
However, the industry faces challenges with market fragmentation and raw material price volatility. Most plastics are derived from crude oil; hence, the fluctuating prices of crude oil are impacting the price of plastic compounds. With these fluctuations, manufacturers are struggling to maintain profit margins. Moreover, increasing research and development activities in bio-based plastic and stiff competition from close substitutes such as glass and metal in some end-use applications are expected to hamper market growth during the forecast period. Stringent regulatory standards imposed by government agencies on the use of petrochemical-derived products limit the use of petroleum-based plastic. However, key industry players are adopting sustainable and compliant manufacturing techniques to meet these regulatory standards.
The Plastic Compounding Market market is projected to grow at a CAGR of 5.8% from 2015 to 2023.
Historical performance and future projections (2020–2030, USD Billion)
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View Subscription PlansPlastic compounding can be defined as a blending of base polymers such as Polyethylene (PE), Polypropylene (PP), and PVC (Poly Vinyl Chloride) among other thermo elastic and thermoset polymers with an additive to enhance the physical, thermal, and electrical properties of the plastic so as to make it suitable for applications in an array of end-use industries. The base polymers are first melted and blended with additives such as anti-oxidants, colorants, and reinforcements among other class of additives to achieve the required properties.
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View Subscription PlansResearch Process
Market Research Future research is conducted by industry experts who offer insight into industry structure, market segmentation, technology assessment, competitive landscape (CL), penetration, as well as on emerging trends. Besides primary interviews (~ 80%) and secondary research (~ 20%), their analysis is based on their years of professional expertise in respective industries. Our analysts also predict where the market will be headed in the next five to ten years, by analyzing historical trends and current market positions. Furthermore, the varying trends of segments & categories geographically presented are studied and are estimated based on primary & secondary research.
Primary ResearchThe extensive primary research was conducted to gain a deeper insight into the market and the industry performance. In this particular report, we have conducted primary surveys (interviews) with the key level executives (VP, CEO’s, Marketing Director, Business Development Manager and many more) of the major players who are active in the market. In addition to analyzing the current and historical trends, our analysts predict where the market is headed, over the next five to ten years.
Secondary ResearchSecondary research was mainly used to collect and identify information useful for the extensive, technical, market-oriented, and commercial study of the plastic compounding market. It was also used to obtain key information about major players, market classification and segmentation according to the industry trends, country wise markets, & developments related to the market and technology perspectives. For this study, analysts have gathered information from various credible sources, such as annual reports, SEC filings, journals, white papers, corporate presentations, company websites, an international organization of chemical manufacturers, some paid databases and many others.
Market Size EstimationBoth, top-down and bottom-up approaches were used to estimate and validate the size of the market and to estimate the size of various other dependent submarkets of the overall plastic compounding market. The key players in the market were identified through secondary research, and their market contributions in the respective geographies were determined through primary and secondary research. This entire procedure included the study of the annual and financial reports of top market players and extensive interviews for key insights with industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through primary sources. All the possible parameters that affect the market have been covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data. This data has been consolidated and added with detailed inputs and analysis from market research future and has been presented in this report. The following figure shows an illustrative representation of the overall market size estimation process employed for the purpose of this study.
Base Year
2016
Historical Period
2015 – 2016
Forecast Period
2016 – 2023
Primary Interviews
150+
Historical data (2015–2016) and forecast period (2016–2023)
Our research process spans primary interviews with industry stakeholders combined with comprehensive secondary data analysis, validated through triangulation across multiple independent sources.
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View Subscription PlansThreat of New Entrants
A medium-low threat of new entrants is expected owing to the high capital-intensive nature of the market. The need for significant expenditure on research and development acts as a barrier for new entrants in the industry. There are also strict environmental policies in developed regions that place the economic burden on the manufacturer to comply with the stringent norms. Moreover, the market demands persistent product and process innovation along with efficient feedstock integration. The established companies in this sector have invested heavily in their production facilities. The market has witnessed alliances between regional players and big compounders to lower manufacturing costs. However, the rising demand for plastic compounds in numerous end-use industries is expected to provide lucrative opportunities to new entrants during the assessment period
Threat of Rivalry
The global plastic compounding market is projected to witness a moderate threat of rivalry, as each tier-1 player operating in this market has extended portfolios for various types of plastic compounds and is dedicated to offering quality products to end-use industries. Rivalry among firms has increased as more companies are competing for the same customers and resources. Furthermore, certain prominent manufacturers that have established brands in the market. However, competition is mostly based on the quality and price of the end product. Divergent nature of operations and differing cost structures of big and small firms are also expected to drive the internal rivalry and lead to price wars in the global plastic compounding market.
