Global masterbatch market projected to exceed $14 billion by 2024: report

Driven in large part by the rising use of plastic alternatives for metal in automotive applications, the global masterbatch market is expected to grow at a compound annual growth rate (CAGR) of more than 5.4 per cent through 2024, a new study from market research firm Global Market Insights Inc. predicts.

“Government investment plans and a stable policy framework for automobile manufacturers in the Asia Pacific region will significantly impact market growth through 2024,” the study said. “Improved living standards in the region and growing per capita income is increasing the purchasing power of customers.”

Demand for agricultural films and biobased masterbatch materials is also expected to rise, the study noted, while the trend for eco-friendly products within industry and among consumers is driving growth in the biobased masterbatch market.

But there’s a downside: The study also reports that market growth is challenged by the rise in prices of masterbatch products as a result of heavy demand from end-user industries and the growing cost of raw materials. “Demand for masterbatch products will be negatively impacted by these factors during the forecast period,” it said. “Moreover, stringent regulations implemented by several governments across the globe regarding pigments used in food packaging, for example, will slow market demand in the coming years.”