Plastic Additives Market Size, Share & Industry Analysis, By Type (Plasticizers, Flame Retardants, Stabilizers, Impact Modifiers, Others), By End-Use (Packaging, Construction, Automotive, Consumer Goods, Others), and Regional Forecast, 2024-2032

The global plastic additives market was valued at USD 56.69 billion in 2023 and is projected to grow from USD 60.35 billion in 2024 and reach USD 93.85 billion by 2032, exhibiting a CAGR of 5.7% during the forecast period. Asia Pacific dominated the plastic additives market with a market share of 38.1% in 2023. Moreover, the plastics additives market in the U.S. is projected to grow significantly, reaching an estimated value of USD 16.44 billion by 2032, driven by the country's expanding plastic manufacturing sector.

Plastic additives are chemicals that are used to modify, process, or polymerize the end-use properties of polymers. These are added in polymers to improve the durability, heat sensitivity, and strength of these products. They are widely used as various function types, including stabilizers, processing aids, modifiers, flame retardants, and plasticizers in various industrial applications. Strict regulations implemented by the European Commission to control and regulate flame retardants and other additives on account of their adverse effects on the environment and human health will augment the global market size.

The chemical industry is one of the mainstays for industrial development in any region. Polymer is one of the major components of the chemical sector. The COVID-19 pandemic majorly disrupted the global market. Various government restrictions affected the manufacturing and supply of commodities, raw materials, and products. Most of the chemical manufacturers based in China were forced to shut down due to the outbreak temporarily. China is the key market for these additives and their raw materials and was affected by the global market substantially. The supply of raw materials was disrupted during the lockdown period, which affected the manufacturing of these additives and derivatives.

Plastic Additives Market Trends

Rising Awareness about Plastic Pollution to Drive Upcoming Market Trends

Accumulation of plastic waste due to its non-degradability is one of the major issues the world has been facing for the last few decades. Polymers are widely used for various purposes, ranging from domestic to industrial applications. The rising concerns and awareness regarding its pollution and its accumulation in soils and water bodies have led to the invention of biodegradable materials. The stringent rules imposed by governmental authorities to reduce the usage of non-degradable plastic have significantly driven the biodegradable market. Countries such as Canada and India have vowed to eliminate single-use products. This is driving the demand for the product that is responsible for biodegradability.

Manufacturers are inclined towards manufacturing additives for biodegradable polymers. For instance, in December 2019, Evonik shifted its focus towards developing solutions for recycling plastic and rubber. Vestoplast, one of the additives made by Evonik, is anticipated to be the prime product for the recycling, which involves the breaking down into its component monomers. Another example is Biotec Environmental, which has a strong product portfolio of these products and additives. EcoPure is an organic additive employed to enhance the biodegradability quotient of traditional polymer products.

Recently, companies have been focusing on developing new and enhanced products for increasing the functionality and biodegradability of the product. The invention of additives that can significantly reduce the degradation time of this product will prove to be a revolutionary achievement. The increasing use of pro-oxidant additives by the industrial sector to boost thermo-oxidation and photo-oxidation that proportionally increases the number of extractable compounds is one of the key trends supporting the plastic additives market growth.

Due to the COVID-19 pandemic, there has been a growing interest in R&D to support the use of sanitized additives with antiviral properties for polymers. For instance, Sanitized AG, a Switzerland-based antimicrobials producing company, reports that several of its product offerings are effective against the virus on non-porous surfaces. The efficacy of these products was confirmed by the tests carried out by independent laboratories in accordance with ISO 21702:2019. These additives are claimed to be effective for polymers employed in healthcare, food & beverages, transportation, and other essential applications. 

Plastic Additives Market Growth Factors

Increasing Adoption of Plastics by Various End-Use Industries to Drive Growth

Plastic is one of the most widely used materials in several end-use industries, including automotive, aerospace and defense, packaging, chemical, construction, general manufacturing, and electronics. The increasing adoption of polymers is attributed to their exceptional properties such as strength, reliability, flexibility, and the ability to withstand pressure and heat, which is driving the demand for their derivatives. This product is cheaper compared to conventional materials such as wood, metals, and composites and is therefore replacing them. This, in turn, is expected to impact the market positively.

Plastic is lightweight in nature and is therefore employed in the automotive sector. When different types of additives are added to these materials, they can serve in other application areas. For instance, flame-retardant additives are employed when it is used in construction, aerospace, and fire-fighting applications. In contrast, phthalate-free additives are used to make medical and food-grade polymers.

The packaging sector has been experiencing rapid developments over the last few decades. The increasing demand for convenience food is increasing the demand for food-grade plastic used for packaging. Additionally, the growing e-commerce sector across the world is one of the prime factors driving the packaging sector, which in turn is boosting market growth. Contributed to its lightweight nature and lower cost, it is also employed in manufacturing automotive parts. Lighter automotive parts reduce fuel consumption, which in turn increases the efficiency of the vehicle. Different standards set by regulatory authorities regarding the grades of automotive plastics have significantly increased the demand for flame retardant additives. The replacement of conventional materials with polymers in most of the end-use industries has substantially increased the demand for this additives.