Moreover, companies such as Lanxess AG, DowDupont, and BASF SE are focusing on expanding their reach by opening new manufacturing bases in different locations to mitigate the threat of rivalry
Threat of Substitutes
The threat of substitutes in the plastic compounding market is moderate to low at present. In the packaging industry, there is a vast difference in the prices of metal and plastic containers, as well as differences in logistics and transportation as plastic is lighter than its substitutes and offers more advantages. Moreover, the weight and fragile nature of glass is another factor in the preference for plastic. In the electrical and electronics industry, there is no threat of substitution as there is no alternative for plastic in insulation or sheaths in cables. However, bio-based plastic is increasingly replacing conventional plastic as it is environmentally friendly.
Bargaining Power of Suppliers
The bargaining power of suppliers is projected to be low in the global plastic compounding market. There are several small firms in the market in various countries of Asia Pacific and they offered variety of differentiated products. On account of the wide applicability of plastic in every sphere, there is great demand. The market is dominated by players such as LyondellBasell Industries N.V., Total S.A., SABIC, KURARAY CO., LTD, BASF SE, DowDuPont, Lanxess AG, and 3M. However, there are a few established firms manufacturing bio-based plastic products. The switching cost from one supplier of bio-based plastic to another is moderate.
Bargaining Power of Buyers
The bargaining power of buyers is estimated to be moderate to high as more choices are available in the market. However, it depends on the nature of application and choice of product quality. Moreover, Automotive and Electronics industry has highest power as compared with construction, packaging and others due to scale of operations in the industries. For high-cost and good quality plastic compounding products, consumers do not have many choices between which they can switch.
Market estimates by geography (2023)
InsightAsia Pacific leads with $368.11B by 2023, while Middle East and Africa is projected to grow fastest at a 6.6% CAGR.
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View Subscription Plans| REGION | 2015 | 2016 | 2023 | CAGR | SHARE |
|---|---|---|---|---|---|
| Middle East and Africa | $36.18B | $46.13B | $60.46B | 6.6% | 8% |
| North America | $86.92B | $104.15B | $128.29B | 5.0% | 17% |
| Asia Pacific | $229.72B | $286.80B | $368.11B | 6.1% | 48% |
| Europe | $100.96B | $123.54B | $155.42B | 5.5% | 20% |
| South America | $30.30B | $38.46B | $50.19B | 6.5% | 7% |
| Total | $484.10B | $599.09B | $762.47B | 5.8% | 100% |
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View Subscription PlansTotal Market Size
$755.82B
| APPLICATION | REVENUE ($B) | GROWTH RATE | MARKET PENETRATION |
|---|---|---|---|
| Automotive | $203.96B | 5.8% | 67% |
| Packaging | $136.70B | 5.8% | 60% |
| Electrical & Electronics | $131.29B | 5.8% | 85% |
| Building & Construction | $105.29B | 5.8% | 82% |
| Others | $86.18B | 5.8% | 53% |
| Consumer Goods | $46.28B | 5.8% | 89% |
* Revenue projections based on 2025 estimates. Growth rates represent CAGR 2024–2030. Market penetration indicates current adoption rate within addressable market segments.
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Analytical insights on Plastic Compounding Market covering market dynamics, competitive landscape, and strategic outlook.
The Plastic Compounding Market market is projected to reach $762.47B by 2023, growing at 5.8% CAGR. The Automotive segment holds the largest share.
The Global plastic compounding market is expected to grow at a healthy CAGR of 6.02% during the forecast period. The prominent growth of the automotive industry, along with the increasing use of plastic compounding in the manufacturing of vehicle components, is driving the plastic compounding market. Growing demand for plastics compounding from automotive and construction industries coupled with increasing concerns regarding depletion of conventional materials, such as wood and rubber, is expected to drive plastics compounding demand over the forecast period. Reduced reliance on heavy metals in dyes and pigments industries is expected to have a positive impact on the global plastics compounding market over the forecast period. High urbanization and industrialization in China, India, Brazil, and Mexico have created the necessity for better infrastructure. Growing residential and industrial infrastructure in these regions is expected to drive plastic compounds demand in construction. Development of major end-use industries such as automotive, electronics, and electrical among others such as wire and cable industries is expected to drive plastic compounds demand over the forecast period. Rising per capita disposable income, the growth of the packaging industry, increasing awareness of the benefits associated with plastic compounding, and the high adoption rate in many end-use industries are expected to further drive market growth.
