Plastic compounding is a process where plastics are melted for use in anti-oxidants, reinforcements, and colorants. It is used to create cable insulations, flooring, pipes, doors, and others. It offers enhanced weather resistance, insulation, and energy-saving. The rising demand for improved materials from several industries is expected to enhance the demand for the plastic compounding process.
Further, manufacturers develop several additives to enhance the quality of plastics. For example, Lanxess offers its ACETINE TP LXS 51035 and BAYFERROX 360 pigment plasticizer for compounding. As per Fortune Business Insights™, the market of plastic compounding will hit USD 87.11 billion by 2026, estimating that this market’s scope is positive over the coming years.
COVID-19 Pandemic may Hinder the Process’ Adoption
The process is expected to face major challenges as manufacturing activities come to a complete halt. Increasing COVID-19 infections and manufacturing restrictions have heavily impacted the adoption of the process. However, manufacturers actively aim at adopting effective techniques to mitigate restrictions. Companies incorporate automated production techniques, reduced capacities and part-time shifts to balance their costs. Furthermore, the resumption of manufacturing activities may allow major players to continue their production activities and improve their businesses.
Factors Driving the Industry Growth
- It offers superior energy saving, improved weathering, barrier resistance, insulation, lightweight nature, aesthetic appearance, flexibility, density, and durability.
- Extensive adoption of the compounding process to develop additives may boost sales.
- The rising adoption of the process for several construction applications is expected to elevate its demand.
- The emergence of several residential and commercial projects boosts the industry growth.
- Increasing popularity regarding attractive interiors to enhance the process.
- Robust demand for lightweight materials to enhance demand.
- Escalating plastic compounding demand for low-emission vehicles.
- Rising usage in automotive part production.
- Increased vehicle efficiency.
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Factors Challenging the Market Development
- Fluctuating raw material prices restrict adoption.
- Major raw material requirements to decrease demand.
- Fluctuating raw material prices to decline adoption.
Strategies Undertaken by Key Players
The major companies in this industry have undertaken several initiatives to prevent losses. Manufacturers incorporate expansion strategies to satisfy the global demand. For example, BASF increased its plastic compounding plant production capacity in Altamira, Mexico in January 2019. This strategy may allow the company to enhance sales. Furthermore, automated production techniques may allow companies to tackle raw material shortages.
Some of the Players Operating in this Industry
- Asahi Kasei Corporation (Tokyo)
- BASF SE (Germany)
- LyondellBasell (Netherlands)
- SABIC (Saudi Arabia)
- Solvay S.A. (Belgium)
- Celanese Corporation (Texas)
- Covestro AG (Germany)
- DuPont (Delaware)
- LANXESS A.G. (Germany)
- Kingfa SCI. & TECH. CO., LTD. (China)
- Adell Plastics (U.S.)
- PolyVisions Foster Corporation (U.S.)
- KURARAY CO., LTD. (Tokyo,)
- MRC Polymers (U.S.)
- Aurora Plastics LLC (U.S.)
Increasing Utilization of Plastic Compounding for Additives and High-Quality Material Production Shall Elevate Industry Progress
As plastic compounding is extensively used for additives and high-quality material production, manufacturers may face huge opportunities. The pursuit of effective, cost-effective plastics shall boost the adoption of the process. The emergence of several industries and the rising demand for the process from several sectors may enhance utilization. Also, with increasing construction projects, the demand for plastic compounding may increase. Further, the rising demand for cost-effective and lightweight materials is expected to enhance the incorporation of manufacturing processes. Moreover, the rising popularity of the product may enhance its adoption. These factors indicate huge growth potential for the market in the coming years.
About the author:
Anirudh Rao is a graduate of Mass Communication and Journalism. He loves writing and watching films. He has a passion for business studies and expertise in paper research. Besides writing, he loves photography, cinematography, storytelling, music-making, and filmmaking.