Views: 395 Author: Site Editor Publish Time: 2022-02-03 Origin: Site
With the fast development of the masterbatch market, it is important for us to know its future trend. To be frank, the masterbatch market size 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 like mylar plastic in the automotive industry will boost the masterbatch market.
Impact of COVID-19 on masterbatch market
The demand for these masterbatches like carbon black masterbatch was greatly influenced owing to an outbreak of COVID-19 all over the world. At the beginning of 2020, many countries witnessed the COVID-19 and its adverse impact on human as well as industrial operations. A lot of industries were temporarily stopped, some even closed, which also resulted in a decline of masterbatch demand in their corresponding applications.
Color masterbatch like black color masterbatch is mainly used to impart different colors in plastic packaging materials, automotive components, consumer goods, and so on. Meanwhile, other types of masterbatch like graphene masterbatch witnessed the decline on account of a slowdown in demand for finished products. Hence, the market is expected to recover from 202.
The replacement of metals with plastics in automotive applications has been the main driving factor. There is no doubt that plastics can provide superior technical properties to metals. Engineering plastics are widely used in the automotive application for various components such as steering wheels, bumpers, and dashboards. Moreover, plastics offer better design, safety, and environmental sustainability than metals.
Furthermore, increasing awareness of environmental protection has resulted in stringent regulations for reducing vehicular emissions so currently, it is urgent for the automobile industry to use lightweight materials in vehicles. The increase in consumption of plastics in automotive applications will increase the growth of the masterbatch market. Masterbatch, like optical brightener masterbatch, especially color and additive, is widely used in coloring automotive plastics for use in the interior and exterior components of vehicles.
Restraints: Availability of low quality and cheaper products
Cheap product offerings from emerging countries, especially China, are considered as a restraint for the growth of the masterbatch market. Though high competition in the market will limit the entry of new entrants, it is possible for masterbatch manufacturers of low-quality masterbatch to challenge these barriers. The overall masterbatch market is highly unorganized, which means it is difficult for market players to cater to the growing domestic demand. Some players use low-quality masterbatch to produce products at lower costs. This masterbatch will be regarded as an unqualified product.
Opportunities: Growing demand for biodegradable masterbatch
To be honest, a biodegradable masterbatch is widely increasing in daily consumer good applications, especially in the food packaging industry. Bio-based resins which have the base material like soybean, wood pulp, sugarcane, and corn are used in additive masterbatch in the packaging segment. The waste management of the petroleum-based carrier polymers in conventional masterbatch is a major challenge. It takes several hundred years for conventional plastics to degrade.
Challenges: Non-biodegradability of plastics
Actually, masterbatch does harm to the environment, which is currently used in recycled plastics. They are mixed with certain additives such as stabilizers, flame retardants, and coloring agents. It has imposed a challenge on the manufacturers of plastic products since recycled plastics are non-biodegradable. Moreover, there are many regulations related to the use of plastics.