Plastic compounding has the potential to outperform both steel and aluminum in terms of durability and weight and is widely used in the manufacturing of automotive parts. Plastic composites help better performance through enhanced fuel efficiency in today’s cars, pickups, minivans, and SUVs. With advanced technology, some plastic composites also help improve passenger safety; therefore, automotive designers rely on the versatility of plastic composites and the aesthetic possibilities when designing vehicles. Moreover, many plastic resins are recyclable. Plastic is used in automotive body exteriors, automotive interiors, chassis, electrical systems, powertrains, fuel systems, and engine components. The demand for lightweight automotive parts is driven by the need for better fuel efficiency and reduced emissions in order to comply with EPA and EU legislation. Moreover, automotive manufacturers are aligning material properties, product design, and production or assembly processes. Plastic composites are lighter than other structural metallic materials that are presently dominant such as iron, aluminum, and steel. Numerous public-private partnership initiatives have already been launched in European Union member states such as the establishment of composite and automotive lightweight materials innovation clusters (MAI Carbon Augsburg, CIC UK, AZL Aachen, Jules Verne IRT Nantes, and IMAST). This partnership will help automotive manufacturers replace metal parts in vehicles with high-performance plastic compounds. In European countries, large-scale investments have been made in setting up research centers, often in collaboration with universities and industry partners.
The growing production and consumption of plastic components have led to an increase in plastic waste. Stringent North American and European standards for waste management have compelled plastic product manufacturers to utilize scrap plastic and remold it into desired shapes. Previously, incineration and landfills were used to dispose of plastic waste; however, incineration of plastic waste results in air pollution while landfills negatively impact soil fertility. Therefore, manufacturers are focusing on utilizing plastic waste, which has helped them increase overall profitability. Furthermore, the rising use of plastic in road construction is expected to drive market growth as plastic increases the melting point of bitumen, helping retain the flexibility of roads in the winter, resulting in enhanced durability.
Raw materials used in plastic compounding include polymers, plastic additives, lubricants and solvents. PE production in North America is dependent mainly on natural gas, which is available at a very low cost in that region. PE producers in these regions are hence very competitive, keeping the resins market very tight and exporting in large quantities. Future supply-demand changes are also expected to keep prices of plastics very volatile in all global markets. Most raw materials are produced through downstream processes of petrochemicals. Volatility in crude oil prices is due to political instability, supply-demand imbalances, and seasonal variations. Global crude oil prices have been witnessing severe fluctuations over the recent past. Social unrest in major crude oil producing regions such as Nigeria, Venezuela, Iraq, Iran, and Libya have adversely affected crude oil supply, thus creating inelasticity in demand and supply balance. These factors are short-lived in the market causing immediate fall and rise in prices. However, major market players are initiating strategic alliances and increasing their production capacities to meet rising global demand and utilize low feedstock costs over the recent years.
PVC prices are slated to decrease owing to higher capacity generation (above 90% capacity utilization) and subsequent exports which will keep PVC demand higher than historic averages. Manufacturing PVC is also more integrated compared to other resins, owing to downstream integration by several industry players. Inventory levels of resins and plastics have also been rising over the recent years, which may pose a challenge to manufacturers to create profits and increase burden on consumers. The largest slump in crude oil prices were witnessed in 2009 primarily due to production cut among OPEC nations. Crude oil price per barrel was USD 42.89 in 2009. A similar trend was observed in the recent past when crude oil price slumped from USD 95.49 per barrel in 2014 to USD 44.69 per barrel in 2015. Petrochemical prices are largely influenced by crude oil prices, since the latter is a source for petrochemicals. Since major materials used in plastic compounding are largely dependent on petrochemicals, volatility in petrochemical prices is expected to challenge global plastic compounding market growth over the forecast period
Near-term growth will likely concentrate in modular bioreactor lines and closed-system media workflows that shorten validation cycles while preserving batch traceability.
Partnerships between CDMOs and instrumentation vendors should accelerate standard datasets for comparability across sites, improving forecasting models used in capacity planning.
Longer horizon, organoid and microphysiological adoption may reshape segment mix; teams that invest early in assay interoperability and cloud QC hooks are better positioned to capture upside without fragmenting their analytics stack.
Profiles of 113 companies operating in the Plastic Compounding Market market, including revenue, employee count, and market positioning where available.
Showing 113 of 113 companies
Total S.A.
Company Headquarters: France Founded: 1924 Workforce: Over 98,000 Company Working: Total S.A. is an integrated oil & gas company that operates globally. It has four operating business segments—exploration and production, gas, renewables and power, refining and chemicals, and marketing and services. The company is known for its extensive global oil & gas operations and production across 30 countries. The refining and chemicals division offers base petrochemicals including olefins and aromatics, and polymer derivatives such as polyethylene, polypropylene, polystyrene, and hydrocarbon resins.