Higher Adoption of 3D Printing Technology across Manufacturing Sector to Drive Market Growth

The rising adoption of 3D printing technology across industries such as aerospace, automotive, healthcare and consumer goods is expected to drive the demand for plastic additives. One of the key advantages of 3D printing is its ability to produce complex geometries and customized designs that are difficult to achieve with traditional manufacturing methods. Plastic additives play a critical role in enhancing the performance of 3D printed parts by improving mechanical strength, thermal stability, and surface finish.

In addition, additives enable the development of new materials with unique properties that facilitate manufacturing of innovative designs with specific functionalities. For instance, conductive additives can be used to create 3D printed electronic circuits, while flame retardants can be incorporated into materials for fire-safe applications. This presents opportunities for additive manufacturers to innovate and develop new additive formulations customized for the evolving needs of the 3D printing industry, driving the market growth.

RESTRAINING FACTORS

Toxicity and Environmental Effects of Phthalates May Hinder the Market

Phthalates are one of the most commonly used plasticizers that increase material’s transparency, flexibility, and durability. As a result of their lower cost, they are predominantly used to soften PVC and as additives. However, there are several possible adverse health and environmental effects associated with phthalates. For example, they get released into the environment during polymer production and are not biodegradable. They are also potential endocrine disruptors that can even cause male infertility. Moreover, high levels of phthalates in the air can deposit the substance in the body due to their high volatility. Such harmful effects can potentially hamper market growth.

Plastic Additives Market Segmentation Analysis

By Type Analysis

Plasticizers Segment to Dominate the Market owing to the Rising Demand from Several End-use Industries

On the basis of type, the market is segmented into plasticizers, flame retardants, stabilizers, impact modifiers, and others. The plasticizers segment accounted for a major plastic additives market share in 2023 as they reduce the viscosity of polymer materials and increase the flexibility of the polymers. The plasticity of polymers is altered for different requirements of different application areas. They facilitate the handling of raw materials during the manufacturing process and also alter the frictional coefficient according to the desired application. Most commonly used products are based on esters of polycarboxylic acids with aliphatic or branched alcohols of moderate-length chains. Ester plasticizers are chosen according to the evaluation based on cost and performance, toxicity, non-volatility, processability, and compatibility with the host material. However, around 90% of all plasticizers are used for the production of flexible PVC. The increasing demand for flexible PVC polymer is expected to boost the segment.

Retardants are flame-retarding additives that are added to polymer blends to manufacture fire-safe plastic products. They are widely used in the aerospace and defense sector owing to their excellent mechanical strength, tensile properties, durability, lower cost and weight, and functionality. Flame retardant additives are added to polymer blends to increase performance in high-temperature environments. PPE kits made for the protection of workers are generally made from fire-safe plastic. The increasing demand for PPE kits in the industrial sector is expected to drive the demand for flame-retardant additives.

Modifiers are additives that are used to enhance the toughness and durability of resins. Plastic and engineered plastic materials are employed in a number of end-use areas with high-strength requirements. Sectors such as automotive, aerospace and defense, military, and construction need high-performance, impact-bearing materials, where polymer is considered a cost-effective and efficient alternative. Impact modifiers enhance the performance, functionality, tensile properties, flammability, heat distortion, optical properties, and processability of plastics. Impact modifiers such as Methyl Butadiene Styrene (MBS) and acrylic modifiers significantly increase the impact resistance of PVC without altering its other properties. The high demand from end-use sectors for such strong, impact-bearing, and cost-effective additives is expected to drive the impact modifier segment.

By End-Use Analysis

Packaging Segment to Account for the Major Share due to Preference for Plastic Products

The market is segmented into packaging, construction, automotive, consumer goods, and others based on end-use. The packaging segment is expected to gain the largest share during the forecast period. Different types of products require different types of materials for packaging. A wide range of plastic materials is available in the market, including transparent, food-grade, medical-grade, opaque, porous, moisture-resistant, heat-resistant, and others. Plastic is one of the most cost-effective alternatives for other packaging materials such as metals and alloys. Moreover, convenience food is experiencing surging demand attributed to the hectic lifestyles in urban areas. The increasing demand for plastic packaging from food & beverages, medical, pharmaceutical, and other industries is anticipated to drive the market.

The automotive segment is expected to make substantial gains during the forecast period. Plastic has revolutionized the performance, aesthetics, safety, construction, and functionality of automotive parts. Plastic parts are non-corrosive, light in weight, flexible, offer thermal insulation, reduce noise, and allow efficient space utilization. Additionally, the lightweight nature of plastic reduces the vehicle's overall weight, further decreasing fuel consumption and improving the efficiency of the vehicle. Lower consumption of fuel results in the lower emission of greenhouse gases (GHGs), which adds to the advantages of plastic over conventional materials. The usage of plastic allows vehicles to comply with strict safety and emission standards and support sustainability.

Consumer goods are generally made of plastic and polymers due to the lower manufacturing costs and high functionality. Furniture, kitchen appliances, electrical appliances, toys, and other daily-use products are manufactured using plastics due to their enhanced flexibility, aesthetic properties, low weight, and other properties. Various plastics in manufacturing consumer goods are polypropylene (PP), high-density polyethylene (HDPE), and others. The rise in disposable incomes has led consumers to spend more on consumer goods. The increasing spending of consumers on home décor, furniture, and home aesthetics is expected to boost the market.

