The global masterbatch market is expected to reach USD 15.81 billion by 2025
The market is anticipated to grow at a CAGR of 6.6% primarily driven by increasing replacement of metal by plastic is projected to fuel the market growth. In addition, rising demand from the European region is further expected to propel the demand over the forecast period.
In terms of revenue, color masterbatch was the largest segment in 2016 and the trend is anticipated to continue at a growth rate of 7.1% over the forecast period. Increasing need for improving the surface appearance of plastic components in automotive, building & construction, and consumer goods is expected to contribute to the growth.
Additive masterbatch is being widely used on account of various properties it imparts to plastics such as antistatic, antifoaming, antioxidant, antimicrobial, thermo-stabilizer, barrier properties, metal deactivators, antiblock, flame retardant, UV stabilizer, oxygen scavenger, and abrasion resistance. The growth of packaging sector, especially plastic packaging, is anticipated to drive the masterbatch demand.
Masterbatch is used in various end-use industries, such as packaging, building & construction, consumer goods, automotive, agriculture, as it imparts useful functional properties such as smooth surface finish and desired hardness. The increasing spending capability of customers toward purchasing attractively packaged consumer goods is expected to trigger the need for various plastic components, which use masterbatches to improve the appearance and other properties. These factors together are anticipated to boost masterbatch market demand over the forecast period.