LyondellBasell Industries NV
Company Headquarters: Houston, Texas, US Founded: 2007 Workforce: ~ 19,300 Company Working: LyondellBasell Industries NV engages in the refinery and production of plastic resins and other chemicals. It operates through the following segments: Olefins and Polyolefins-Americas; Olefins and Polyolefins-Europe, Asia, International; Intermediates and Derivatives; Advanced Polymer Solutions; Refining; and Technology. The Olefins and Polyolefins-Americas segment produces and markets olefins and co-products, polyethylene, and polypropylene. The Olefins and Polyolefins-Europe, Asia, International segment also offer olefins and polyolefins. The Intermediates and Derivatives segment includes propylene oxide and its derivatives; oxyfuels and related products; and intermediate chemicals. The Advanced Polymer Solutions segment produces and markets compounding and solutions, such as polypropylene compounds, engineered plastics, masterbatches, colors and powders, engineered composites, and advanced polymers. The Refining segment refines heavy, high-sulfur crude oil and other crude oils of varied types and sources. The Technology segment develops chemical and polyolefin process technologies and manufactures and sells polyolefin catalysts.
BASF SE
Company Headquarters: Germany Founded: 1865 Workforce: ~111,047 Company Working: BASF SE (BASF) is a chemical enterprise that engages in the manufacturing, promotion and distribution of various products, such as chemicals, plastics, crop protection and performance products. BASF SE is a German multinational chemical company that operates in six segments: Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition & Care, and Agricultural Solutions. The company is committed to sustainability and has set ambitious targets to reduce its environmental impact, including reducing greenhouse gas emissions, increasing energy efficiency, and promoting a circular economy. BASF SE offers a wide range of chemical products, including plastics, performance products, functional solutions, and agricultural solutions, among others. The company has a strong global presence with production sites in over 80 countries and a customer base that spans various industries, including automotive, construction, agriculture, and consumer goods. The company's product line encompasses a wide array of offerings, such as solvents, adhesives, dyes, surfactants, fuel additives, electronic chemicals, pigments, paints, food additives, fungicides, and herbicides. BASF serves an extensive range of industries including construction, furniture and wood, agriculture, electronics and electrical, paints and coatings, automotive, home care, nutrition, chemicals, and other related sectors. Additionally, BASF collaborates with global customers, scientists, and partners to carry out research and development initiatives. The company operates through a network of manufacturing facilities located worldwide, with a presence in Europe, Asia Pacific, South America, Africa, the Middle East, and North America. BASF and DIC had reached an agreement on the acquisition of BASF’s global pigments business with about 2,600 employees on August 29, 2019
DowDuPont
Company Headquarters: Midland, US Founded: 1883 Workforce: ~98,000 Company Working: DowDuPont is a holding company that develops agricultural products, specialty materials, and chemicals. It operates through 534 manufacturing sites and the agriculture, performance materials and coatings, industrial intermediates and infrastructure, packaging and specialty plastics, electronics and imaging, nutrition and biosciences, transportation and advanced polymers, and safety and construction segments. DowDuPont planned to create three independent companies called Corteva Agriscience, Dow, and New DuPont, where Covetra Agriscience will represent the agriculture division of the company, while Dow will represent the materials science division, and New DuPont the specialty products division. In April 2019, DowDuPont completed separation of materials science division through the spin-off of Dow Inc and is likely to complete the separation of its agriculture division in June 2019.
Lanxess AG
Company Headquarters: Cologne, Germany Founded: 2004 Workforce: ~15,441 Company Working: LANXESS AG (LANXESS) is a holding company that offers specialty chemicals, chemical intermediates, additives, specialty chemicals, and plastics. The company operates through four business segments, including advanced intermediates, specialty additives, performance chemicals, and engineering materials. The advanced intermediates segment consists of industrial chemical intermediates, chemical precursors, and specialty active ingredients. The specialty additives segment focuses on the manufacturing specialty additive chemicals, such as plastic and rubber additives, phosphorus-based and brominated flame-retardants, plastic additives, such as flame-retardants and plasticizers, and lubricants. The performance chemicals segment covers application-oriented processes and functional chemical operations. The high-performance materials segment includes plastic engineering materials. The ARLANXEO segment offering synthetic rubber is shut down since April 2018. LANXESS operates around 74 production sites in 33 countries across Europe, the Middle East & Africa (EMEA), North America, Latin America, and Asia-Pacific.
Dyneon GmbH
Company Headquarters: Minnesota, U.S. Founded: 1902 Workforce: 91,000+ Company Working: Dyneon GmbH is a subsidiary of 3M and is renowned as a world leader in advanced fluoropolymer technology. 3M is a technology-driven company that manufactures industrial, safety, and consumer products. The company operates through various segments including healthcare, automotive, security, electronics, energy, transport, telecommunication, mining, oil & gas, and others. The industrial segment provides products such as tapes, abrasives, adhesives, ceramics, sealants, and specialty materials. The healthcare segment supplies medical and surgical equipment, skin health and infection prevention products, drug delivery systems, dental and orthodontic products, health information systems, and food safety products. The safety and graphics segment offers personal protective equipment, traffic safety and security products, and commercial graphics systems, among others. 3M operated globally in the Americas, Europe, Asia-Pacific, and the Middle East & Africa.
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Plastic Compounding Market