REGIONAL INSIGHTS

Asia Pacific is anticipated to hold a key position in the market share due to many manufacturers in the region. China is one of the largest producers of plastics and polymers, accounting for nearly 30% of global production. The country is a leading producer of cheap and lightweight consumer goods. Currently, plastic is one of the key materials used for packaging, and Asia Pacific is experiencing a boost in the packaging sector. The rapid increase in the e-commerce sector is promoting the growth of the regional packaging industry, which in turn is fueling the regional market growth. Additionally, rising disposable incomes lead consumers to spend considerably on home décor, decorative items, and furniture, which has boosted the furniture market in India and China. The increasing demand for Chinese goods worldwide is expected to surge the local plastic industry.

North America accounts for a significant share in the global market owing to the increasing adoption of plastics and polymers in the packaging, construction, aerospace & defense, food & beverages, general manufacturing, and automobile industries. High investments in the aerospace & defense sector for developing enhanced materials is expected to serve as an opportunity for the market in this region. Additionally, stringent regulations imposed by the Environmental Protection Agency (EPA) regarding the degradability of polymers and plastics have increased R&D spending by players to develop additives that can accelerate the degradability of plastic. This is anticipated to impact regional plastic additives consumption positively.

Europe is a major automotive manufacturing region with highly developed production technologies. The increasing adoption of lightweight parts in making automotive components to increase the efficiency of vehicles is expected to boost the regional market. Increasing R&D for developing non-toxic plastic products is expected to boost the local market. Strict rules imposed by the European Union (EU) regarding the use of phthalates in food and medical applications are expected to act as an opportunity for developing new and enhanced polymer additives. Additionally, rising consumer awareness regarding the emergence of various diseases and viruses has significantly increased the use of medical devices and instruments. The increasing demand for such instruments in the European healthcare sector will potentially fuel market growth.

Latin America is experiencing considerable growth in the mining industry. Major players manufacturing PPE materials for mining workers primarily use the material. Increasing mining activities are encouraging market growth. The increase in the demand for food-grade polymers is surging the demand for phthalate-free plastic additives in the region.

List of Key Companies in Plastic Additives Market

New Product Launches, Collaborations, and Acquisitions are the Top Strategies of Key Players

The global market is competitive with the presence of numerous local and international players. Some of the key players include Songwon Industrial Co. Ltd, Clariant AG, Evonik Industries, Kaneka Corporation, BASF SE, SABIC, and others. Some producers maintain a competitive edge through product development strategies, optimization of production processes, and technological innovations. Several companies have been making breakthrough applications across major growth sectors such as packaging, electronics, automotive, consumer goods, and others, where companies are responding to the demand for increased sustainability.

LIST OF KEY COMPANIES PROFILED

• Songwon Industrial Co. Ltd. (South Korea)


• Clariant AG (Switzerland)


• BASF SE (Germany)


• Dow Chemical Company (U.S.)


• Evonik Industries AG (Germany)


• Kaneka Corporation (Japan)


• Lanxess AG (Germany)          


• SABIC (Saudi Arabia)


• ExxonMobil Chemical (U.S.)


• Mitsui Chemical (Japan)

KEY INDUSTRY DEVELOPMENTS

• October 2022 – BASF launched biomass balance plastic additives. The new range of additives is designed to replace the fossil feedstock with renewable raw materials. Few of the offerings include Irganox 1010 BMBcert and Irganox 1076 BMBcert antioxidants. These products are certified by TÜV Nord for mass balance according to the International Sustainability and Carbon Certification (ISCC PLUS).


• January 2021 – BASF has launched a portfolio brand name for plastic additives that enable the consumers to meet the sustainability goals. The portfolio will continuously meet customer needs and expand to include additive packages for mechanically recycled plastics.


• March 2020 – Clariant and Floreon announced a collaboration to expand the performance and market potential of biopolymers. By integrating Clariant’s additives with the materials of Floreon, the collaboration targets to open up additional possibilities for manufacturers.


• March 2021 – REPI, a high-performance liquid color, and additive solutions supplier acquired Novosystems GmbH, an independent European player in liquid colors and additives. With the acquisition, the company strengthens its position in polyurethanes and plastics markets and improves the Group’s geographical footprint in Northern Europe and Central.


• April 2020 – BASF SE signed an agreement with Security Matters to accelerate the progress toward a circular economy for plastics. In this collaboration, Security Matters will contribute its technology to the digital and physical tracking of closed-loop recycling and improve plastic waste sorting and sustainability claims. This partnership will leverage BASF’s expertise in the plastic additives segment, regulatory know-how, and understanding of the value chain.

REPORT COVERAGE

The global plastic additives market research report provides a detailed analysis of the market. It focuses on key aspects, such as leading companies, product types, and leading end-use of the product. Besides this, the report offers insights into the current market growth trends and forecasts, competitive landscape and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the advanced market in recent years.

Report Scope & Segmentation