Plastic Color Concentrates Market size is forecast to reach $7.5 billion by 2026, after growing at a CAGR of 5.4% during 2021-2026. Globally, the increasing usage of solid masterbatches and liquid concentrates for improved colour dispersion and rapid colour development in the polymeric resins have raised the growth of the market. The increasing use of plastic color concentrates in the automotive industry, to meet economic and environmental needs by lowering vehicle weight and thereby ensuring fuel efficiency, is anticipated to create new opportunities for the growth of the plastic color concentrates industry in the forecast era. Furthermore, stringent regulations regarding plastic usage and challenges faced by companies in recycling of plastics is anticipated to hinder the growth of the market over the forecast period.
Impact of Covid-19
The COVID-19 pandemic and subsequent halt in manufacturing activities had an impact on the plastic color concentrates market growth. Due to the nationwide lockdown the automotive, packaging, and building and construction industries were set at pause. Thus, due to which the demand for plastic color concentrates declined in the year 2020. Also, insufficient supply of raw materials owing to the supply chain disruptions decreased the production rate of plastic color concentrates, which had an adverse impact on the market growth over the year 2020.
Plastic Color Concentrates Market Segment Analysis - By Form
Solid Masterbatches held the largest share in the plastic color concentrates market in 2020. In most plastic applications, solid masterbatches have major advantages over pre-colored resin compounds, liquid colour, and raw pigments due to their combination of consistency, cleanliness, storage and shelf life, ease of use, and cost-effectiveness. The compact design of solid masterbatches grains avoids dust issues that are common with fine-grained solid additives. Since solid masterbatches are solvent-free, they have a longer shelf life because the solvent does not evaporate over time. Thus, owing to such properties the growing demand for solid masterbatches is anticipated to boost the plastic color concentrates market over the forecast period.
Plastic Color Concentrates Market Segment Analysis- By Carrier
Crystalline plastic held the largest share in the plastic color concentrates market in 2020. Crystalline plastics when compared to amorphous thermoplastics have a highly ordered molecular structure which makes it a strong material. Crystalline plastics have higher heat resistance than standard amorphous plastics, lower moisture pick-up, and improved warp-resistance, and outstanding dimensional stability. Thus, due to such properties the demand for crystalline plastics such as polyethylene and polyethylene terephthalate are rising. Polyethylene (PE) is strongly resistant to heat and chemicals among crystalline plastics is used for films and buckets, whereas, highly transparent and durable polyethylene terephthalate (PET) is used for plastic bottles and egg cartons. With the rising use of crystalline plastic owing to its alluring properties, the market for plastic color concentrates is also anticipated to rise in the forecast period.
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Plastic Color Concentrates Market Segment Analysis - By Application
Automotive sector held the largest share with 25% in the plastic color concentrates market in 2020 and is projected to grow at a CAGR of 4.8% during the forecast period 2021-2026.Color concentrates are widely used in a variety of polymeric resins which is further used in the automotive applications. Some applications of plastic color concentrates include in automotive airbags due to their excellent balance of flexible design and ease of processing, and under-the-hood applications due to their excellent thermal resistance, fatigue endurance, and wear resistance. Also, plastics and composites make up the majority of electric vehicles. With the growing development of electric vehicles in various regions the market for plastic color concentrates is estimated to gain momentum in the upcoming years. For instance, according to the International Energy Agency (IEA) Organization, the projected share of EVs in 2030 in Japan is estimated to be 37%.Thus, increasing demand and production for EV’s would raise the growth of the plastic color concentrates. Furthermore, plastic components are replacing metal components, increasing the use of plastic colour concentrates in automobiles. Thus, due to these factors the demand for plastic colour concentrates is anticipated to rise with the flourishing automotive sector in the forecast period.
Plastic Color Concentrates Market Segment Analysis - Geography
Asia Pacific held the largest share with 35% in the plastic color concentrates market in 2020.Growing demand for plastic color concentrates in the form of solid masterbatches and liquid concentrates from various end use industries such as building and construction, automotive, packaging, and others. The demand for plastic color concentrates is driven mostly by the increasing production of automotive in emerging economies, such as India, Japan, and China. Also, rise in consumption of packaged food products in various Asia Pacific countries has raised the demand for packaging which has further drives the plastic color concentrates market growth. According to the India Brand Equity Foundation, domestic car production in India increased at a 2.36 percent CAGR from FY16 to FY20, with 26.36 million vehicles produced in FY20. Between FY16 and FY20, domestic car sales increased at a 1.29 percent compound annual growth rate (CAGR), with 21.55 million vehicles sold in FY20.Thus, the rising production and sale of automotive is therefore anticipated to increase the demand for plastic color concentrates in the forecast period.
