Global plastic compounding market will reach $93.1 billion by 2028: report
Rapidly developing construction and automobile sectors are anticipated to drive the demand for interiors, exteriors, and under-the-hood components, the report from Research & Markets said.
The global plastic compounding market size is anticipated to reach US$93.1 billion by 2028, growing at a compound annual growth rate (CAGR) of 5.5% over the forecast period, a new report from Research & Markets says.
Rapidly developing construction and automobile sectors are anticipated to drive the demand for interiors, exteriors, and under-the-hood components, the research firm said, with the rising scope of application of plastic compounding in under-the-hood components in the automotive industry; in building interiors and exteriors in the construction and infrastructure industries; and in the electronics, durables, and wires and cables industries anticipated to fuel the market growth.
But the COVID-19 outbreak has affected the raw material prices of plastic compounding, the report also noted. “Recently, crude oil prices slumped due to the global pandemic,” it said. “A decline in demand, halts or slowdowns in the manufacturing industry, and restrictions in supply and travel are resulting in the reduction of crude oil prices. Thus, the raw material providers who can procure or store crude oil in the current situation can generate a significant profit margin.” The pandemic has affected the revenue generation of the companies operating in the global market, the report continued. “For instance, SABIC, one of the prominent players, witnessed a decline in revenue in the first quarter of 2020 by 18% as compared to the first quarter of 2019 due to decreased product demand as a result of challenges in supply/demand balance caused by the pandemic,” it said.
PET, recognized as a safe, strong, flexible, non-toxic, and lightweight material that’s 100% recyclable, is anticipated to drive the market growth over the forecast period, the report said, with Asia Pacific being the leading market for the PET compound segment in 2019. “Ever-increasing demand for beverages, mainly carbonated and nutritional drinks, is anticipated to drive the regional consumption of PET compounds,” the report said. “This trend is favored by a rise in population, changing lifestyles, and the emergence of domestic beverage manufacturers. The presence of a large pool of contract bottlers in the region shall also increase the scope of the packaging application segment.”
Traditionally, the construction industry has been a major consumer of plastics, and developing countries such as Mexico are expected to benefit from the rising construction spending and inclination of consumers toward utilizing sustainable and lightweight building materials in place of conventional materials. “The expanding automotive sector and changing consumer buying behavior from considering cars as luxuries to necessities are also significant factors anticipated to boost the plastics sector growth,” the report also said.