Plastic Color Concentrates Market Drivers
Increasing Use of Plastic Color Concentrates in the Packaging Industry will Drive the Market Growth
Plastic color concentrates is widely used in packaging industry owing to their superior characteristics, such as chemical stability, heat resistance, and easy blend properties. From drums to pails to sleeves, plastic color concentrates are used in various packaging applications. Moreover, colored high density polyethylene (HDPE) packaging generally has better stress-crack and chemical resistance, which is especially important for applications such as household cleaners and detergents that require more durability and a longer shelf life. HDPE is also resistant to warpage, distortion, and UV light. In order to provide aesthetics packaging to the products the usage of plastic color concentrates in polymeric resins such as HDPE is rising. Also, with the rising packaging industry the demand for colour concentrates is increasing. According to the Indian Institute of Packaging (IIP), with a 26.7 percent annual growth rate, the packaging industry is forecast to hit US$ 204.81 billion by 2025, up from US$ 50.5 billion in 2019.
Rising Demand for Bioplastics will Drive the Market Growth
Plastic color concentrates are specially designed to perform well with bioplastics such as PLA, Polyhydroxyalkanoates (PHA), Polybutylene Succinate (PBS), Polybutyrate Adipate Terephthalate (PBAT) and special blends of those materials. Most importantly, these colorants do not compromise the organic recyclability of the resins. Bioplastics are currently in high demand due to their renewability and availability of raw materials, advanced functionality and technological properties. Rising use and production of bioplastics is further estimated to raise the demand for plastic color concentrates. Global bioplastics production capacity is expected to rise around 2.44 million tonnes in 2022, according to the latest industry data collected by European Bioplastics Organization in collaboration with the research institute Nova-Institute. Bioplastics are being used in a growing range of industries, including packaging, catering, consumer electronics, automotive, agriculture/horticulture, toys, and textiles, among others. Thus, with the rising use of bioplastics the market demand for plastic color concentrates is estimated to rise in the forecast period.
Plastic Color Concentrates Market Challenges
Strict Government Regulations will Hamper the Growth of the Market
Since, polymeric resins are infused with colour concentrates; strict government norms in the use of plastics have declined the growth of the market. For instance, Thailand's government approved a road map for reducing scrap plastics by 2030 in 2019. As part of the plan, by 2020 the government agreed to ban cups, plastic shopping bags thinner than 35 microns, and even plastic straws. Also, Taiwan revealed its plan to ban petroleum-based plastics in stores in 2018, beginning with a prohibition in offering bags in stores in 2020, raising the price in 2025, and eventually banning petroleum-based bags entirely by 2030. Therefore, it is anticipated that strict government regulations in the use of plastics will limit the market growth during the forecast period.
Plastic Color Concentrates Market Landscape
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the plastic color concentrates market. Major players in the plastic color concentrates market are Clariant, BASF SE, Plastics Color Corporation, A. Schulman, Inc. (LyondellBasell Industries Holdings B.V.), Ampacet Corporation, Cabot Corporation, PolyOne Corporation, Colortech Inc., Penn Color Inc., and Mexichem Specialty Compounds Inc. among others.
Acquisitions/Technology Launches
In January 2019, Ampacet Corporation a global manufacturer of masterbatch launched a blue edge 226, to improve the performance of post-consumer resins plastics by increasing the brightness of plastic film.
Key Takeaways
Rising demand for plastic packaging in the emerging economies of Asia Pacific region such as China, India, Japan, and South Korea is estimated to drive the growth of the market.
Increasing usage of plastic color concentrates make automobiles more resistant to harsh environmental conditions, as well as more appealing and robust. Thus, due to such it is increasingly being used in the automotive industry.
Since the usage of plastic color concentrates in polymeric resins provide many significant advantages over pre-colored resins, liquid colours, or raw pigments, thus, the demand for plastic colour concentrates is anticipated to rise in the forecast period.
Rising usage of bioplastics to minimize landfill waste, to have a smaller carbon footprint, and to emit less volatile organic compounds, is thus expected to drive the demand for plastic color concentrates over the forecast period.
Related Reports :
A. Color Concentrates Market
https://www.industryarc.com/Research/Color-Concentrates-Market-Research-500075
B. Plastic Additives Market
https://www.industryarc.com/Report/11654/plastic-additives-market.html
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